Phytosanitary measures still remain one of the trade barriers between Cambodia and China and updating them would pave way for increasing agricultural exports to the world’s second-largest economy, a research paper published by a leading regional institute observed.

The study published by researchers at Yusof Ishak Institute under the title ‘Perspectives’ gives special focus on Cambodia-China Free Trade Agreement ‘from a Cambodian perspective’.

Sanitary and phytosanitary measures are quarantine and biosecurity measures, which are applied to protect human, animal or plant life or health from risks arising from the introduction, establishment and spread of pests and diseases and from risks arising from additives, toxins and contaminants in food and feed.

The study observed that Cambodia-China Free Trade Agreement (CCFTA), which came into force in January 2022, has provided Cambodia with renewed impetus to enhance trade facilitation and expand its trade portfolio. “This is in line with the objectives of its Rectangular Strategy (2018-2023) and the economic diplomacy initiative that it launched in January 2021.

“Cambodia stands to gain significantly in exporting its agricultural products to China under the CCFTA. The potential for growth in that area is massive. Cambodia’s tariff reduction and elimination offer is 90 percent, while China’s is 97.53 percent.

“To make the most of the opportunities provided by the CCFTA, Cambodia requires assistance in terms of improving sanitary and phytosanitary measures, conducting research and development to improve its export capacity and competitiveness, and establishing public-private partnerships to facilitate trade,” the study asserts.

China has emerged as the world’s biggest importer of Cambodian milled rice, now accounting for more than half of the market share – versus just three percent a decade ago – and is expected to further strengthen its dominance going forward.

Speaking to Khmer Times, Prof Cheang Hong, Dean, Faculty of Agriculture Science at Royal University of Agriculture Phnom Penh, said China is the most important partner of Cambodia in the agriculture sector. “China is the second largest consumer market in the world and Cambodia can tap this great opportunity, acknowledging the geographical proximity.

He said, under the framework of greater agricultural cooperation, Chinese experts can also offer assistance to the Kingdom in achieving the highest phytosanitary standards. “Cooperation in the agriculture sector between China and Cambodia has seen unprecedented growth during the recent years with many joint research projects being carried out.”

Milled-rice sales to China have reached about 200,000 tonnes year-to-date, or the equivalent of half the official annual tariff-free quota allowance of 400,000 tonnes for Cambodian milled rice.

In 2019, Chinese authorities granted import permission to Cambodian bananas, making them the first Cambodian fresh fruit to receive market access to China. The growth has been driven by more Chinese companies investing in plantations and in the banana production and export infrastructure in Cambodia.

In early 2022, China completed the risk assessment of Cambodian Pra fish, sweet corn, and longan in addition to banana and mango. These products can now be shipped directly to China. Currently, 74 longan plantations and eight longan packing plants have been registered and recognised by the Ministry’s General Department of Agriculture and the General Administration of Customs of China. Until now, Cambodia has exported 27 kinds of agricultural products to China.

The National Policy on Cassava 2020-2025 of Cambodia has been a significant step towards developing Cambodia’s cassava industry and China’s emergence as a key export market for Cambodian cassava is a positive development.

Peppercorn is another key Cambodian agricultural product. In November 2022, the General Administration of Customs of China gave the green light for Cambodian peppercorn exports to China after the Protocol of Phytosanitary Requirements for Export of Peppercorns from Cambodia to China was signed by Cambodia’s Ministry of Agriculture, Forestry and Fisheries and the General Administration of Customs of China.

According to Dith Tina, the Cambodian Minister of Agriculture, Forestry, and Fisheries, Cambodia has not yet signed the protocols for various vegetables and fruits. “Cambodia will soon negotiate access to the China market for export of a number of agricultural products.”