Background
On 19 January 2023, during the 2023 World Economic Forum Annual Meeting in Davos-Klosters, Switzerland, the Minister of Commerce of Cambodia, Pan Sorasak, held a bilateral working meeting with Helene Budliger Artieda, State Secretary at the State Secretariat for Economic Affairs of the Swiss Confederation. The meeting focused on the state of economic cooperation and trade relations between Cambodia and Switzerland.
The Minister recalled that diplomatic relations between the two countries were established in 1963 and have led to consistently positive ties up to the present. Against this backdrop, the parties reviewed the evolution of bilateral trade and opportunities to further deepen economic engagement.
Scope of Application
The discussion concerned bilateral economic and trade cooperation between the Kingdom of Cambodia and the Swiss Confederation. It covered overall trade flows between the two countries, potential future trade arrangements, and Swiss development assistance in various economic and social sectors in Cambodia.
Key Provisions or Decisions
During the meeting, the Minister of Commerce noted that bilateral trade between Cambodia and Switzerland has increased year-on-year. He cited total trade of approximately USD 379 million in 2020 and more than USD 974 million in 2021.
The Minister and the Swiss State Secretary discussed examining the feasibility of establishing a free trade agreement between Cambodia and Switzerland. This potential agreement is intended to strengthen and expand economic cooperation and relations between the two governments and their economies.
The Minister expressed appreciation to the Government of Switzerland for its assistance and development programs in several sectors in Cambodia, including good governance, citizen participation in the agricultural sector and food security, as well as vocational and skills training and employment.
In response, Helene Budliger Artieda welcomed the initiative to explore a free trade agreement and reaffirmed that the Swiss Government has supported, and continues to support, Cambodia during its transition process and in its efforts to develop the national economy. She also commended Cambodia’s success in containing the spread of COVID-19 and congratulated Cambodia on serving as ASEAN Chair in 2022.
Implications for Investors, Businesses, or Compliance
The meeting signals mutual interest by Cambodia and Switzerland in deepening economic and trade cooperation, including through a potential bilateral free trade agreement. While no binding commitments or timelines were announced, the indication that both sides will examine the feasibility of such an agreement may be relevant for businesses engaged in, or considering, trade and investment between the two countries.
Current trade volumes and the stated growth from 2020 to 2021 highlight an expanding bilateral commercial relationship. Swiss development support in areas such as agriculture, food security, and vocational training may also indirectly benefit private sector operations in those sectors in Cambodia. Any future decisions on negotiating or concluding a free trade agreement would require further formal announcements and instruments.
Official Source
The information is based on an official communication from the Ministry of Commerce describing the Minister’s bilateral meeting with the Swiss State Secretary for Economic Affairs on the margins of the 2023 World Economic Forum Annual Meeting in Davos-Klosters, Switzerland.
