Country keen on forging farm-trade ties with neighboring Cambodia

via Khmer NZ

Written by Jennifer A. Ng / Reporter

Wednesday, 07 July 2010 19:11

AGRIBUSINESSMEN who are joining the first trade-investment mission to Cambodia are keen on forging farm-trade ties with Phnom Penh.

The first trade-investment mission to Cambodia, which will be held from July 8 to 10, will showcase Philippine-made products.

“One of the areas which we can explore is the possibility of a countertrade agreement with Cambodia,” said Pablito M. Villegas, a member of the Organic Producers and Trade Association and convenor of the Inter-Continental Network of Organic Farmers Organizations.

Villegas, who will be joining the trade mission, said the Philippines can export farm-related products such as postharvest equipment and fertilizer to Cambodia. In turn, Manila could import cheaper rice from Phnom Penh.

Adm. Noe Albano Wong, Philippine ambassador to Cambodia, said the matter of countertrade agreement is something that can be “explored.”

“We are interested in anything that will improve bilateral relations [with other countries],” said Wong in a telephone interview.

The Philippines has a strong countertrade policy. By virtue of Executive Order 120 issued in 1993, government-owned and -controlled corporation Philippine International Trading Corp. administers and manages the countertrade program of the government.

Villegas noted that Cambodia produces 6 million metric tons (MMT) to 7 MMT of rice every year. Of this, around 2 MMT to 3 MMT serve as surplus.

“If we come up with a countertrade agreement or if we resort to direct negotiations, maybe we can buy Cambodian rice 25 percent cheaper than the prevailing market rate,” he said.

Bilateral trade between the Philippines and Cambodia, Villegas noted, is estimated at $12 million.

Other areas of interest for the Philippines are Cambodia’s tourism industry, as well as garments and textiles.