Cambodia Update: Tensions Rise as U.S. Proposes Targeted Economic Sanctions against Cambodia

U.S. Proposes Targeted Sanctions Against Cambodian Officials

On May 17, the Foreign Affairs Committee of the U.S. House of Representatives passed a bipartisan draft bill to enact targeted economic sanctions against Cambodia, in light of the Hun Sen government’s continuing crackdown on political opposition, civil society, and media outlets. Known as the Cambodian Democracy Act of 2018, H.R. 5754 would impose asset freezes and continue to implement visa restrictions upon key military and security officials as well as high-ranking members of the ruling Cambodian People’s Party (to access H.R. 5754, please click here).

For the draft legislation to move forward, the House Committee on Rules must first determine under what rule the bill will come to the House floor for a full vote. However, the Cambodian Democracy Act is not Congress’s first attempt to formally condemn the Cambodian government. This past February, a Senate bill imposing harsher sanctions and precluding Cambodia from any debt renegotiation, S. 2412, was introduced to the Senate Foreign Relations Committee but has yet to have a Committee-wide markup (to access S. 2412, please click here). Looking abroad, the European Union has also been considering reneging on a preferential trade arrangement with Cambodia, among other measures.

The proposed U.S and EU measures against Cambodia are in response to recent actions the Cambodian government has taken, including the arrest of Kem Sokha, the leader of the main opposition, the Cambodia National Rescue Party (CNRP); dissolving the CNRP; and banning CNRP members from politics. The Cambodian government concurrently began imposing restrictions on media outlets, such as the Khmer Times and Phnom Penh Post, and other civil society institutions. The White House responded by imposing travel restrictions upon Cambodian officials in December and suspending certain aid programs to Cambodia in February. On May 17, the U.S. State Department “called into question the integrity of the electoral process,” in advance of the general election planned for July 29 (to access the U.S. State Department’s press release on Cambodia, please click here).

The Cambodian Government has responded to these actions with heightened anti-U.S. rhetoric. It deems any potential economic sanctions on the basis of alleged political crackdown as “violating the independence and sovereignty of Cambodia,” according to government spokesperson Phay Siphan. Prime Minister Hun Sen also responded to the threat of sanctions by playing the United States against China, one of Cambodia’s most important economic partners. While breaking ground for the construction of a Chinese-funded bridge in February, Hun Sen asserted the following: “Let me ask those of you who have accused me of being too close to China. What have you offered me besides cursing and disciplining me and threatening to put sanctions on me?”

Former members of the CNRP exiled from Cambodia have welcomed the Cambodian Democracy Act as an effective method of coercing the Hun Sen government. This includes Kem Monovithya, daughter of Kem Sokha. Monovithya has been a strong voice for Cambodian political rights and democracy in the international arena and has been lobbying both the United States and European Union to take accountability measures against the Cambodian government. Sam Rainsy, former CNRP President and co-founder, has also publicly supported the sanctions and called for more hard-hitting measures, including sanctioning Cambodia’s garment industry. Since the industry comprises a large sector of the Cambodian economy and the United States is the country’s main importer, garment sanctions could lead to workers’ strikes and internal strife.

If the Cambodian political climate continues on its current trajectory, and if the July elections proceed in a manner the United States deems undemocratic, calls for economic sanctions and other measures may grow louder. The Council will continue to closely monitor developments on that front and keep members apprised.

EU to review Cambodia’s EBA status Phnom Penh Post 1st May 2018
The European Union has announced a “dedicated” mission to Cambodia to monitor its Generalised Scheme of Preferences, the agreement under which Cambodian goods reach the crucial European market tariff-free. In a response to questions by parliamentarians about the political situation in Cambodia, European Commission Vice President Federica Mogherini, also the bloc’s top foreign affairs official, said on Thursday that “respect of human rights and fundamental freedoms is part of the EU’s trade policy and underpins the legal basis of our trade preferences”.

Parties deny they exist for purpose of adding legitimacy to elections Phnom Penh Post 25th May 2018
Several of the 20 political parties registered to contest in the July 29 national elections denied on Thursday that they were “created” purely to add legitimacy to the polls and stave off criticisms against Prime Minister Hun Sen and his Cambodian People’s Party (CPP). Mam Sonando, who founded the Beehive Social Democratic Party (BSDP), previously joined forces with the now dissolved Cambodian National Rescue Party (CNRP), which was the main opposition party in the Kingdom.

Cambodia's election committee says 20 political parties to contest in July national poll - Xinhua | English.news.cn Xinhua 24th May 2018
PHNOM PENH, May 24 (Xinhua) -- Cambodia's National Election Committee (NEC) had officially recognized all of the 20 political parties that registered to contest the July national election, according to local media's report on Thursday. "In total, 20 political parties have been officially recognized by the NEC," said a NEC's statement. Among the recognized parties are the ruling Cambodian People's Party (CPP) of Prime Minister Samdech Techo Hun Sen, the royalist Funcinpec Party of Prince Norodom Ranariddh, and the Grassroots Democracy Party.

Union group fears for future of EU trade deal Phnom Penh Post 17th May 2018
The Cambodian Confederation of Unions (CCU) on Wednesday issued a statement expressing its concern that the upcoming election will impact garment workers, and that if the political climate isn’t improved they could face dire consequences in the form of sanctions or boycotts. CCU noted international concern has been growing beyond the Kingdom’s borders since the detention of the CNRP’s ex-President Kem Sokha last year, and the party’s dissolution. It was also noted by the confederation that much of the outcry has come from nations that import heavily from the country’s garment and textile industry.

Kingdom’s rice exports drop despite deals Phnom Penh Post 9th May 2018
Cambodian rice exports have dramatically declined over the past four months compared to the same period last year, causing significant concern for the rice industry even as plans are in the works to expand exports by thousands of tonnes, according to government officials. The data, released by the General Department of Agriculture yesterday, show that total rice exports in the first four months of this year totalled 197,354 tonnes, compared to the 212,394 tonnes exported in the same period last year, a year-on-year decrease of 7 percent.

Those on the edge feel bite of rising gas prices Phnom Penh Post 25th May 2018
The retail price of petrol in Cambodia rose again on Tuesday, upsetting many who work in low-paying jobs, like tuk-tuk drivers and food vendors. For 10 days through June 1, the price of petrol will be 4,300 ($1.058 at Tuesday’s exchange rate) a litre, up 200 riel from the preceding period, according to an announcement by the Ministry of Commerce on Tuesday.

Growth steady for Kindgom’s MFI loans Phnom Penh Post 18th May 2018
The loan portfolio and deposit amount in Cambodia’s microfinance sector has seen noticeable growth this year, while the number of borrowers has stayed constant and bad loan ratio has been declining slightly, according to data from the Cambodia Microfinance Association (CMA). CMA’s data showed that the total amount for outstanding loans of the association’s members was $4.62 billion at the end of March. That total is up from $3.32 billion at the same time last year. Deposits in the industry were at $2.2 billion up from $1.62 billion in March of 2017.

Government urged to move fast on draft organic food law Phnom Penh Post 25th May 2018
The private sector has called on the government to speed up enacting the organic food law, which is currently languishing in the draft stage. Having the law, it said, will provide product recognition. Ten Ra, the technical adviser on trade facilitation and standards for German development agency GIZ, said a national organic food law is an important key to build trust in the market.

Disaster agency stockpiling rice and seeds for flood prep Phnom Penh Post 25th May 2018
National Committee for Disaster Management spokesman Keo Vy said on Wednesday that the government had stockpiled 12,000 tonnes of rice and crop seeds to support Cambodians in rural areas facing natural disasters such as droughts and floods. Vy said natural disasters are notably caused by climate change and are a great concern in the Kingdom, impacting economic and social development.

Cambodia Seeks India’s Assistance in Agro-Processing and Export AKP 21st May 2018
Cambodian Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen urged here this afternoon India to help Cambodia in the processing and export of Cambodian agricultural products and to establish direct flight between the two countries in order to boost tourism. According to H.E. Eang Sophalleth, Assistant to the Cambodian Premier, the request was made by Samdech Techo Hun Sen while receiving visiting Minister of Commerce and Industry of India H.E. Suresh Prabhu, at the Peace Palace this afternoon, on the sidelines of the 5th India-CLMV (Cambodia, Laos, Myanmar, Vietnam) Business Conclave being held in Phnom Penh. Samdech Techo Hun Sen expressed his support to the cooperation between India and the CLMV countries, hoping that it will help reducing the development gap between the newer and older member states of ASEAN. H.E. Suresh Prabhu highly appreciated the long-lasting relationship between both nations and told the Prime Minister of his visit, the purpose of which is to discuss the cooperation with the CLMV countries in the fields of tourism, including direct flight, agro-processing and export, health, education and so on.

Cambodia To Host 5th India-CLMV Business Conclave Next Week AKP 17th May 2018
Cambodia is going to host the 5th India-CLMV Business Conclave in Phnom Penh early next week, said the Ministry of Commerce in a recent news release. This meeting to take place on May 21-22 aims at promoting and tightening the economic, trade, culture, and tourism relations between India, Cambodia, Lao PDR, Myanmar, and Vietnam, it pointed out. The upcoming event will also give opportunity to traders to find trade and investment partners, share information through sectoral discussions, it added. According to the same source, the 5th India-CLMV Business Conclave will bring a lot of benefits to Cambodia under the regional integration cooperation in the areas of trade, economy, industry, agriculture, health, tourism, transportation, real estate, education, ITC, and professional training between the five participating countries. The 4th India-CLMV Business Conclave was held in Jaipur, India in February 2017.

Farmers Encouraged to Use State Food Safety Screening Lab VOA 5th May 2018
Cambodian farmers and agri-business firms are being encouraged to use a state-run laboratory to analyze the quality and safety of their produce in a bid to build trust with consumers. A recent decree by the agriculture minister, Veng Sakhon, stated that the new control measures were intended to protect public health and promote better export-quality goods.

DPM Sar Kheng and Swiss Ambassador Discuss Strategic Cooperation AKP 21st May 2018
Deputy Prime Minister and Minister of Interior and Ambassador of Switzerland to Cambodia have discussed about strategic cooperation. Deputy Prime Minister, Samdech Kralahom Sar Kheng, and visiting Bangkok-based Ambassador of Switzerland to Cambodia H.E. Ivo Sieber held the talks recently here in Phnom Penh. On the occasion, the Swiss ambassador presented to Samdech Kralahom Sar Kheng the gist of 2018-2021 strategic cooperation between the Mekong countries – including Cambodia – and Switzerland. Speaking highly of swift progress of Cambodia, the ambassador acknowledged Cambodia as a key player in the strategic cooperation framework. H.E. Ivo Sieber also reiterated his government’s commitment to continue contributing to the development of Cambodia, particularly in the area of vocational training, agriculture, local governance – well aligned to the set United Nations Sustainable Development Goals towards 2030.

CWEA Encourages Higher Standard of Sanitary and Phytosanitary AKP 18th May 2018
Cambodia Women Entrepreneurs Association (CWEA) has encouraged internationally standardised sanitary and phytosanitary in Cambodia toward broader exports to international markets. With years of experience in leading CWEA and in the sector, Ms. Keo Mom – Director of a Cambodia’s leading food industry called Ly Ly – made the point, emphasising that sanitary and phytosanitary remain Cambodia’s biggest challenge for exports among small and medium-sized enterprises (SMEs). Despite the hard work of the Royal Government of Cambodia as well as concerned ministries, she continued, Cambodia’s production standards have gained limited acceptance by the international markets.

Minister of Agriculture Discusses Future Investment with Czech Delegation AKP 17th May 2018
Minister of Agriculture, Forestry and Fisheries H.E. Veng Sakhon has granted a discussion meeting to a delegation from the Embassy of the Czech Republic to Cambodia. In the meeting taking place on May 16 at the ministry office here in Phnom Penh, the Czech delegation – H.E. Vlastimil Tesar, head of mission, and Mr. Stepan Vojnar, head of economy and commerce section – intended to explore future investment cooperation with Cambodia, particularly in agriculture.

Minister of Agriculture Discusses Animal Health Control with OIE Delegation AKP 17th May 2018
Minister of Agriculture, Forestry and Fisheries has received a delegation of the World Organisation for Animal Health – known in short as OIE – to discuss about animal health control in Cambodia. According to the May 16 post on the Facebook page of the Ministry of Agriculture, Forestry and Fisheries, certified animal health control is vital for Cambodia to export animal products to both regional and international markets. From the meeting taking place yesterday at the ministry office here in Phnom Penh, H.E. Minister Veng Sakhon received updates on a two-week assessment study of visiting OIE delegation led by Dr. John Weaver on Cambodia’s existing animal health control mechanisms.

WB: High Growth in Cambodia Expected to Continue AKP 10th May 2018
The Economic growth in Cambodia remains robust and is projected to accelerate slightly to 6.9 percent in 2018, compared with 6.8 percent in 2017, buoyed by a rebound in textile and apparel exports as well as tourism and agriculture, says a new World Bank report. Rising government spending and favourable global conditions, including robust demand in advanced economies, are expected to underpin Cambodia’s high growth trajectory, according to the latest Cambodia Economic Update (CEU), a biannual report that provides up-to-date information on macroeconomic developments in Cambodia, both in the short and medium term, launched today.

Southeast Asia's race to combat growing cancer crisis Southeast Asia Globe Magazine 21st May 2018
In a stark white office on the second floor of the newly inaugurated National Cancer Centre (NCC) in Phnom Penh’s Calmette Hospital, Eav Sokha, director of the centre, sits jovially sketching a rough map of the Kingdom on a scrap of paper. “In the future, we expect to establish a national cancer network triangle,” he says with a smile, pointing at the NCC and two future centres planned in Siem Reap and the northeastern region of the country. “That is our dream. With these three cancer centres established, the goal is to cover 70% of our total cancer patient population.” The groundbreaking NCC, a $36m project that opened at the beginning of this year, is one of only two facilities where cancer patients in the Kingdom can receive treatment. The other, Phnom Penh’s Khmer-Soviet Friendship Hospital, could treat only about 500 out of 15,000 cases per year. The NCC can currently treat 1,000 new cases per year, with a goal of 2,000.

Health Ministry’s Secretary of State Holds a Get-Together with Teachers and Medical Staff in Takeo Province AKP 10th May 2018
Secretary of State for the Ministry of Health H.E. Sok Pheng speaks to participants while he was presiding over a get-together with local teachers and medical staff in Prey Kabas district, Takeo province on May 09.

Handover Ceremony of 20 Mobile Clinics from China to Cambodia AKP 10th May 2018
Cambodia’s Minister of Health H.E. Mam Bunheng receives a symbol key from Chinese Ambassador to Cambodia H.E. Xiong Bo while they were presiding over here this morning the Handover Ceremony of 20 Mobile Clinics from the Government of the People’s Republic of China as a grant aid to the Royal Government of the Kingdom of Cambodia.

Bootleg Liquor, Not Water, Killed Cambodian Villagers VOA Cambodia 7th May 2018
A senior Cambodian health official says 14 villagers whose sudden deaths were thought to have been caused by polluted water actually died from drinking rice wine containing methanol. Health Ministry spokesman Ly Sovann also said Monday that 214 people had fallen ill from drinking water that was contaminated with human or animal waste or insecticide.

Why businesses should be looking to the future Phnom Penh Post 23rd May 2018
Advanced technology and the digital transformation in Cambodia are set to usher in a bright future. And businesses in the Kingdom should react to this changing landscape to improve their competitiveness, experts said on Tuesday. Speaking at the Digital Transformation Workshop, “Leveraging on Internet of Things, Artificial Intelligence, Big Data and Cloud Computing”, on Tuesday, Tram Iv Tek, the minister of posts and telecommunications, said the time had come to start planning for the future, and build skills and infrastructure in artificial intelligence and the Internet of Things (IoT) to take advantage of such new technologies.

Long way to go before Cambodia gets a ‘smart city’ Phnom Penh Post 23rd May 2018
Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up to 26 regional hubs by getting them to work together towards a common goal of sustainable urban development enabled by technology.

Meeting lauds importance of advancing tech in labour Phnom Penh Post 11th May 2018
Meeting lauds importance of advancing tech in labour Government officials said on Wednesday that the country’s labour sector still needs time to adapt to the digital economy, while encouraging the industry to embrace technology that would allow them to remain competitive. The Ministry of Economy and Finance yesterday held a workshop focusing on entrepreneurship within the digital economy. The meeting aimed to outline current challenges and obtain input from the private sector. Vongsey Vissoth, secretary of state at the Ministry of Economy and Finance, told attendees that Cambodia is in the first stage of a policy framework that would work to bring the sector up to a higher technological standard. The five-year strategy seeks to move the Kingdom up from its current status as a lower-middle-income country.

Cambodia seeks advice on going digital Khmer Times 10th May 2018
In a bid to incorporate private sector input into its strategy to help the country transition to a digital economy, the Ministry of Commerce held yesterday a forum on entrepreneurship in the digital age. Speaking at the Forum on Digital Economy and Entrepreneurship yesterday, Vongsey Vissoth, Secretary of State at the Ministry of Economy and Finance, said a plan to adapt to the fourth industrial revolution is needed to keep up with the rest of the world and to reach middle-income country status. “We are gathered here to discuss a strategy to digitalise Cambodia’s society and economy,” he told an audience composed mostly of businesspeople. “It is a hard task ahead of us, but we must find ways to adapt to new trends,” he said.

The new owner of Cambodia's last independent newspaper has purged staff for writing about its sale New Haven Register 8th May 2018
Cambodia's last independent English-language newspaper, The Phnom Penh Post, has been purged of staff after it ran an article about the paper's sale. At least six staff, including Editor-in-Chief Kay Kimsong, have resigned or been fired since the paper's new owner, Sivakumar S Ganapathy, demanded staff takedown an article published on Sunday about the sale.  In a statement, the owner said the article is a "disgrace and an insult" to the paper's independence, "smells of malice," and "borders on internal sabotage," highlighting several issues including the initial "S" was missing from his name. He also mentioned three staff by name to be terminated. Nearly two dozen current and former staff members released a statement on Monday evening, condemning the new owner's demands.

More walkouts over new ownership of embattled Cambodian newspaper The Jakarta Post 8th May 2018
Seven more journalists resigned from Cambodia's embattled Phnom Penh Post on Tuesday as foreign staff revolt against new ownership accused of crushing the newspaper's independence. Concern over the fate of the English-language daily has been mounting since it was sold on Saturday to a Malaysian investor whose PR firm once worked for Cambodia's authoritarian Prime Minister Hun Sen. Hun Sen's government has taken a hammer to the fragile democracy's once-vibrant media scene over the past year, leaving the Post as one of few remaining watchdogs in the graft-riddled country. The paper's main rival, the Cambodia Daily, and dozens of radio stations were shuttered last year as part of a wider crackdown on critics ahead of 2018 polls that Hun Sen is determined to win. Now many fear the Post's independence will be compromised under a new owner, Sivakumar Ganapathy, who is the CEO of a public relations firm that lists Hun Sen as a former client.

Editor of renowned Cambodia paper fired by new owners Digital Journal 7th May 2018
Crisis gripped Cambodia's last independent newspaper Monday as the editor-in-chief was fired by its new owner over a front-page article on the sale, while several senior reporters resigned in protest at the apparent attack on editorial integrity. The 26-year-old Phnom Penh Post was sold to Malaysian investor Sivakumar S Ganapathy over the weekend for an unknown sum. Since then the newspaper, once respected for its fearless, independent reporting, has gone into meltdown -- the latest unravelling of a prominent media organisation under the watch of Cambodia's increasingly authoritarian premier Hun Sen. Editor Kay Kimsong said he was sacked for signing off on a piece exploring the implications of the sale.

Eastern rail link gears up for service Phnom Penh Post 15th May 2018
The Ministry of Public Works and Transport (MPWT) expects to begin service on a 107-kilometre train route from Battambang to Pursat on May 29, saying on their Facebook page that officials are actively working on restoring the track. “Our officials are working tirelessly, both day and night, to begin the train service through the plan that will [be launched] in May this year,” MPWT said in its Facebook page on Sunday.