With the Regional Comprehensive Economic Partnership (RCEP) set to come into force in January 2022, the agreement’s e-commerce provisions will play a crucial role in facilitating trade digitalisation and cross-border trade, of particular importance for Cambodian MSMEs. These themes were addressed during the first Public-Private Dialogue in the new Unpacking the RCEP Agreement series. Focusing on ‘The RCEP E-commerce Provisions and What They Mean for Cambodia’, it was organised by ERIA’s Capacity Building Programme and co-hosted by Cambodia’s Ministry of Commerce. With over 100 participants, this Dialogue was an opportunity to discuss the benefits and challenges of the e-commerce provisions with the private sector, alongside government and trade experts.
Mr Sven Callebaut, International Trade Consultant for ERIA’s Capacity Building Programme moderated Sessions 1 and 2, with Mr Danny Burrows, Founder and Principal of TradeWorthy Ltd. moderating Session 3. Mr Jeremy Gross, ERIA’s Director of Capacity Building of ERIA was the host of the Dialogue.
HE SOK Siphana, Senior Advisor to the Royal Government of Cambodia, stated that in the Cambodian context, the RCEP e-commerce provisions are suitable especially for young entrepreneurs. However, he added that it will take time for the benefits to be seen as the domestic regulatory framework needs to align with RCEP. He also noted that although the e-commerce chapter needs further elaboration on data protection, the agreement will promote new opportunities and investment.
Dr Deborah Elms, Executive Director of the Asian Trade Centre, highlighted three issues that need to be developed further: data information flows, data localisation and the customs moratorium. However, trade in goods e-commerce will still benefit from tariff cuts. In her opinion, RCEP can create new business opportunities, but the full benefits will be delayed as not all AMS have yet ratified the agreement.
Ms SRENG Nearirath, Deputy Head of Banking and Finance Practice Group, DFDL Mekong, Cambodia, focused on the regulatory environment. She spotlighted fintech and payment getaway as the services in demand, but noted weaknesses around data protection for robust e-commerce development. She went on to discuss actions needed to apply for the mandatory e-commerce licenses and permits, adding that the e-commerce regulations adopted in 2019 is still generally aligned with RCEP.
