PHNOM PENH – Cambodia’s negotiation team, led by Deputy Prime Minister Sun Chanthol, has held its first meeting with the US Trade Representative over the April tariff hike and will have a second round of talks on May 2, Prime Minister Hun Manet says.

He said the negotiations are complex but will not be a hurdle for the government to protect the country’s export-driven economy.

Washington had initially imposed tariffs of 49% on Cambodian exports to address the trade balance. The increase was later halted for 90 days pending negotiation and the rate was dropped to 10% during the period.

The US plans to impose tariffs of up to 3,521 percent on solar panels from Cambodia, following anti-dumping and countervailing duty investigations filed a year ago by the US and other solar manufacturers, focusing on unfair practices in the US domestic solar market.

Addressing a gathering at Sihanoukville port on May 1, Hun Manet said that Chanthol, who led the negotiation working group, held talks with US Trade Representative Jamieson Greer on April 16.

The second round of talks will take place on May 2, the Prime Minister said, adding that, if necessary, Cambodian delegates will fly to the US. 

Hun Manet said that the fact that the first round was held on April 16 when Cambodians were in the midst of Khmer New Year celebration showed the government resolve to protect the people and interest of the nation.

Tasking a deputy prime minister, second only to the head of government, to lead the negotiation team also signified the government’s high commitment and effort, he said.

“For Cambodia, we’ve tried hard. Despite the complexity and difficulty, we’ve taken action and are ready with the goal of protecting trade and economic interest of our people in our export-reliant economy,” he said.

Talks would take place step-by-step as the US side was also negotiating with other countries.

Hun Manet also instructed authorities to take stern action to prevent goods from being imported, labeled as made in Cambodia and then exported to other countries to avoid taxes.

The Ministry of Economy and Finance and the Ministry of Commerce (MOC) issued joint regulation, aiming to prevent origin of goods fraud and to promote a transparent enforcement of the Law on Rules of Origin for the export of certain goods to the United States, effective from May 12.

According to an order released on May 1, producers and/or exporters intending to export certain goods originating in Cambodia to the US must apply for an Origin Certification Letter (OCL) issued by the MOC.

“In the course of filing for the customs declaration for certain goods for export to the United States which are declared as originating in Cambodia, such producers and/or exporters shall be required to attach the OCL issued by MOC,” it said.

Any offense about the matter will be subject to investigation and sanction.