King officially scraps CLV-DTA pact

King Norodom Sihamoni on Thursday issued a Royal Decree officially annulling the agreement on trade promotion and facilitation for the Cambodia-Laos-Vietnam Development Triangle Area (CLV-DTA), following the approval by the National Assembly on November 8, and the Senate on November 13. The withdrawal of the agreement, a part of the CLV-DTA, was originally announced by the government on September 20, 2024.The Royal Decree stated, “This law shall be effective from the date on which the withdrawal of the Kingdom of Cambodia becomes final, based on the agreement on trade promotion and facilitation in the Cambodia-Laos-Vietnam Development Triangle.”

“The government of the Kingdom of Cambodia shall implement all necessary procedures and tasks to ensure the final withdrawal from the Agreement on Trade Promotion and Facilitation in the Cambodia-Laos-Vietnam Development Triangle,” added the decree.

Minister of Commerce Cham Nimul, representing the government, said at the National Assembly session on November 8 that the purpose of cancelling the agreement on trade promotion and facilitation is to acknowledge that the close cooperation over the past 25 years under the CLV-DTA has allowed the three countries to achieve many national goals and important milestones. They have contributed to economic development and the improvement of people’s livelihoods in the Cambodia-Laos-Vietnam Development Triangle Area.

She noted that based on these achievements, Cambodia believes each country has the full potential to continue and ensure the development of its own nation. She added that the law cancelling the agreement only applies to the promotion and facilitation of trade in four Cambodian provinces, Stung Treng, Kratie, Mondulkiri, and Ratanakiri, that have international border crossings with Laos and Vietnam.

“Withdrawal from the above agreement will not negatively affect or hinder the normal trade process between the three countries at present, as Cambodia can rely on agreements that the three countries are members of the ASEAN Economic Community, which covers the free flow of goods and services, as well as the free flow of capital and investment,” she said.

The government established the Cambodia-Laos-Vietnam Development Triangle Cooperation in 1999 without the approval of the National Assembly. The announcement of withdrawal from this cooperation on September 20, 2024, does not require National Assembly approval, but only diplomatic letters to be sent to Laos and Vietnam.

The Agreement on Trade Promotion and Facilitation within the Cambodia-Laos-Vietnam Development Triangle is part of the broader Cambodia-Laos-Vietnam Development Triangle Cooperation framework, which was established in 2018 with the approval of the National Assembly. As such, its termination requires approval from the National Assembly, the Senate, and the King.