Projectionist measures also go against the explicit export promotion policy of the Royal Government. Cambodia is a small and relatively open market already. That's why we look outward to increase our economies of scale. In this context, the best way to promote Cambodian exports is to exploit the country's comparative advantage in trade in a competitive environment. It is worth mentioning that while cheaper imports hurt some industries, other sectors can benefit form this.
Cement is a good example.
While local producers may be hurt by cheaper import prices, the construction sector can prosper as costs are reduced thereby allowing Cambodians to afford to build and buy more houses. In Cambodian context, where smuggling is such a big issue, to increase the tariff will surely exacerbate the problems of smuggling and corruption in the customs administration as well as encourage more lobbying for greater tax exemptions on those affected products. Since the decision has been made, there is nothing to discuss for the moment. However, in the context of medium and long-term policy making, these measures should be viewed as only temporary and do not indicate any backtracking on our commitment to trade liberalization and regional integration. One may say that region's current economic troubles will pull apart the commitment toward closer regional integration.