The report’s observation that the TPP would benefit participating member states at the cost of economies outside the agreement, like Cambodia, should be a serious concern for the government, said Grant Knuckey, CEO of ANZ Royal Bank.
“Cambodia needs to give careful consideration to the competitive impacts of the TPP for both existing key sectors, such as garments, as well as on the ability to gain entry to new manufacturing supply chains, given the TPP country of origin rules,” Knuckey explained.
“I believe the TPP needs to be firmly on the government radar, as it has much more immediate import than the AEC.”
Knuckey added that a strong US dollar and weak commodity prices would affect growth rates and exports, but it was important to focus on the quality of the growth.
“If growth was being driven by construction, then whether it is 7 or 6 per cent, either way it isn’t sustainable,” he said.
“A lower growth rate, but driven by consumption and capital investment, is superior, so it is the mix we need to watch.”