Cambodia says trade will be unaffected by border spat with Thailand

Oct 26, 2008, 10:53 GMT

Phnom Penh - Cambodia's trade with Thailand will remain largely unharmed by an increasingly tense border dispute because Cambodia is too attractive a market for Thailand to abandon to China and Vietnam, a minister said Sunday.

Commerce Minister Cham Prasidh - addressing reporters at Phnom Penh International Airport on his return from the two-day Asia-Europe Meeting in Beijin - said he did not believe the Thais would 'become stupid'.

The meeting also saw bilateral talks between Thai and Cambodian officials dealing with fallout from the border dispute which has simmered since July, when the 11th century Preah Vihear temple was awarded World Heritage status by UNESCO over Thai objections.

'If Thailand is not here, Cambodia still has Vietnam and China, but for me, I do not believe Thailand will become stupid and give up a big market,' he said, alluding to calls by some political groups to boycott bilateral trade amid nationalistic fervour on both sides.

Prasidh said conflict-related drops in cross-border trade were temporary, noting that in 2007, Thailand had imported more than 1.4 billion dollars of goods to Cambodia, while Cambodia had exported just 40 million dollars worth to Thailand - mostly raw materials.

Cambodia remained an attractive market to investors due to its continued healthy growth but relative under-development, he said, and did not feel threatened by threats of loss of trade from any one market.

'Even though we do not call China to come here, China still wants to come,' he said, referring to one of Cambodia's most important trading partners and donors.