ISDS Case Map
Laos
Japan is stepping up an economic charm offensive in Southeast Asia in the latest sign of rival efforts by leading powers to profit from the single market due to be launched soon in the populous region.
Sanum Investments Limited ("Sanum") had seemingly found a winning formula with its hospitality and entertainment enterprises in Lao PDR, until the Government arbitrarily revoked licences, cancelled concessions, imposed wrongful tax penalties and, most significantly, forcibly took control of its highly lucrative Thanaleng Slot Club.
Jayant Menon discusses the trade policy challenges faced by Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV)—the newest members of ASEAN. The paper concludes that the multilateralised single-rate system is a better alternative to the multiple-rate system and thus suggests that CLMV countries should follow the original ASEAN members and multilateralize their CEPT tariff preferences. It encourages both old and new members to do the same, especially in the context of proliferating ASEAN+1 FTAs
The value of cross-border trade between Thailand and Laos is forecast to reach 80 billion baht at the end of this year, as the Thai government is pursuing a new strategy to optimise free trade agreements.
The signing of bilateral agreement early evening of June 8 between two ASEAN member nations, the Philippines and Lao People's Democratic Republic, is not only a milestone in the more than 50 years of friendly relations between said countries, it is also a landmark in the ASEAN accord.
The Philippines and the Lao People's Democratic Republic signed yesterday an agreement on the promotion and protection of investments to increase bilateral trade that has remained low between the two members of the Association of Southeast Asian Nations (ASEAN).
Amid intensifying rivalry between Tokyo and Beijing over influence in Asia, Japan is revving up its drive to strengthen relations with countries in Indochina, an economically backward but geopolitically important part of the region. The target countries are Cambodia, Laos and Vietnam, which are collectively referred to as the "CLV" countries.
Japan is considering starting negotiations on signing a bilateral investment treaty with Cambodia and Laos to promote the entry of Japanese businesses in the developing economies' markets.
The Free Trade Agreement (FTA) with the six East Asean members as proposed by Japan can help thwart the rich nations' economic hegemony in the region, said Laos Minister of Industry and Commerce Dr Nam Viyaketh.
The United States has no plans to negotiate a free-trade agreement with Laos, according to the new US trade representative Susan Schwab. "That isn't even in the cards," she said.
