On 11 June 2013, after the conclusion of the 1st Meeting of the Joint Committee on Border Area Development and Connectivity between Cambodia and Thailand, the two countries signed a Memorandum of Understanding on Cooperation in the Promotion of Contract Farming under the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS).  Mr. Surapong Tovichakchaikul, Deputy Prime Minister and Minister of Foreign Affairs of the Kingdom of Thailand, and Mr. Hor Namhong, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of the Kingdom of Cambodia, were the co-signatories of the MoU.

Contract Farming is an important project under the ACMECS framework. By encouraging Thai entrepreneurs to invest in the agricultural sector in Thailand’s neighbouring countries, contract farming helps generating both employment and income, thereby playing an important role in narrowing development gap in the Mekong Sub-region.   

Contract farming MoUs under ACMECS are bilateral undertakings between Thailand and her neighbours.  Bilateral negotiations are coordinated by the Ministries of Foreign Affairs of both sides, in close collaboration with all relevant technical agencies.  Such MoUs reaffirm the government’s commitment in facilitating contract farming activities.  Specifically, the government will issue and implement to facilitate both the import and export of agricultural products under the contract farming scheme. Thailand will give the relevant technical assistance and measure cooperation to her neighbours.  Both sides agree to settle disputes amicably through consultations under the Joint Working Committee mechanism to be set up.

This MoU with Cambodia was concluded in accordance with the ASEAN Trade in Goods Agreement (ATIGA).  In addition to the MoU with Cambodia, Thailand signed a similar MoU with Lao PDR on 13 March 2013 on the sidelines of the 5th ACMECS Summit in Vientiane.

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