	Overview

In the past few years, U.S. policy toward the Kingdom of Cambodia has broadened from a human rights focus to a multi-faceted approach. A key challenge for U.S. policy toward Cambodia lies in combining and balancing efforts to improve relations and to promote human rights in the kingdom. During the past decade, Cambodia has made progress in some areas of U.S. interest and concern, including the development of civil society, improvements in the conduct of elections, labor rights, counterterrorism, HIV/AIDS prevention, and bringing Khmer Rouge leaders to justice. However, government abuses of power and violations of human rights remain serious problems. Political violence and corruption also continue to mar democracy and governance in the kingdom. The return to relative political stability in Cambodia in 2006 after parliamentary crises during the 2003-05 period ushered in a movement toward deeper U.S.-Cambodia ties. This trend also has been driven by U.S. interests in cooperating with Cambodia on counterterrorism efforts and responding to China's growing economic influence in the region and in Burma, Laos, and Cambodia in particular. The Cambodian government has urged the U.S. government to grant its garment exports preferential treatment so that it can better compete with larger economies such as China. The Cambodian government also has requested that a portion of payments on the $339 million debt owed to the United States, incurred during the 1970s, be used to pay for development programs in Cambodia. The United States Congress passed several measures supporting non-communist resistance forces and humanitarian assistance in Cambodia and prohibiting assistance for the Khmer Rouge. Cambodian Textile Exports

Many Cambodians have expressed fear that the country's garment sector is threatened by competition from more efficient manufacturers of more developed countries, particularly since quotas on textile exports by WTO member states ended in 2005. In January 2008, temporary safeguard measures imposed by the European Union against textile and apparel imports from China expired. U.S.-Cambodian Trade

The United States has a large economic impact on Cambodia through trade. The United States is the largest overseas market for Cambodian products, accounting for nearly 60% of the kingdom's total exports and 70% of its clothing exports in 2008. Foreign Assistance

Foreign aid from a variety of sources is equal to over half of Cambodia's government budget. By some calculations, China has become the largest or second largest foreign aid provider to Cambodia. United States Assistance to Cambodia

Cambodia is the fourth largest recipient of U.S. foreign aid in Southeast Asia after Indonesia, the Philippines, and Vietnam, and the second largest recipient per capita after East Timor. Much of this assistance is channeled through non-governmental organizations (NGOs). The United States provided $57 million, $55 million, and $45 million in 2007, 2008, and 2009, respectively, for foreign aid programs, especially for health care, HIV/AIDS treatment and prevention, civil society, and economic competitiveness programs. Roughly one-third of the debt is owed to Russia and the United States. The Cambodian government reportedly has sought additional U.S. concessions on the Lon Nol loans. Cambodia's human rights record remains a constant source of friction between Prime Minister Hun Sen and major ODA donors, such as Japan, Australia, Germany, and France; the kingdom's dependence on foreign aid has helped to keep pressure on the government to maintain or strengthen basic democratic norms and institutions. In September 2006, U.S.
In the past few years, U.S. policy toward the Kingdom of Cambodia has broadened from a human rights focus to a multi-faceted approach. A key challenge for U.S. policy toward Cambodia lies in combining and balancing efforts to improve relations and to promote human rights and democracy in the kingdom. Cambodia's human rights record has been a constant source of friction between Prime Minister Hun Sen and major providers of foreign aid, which is equal to roughly half of the country's government budget. The kingdom's dependence on this aid has helped to keep pressure on the government to maintain or strengthen basic freedoms and democratic institutions. However, weak rule of law, corruption, and abuses of power have continued and in some cases become worse.
During the past decade, Cambodia has made progress in some areas of U.S. interest and concern, including economic growth, the development of civil society, the conduct of elections, labor rights, HIV/AIDS prevention, counterterrorism, and bringing Khmer Rouge leaders to justice. The return to relative political stability in Cambodia in 2006 after parliamentary crises during the 2003-2005 period ushered in a movement toward deeper U.S.-Cambodia ties. This trend also has been driven by U.S. interests in cooperating with Cambodia on counterterrorism efforts and responding to China's growing economic influence in the region. China has become a primary source of development financing, aid, and investment in Cambodia and Southeast Asia.
The United States and Cambodia maintain strong ties through aid and trade. Cambodia is the fourth largest recipient of United States assistance in Southeast Asia while the United States is Cambodia's largest export partner, buying 70% of its apparel exports. The United States provided $57 million, $55 million, and $45 million in 2007, 2008, and 2009, respectively, for foreign aid programs, especially for health care, HIV/AIDS treatment and prevention, civil society, and economic competitiveness programs. The United States also supports de-mining efforts in the kingdom. Most U.S. assistance has been channeled through the many non-governmental organizations that are active in Cambodia.
Cambodia's economic growth has been fueled largely by the development of the textile and apparel industry and by tourism. With the termination of quotas on textiles by WTO member states in 2005 and the expiration of U.S. safeguards against garments from China in 2008, Cambodian textile exports are threatened by competition from China and other large producers. Cambodia has pressed the United States to grant its apparel exports preferential treatment. The Hun Sen government also has sought U.S. concessions on foreign debt incurred by the Lon Nol regime during the early 1970s.
The first trial of the Extraordinary Chamber in the Courts of Cambodia (ECCC), an international tribunal set up by the United Nations and the Cambodian government to try former Khmer Rouge leaders of crimes against humanity and war crimes, commenced in February 2009. Five former officials have been indicted. Due to unexpected costs and delays, the court has struggled to raise more funding in order to continue its operations. The U.S. government contributed $1.8 million to the ECCC in September 2008. The U.S. government had withheld funding for several years due to concerns about whether the trials would be conducted fairly and without political interference.