Kingdom leveraging FTAs ahead of LDC exit
Kingdom leveraging FTAs ahead of LDC exit
As Cambodia approaches its graduation from the Least Developed Country (LDC) status in 2029, government officials and private sector representatives have emphasized the critical role of free trade agreements (FTAs) and trade preferences in sustaining the country’s economic growth.
The Ministry of Commerce has highlighted the importance of leveraging existing FTAs and actively pursuing new trade agreements to secure preferential market access for Cambodian products in international markets.
Secretary of State of the ministry, Tekreth Kamrang, made the remarks at a forum on Cambodia’s export sector in Phnom Penh yesterday. Stakeholders from the private sector, producers and exporters from local and international companies attended.
Free trade agreements, Regional Comprehensive Economic Partnership, and other trade agreements are catalysts in boosting the Kingdom’s exports continually, she said.
The ministry, however, has been working with relevant parties, the private sector and development partners to prepare in advance the graduation of the country from LDC in 2029, she added.
“FTAs, RCEP and trade preferences have contributed gradually to pushing up Cambodia’s exports. However, we have been working with relevant parties, especially with development partners on procedures and mechanisms to get new trade preferences when Cambodia’s graduation from LDC happens a few years from now,” she said.
These strategic focuses are aimed at strengthening the country’s economic growth and competitiveness in the global market, Kamrang added.
“Diversifying export markets and reducing tariffs can help mitigate the potential negative impacts of losing LDC benefits,” she said.
Cambodia exported products worth $23.93 billion in the first 11 months of 2024, up 16.8 percent over the same period last year, said a report from the General Department of Customs and Excise (GDCE) recently.
Top five export destinations for the country are the United States, Vietnam, China, Japan, and Canada, read the report.
The Cambodia Chamber of Commerce (CCC) has expressed support for the initiatives of the government, emphasizing the need for a comprehensive approach to address various challenges faced by exporters.
“The Cambodia Chamber of Commerce has contributed actively in boosting and solving issues related to the export sector through the mechanism of government-private sector forum, aiming to facilitate more exports and contributing to the nation’s economic development,” CCC Director-General Nguon Meng Tech said at the forum.
CCC has partnered with the government and relevant parties, both national and international, in enhancing trade, Meng Tech added.
