Thailand
Cambodia formulates way forward if trade privileges are lost
The Cambodian government is formulating strategies and policies to counter challenges after preferential access for its exports are gradually reduced or as aid flows diminish.
The news was relayed by Pich Rithi, secretary of state at the Ministry of Commerce, during a virtual seminar on the implications of less-development country graduation in the textile and clothing sector.
The workshop was co-organised by the World Trade Organization (WTO), United Nations Department of Economic and Social Affairs (UN DESA), United Nations Conference on Trade and Development (UNCTAD) and International Trade Center (ITC) with participants from less-developed countries including Cambodia, Bangladesh, Laos and Nepal.
Speaking at the seminar, Rithi highlighted the importance of the garment sector in driving Cambodia’s economic growth and the benefits of preferential tariffs for Cambodia’s export growth.
He also underlined the impact that leaving least-developed country status could have on trade preferential tariffs, attractiveness for investment and Cambodia’s competitiveness in the garment and apparel sector and opportunities for trade assistance.
To overcome the challenges after a Less-Developed Country (LDC) status loss, the ministry has made preparations, he said.
“To address these challenges, the ministry has prepared policies and strategies for Cambodia so it can strengthen its competitiveness and prepare for its successful exit from the status of a least-developed country,” he said, citing that those policies and strategies are diversification of export markets through bilateral and multilateral free trade agreements and the promotion of support from development partners as well as the formulation of trade policies and strategies.
LDCs consist of low-income countries confronting severe structural impediments to sustainable development.
They are highly vulnerable to economic and environmental shocks and have low levels of human assets.
Cambodia made the transition from a low income to a lower-middle-income country in 2015.
Cambodia still has LDC status, as defined by the United Nations, and will probably retain its trade privileges for a while to come.
The country is likely facing transition out of its current LDC status by around 2030 if it returns to its pre-pandemic growth rates, according to projections made by the Asian Development Bank.
Source: https://www.khmertimeskh.com/50854075/cambodia-formulates-way-forward-if-trade-privileges-are-lost/