Cambodia confirmed its readiness to exit the Least Developed Countries (LDC) status, saying that studies on the impacts of the exit, challenges and the loss of trade preference schemes have been made.
Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, requested the Ministry of Commerce to strengthen the government’s readiness to exit from the LDC plan.
“Cambodia is preparing the Royal Government to implement the plan to leave the LDC to achieve the UN assessment in 2024 and extend the transition period as necessary,” he said during a closing ceremony of the Commerce Ministry’s annual meeting.
The Deputy Prime Minister called for a closer look at the impact of exiting the LDCs on the negotiations under the World Trade Organization (WTO) and regional frameworks on the Cambodian economy, especially to be prepared to negotiate new GSP Plus to maintain market share and maintain production balance and attractiveness for investment in Cambodia after the country left the LDCs.
In order to be able to leave the least developed countries status, the United Nations Commission on Development Policy 2024 ranks Cambodia second through a triennial review.
According to the ministry, the next assessment of the Kingdom’s LCD status exit will be in 2024, and if the requirements are met, it will take effect in 2027.
After leaving the least developed country status, Cambodia will no longer receive trade tariff preferences and measures related to international aid.
Additionally, he requested the ministry for continuing the close cooperation with relevant ministries and institutions to take advantage of the free trade agreements that Cambodia has, especially the RCEP and pacts with China and Korea.
To leave this status, Cambodia needs to pass at least three categories: Gross National Income (GNI) per capita, the Human Assets Index (HAI), and the Economic and Environmental Vulnerability Index. Currently, Cambodia has already passed two categories.
Source: Khmer Times
