The European Union (EU) will extend its trade preference scheme for Cambodia for three years after the country graduates from its Least Developed Country (LDC) status, a senior official from the Ministry of Economy and Finance stated.
Cambodia is set to graduate from the LDC category in 2029 and become an upper-middle-income economy in 2030.
The EU’s trade preference scheme for Cambodia will now extend to 2032, according to Phan Phalla, Secretary of State at the Ministry of Economy and Finance.
“The European Union will not immediately end its trade preference. The EU grants us another three years, until 2032,” Phan Phalla remarked at a conference in Phnom Penh earlier this week.
Criteria for graduation assessment include Gross National Income per capita, the Human Assets Index, and the Economic and Environmental Vulnerability Index.
The Royal Government of Cambodia is currently collaborating with partners such as the UNDP and UN Agencies to prepare for some of the challenges that will arise after Cambodia upgrades from LDC status in 2029.
Last year, Cambodia exported $4.41 billion worth of goods to the European Union (EU), marking a 20.34 percent increase from $3.66 million recorded in 2023, according to a report from the Ministry of Commerce.
The country’s trade with the EU accounted for 9.62 percent of the total trade, amounting to $55.37 billion, it added.
The UN General Assembly adopted a resolution last December confirming Cambodia’s graduation from the LDC category in 2029.
The UN General Assembly assured continued support for Cambodia during the transition period and beyond. The country could also collaborate with its bilateral, regional, and multilateral partners for the transition.
In January 2025, the UK decided to extend Cambodia’s benefits under the Developing Countries Trading Scheme (DCTS) for an additional three years after its graduation from LDC status, lasting until 2032, aiming to ensure a smooth economic transition.
- Tags: European Union, LDC
