The European Union (EU) has reaffirmed its support for Cambodia as the nation prepares to transition from its Least Developed Country (LDC) status, expressing readiness to engage in discussions regarding the Generalised Scheme of Preferences Plus (GSP+).
This assurance came from European Commissioner for International Partnerships, Jutta Urpilainen, during a press briefing held at the international airport, following her visit to Cambodia. Urpilainen reflected on the enduring cooperation between the EU and Cambodia, acknowledging the significant strides Cambodia has made in development and poverty reduction over the past two decades.
Urpilainen emphasized the EU’s dedication to supporting Cambodia through this pivotal phase of transition, grounded in shared values and principles of human rights.
Trade between Cambodia and the EU totaled $4.61 billion in 2023, marking a slight decrease from the $4.85 billion recorded in 2022, as per the Ministry of Commerce data. Cambodian exports to the EU also saw a reduction last year, amounting to $3.66 billion compared to $4.04 billion in the preceding year.
The EU’s Everything But Arms (EBA) trading scheme, which benefits LDCs, will cease to apply to Cambodia following its graduation from the LDC category. The EU is poised to initiate discussions with Cambodia on the GSP Plus scheme, aiming to ensure the nation continues to enjoy trade preferences.
Urpilainen underscored the importance of collaborative efforts with the Cambodian government during this transition, offering technical assistance and support in meeting international obligations to qualify for GSP+ benefits.
During discussions with the EU delegation at the Peace Palace in Phnom Penh, Prime Minister Hun Manet lauded the EU for its contributions to Cambodia’s socio-economic growth. He expressed gratitude for the EU’s support and requested its continuation through Cambodia’s LDC transition.
Cambodia aims to shed its LDC status by 2027, aspiring to become an upper-middle-income country by 2030 and a high-income country by 2050, based on World Bank Country Lending Group guidelines.
The Cambodian economy is on an upward trajectory, with a forecasted growth rate of 6.6 percent in 2024, as reported by the Ministry of Economy and Finance. This growth is expected to increase the nation’s per capita income to $2,071, up from $1,917 in 2023.
