The European Union (EU) will extend Cambodia's trade preference scheme for three years after the country graduates from Least Development Country (LDC) status, a senior official at the Ministry of Economy and Finance said.
The EU's trade preference scheme for Cambodia will be extended until 2032, said H.E. Phan Phalla, permanent secretary of the Ministry of Economy and Finance.
"The European Union is not going to end its trade preference immediately. The EU is giving us another three years, until 2032," H.E. Phan Phalla told a conference in Phnom Penh earlier this week.
The graduation criteria include gross national income per capita, the Human Assets Index and the Economic and Environmental Vulnerability Index.
The Royal Government of Cambodia is currently working with partners such as UNDP and UN agencies to prepare for some of the challenges that will arise after Cambodia graduates from LDC status in 2029.
Cambodia exported US$4.41 billion worth of goods to the European Union (EU) last year, up 20.34 percent from US$3.66 million in 2023, according to a report from the Ministry of Commerce.
The country's trade with the EU accounted for 9.62 percent of its total trade of $55.37 billion.
The UN General Assembly adopted a resolution last December confirming Cambodia's graduation from the LDC category in 2029. It pledged continued support for Cambodia during the transition period and beyond. The country could also work with its bilateral, regional and multilateral partners on the transition.
In January 2025, the UK decided to extend Cambodia's benefits under the Developing Countries Trading Scheme (DCTS) for a further three years, until 2032, following its graduation from Least Developed Country (LDC) status, to ensure a smooth economic transition.
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