On 10 December, PAGE and Cambodia’s Ministry of Commerce convened a consultation workshop to develop a Roadmap for Green Trade Standards, Rules of Origin, and Double Transformation in anticipation of Cambodia’s graduation from Least Developed Country (LDC) status.
With support from the Australian Government’s DFAT and PAGE, UNDP is supporting Cambodia to create a roadmap for EU green trade standards and rules of origin.
This initiative aims to promote sustainable trading practices, enhance competitiveness, and secure EU market access for Cambodian exports, particularly after Cambodia’s LDC graduation in 2029. It also focuses on fostering environmentally sustainable economic growth and creating quality jobs, positioning Cambodia as a reliable trading partner committed to environmental sustainability and climate neutrality.
Tat Puthsodary, Secretary of State of the Ministry of Commerce, presided the opening ceremony of the consultation workshop. Co-organized by the Trade Training and Research Institute, the meeting included fifty-three participants from ministries, the private sector, and development partners aim to gather expert input to create a roadmap for Cambodia.
As Cambodia prepares to graduate from the Least Developed Countries (LDC) category by 2029 [...] Cambodia must enhance its trade readiness.
Cambodia has experienced remarkable growth over the past decade, averaging 7%–8% per year, which led to its designation as a lower middle-income country in 2015. The country aims to achieve upper middle-income status by 2030 and high-income status by 2050, while preparing for its graduation from LDC status in 2029. This transition presents significant challenges for Cambodia’s growth trajectory.
As an LDC, Cambodia has benefited from trade preferences, such as the EU’s Generalized Scheme of Preferences and Everything But Arms scheme. However, upon graduating from LDC status, the country is expected to encounter difficulties due to the loss of preferential trade access and concessional financing. The export-driven growth model will be affected by the exit from the EU’s Everything But Arms scheme and the need for increased compliance with World Trade Organization regulations and Rules of Origin.
Key export sectors in Cambodia, such as garments, rice, and bicycles, will face increased tariffs and stricter Rules of Origin for the EU, UK, and Canada. The textile sector must comply with the EU’s double transformation rule to maintain its growth model. Additionally, the EU’s green trade standards promote environmental sustainability, covering product design, sourcing, chemical safety, and carbon emissions. Aligning with these standards is crucial for Cambodia to enhance its market access in the EU.
UNDP remains a committed partner in supporting Cambodia’s progress toward achieving the Cambodia Sustainable Development Goals (CSDGs) and a smooth LDC graduation.
Cambodia joined PAGE as a new partner country in 2022. UNITAR acts as the main coordinating agency for the PAGE project in Cambodia. The main Government counterpart is the Department for Green Economy at the Ministry of Environment, in its capacity as the General Secretariat of the National Council for Sustainable Development.
The Partnership for Action on Green Economy (PAGE) has grown into a prominent UN inter-agency programme, including UNEP, UNDP, ILO, UNIDO and UNITAR, that aims to transform economies into drivers of sustainability by supporting partner countries in reframing economic policies and practices around sustainability.
sources: PAGE, UNDP, Cambodia Ministry of Commerce
