Cambodia keen to exit LDC status

05 Feb '23

2 min read

Pic: Shutterstock

Cambodia recently confirmed it is ready to exit the least developed countries (LDC) status. Studies on the impact of the exit, challenges and the loss of trade preference schemes have been conducted. Deputy prime minister and minister of economy and finance Aun Pornmoniroth requested the ministry of commerce to strengthen the government’s readiness for the exit.

The next assessment of the country’s LCD status exit will be conducted in 2024, and if the requirements are met, it will take effect in 2027.

“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,” Pornmoniroth said at an annual meeting of the commerce ministry.

The deputy prime minister called for a closer look at the impact of exiting the LDC status on the negotiations under the World Trade Organisation and regional frameworks on the Cambodian economy, according to report in a Cambodian media outlet.

After leaving the least developed country status, Cambodia will no longer receive trade tariff preferences and measures related to international aid.

To do away with the LDC status, Cambodia needs to pass at least three categories: gross national income per capita, the human assets index and the economic and environmental vulnerability index. The country has already passed in two categories.

Fibre2Fashion News Desk (DS)

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