Excellency Tat Puthsodary, Secretary of State, Ministry of Commerce
Representatives from Development Partners, Civil Society Organizations, Private Sector, and Think Tanks
Excellencies, Distinguished Guests, Ladies, and Gentlemen,

Good morning, Chim reap sour,

It is my great pleasure to welcome you all to this Consultation Workshop on the Assessment and Roadmap Development for Green Trade Standard, Rules of Origin, and Double Transformation. This workshop serves as a critical platform for collaboration, where government institutions, development partners, civil society, and private sector representatives come together to chart a forward-looking agenda for Cambodia’s trade future.

Cambodia’s liberal trade and investment policies have played a transformative role in driving economic growth over the past two decades. International trade has fueled export diversification, attracted foreign direct investment, and created employment opportunities, particularly for women, contributing significantly to poverty reduction and socio-economic progress. Despite a 1.9% decline last year, Cambodia's trade volume reached USD 46.83 billion, generating over 880,000 jobs, with many benefiting from improved wages and skills development.

However, as Cambodia prepares to graduate from the Least Developed Countries (LDC) category by 2029, the country will face new challenges. Graduation will mark an important development milestone but also signal the end of preferential trade privileges, including access to the EU’s Everything But Arms (EBA) scheme. It will also introduce stricter trade policies from key markets such as the UK and Canada, particularly regarding rules of origin and tariffs.

UNDP estimates suggest that without timely action, the loss of international support measures could significantly impact key exports such as garments, milled rice, and bicycles. This could slow GDP growth by 0.5% to 1.5% and potentially lead to 165,000 job losses, primarily affecting women employed in the garment sector. Moreover, if the right policy foundations are not established soon, 432,000 individuals could fall back into poverty, threatening Cambodia’s hard-won socio-economic gains.

To address these challenges, Cambodia must enhance its trade readiness. One critical requirement will be compliance with the EU’s double transformation rule, which mandates a two-stage production process from raw materials to intermediate goods and finally to finished products. Meeting this standard will be key to maintaining access to the EU’s Generalized Scheme of Preferences (GSP), ensuring continued market access and competitiveness.

Additionally, Cambodia’s alignment with the EU’s green trade standards presents an opportunity. Strengthening compliance with environmental sustainability criteria will open new avenues for trade while contributing to Cambodia’s broader climate goals. This pathway supports the country’s Nationally Determined Contributions (NDCs) and Long-Term Strategy for Carbon Neutrality and ensures that trade becomes a driver of climate resilience and sustainable economic growth.

Excellencies, Ladies, and Gentlemen,

UNDP remains a committed partner in supporting Cambodia’s progress toward achieving the Cambodia Sustainable Development Goals (CSDGs) and a smooth LDC graduation. Our recently published policy brief, Cambodia’s Graduation from LDC Status: Preparedness and Potential Economic and Social Impacts, underscores the importance of a well-crafted Smooth Transition Strategy to mitigate potential economic and social setbacks. We stand ready to assist the Government in designing and implementing such strategies through evidence-based research, policy dialogue, and technical cooperation.

Today’s Consultation Workshop is an essential step in this journey. It brings together a diverse range of stakeholders to contribute to a roadmap that strengthens Cambodia’s trade resilience through green trade standards, rules of origin compliance, and double transformation adherence. By fostering collective action, we aim to transform these challenges into opportunities for sustainable development and economic prosperity.

I would like to express my sincere gratitude to Excellency Tat Puthsodary and the officials from the Ministry of Commerce for their close collaboration with UNDP. Your leadership and commitment to this agenda are critical to ensuring that Cambodia builds a sustainable, competitive, and resilient trade sector.

I trust that today’s workshop will provide valuable insights and generate actionable recommendations that will guide the development of an inclusive and forward-looking roadmap for Green Trade Standard, Rules of Origin, and Double Transformation for Cambodia. Let us work together to create a trade environment that fosters shared prosperity and a sustainable future for all.

Thank you, Som Arkun!