Excellency CHAM Nimul, Minister of Commerce,
Excellency Igor Driesmans, Ambassador of the Delegation of the European Union to Cambodia
Representatives of Development Partners, Civil Society Organizations, Private Sector, and Think Tanks, 
UN Colleagues, distinguished guests, ladies, and gentlemen.

Good morning, Chom reap sour.

Allow me to join Her Excellency Minister CHAM Nimol to welcome you at this Validation Workshop to discuss the Assessment and Roadmap development for implementing the European Union’s Green Trade Standards, Rules of Origin, and Double Transformation in Cambodia. Today, our reflection will explore ways to promote sustainable trade practices, enhance competitiveness, and sustain market access for Cambodian exports to the European Union, one of Cambodia’s largest export markets. In the first 11 months of 2024, the Cambodia-EU trade volume amounted to approximately 4.9 billion US Dollars. This included approximately 4 billion US Dollars in exports from Cambodia to the EU and around 9 million US Dollars in imports from the EU.

The said assessment and roadmap will also serve as a key input for the Smooth Transition Strategy for LDC graduation expected in 2029 and the new Trade Policy Framework 2030 under preparation by the Royal Government.  

Excellencies, Ladies, and Gentlemen,

Cambodia has been one of the fastest-growing economies in Asia and the Pacific thanks to its strong exports, tourism, and foreign investment. Indeed, international trade has been a growth catalyst and has significantly contributed to GDP and economic expansion, attracting foreign direct investment, creating jobs, and reducing poverty over the past two decades.

As Cambodia approaches LDC graduation, new ways of doing business will apply since the country would have to fully comply with WTO and export markets’ rules and regulations. Progressively, trade flexibilities and preferential tariffs designed to support Least Developed Countries will no longer apply. One example is the European Union’s Everything But Arms (EBA) which has been the backbone of the country's trade for years allowing duty-free and quota-free imports from Cambodia into the European market. Additionally, stringent trade standards such as the Rules of Origin, double transformation, and other green standards will apply.

Recognizing both corresponding challenges and opportunities, we have published a study and a policy brief on the preparedness and potential impacts of LDC graduation (which was used as input to the Royal Government’s communication for delaying its LDC graduation) and an assessment of responsible business practices in Cambodia in the context of growing global trade integration.

Excellencies, Ladies, and Gentlemen,

The EU is highly committed to environmental sustainability. As such this key trade partner has stringent green environmental sustainability and climate neutrality trade standards. They cover different aspects from product design to sustainable sourcing, chemical safety, and carbon emissions. Hence, strategic preparation is needed to prepare Cambodia’s industries and its exports to comply with the Carbon Border Adjustment Mechanism (CBAM), the EU Emissions Trading System (EU ETS), the Corporate Sustainability Due Diligence Directive (CSDD), and the Circular Economy Action Plan. These new ways of doing business will influence Cambodia’s trade, investment, and employment landscapes, presenting both challenges and opportunities. This will be further discussed by Prof. Shandre Mugan Thangavelu, in the following presentation.

Excellencies, Ladies, and Gentlemen,

Recalibrating Cambodia’s growth model towards a greener and more inclusive economy is essential for harnessing opportunities, bolstering competitiveness as a champion of green trade, and branding the country as a responsible trade partner. UNDP is committed to supporting, in collaboration with other development partners, UN Agencies, and the private sector, Cambodia’s smooth LDC graduation and beyond laying the foundations for achieving the Kingdom’s development ambition as laid out in the Pentagonal Strategy and Vision 2050.

I would like to conclude by expressing our appreciation to Her Excellency, the Minister, and her team for leading this important work. Our profound gratitude goes to our funding partners for this initiative, namely the Partnership for Action on Green Economy (PAGE), a multi-donor facility represented here by the EU Delegation, the Government of Australia through the Resilience Facility, which ended in 2024, and the UNDP core donors.

I wish you a fruitful discussion and thank you all in advance for your active participation and invaluable contributions.

Thank you, Som Arkun!