Commerce minister outlines US trade talks as Cambodia prepares for LDC graduation

Commerce Minister ចម និម្មល told Bloomberg that Cambodia is discussing trade facilitation and customs procedures with the United States to prepare for graduation from least developed country (LDC) status in 2029.

In the Bloomberg interview, the minister said: “Cambodia is awaiting decisions concerning Sections 122 and 301 and excess capacity. This is the outcome of the discussions Cambodia has held continuously with the United States about our trade capacity. On forced labour, Cambodia has taken additional measures, with three specific ministries involved in implementation. These measures clearly show Cambodia’s strong commitment to preventing goods produced using forced labour from entering the country. We therefore know that Cambodia has the ability to keep the tariff rate below 19%.”

The minister also said Cambodia is negotiating with the United States on a quota system, alongside several other trading partners such as Bangladesh, Indonesia and Malaysia. The system focuses particularly on importing raw materials for the garment industry from the United States for processing in Cambodia, before re-exporting them to the United States free of quotas and duties.

According to ចម និម្មល: “If we look specifically at China and the United States, Cambodia’s largest import and export markets, we can see that the two countries complement each other. The interests of one side will therefore not infringe upon those of the other.”

Responding to short-term challenges surrounding Cambodia’s graduation from LDC status in 2029, ចម និម្មល said graduation is not an endpoint but an important milestone in development. For Cambodia, it reflects the results of substantial efforts and sound policies implemented to reach this milestone. Cambodia’s next phase of growth will strengthen domestic capacity and competitiveness to integrate more deeply into the global economy. By: ង៉ែត ពិសាន្ត