I would like to welcome the Delegation of Cambodia, led by Her Excellency Mrs. Cham Nimul, Minister of Commerce, and thank the Discussant, Ambassador James Baxter (Australia) for his introductory remarks.

The EU welcomes this opportunity to review the developments in Cambodia trade policies and practices. Let me start by highlighting that Cambodia has been one of the fastest-growing economies in the region, with trade playing an important role. As noted in the Secretariat report, Cambodia is an LDC that has emerged as a remarkable success story of how trade and WTO membership can be leveraged to drive sustainable economic growth and reduce poverty. Since the last review in 2017, real GDP has grown at an average annual rate of about 5%, driven by trade openness, tourism, FDI, and export-oriented manufacturing. The main sectors of the economy are services and manufacturing.

During the period under review, Cambodia has made significant progress in updating and strengthening its regulatory framework through a series of trade- and investment-related reforms. We welcome that Cambodia has adopted several trade and trade-related laws or regulations, in areas such as e-commerce, rules of origin, trade remedies, standards, food safety, consumer protection, and competition. The EU commends Cambodia for having an open investment regime and also welcomes the new Law on Investment of 2021. We encourage Cambodia to increase the transparency and predictability of its tax system.

We appreciate Cambodia’s commitment to the multilateral trading system and constructive engagement in the WTO in various areas. The EU welcomes that Cambodia is a party to the Investment Facilitation for Development Agreement, and welcomes its active role in the integration process of the Agreement into the WTO rulebook and especially the valuable contribution of Ambassador Mr. Prasith Suon in this regard. The commitment to promote a more transparent and investment-friendly environment is welcomed. We also value the fact that Cambodia has ratified the phase 1 Agreement on Fisheries Subsidies. We note that Cambodia has now implemented 100% of its Trade Facilitation Agreement (TFA) commitments and is engaged in the work on economic diversification and empowerment of women. We look forward to working with Cambodia on the WTO reform in order revitalise the organisation and make it relevant to all Members’ needs and responsive to modern global trade challenges.

The EU encourages Cambodia to also engage in the discussions on e-commerce. We also invite Cambodia to consider joining the Services Domestic Regulation Joint Statement Initiative and undertake the domestic regulation disciplines in the reference paper, while bearing in mind the relevant LDCs flexibilities. Applying these good regulatory practices has clear benefits for services economies and trade. 

The EU is pleased to note that Cambodia has continued to focus on strengthening regional economic integration through, inter alia, the implementation and/or negotiation of several ASEAN agreements. 

Regarding our bilateral relationship, Cambodia continues to benefit from duty-free and quota-free access to the EU market under the Everything But Arms initiative (EBA), notwithstanding the partial withdrawal of EBA preferences in place since 2020. The EBA is part of the EU’s GSP programme for LDCs and will cease with Cambodia’s graduation from LDC status. In 2023, the EU ranked as Cambodia's 4^th largest trade partner, accounting for 8.2% of Cambodia’s total trade. 

The 2^nd Joint European Development Cooperation Strategy for 2021-2027 establishes a comprehensive framework for European cooperation with Cambodia. For example, during the 2021-2024 period the EU has earmarked EUR 155 million to bolster Cambodia's integration into ASEAN. Also, on trade-related assistance, the EU supports Cambodia in simplifying export and import procedures as well as the implementation of a programme of customs automation. This includes the ARISE Plus programme (ASEAN Regional Integration Support), co-funded by the EU, and an EU Member State programme. 

The EU is pleased to note that Cambodia is currently on the path to graduating from LDC status, with plans to complete the process by 2029. The EU is committed to remain a steady and key partner of Cambodia in its further integration into global trade. 

We thank Cambodia for using the alternative timeline, which has allowed us to review the replies to our advance questions.

On behalf of the EU, I look forward to a constructive dialogue with Cambodia during its 3^rd Trade Policy Review. 

Thank you.