WTO Reviews Cambodia's Trade Policy

Chair, let me warmly welcome the delegation, led by Minister of Commerce Mrs Cham Nimul, to their 3rd Trade Policy Review. Let me also express my gratitude to the government of Cambodia and to the WTO Secretariat for their Reports, to you Chair and to Ambassador James Baxter as discussant, for facilitating this Review with your insightful comments.

Bilateral Relationship

1. The UK and Cambodia enjoy long-standing and positive relations, with our diplomatic relationship dating back to 1953. In recent decades, the UK has been a considerable investor into Cambodia's real estate and manufacturing industries, while supporting new approaches to developing Cambodia's infrastructure to increase confidence in its investment potential is at the heart of our recent engagement. The UK's development finance institution, British International Investment, has also focussed on renewable energy and climate financing in Cambodia.

2. 2024 was a particularly positive year for the UK-Cambodia trade and investment partnership. In June we welcomed the first official Cambodian trade and investment mission to the UK, including Senior Minister for Trade and Investment Sok Siphana meeting the UK-ASEAN Business Council. In November, the Cambodia-UK business roundtable was attended by Deputy Prime Minister Sun Chantol, and the second annual UK-Cambodia Joint Trade and Investment Forum took place.

3. The Joint Forum's theme was the 'Road to 2030' and pathways to mutual growth, drawing on both parties' experience and expertise. We agreed focus areas, including tax predictability, double taxation, and developing domestic capital markets. We look forward to the third meeting of the Forum later this year.

4. I mentioned infrastructure investment. On this we hope a UK Export Finance Memorandum of Understanding to promote infrastructure development will help unlock up to £2bn in finance. We are also pleased the UK's Private Infrastructure Development Group (PIDG), which coordinates investments for sustainable economic development and poverty reduction, has several projects in Cambodia, and a strategic partnership with the Cambodian Credit Guarantee Corporation.

UK-Cambodia Development Relationship

1. The UK has also aimed to be a reliable partner to Cambodia through wider development programmes, including UK bilateral  ODA  funding, to support Cambodia's economic development, enhance trade and investment, and cooperate in areas offering longer-term resilience and growth, including encouraging green and inclusive growth.

2. Our trade for development tools include ensuring Cambodian exporters can take advantage of comprehensive preferences under the UK Developing Countries Trading Scheme (DCTS). The UK also partners the Cambodian Ministry of Economy on the development of a Green Special Economic Zone and supports for agricultural SMEs.

3. With all these initiatives in mind, we were also pleased to see confirmation last year of the UN recommendation for Cambodia to graduate from LDC status in 2029.

Report Analysis

The Trade Policy Review illustrates Cambodia's significant economic policy progress during the reporting period, including the role of trade in Cambodia achieving GDP growth as high as 6% in 2024, and annual increases in the value of merchandise exports. This is impressive progress, and among other achievements is testament to Cambodia's ability to respond to the economic impacts of the COVID-19 pandemic.

WTO and Regional Engagement

1. As well as national achievements, we welcome Cambodia's active international engagement. This includes regional trade agreements like the Regional Comprehensive Economic Partnership and wider ASEAN economic initiatives. Here at the WTO we welcome Cambodia's constructive and thoughtful approaches in a wide range of WTO business. We pay tribute to the Cambodia Permanent Representative, Ambassador Suon Prasith, and his team for their efforts in this regard.

2. Recent examples of this include Cambodia's active voice as a LDC focal point on dispute settlement reform. As co-convenor of work on accessibility the UK particularly welcomed Cambodia's role in this regard. We have also appreciated Cambodia's informed participation as Member of the Enhanced Integrated Framework (EIF) Board, including drawing insights from its own national use of EIF funding in sectors such as rice and silk.

3. On WTO agreements, we welcomed Cambodia's acceptance of the 2022 Agreement on Fisheries Subsidies in 2024, and are especially grateful for Cambodia's active role in discussions to achieve incorporation of the Investment Facilitation for Development Agreement soon.

4. In other areas, we encourage Cambodia to consider joining the Agreement on E-commerce and the Services Domestic Regulation initiative, both of which aim to break down barriers to cross-border trade in services and facilitate digital trade, which we believe would have significant benefits for Cambodia's economic development.

5. We are very interested to hear Cambodian views and any remaining concerns on these agreements, and look forward to continuing to work together in these and other areas. This also includes ongoing work on the additional fisheries subsidies agreement relating to overcapacity and overfishing where Cambodia's continued insights and support would be welcome.

6. Taking account of feedback from UK business, we also encourage Cambodia to increase momentum to achieving greater transparency in their customs valuation processes and regulations, including clearer processes for foreign business licensing, taxation, and land ownership.

7. We also encourage Cambodia to accelerate efforts to establish stronger intellectual property protections, including enforcement of trademarks, copyrights and patent protections; and to pursue clear policies to strengthen regulatory frameworks in areas such as sustainable waste management, green investments, and emissions standards for automotive and construction industries.

8. We also hope that Cambodia will continue to upskill their domestic workforce and implement stronger labour protections to meet increased economic demands, including after LDC graduation.

9. Finally, Cambodia has made important efforts to advance women's economic empowerment and strengthen gender equality, notably through its credit guarantee schemes and national strategy. On behalf of Ambassador Simon Manley, as co-chair of the Working Group on Trade and Gender, who due to other commitments could not be here in person today, we would also welcome Cambodia sharing its experiences at a forthcoming session of the Group.

In closing, Chair, let me thank Cambodia for their report, for our wide cooperation bilaterally and here at the WTO. I again thank the delegation for its hard work and look forward to a productive Trade Policy Review.