PM: Ending trade pacts hurts development
PRIME Minister Hun Sen called on World Trade Organisation ( WTO) member states a nd development partners “to give close consideration” before removing preferentia l trade status from Least Developed Countries (LDCs).
Spea k ing at t he opening of t he WTO’s 2019 Global Review of Aid for Trade in Geneva, Sw it zerla nd on Wednesday, Hun Sen said that the continuation and enhancement of trade preferences – whether bilateral or unilatera l – was essentia l for LDCs to achieve their development goals.
He said that after joining the WTO i n 2004, Ca mbodia ha s accomplished many achievements a nd enjoyed annual economic grow th of around 7.7 per cent over the past t wo decades.
He added t hat t he K i ngdom advanced from a low-income count r y i nto a lower-midd le-i ncome countr y in 2015, and at the current rate is set to become an upper-middle-income countr y by 2030 and a high-income countr y by 2050.
“In order to achieve t his outlook, a pr e f e r e nt i a l [ t r a de ] s y s t e m between member states and development partners is key.
“Suspension or wit hdrawa l [of t rade preferences] wi l l not a l low [LDCs] to help the world achieve its susta inable development goa ls. It will not help t hem progress f rom LDC status,” Hun Sen sa id, referring to t he potentia l wit hdrawal of
the EU’s “Ever ything But Arms” trade preferences from the Kingdom.
The EU has claimed that the move is in response to “a deterioration of democracy [and] respect for human rights” in the Kingdom, but Hun Sen said on Wednesday the move is in “complete contrast” with UN and WTO principles.
Rice tariffs
In January, the EU also imposed tariffs on Cambodia and Myanmar’s rice exports into the bloc following complaints from Italy and Spain amid a slowdown in their rice industries.
The Kingdom’s access to the US’ preferential trade treatment granted under the General System of Preferences also looks under threat, as US lawmakers have also expressed concern over what they perceive to be a shrinking of democracy and freedom in Cambodia.
Centre for Policy Studies director Chan Sophal said the preferential system is crucial for developing countries to export goods to major markets and prosperous economies.
Hun Sen a l so c a l led on W TO member st ates a nd developing partners to prov i de f u r t her s uppor t by streng t hening t he competitiveness of LDCs, launching s uppor t pr og r a mmes f or them to graduate from LDC st at us, a nd bu i ld i ng t hei r capacit y to take advantage of new sou rces for economic g row t h – especia l ly dur i ng t he ongoi ng I ndust r y 4.0 revolution.