Cambodia needs to strengthen her resilience as in 2027, Cambodia will no longer be eligible for EBA (Everything But Arm) scheme when the Kingdom graduates from a lower middle-income economy to an upper middle-income economy.
Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia, made the comments this morning at a get-together with more than 16,000 workers and employees from factories and enterprises in Korng Pisey district, Kampong Speu province.
“We will lose access to EBA scheme at any time as our country develops. Now, we lose 20 percent of access which does not pose any problem [on our economy],” he explained, estimating that “Cambodia will lose full access to the preferential scheme in 2027 because that year, the country will graduate as an upper middle-income economy, so all exports are taxable. Therefore, we have to strengthen our resilience from now on.”
Samdech Techo Hun Sen took the opportunity to reiterate Cambodia’s strong position of “not to exchange national sovereignty to any assistance or any trade preferences.”
Besides, the Premier laid stress on Cambodia’s GDP in 2022, saying that agriculture sector accounted for 21.3 percent, down from 37 percent in 2000, while industry increased to 38 percent, up from 22 percent in 2000, and services was recorded at 25 percent, compared to 36 percent in 2000.
The more the country develops, the less contribution of agriculture is, he said, raising an example of Japan whose agriculture accounts for lower than 1 percent of its GDP, but the country can export to almost worldwide markets besides feeding her own people.
According to Samdech Techo Hun Sen, in 2002, Cambodia still lacked food, and received a donation of 20,000 tonnes of milled rice from India at that time, yet now the country has a surplus of over 6 million tonnes of paddy rice, or over 4 million tonnes of milled rice for export to 73 countries around the world.
Samdech Techo Prime Minister additionally mentioned about a green light from Chinese, Japanese and Korean markets for Cambodia’s potential agricultural products such as fresh banana, mango, longan, cashew nut, and the like.
Source: Agence Kampuchea Presse