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Cambodia's LDC transition: Navigating new challenges in textile trade

This achievement is a significant milestone for Cambodia, reflecting its successful use of preferential trade agreements and increased export capabilities. However, while the transition to a higher economic status brings numerous advantages, it also poses challenges. Cambodia may lose some of the tariff preferences it currently enjoys, particularly with key markets such as the European Union and the UK. Industries like footwear and garments, which have benefitted from these tariff privileges, could face new competitive pressures as Cambodia moves away from its LDC status.

Cambodia’s current trade scenario