Support the Development of Smooth Transition Strategy on Cambodia’s LDC Graduation

Support the Development of Smooth Transition Strategy on Cambodia’s LDC Graduation

The Project at A Glance

International Economics is providing technical support to the Cambodian Ministry of Commerce (MoC) for the development of Cambodia’s Smooth Transition Strategy (STS) in preparation for Least Developed Country (LDC) graduation.

The project is being implemented under the “EU Gate” Initiative and is funded by the German Federal Ministry for Economic Development (GIZ).

What We Found

As Cambodia transitions from Least Developed Country (LDC) status, it will gradually lose LDC-specific International Support Measures, such as preferential market access and regulatory flexibilities. Given the country’s strong reliance on export-led growth – particularly in sectors such as garments, footwear, bicycles, and agriculture – this transition may increase exposure to higher tariffs, stricter rules of origin, and stronger international competition.

In this context, International Economics will conduct an in-depth review of Cambodia’s existing trade-related policies, strategies, and regulatory frameworks, including areas such as trade policy, intellectual property rights, e-commerce regulations, and trade-related infrastructure. The analysis will support the Ministry of Commerce in developing trade policy recommendations that will feed into the national STS led by the Ministry of Planning of Cambodia, helping mitigate potential economic impacts and strengthen long-term trade competitiveness.

Our Strategy and Impact

Our Team will provide technical support for the development of Cambodia’s STS for LDC graduation preparedness. This assignment aims to strengthen Cambodia’s capacity to manage the economic and social impacts of losing LDC-specific trade preferences and flexibilities, while promoting inclusive and sustainable trade development.

The Team will conduct a comprehensive review of existing trade policies, agreements, and legal frameworks covering goods, services, intellectual property, digital trade, e-commerce, and investment, identifying gaps and areas for integration to ensure a coherent transition strategy. Based on this analysis, the Team will provide strategic recommendations and prioritised measures to support key sectors, and develop a SMART-based implementation plan with monitoring and evaluation mechanisms.

Our Core Solutions

The cross-cutting nature of trade is such that it requires a comprehensive, integrated, and inclusive framework. While well-designed trade policies are vital to delivering long-term benefits for economies, so is the need for effective implementation.

At International Economics Consulting Ltd., we support the public and private sectors in navigating the policy and negotiation landscape regarding international trade. This includes establishing robust monitoring and evaluation framework through sophisticated real-time dashboards and reporting systems to ensure the best outcomes. We provide advocacy services to empower delegations and negotiators to participate effectively in trade negotiations and deliberations and advocate for their countries’ interests and positions.

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