Cambodia Focuses on Self-Reliance for Global Competitiveness Amid Shifting Trade Preferences

Cambodia is accelerating efforts to strengthen its domestic competitiveness, anticipating the potential loss of preferential trade treatment from the United States. Sun Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC), emphasized the importance of proactive measures rather than waiting for preferential tariffs to be removed. During a press conference on new tariff rates for exports to the United States, held at the CDC on July 27, 2026, following a compliance investigation under Section 301 of the US Trade Act, the Deputy Prime Minister highlighted that simplifying procedures, reducing logistics costs, ensuring quality work, and enhancing expertise are crucial for Cambodia to boost its international competitiveness. Furthermore, the Deputy Prime Minister indicated that diversifying Cambodia's industrial structure, shifting from garment manufacturing to sectors like electronics and food processing, is key to the nation's economic development and the achievement of its long-term vision. Cambodia aims to create a system where it can compete on equal footing with other nations globally by reducing its production costs through its own efforts. "We must focus on reducing production costs within Cambodia by ourselves, rather than relying solely on preferential tariffs from other countries. Only then can we compete," stated Deputy Prime Minister Sun Chanthol. He reiterated the significance of pursuing sustainable growth through domestic reforms and self-exertion, as trade preferences can be revoked at any time.