Cambodia Trade Integration Strategy 2019-2023, Main Report and Action Matrix. Kingdom of Cambodia

Cambodia has been at the forefront and has been a key beneficiary of the Enhanced Integrated Framework partnership for Least Developed Countries (EIF). Diagnostic Trade Integration Study (DTIS) or Trade Integration Strategies as they have come to be known are the cornerstone of the EIF programme in terms of mainstreaming. The DTIS and the country’s policies and action plans are the basis for all subsequent Aid-for-Trade projects. The paramount objective of a DTIS is to identify the constraints that are hampering the ntegration of a country into the multilateral trading system and the mainstreaming of trade issues into the NSDP and national development plans. The original DTIS of Cambodia, prepared with the support of the World Bank Group, was launched in November 2001 and put a strong emphasis on Cambodia’s reintegration to the world trade arena, paving the way for its successful accession to the WTO in 2003. Cambodia was the first EIF beneficiary to update its DTIS in 2007 (a process known as Cambodia Trade Integration Strategy 2007 or CTIS 2007). CTIS 2007, prepared by UNDP Cambodia on behalf of MOC, had export diversification as its main theme that supports the efforts by the Royal Government of Cambodia to diversify its economy using trade as its main engine of growth. The CTIS 2007 also introduced the notion of Trade Pillars (aka SWAp Pillars) and transformed the initial “action matrix” into “trade roadmap” to further enhance mainstreaming of trade into national development strategies, such as the National Strategic Development Plan and Rectangular Strategy. CTIS 2014, covering the Fifth Mandate of the Royal Government of Cambodia (2014-2018) was produced in time for Cambodia’s participation into the ASEAN Economic Community that was launched in 2015. The CTISU 2014, prepared jointly by UNDP Cambodia and the MoC, it highlighted the challenges and opportunities for Cambodia’s Export Diversification and Expansion and looked into deepening Cambodia’s Trade Integration in regional and other emerging markets; The decision to update the CTIS once again was taken by MoC senior leadership in early 2018, and negotiations with the EIF Executive Secretariat were concluded in July 2018. The main goal of the CTIS 2019 is to develop an up-to-date integration strategy that can be mainstreamed through the new Rectangular Strategy IV and Vision 2030 that were formulated by the Government and will serve as a basis for the design of the new National Strategic Development Plan (2019-2023) that will guide the work of the new Government following the recent general elections. Since the first DTIS in 2001, leadership of the DTIS formulation process in Cambodia has changed significantly. This reflects Cambodia’s growing capacity to manage its Aid-for-Trade process. The first DTIS was largely agency-driven, with the WB leading a team of experts under IF funding. CTIS 2007 and CTISU 2014 were carried out under the joint leadership of the Ministry of Commerce and the UNDP. CTIS 2019-2023 is the first fully Government-led and Government-owned trade strategy update process. This report and the accompanying action matrix benefited from extensive comments received from Cambodian government officials, private sector stakeholders, development partners, as well as members of the EIF Board and EIF Executive Secretariat on earlier drafts. (...) Chapter 2 is about LDC Graduation, Trade Competitiveness, Quality of Growth and SDGs