Cambodia urges strategic trade policy shift amid global fragmentation

PHNOM PENH, April 10, 2026 (KPT) – Cambodia has called for a strategic recalibration of its trade policy as global trade fragmentation intensifies, posing new challenges for small, trade-dependent economies, officials said Thursday.

Speaking at the inaugural Multilateral Trade Forum 2026, Senior Minister Sok Siphana, Chairman of the Trade Policy Advisory Board, stressed the need for Cambodia to adapt its strategy ahead of its expected graduation from Least Developed Country status in the coming years.

The forum, co-organized by the Trade Policy Advisory Board, Konrad-Adenauer-Stiftung Cambodia, and the Economic Society of Cambodia, brought together government representatives, development partners, and the private sector to discuss Cambodia’s positioning in an increasingly volatile global trade environment.

Siphana warned that rising protectionism, export controls, and geopolitical tensions are reshaping the global trading system, while reforms at the World Trade Organization remain stalled. Global trade growth is projected to slow sharply amid ongoing conflicts and uncertainty.

He said Cambodia must diversify export markets, strengthen regional partnerships, and enhance domestic industrial capacity to remain competitive. He emphasized the importance of maintaining access to preferential trade schemes and ensuring that graduation from LDC status does not increase vulnerability.

“Graduation should mark progress, not vulnerability,” Siphana said.

The forum also highlighted broader global shifts, including the rise of regional trade blocs, the growing importance of digital trade, and the resurgence of industrial policy as countries respond to supply chain disruptions and geopolitical risks.

The discussions underscored the urgency for Cambodia to adopt a flexible, forward-looking trade strategy to navigate global uncertainties while seizing emerging opportunities.