Economy
EU Links Peace in Cambodia–Thailand Conflict to Humanitarian Relief and Expanding Trade Ties
PHNOM PENH, Cambodia (Dec. 23, 2025) — The European Union said it hopes the Cambodia–Thailand conflict will end soon, allowing more than half a million displaced Cambodians to return home in 2026, while underscoring its role as both humanitarian donor and trade partner.
Igor Driesmans, EU Ambassador to Cambodia, described 2025 as “an exceptionally difficult year” for Cambodia, citing destruction of temples, infrastructure and livelihoods. “Our priority now is to find peace to end the destruction of temples, of infrastructure, but also of the lives of so many people,” he said. “We have contributed €700,000 to help those in need, and our hope is that displaced civilians can return to their homes in 2026 and restart their lives.”

According to Cambodia’s Interior Ministry, at least 21 civilians have been killed and 83 injured, while 544,685 people — including 285,532 women and 174,006 children — have been displaced since fighting reignited earlier this month.
Driesmans stressed that peace is also critical for Cambodia’s economic recovery and its growing trade relationship with Europe. “We see the EU in action every day, from rehabilitating more than 1,000 kilometers of rural roads to supporting Cambodia’s first large shipment of cashew nuts to Europe,” he said. “These projects show that our partnership is about both humanitarian solidarity and long term development.”
Trade ties have remained resilient despite global tensions. Cambodia–EU bilateral trade reached USD 3.92 billion in the first eight months of 2025, up more than 10 percent year on year, with garments, footwear, cashew nuts and Kampot pepper leading exports. The EU has also backed Cambodia’s participation in the Global Gateway strategy, mobilizing investment in infrastructure, agriculture and connectivity.
Driesmans welcomed Prime Minister Hun Manet’s recent visit to Europe and highlighted an €80 million agreement with the European Investment Bank to modernize Cambodia’s agricultural sector. Looking ahead, the EU plans to launch a 2026 awareness campaign under the banner “EU – Here With You,” promoting investment opportunities and reinforcing its role as Cambodia’s partner in peace, trade and development.
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