As a least-developed country (LDC), Cambodia is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. Since March 2017, Cambodia is one of the countries under "enhanced engagement", which further incentivises and facilitates beneficiary country's progress with regard to the 15 core international conventions covered in the GSP regulation. In August 2020, Cambodia's preferential access to the EU market was partially withdrawn because the government failed to address the EU's human rights concerns that led to the start of the withdrawal procedure in February 2019. Still, the EU continues to be an important market for Cambodia: total EU imports from Cambodia amounted to about €5.5 billion in 2024 (after €4.8 billion in 2023), and preferential imports to €4.2 billion (€3.5 billion in 2023).
The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.
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Cambodia can look back on two decades of substantial economic growth. The economic growth rate averaged 8% annually until covid-19, which made the Cambodian economy one of the fastest-growing economies in the world. Post-covid, annual growth averaged about 5%.
Cambodia's most important export goods are articles of apparel and clothing, but exports of other manufactures, notably electrical and electronic equipment have been rising fast in recent years.
Cambodia's most important trading partners are China (28% of total trade in 2024), the US (19%), Vietnam (14%), and the EU (9%). Most of Cambodia's imports originate from regional trading partners - China, Vietnam, Thailand, Indonesia, and Singapore. Important export markets for Cambodian products are the US (38%) and the EU.
Agriculture remains the mainstay of the economy. The most important crops include rice, coconuts, cassava, corn, sugarcane, and soybeans as well as a variety of fruits. Manufacturing industries have developed fast in recent years, focussing increasingly on exports. The garment sector was a main driver of economic growth and still accounts for the majority of Cambodia’s exports, but manufacturing of electrical equipment and electronics has expanded fast in recent years.
Measured by the value of preferential exports (€4.2 billion in 2024), Cambodia is the second biggest beneficiary of the EBA arrangement. About 76% of Cambodia's total exports to the EU used the preferences granted under the EBAin 2024.
Total trade with the EU amounted to €4.3 billion in 2024. The EU is Cambodia's fourth most important trading partner with a share of 9%. About 15% of Cambodia's exports go to the EU market. Imports from the EU, on the other hand, play a less important role: Only 2% of Cambodia's imports originated from the EU in 2024.
Share of Cambodia's exports to the EU that were eligible for tariff preferences under the EBA in 2024.
Cambodia's preference utilisation rate in 2024.
Share of zero-duty imports from Cambodia in 2024.
EBA-eligible imports constitute a significant portion of the EU's total imports from Cambodia. They steadily increased from 2013 to 2019 but then contracted sharply in 2020 and 2021 in response both to the COVID-19 pandemic and the partial and temporary withdrawal of preferences. 2022 to 2024 saw a partial recovery, albeit still at substantially lower levels than in the years up to 2019. Cambodia's preference utilisation rate fluctuates around 90% (93% in 2024). All of the important product sections have similarly high preference utilisation rates, including the two dominant import groups apparel and footwear.
Apparel products accounted for about 78% of preferential imports in 2024, indicating that the Cambodian economy remains heavily reliant on this sector - and the share increased from 71% in 2022. Further economic diversification can support the economy's resilience to shocks on international markets and reduce the overall fragility of the economy. Thus, in the "Industrial Development Policy 2015 - 2025", the government identified a number of priority sectors which are supposed to support the diversification of the product range. These priority sectors include inter alia automotive parts, which record a dynamic development and an increasing share in overall industrial production. But EU preferential imports of vehicles decreased by 56% from 2022 to 2024, whereas apparel increased by 7%.
Cambodia has ratified all international conventions listed in the current GSP Regulation on human and labour rights, environmental protection and good governance. Nevertheless, in 2017 the EU started the "enhanced engagement" with Cambodia due to concerns with the country's overall adherence to human and labour rights and shortcomings in the respect of the related convention’s core principles.
Due to lacking progress in the focus areas of the enhanced engagement, the EU launched a temporary withdrawal procedure in February 2019, which led to the temporary withdrawal of preferences for a number of products originating from Cambodia on 12 August 2020. The partial temporary withdrawal of preferences was taken on the basis of concerns about restrictions of the right to political participation, of the right to freedom of expression, and of the right to freedom of association and peaceful assembly.
The socioeconomic impact of the withdrawal, including the impact on workers, was taken into account when selecting the products and deciding the scope of the withdrawal. Cambodia continues to benefit from the preferences for those tariff lines not covered by withdrawal. This targeted approach is complementing the continuous EU efforts towards poverty reduction in the country.
The enhanced engagement and political dialogue has continued after the withdrawal. Over the period 2023 to 2025, key exchanges took place at the 12th EU–Cambodia Joint Committee in Brussels on 25 April 2024 and related sub-group meetings. Political contacts intensified, with several high-level meetings with Prime Minister Hun Manet. Further exchanges took place at the 13th EU–Cambodia Joint Committee in Phnom Penh and related sub-group meetings in March 2026.
Over the period 2023 to 2025, the following positive developments were noted:
Remaining issues and priorities for future engagement are:
The EU’s priorities remained shaped by international monitoring bodies: reopening civic and political space; ending the criminalisation of opposition figures, activists, trade unionists and independent media; reforming restrictive laws; strengthening judicial independence and accountability for arbitrary detention, torture and other ill-treatment; addressing anti-union discrimination and misuse of criminal law in labour disputes; protecting indigenous peoples’ land rights and ensuring free, prior and informed consent; adopting a comprehensive anti-discrimination framework; reforming domestic violence legislation and improving protection of women and human rights defenders; criminalising torture in line with convention; and adopting a compliant Child Protection Law.
For more information about Cambodia's compliance with the GSP conventions, see the convention compliance database. Also see the factsheet on Cambodia.
Access all info about EU-Cambodia relations on the International Partnerships website.