Cambodia’s potential loss of its Everything But Arms (EBA) preferential trade access to the European Union (EU) would weaken its economic growth and lead to a credit negative, Moody’s Investors Services has cautioned. With a B2/stable sovereign rating, it would undermine the price competitiveness of its garment exports unless they are offset by productivity gains.
In a recent report, Moody’s said rising costs will make the country less attractive as a production base and could weaken foreign direct investment, a contributor to its economic stability.
Competition from regional rivals also poses a significant threat, global news wires reported citing the document.
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