PHNOM PENH, Feb. 14 (Xinhua) -- Cambodian Prime Minister Samdech Techo Hun Sen said on Thursday that the country will not die if the European Union suspends the Everything But Arms (EBA) trade preferences for the kingdom.

"No matter whether it is suspended or not, the suspension of the EBA trade preferences, that will be known in 18 months, will not lead us to die," he said during the closing ceremony of the Interior Ministry's annual conference.

"We must not exchange our sovereignty for any aid," the Cambodian prime minister said.

Meanwhile, Hun Sen unveiled a series of "sharp and deep" reforms to strengthen economic independence and support businesses in case the EU withdrew the EBA from the country.

He said the measures included cancellation of certificates of origin (CO), pullout of Cambodia Import Export Inspection and Fraud Repression (CamControl) unit from all border checkpoints, removal of the Kampuchea Shipping Agency and Brokers (Kamsab) officers from all ports, reduction of fees on inspection of cargo containers by scanning machines, and cut of the fees for getting customs papers stamped.

He added that the government will also provide fiscal incentives for small- and medium-sized enterprises.

"With our ongoing sharp and deep reforms, we believe that investment environment in Cambodia will be better and more attractive to local and foreign investors and business people," Hun Sen said.

He added he will meet with business leaders in March during a government-private sector forum to discuss these issues.

According to Hun Sen, Cambodia's economic growth was 7.5 percent in 2018, the highest rate in the last decade.

His remarks came after the EU began on Tuesday the 18-month process that could lead to the temporary suspension of Cambodia's duty-free trading access to the EU market under the EBA scheme due to concerns over human rights and labor rights.

EU is a major trading partner for Cambodia, especially for textiles and footwear sector. As a Least Developed Country, Cambodia has enjoyed exports of all products, except arms and ammunition, to the EU market with zero percent tariff since 2001.

According to an EU data, the Southeast Asian nation exported products to the bloc worth about 4.9 billion euros in 2018.

The Garment Manufacturers Association in Cambodia (GMAC) said on Monday that a suspension of EBA would increase tariffs by 12 percent in the garment sector and by 8 to 17 percent for footwear.