The ratification was approved by 106 lawmakers out of the 107 who attended the National Assembly session.

Cambodia was admitted to the global trading club at its meeting in Cancun, Mexico, last September.

But it could not complete the accession process because it did not have a functional legislature at the time following inconclusive elections in July 2003. The deadlock was resolved last month.

"We will die if we continue to stay outside, and it's only a matter of how slow or quick the death will be," Commerce Minister Cham Prasidh said.

The global garment industry is currently governed by a system that allows developed countries to impose quotas on imports from abroad to protect domestic textile industries.

The quota system will be phased out for all WTO members in January 2005 and the Cambodian government hopes this will allow the country to export without restriction to major markets, such as the United States and Europe. The garment industry contributes four-fifths of Cambodia's total official exports of US$1.44 billion per year.

Cham Prasidh said the WTO membership "will create more opportunities for Cambodia" to improve the economy of the country, one of the poorest in the world.

The National Assembly's vote must be approved by the Senate before it is signed by the head of state. Both steps, largely a formality, are expected to be completed before a September deadline.

Cham Prasidh said full membership will take effect 30 days after Cambodia notifies the WTO secretariat of the ratification.

He said membership will also bring tough competition from other garment producing countries such as China, Pakistan and India, but "we can overcome those challenges."

According to a recent World Bank survey, rampant corruption and bureaucratic inefficiency are threatening the future of Cambodia's garment industry and other small business sectors crucial for reducing poverty.

The survey also called for major reforms to improve the business climate to bring back overall foreign direct investment, which has dramatically dropped from US$230 million (euro 191.6 million) in 1998 to around US$50 million (euro 41.6 million) in 2002.

Opposition leader Sam Rainsy said a "big question" is whether Cambodia can take advantage of WTO membership amid rampant corruption.

"I have little hope about our ability to compete as long as our government remains corrupt," he said.