Due to human rights issues in Cambodia, the European Commission announced on February 12, 2020 that it would revoke the EBA preferential tariff treatment for some products, triggering dissatisfaction with the EU decision from all walks of life. Among them, the Cambodia Garment Factory Association , the Cambodian Shoe Industry Chamber of Commerce, and the Cambodian Federation of Employers and Business Associations issued statements respectively, criticizing the move as it will seriously affect Cambodia’s export economy and people’s lives, and hoping that the European Commission will reconsider.
The Cambodia Garment Factory Association issued a statement on February 17 on behalf of more than 580 related enterprises in Cambodia. The EU is Cambodia’s largest product export market, and the main beneficiaries of EBA are Cambodia’s clothing and travel supplies industry accounts for 75% of Cambodia’s total merchandise exports and approximately 95% of its exports to the EU. The above-mentioned industries employ more than 750,000 people, helping many people escape poverty. In particular, the majority of workers are women, and they have become the main source of income for 20% of Cambodian families.
The Cambodian Garment Factory Association said that the EU decision will affect Cambodian exports, causing international buyers to transfer orders to other countries. In addition, Cambodia’s cooperation record with the International Labor Organization It is very good. Among all the countries that have benefited from the EU’s tax-free preferential treatment, no other country is better than Cambodia. Therefore, we hope that the European Commission and members will reconsider the decision to withdraw some of the EBA preferential treatment for Cambodia.
The Cambodian Footwear Chamber of Commerce, representing more than 120 related companies, also issued a statement on February 18, specifying and stating the European Commission’s decision to remove EBA preferential tariffs on some Cambodian products. It will severely damage the footwear industry and people’s employment opportunities, causing an unemployment crisis of 150,000 people who rely on the footwear industry for survival, and putting tens of thousands of workers and family members at risk of poverty, which will seriously affect Cambodia’s economic growth. At this stage, the Cambodian footwear industry is facing the potential impact of unstable supply of raw materials in the supply chain. The Chamber of Commerce hopes to ask the EU to reconsider at this extraordinary moment.
The Federation of Cambodian Employers and Business Associations also issued a statement on February 19, believing that this move will seriously affect the lives of the Cambodian people and will not help change the current political situation.
