EU to hit Cambodia with trade sanctions, says Myanmar may follow
5 October 2018
BRUSSELS: The European Union told Cambodia on Friday (Oct 5) it will lose its special access to the world's largest trading bloc, and said it was considering similar trade sanctions for Myanmar in a toughening of EU policy on human rights in Southeast Asia.

After months of pressure from rights groups and the European Parliament, the EU's trade chief Cecilia Malmstrom said the bloc was ready to punish abuses in both countries by removing trade preferences.

Malmstrom said she had told Cambodia that the bloc had launched a six-month review of its duty-free access to the EU, meaning Cambodian sugar, garments and other exports could face tariffs within 12 months under EU rules.

"I have notified Cambodia today that we will launch the procedure for withdrawal of EBA," said Malmstrom, referring to the bloc's "Everything but Arms" (EBA) status, which allows the world's poorest countries to sell any goods tariff-free into the EU, except weapons.

"Without clear and demonstrable improvements this will lead to suspension of trade preferences," she said.

Cambodia's exports to the European Union were worth €5 billion (US$5.8 billion) last year, according to EU data, up from negligible levels less than a decade ago, with the EU using its trade policy to develop the country's economy.

Cambodia's July elections marked a turning point in relations with the West. Prime Minister HE was returned to power after three decades in charge and opposition supporters were stripped of their right to vote.

A Cambodian government spokesman said he was not able to comment immediately.

EU countries accounted for around 40 per cent of Cambodia's foreign sales in 2016. The bulk of those exports were from clothing factories that employ around 700,000 workers.
https://www.channelnewsasia.com/news/as ... w-10795976

Oh dear, increasing wages and a shrinking market...
What's everyone going to do for a crust?

Sent from my SM-G570Y using Tapatalk

Barang chgout wrote: ↑Sat Oct 06, 2018 7:11 am Oh dear, increasing wages and a shrinking market...
What's everyone going to do for a crust?

Sent from my SM-G570Y using Tapatalk

Dont worry, we will just grow and export more rice.

meh

Mynmar commit some of the worst ethnic cleansing of the past half century, but they give sanctions to Cambodia?

EU initiates process to withdraw Cambodia’s trade preferences
6 October 2018
The European Union officially notified Cambodia yesterday that the procedure for the withdrawal of its preferential trade treatment under the ‘Everything but Arms’ (EBA) scheme had already “been launched”.

Writing in the European Commission’s official blog, EU Trade Commissioner Cecilia Malmstrom said she and EU High Representative Federica Mogherini had notified Cambodia yesterday (Friday) that the EU was launching the process for the withdrawal of their EBA preferences.
“Our recent EU mission to the country demonstrated serious and systemic violations of, for instance, freedom of expression, labour rights and freedom of association. This comes on top of longstanding issues as regards workers’ rights and land-grabbing.”

Ms Malmstrom pointed out that Cambodia benefitted from the EBA, which guarantees completely tariff-free access to the European market for all exports except for weapons and ammunition.

“However, this access is not without conditions. It comes with a responsibility to uphold and respect the values enshrined in 15 fundamental conventions of the United Nations and the International Labour Organisation,” she wrote in the EU blog.

Cambodian government officials could not be reached for comments due to the start of the week-long Pchum Ben holidays.
https://www.khmertimeskh.com/540068/eu- ... eferences/

About time.
Given the large and increasing Chinese investment and ownership, the EBA agreement with Cambodia amounts to a backdoor subsidy to China.
I'm guessing a fair chunk of that incoming investment also goes to the current regime, so removing the preferred status kills two birds with one stone.
The headline is misleading though, they'e not preparing to impose sanctions, but to revoke privilege.

finbar wrote: ↑Sat Oct 06, 2018 7:19 pm About time.
Given the large and increasing Chinese investment and ownership, the EBA agreement with Cambodia amounts to a backdoor subsidy to China.
I'm guessing a fair chunk of that incoming investment also goes to the current regime, so removing the preferred status kills two birds with one stone.
The headline is misleading though, they'e not preparing to impose sanctions, but to revoke privilege.

As you say, it's more about revoking a privileged deal with Cambodia, which is being heavily exploited by China to send goods to the EU through their Cambodian factories.

And lets hope the US soons follows and not only gets rid of duty free imports, but slaps 10-20% on top.

The benefits are flowing through to Chinese companies and provide benefits to friends of the regime through board seats, no show jobs, etc.

Cambodia wants to be China's best friend - so be it - but then let China pay full freight.