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EU revokes some of Cambodia’s trade privileges over human rights violations

15/08/2020    14

Brussels has partially withdrawn tariff-free buying and selling rights from Cambodia in protest in opposition to human rights violations within the nation — the primary time the EU has revoked preferential “Everything But Arms” trade phrases created for the world’s poorest nations. 

The European Commission on Wednesday confirmed that Cambodia’s EBA rights had been partly suspended, following by on an EU choice from earlier this yr. The transfer means some Cambodian items resembling clothes and footwear merchandise will now face tariffs when they’re imported into the EU, in addition to sugar.

Brussels estimates that merchandise affected make up one-fifth, or €1bn, of Cambodia’s yearly exports to the EU. Cambodia can nonetheless export the products to the EU however they are going to be topic to tariffs below World Trade Organization guidelines. 
Cambodia, the place Prime Minister Hun Sen has dominated for greater than 35 years, is a take a look at of whether or not scrapping trade preferences is an efficient instrument in placing strain on autocratic governments, or whether or not it dangers harming staff, companies and the broader economic system.

Phil Hogan, Brussels trade commissioner, mentioned the EU wanted to see “substantial improvement” in Cambodia’s respect for human rights and labour legal guidelines to totally restore EU market entry. 

“We have provided Cambodia with trade opportunities that let the country develop an export-oriented industry and gave jobs to thousands of Cambodians,” mentioned Mr Hogan. “We stand by their side also now in the difficult circumstances caused by the pandemic. Nonetheless, our continued support does not diminish the urgent need for Cambodia to respect human rights and labour rights.”

The EU argued that it was successfully compelled to take the step as a result of of repeated violations in opposition to political freedom. Since 2017, Cambodia has arrested and tried the opposition chief Kem Sokha on treason fees, outlawed his Cambodia National Rescue celebration and cracked down on impartial media. Legislative elections in 2018, by which the ruling Cambodian People’s celebration received each single seat, have been extensively decried as a sham. 

Brussels has lengthy referred to as on Cambodia’s authorities to revive political freedoms and “re-establish the necessary conditions for a credible, democratic opposition and to initiate a process of national reconciliation through genuine and inclusive dialogue”, mentioned an announcement from the fee.

Specifically, the EU has requested the federal government to reinstate rights for opposition figures and amend or repeal a regulation that locations restrictions on non-governmental organisations.

A authorities spokesman was not instantly out there for remark. Hun Sen has beforehand criticised the EU’s motion and vowed his nation wouldn’t “bow down” to overseas calls for.

EBA is an EU scheme granting full duty-free, quota-free entry into the EU marketplace for all merchandise besides arms and ammunition for nations categorised by the UN as least developed. Cambodia has been one of the programme’s greatest beneficiaries. But the entry hinges on respect for human rights and primary labour requirements. 

The EU is Cambodia’s largest buying and selling companion, accounting for 45 per cent of the nation’s exports in 2018. Exports to the EU from Cambodia reached €5.4bn in 2018. About 95 per cent of these exports entered the EU market below EBA tariff preferences.
Cambodian corporations and unions had warned the EU that scrapping the preferences for the nation would endanger lots of of 1000’s of jobs, largely held by girls.

EU officers mentioned the trade curbs had been tailor-made to attempt to keep away from delivering an financial hammer blow to the nation throughout Covid-19, whereas on the similar time bringing significant strain to bear on the regime. EBA is seen in EU diplomatic circles as a key supply of leverage with the nation. 

In current months, Brussels has harassed that the Cambodian authorities can nonetheless save the trade preferences by addressing the bloc’s issues over political and civil rights. “I stand ready to continue our engagement and to restore fully free access to the EU market for products from Cambodia provided we see substantial improvement in that respect,” mentioned Mr Hogan. 

The EU can be at the moment reviewing whether or not to revoke EBA trade preferences for Myanmar over alleged genocidal acts in opposition to Rohingya Muslims.

Source: Financial Times