News 26 February 2020

Commission ‘partially withdraws’ Cambodia’s preferential access to the EU market

The European Commission has said that, having taken into account the ‘serious and systematic violations of the human rights principles enshrined in the International Covenant on Civil and Political Rights,’ it has decided to withdraw part of the tariff preferences granted to Cambodia under the European Union’s Everything But Arms’ (‘EBA’) trade scheme.

In a statement, it explained that ‘The withdrawal of tariff preferences – and their replacement with the EU’s standard tariffs (most favoured nation MFN) – will affect selected garment and footwear products, and all travel goods and sugar. The withdrawal amounts to around one-fifth or €1 billion of Cambodia’s yearly exports to the EU. Unless the European Parliament and the Council object, this will take effect on 12 August 2020.’

High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission, Josep Borrell said that the ‘duration, scale and impact of Cambodia’s violations of the rights to political participation and to the freedoms of expression and association left the European Union with no other choice than to partially withdraw trade preferences. The European Union will not stand and watch as democracy is eroded, human rights curtailed, and free debate silenced. [The] decision reflects our strong commitment to the Cambodian people, their rights, and the country’s sustainable development. For the trade preferences to be reinstated, the Cambodian authorities need to take the necessary measures.’

The Commission said that its decision ‘addresses the human rights violations that triggered the procedure, while at the same time preserving the development objective of the EU trade scheme. It recognises the need to continue to support Cambodia’s economic development and diversification of its exports.’ Despite the measure, it said, all ‘emerging industries’ in Cambodia will continue to enjoy duty-free, quota-free access to the EU market – as will ‘value-added garments and certain types of footwear.’

More information on the Everything But Arms scheme is available at:
https://trade.ec.europa.eu/tradehelp/everything-arms