Cambodia Slams ‘Unjust Decision’ by EU to Proceed With Ending Preferential Trade Status

[geovalin]

Cambodia on Tuesday slammed what it called an “unjust decision” by the European Union to launch proceedings that could see its preferential access to the bloc’s market suspended, saying the move amounted to interference in its internal affairs amid political tensions in the Southeast Asian nation.

The European Commission (EC), which coordinates trade policy for the EU, announced the decision on Monday, citing a deterioration in Cambodia’s labor and human rights record over the past 18 months, and kicking off a six-month monitoring period to determine whether Cambodian exports should continue to enjoy tax-free entry into the European market under the Everything But Arms (EBA) scheme.

At the end of the monitoring period, the EU—Cambodia’s largest trading partner—will take three months to produce a report based on its findings, and 12 months from Tuesday, the EC will conclude the procedure with a final decision on whether or not to withdraw trade preferences, as well as the scope and duration of the withdrawal.

Any withdrawal would come into effect after a total of 18 months.

Cambodia’s government lashed out at the EU in a statement Tuesday, calling the decision “unjust” and suggesting that the bloc “doesn't respect Cambodia’s sovereignty, because the EU’s demands amount to political interference.”

The period of “deterioration” referred to in the EC’s statement includes the September 2017 arrest of opposition Cambodia National Rescue Party (CNRP) President Kem Sokha for alleged acts of “treason” and the dissolution of his party by the Supreme Court two months later, which paved the way for the ruling Cambodia People’s Party (CPP) to win all 125 seats in parliament in a July 2018 general election.

On Tuesday, Cambodia’s government said the EU decision signaled its support for “a handful of politicians from a small party that is infamous for racism, discrimination and incitement” and expressed frustration that the bloc had overlooked its efforts to “rehabilitate 118 CNRP members,” referring to party members who had been banned from politics in the dissolution, but were offered reinstatement by Prime Minister Hun Sen if they join other parties and request “pardons.”

“Cambodia is willing to strengthen democracy, human rights, and labor rights,” the statement said, adding that the government is also “committed to protecting peace, stability and independence at all costs.”
“We will try to resolve the problems that will arise from this decision.”

Hun Sen followed the government statement with a message posted to his Facebook account criticizing the decision.

“Cambodia can’t rely solely on foreign aid or exchange its sovereignty and independence for anything,” the prime minister wrote.

“We want to see countries that are good friends of Cambodia be happy with our development, and not interfere in our internal affairs.”

The statements marked a departure from Cambodia’s earlier reactions to the threat of EU sanctions, including a statement by government spokesperson Phay Siphan on Monday, who said the country “had already prepared” for the decision and didn’t need to be coddled by the international community.

Cambodians concerned

But average Cambodians—including workers, farmers and vendors—expressed concern Tuesday over the potential loss of tariff-free access to the EU, which accounted for nearly half of Cambodia’s exports last year and props up the Southeast Asian nation’s key garment industry.

Dy Samphos, a worker from the Songly Factory in Svay Rieng province, told RFA’s Khmer Service she will face severe financial difficulties if the EBA scheme is ended, saying she currently supports her children and elderly parents on modest wages.

“If the factory closes, I will have to live in another country [to earn enough money], and I will be far away from my children and parents,” she said.

A vendor in Svay Rieng named Ky Nady said she owns a grocery store and fears that if local factories close, workers will stop buying groceries.

“When they can’t afford to buy food and rice to eat, they won’t purchase anything from us,” she said.

And a farmer from Svay Rieng named Lougn Tha noted that while rice prices had dropped recently, he is still unable to find enough buyers for his crop.

If the EBA scheme is ended, he said, his living standards will suffer even more.

Both the Collective Union of Movement of Workers and the Garment Manufacturers Association of Cambodia (GMAC) expressed concern over the EU decision on Tuesday.

Pav Sina, president of the Collective Union of Movement of Workers, told RFA that an end to the EBA would lead to the closure of factories and the loss of jobs for workers in Cambodia, and called on the government to resolve the problem it had caused.

“The issue emerged as a result of politics, so the government and politicians must resolve the problem and normalize the situation,” he said.

“They must restore the situation so that people will have work and see investment.”

In a statement, GMAC asked the EU to carefully reconsider its decision, noting that Cambodia exported clothes, shoes and travel goods worth around 3.76 billion Euros (U.S. $4.26 billion) in 2017.

Since 2001, it added, Cambodia’s garment sector has provided 700,000 jobs to workers from rural areas—80 percent of whom are women.

“The EBA contributes to poverty reduction” in Cambodia, the statement said, adding that an end to the scheme would lead to a loss in trade competition by the country’s factories and a tarnishing of their reputation.

“GMAC urges the EU to continue working with Cambodia to find a political resolution.”

US weighs in

The U.S. embassy in Cambodia also weighed in on the EU’s decision, saying Washington shared the bloc’s concerns “about serious violations of freedom of expression, internationally recognized labor rights, and freedom of association.”

It called on Cambodia to “restore a true, multi-party democracy” in the country, drop charges against Kem Sokha and other political prisoners, and allow trade unions, media groups and civil society “to operate without undue restrictions.”

“Cambodian leaders still have an opportunity to avoid the negative economic consequences of EBA withdrawal,” it said.

“We urge Cambodian leaders to put the well-being of the country before personal and political interests.”

Since Cambodia’s July 2018 election, which was widely seen as unfree and unfair, the U.S. has announced visa bans on individuals seen as limiting democracy in the country, as part of a series of measures aimed at pressuring Hun Sen to reverse course on a crackdown on the political opposition, NGOs and the independent media.

Reported by RFA’s Khmer Service. Translated by Samean Yun. Written in English by Joshua Lipes.

 

Copyright © 1998-2016, RFA. Used with the permission of Radio Free Asia, 2025 M St. NW, Suite 300, Washington DC 20036.

 

https://www.rfa.org/english/news/cambodia/decision-02122019172007.html

[yellowboat]

The blame rests squarely on Hun Sen's and his cronies shoulders.   He wants favors from a government entity, he has to give something in return.  Has nothing to do with sovereignty.  How childish.   

[phycokiller]

bit of a poke in the eye for hun sen. I see after selling the lake which was one of PP major backpacker attractions he is now selling off wot phnom park, no doubt for personal profit and with no public consultation. hes probably done more damage to the city then pol pot, just to line his pockets. the sooner hes gone the better

[Ketyo]

“Cambodia can’t rely solely on foreign aid or exchange its sovereignty and independence for anything,” the prime minister wrote.

 

Isn't the prime minister exchanging Cambodia's sovereignty and independence for investment and patronage of China.

 

He is choosing the Chinese takeover rather than EU and US economic concessions because China doesn't complain about him screwing his people.... because China is screwing them as well....

[kamahele]

I'm not sure how the EU's ending preferential treatment of tax free duties for Cambodian goods can be considered interfering in Cambodia's business. This is the EU's business and Cambodia can still sell their goods as does other countries, with duties attached.

[Ulic]

Cambodia, you reap what you sew. The only question I have is why is this taking so long and why is the US not following suit. 

[attento]

How will damaging their export trade be of any help to the already poorly paid work force ?   Encouraging trade is more likely to create employment, where before, there was none.      'Labour rights' and 'Human rights' are  political issues and should be addressed on a political basis,  and not by damaging whatever work prospects are available to the poorer members of society.    

 

Do the 'enlightened' inhabitants of the ivory towers of Brussels really believe that their action will not impact on the poor, while leaving the political classes unaffected ?

 

This is an admission by the EU that it carries so little political clout in the world,  it's only option is to resort to this crass behaviour.

 

Sure,  the Cambodian president and his gang maybe reprehensible,  so why not concentrate the response onto his administration,  not the poor.

 

 

[BritManToo]

Not to worry, they can still get a trade agreement with the UK after Brexit.

[nahkit]

So if the EU gives them preferential status that's ok but if they don't then according to Hun Sen that's interfering.

[Redline]

Unfortunate for mister Sen, China makes their own clothes ????

[Benmart]

9 hours ago, attento said:

How will damaging their export trade be of any help to the already poorly paid work force ?   Encouraging trade is more likely to create employment, where before, there was none.      'Labour rights' and 'Human rights' are  political issues and should be addressed on a political basis,  and not by damaging whatever work prospects are available to the poorer members of society.    

 

Do the 'enlightened' inhabitants of the ivory towers of Brussels really believe that their action will not impact on the poor, while leaving the political classes unaffected ?

 

This is an admission by the EU that it carries so little political clout in the world,  it's only option is to resort to this crass behaviour.

 

Sure,  the Cambodian president and his gang maybe reprehensible,  so why not concentrate the response onto his administration,  not the poor.

 

 

Hun Sen does not respond to traditional political means. Money and remaining in power is the driving force for him, his family  and his uniformed cronies. Unfortunately, if the masses are made to suffer enough, perhaps they will take back their country from this former Khmer Rouge despot.

[attento]

11 hours ago, Benmart said:

Hun Sen does not respond to traditional political means. Money and remaining in power is the driving force for him, his family  and his uniformed cronies. Unfortunately, if the masses are made to suffer enough, perhaps they will take back their country from this former Khmer Rouge despot.

The point is that the problems lie with Hun Sen and family and cronies, rather than the poorest levels in that society who have suffered enough over recent decades.   Surely, sanctions against the target are the way to go,  rather than a shotgun approach to the whole country.  e.g. for the whole gang: ban International banking for their corrupt money, ban international travel, etc.   Hit the guilty parties where it hurts.    

[BritManToo]

38 minutes ago, attento said:

The point is that the problems lie with Hun Sen and family and cronies,

How is Hun Sen any different to Prayut?

Why should Cambodia be punished and Thailand not?

[phycokiller]

4 hours ago, attento said:

The point is that the problems lie with Hun Sen and family and cronies, rather than the poorest levels in that society who have suffered enough over recent decades.   Surely, sanctions against the target are the way to go,  rather than a shotgun approach to the whole country.  e.g. for the whole gang: ban International banking for their corrupt money, ban international travel, etc.   Hit the guilty parties where it hurts.    

the problem is hun sen has made it clear that he and his relatives wont be leaving peacefully. its going to take a civil uprising and sadly the factories closing down is probably the best way to speed up the process