Cambodia Faces Next Trade-Sanctions Move by the European Union
(Bloomberg) -- The European Union moved closer to imposing trade sanctions against Cambodia as a result of alleged human-rights violations in the country.
The European Commission in Brussels has asked EU national governments to give the green light by Jan. 29 for suspending a policy that lets Cambodia export all goods except weapons duty-free and quota-free to the bloc, according to two officials familiar with the matter. They spoke on the condition of anonymity because the deliberations are private.
Any go-ahead from EU national capitals would still leave a decision by the commission, the bloc’s executive arm, 12 months away. At stake is Cambodia’s place in the EU’s “Everything But Arms” initiative, the most generous part of the bloc’s Generalized Scheme of Preferences for poor countries around the world.
The EU is trying to prod changes in the political behavior of strongman Cambodian Prime Minister Hun Sen while being wary of damaging the country’s economy, where a $5 billion garment industry employs 750,000 people and is the biggest exporter.
Hun Sen, who extended his 33-year rule last July when his party won a boycotted election, has so far struck a defiant tone with the European side.
The latest internal EU preparations to withdraw commercial benefits for Cambodia follow a Jan. 21 meeting between European Trade Commissioner Cecilia Malmstrom and Cambodian Foreign Minister Prak Sokhonn. The Everything But Arms -- or EBA -- accord featured in the talks.
“We discussed the EBA agreement and the possibility of a withdrawal of the tariff preferences,” Malmstrom said in a Twitter post after the meeting in the Belgian capital. “Reiterated our concerns on democracy, human rights and rule of law. The EU continues to keep the path of dialog open.”
The EU debate over revoking general trade benefits for Cambodia is separate from a decision by the bloc last week to impose tariffs on Cambodian rice for three years as a result of a surge in imports deemed to have hurt European rice producers.
©2019 Bloomberg L.P.