Illustrative image (Photo: VNA)Hanoi (VNA) -- The GarmentManufacturers Association in Cambodia (GMAC) has urged the European Union (EU)to maintain the Everything But Arms (EBA) trade preferences for Cambodia.
The EU started in February the 18-monthprocess that could lead to the temporary suspension of Cambodia's duty-freetrading access to the EU market under the EBA scheme.
An EU's decision on this matter isexpected to be announced in next February.
Cambodia has benefited from the EBA scheme since 2001, and thanks to this,millions of Cambodians have been lifted from poverty and have contributedsignificantly to the nation's economic and social development, the GMAC said ina statement.
If the EBA is withdrawn, the livelihood of 750,000 garment, footwear and travelgoods workers and the welfare of some 3 million Cambodians are at stake, itsaid.
According to a World Bank's report released in May, if the EBA is stripped,tariffs on garment, footwear, and bicycle products will increase 12 percent, 16percent and 10 percent, respectively.
The garment, footwear and travel goods industries account for some 75 percentof Cambodia's total merchandise exports and 90 percent of Cambodia's exports tothe EU.
Exports from Cambodia to the EU totaled 4.77 billion EUR (5.31 billion USD)last year, marking a ten-fold increase since the EBA was first extended toCambodia.
The GMAC stressed to EU legislators,officials and all interested stakeholders that a suspension of EBA benefitswill result in significant job losses in the garment, footwear and travel goodsindustries and would not serve the EBA programme objective of povertyeradication and sustainable development.-VNA
VNA
