Phnom Penh (VNA) - The Garment Manufacturers Association inCambodia (GMAC), the Cambodia Footwear Association (CFA) and the EuropeanChamber of Commerce in Cambodia (EuroCham) on June 2 requested the European Commission to postponeits withdrawal of the ‘Everything But Arms’ (EBA) preferential trade scheme for12 months so that the apparel, footwear and travel goods sectors recover.
Their joint letter to the EC said the COVID-19 pandemic has haltedproduction and slowed global demand to a crawl, delivering a devastating blowto the country’s apparel, footwear and travel goods manufacturers and workers.
It said some 250 Cambodian apparel, footwear and travel goodsfactories have had to suspend operations and more than 130,000 workers in thesector, most of whom are women, have lost their jobs and this number is likelyto rise sharply.
In the first quarter of the year, many buyers cancelledorders after they were completed or while under production, the letter said. Itis estimated that the Cambodian apparel, footwear and travel goods sales in thesecond quarter of the year will likely fall by 50-60 percent on a yearly basis.
GMAC Chairman Van Sou Ieng said the EC’s scheduled August 12 implementation of thedecision to withdraw the tariff preference for 20 percent of apparel imports,30 percent of footwear imports, and all travel goods imports from Cambodiawould be a massive blow to Cambodia.
“The EU must not ignore the gravity of the situation and thedevastating impact of removing EBA benefits in August,” he added.
EuroChamchairman Arnaud Darc said the pandemic’s effects were not limited to Cambodia.
TheEU is Cambodia’s largest trading partner, accounting for 45 percent ofCambodian exports in 2018.
Exports to the EU single market reached 4.9 billion EUR (5.5 billion USD) in 2018 – almost double the 2.5 billion EUR recorded in 2013./.
