By APD writer Kin Ratha

PHNOM PENH, Feb.19 (APD) -Cambodia’s senior official from Ministry of Commerce reassured that the Trade Preference so called Everything But Arms (EBA) provided by the European Union will not be withdrawn from Cambodia as the country has been complied with all requirements.

Sok Sopheak, secretary of state at the Ministry of Commerce, said that the procedure for temporary suspension of EBA will take 18 months from the date of proceeding to the date of entry into force in the case that the assembly decides to suspend.

“Although the fact that Cambodia has six months to argue with the European Commission, I believe that the system may not be suspended because Cambodia has implemented all the 42 articles of EBA, but there was a small problem in implementing article 19 in EBA,” he said.

However, Mr. Sopheak said, Cambodia is also ready to deal with trade barriers if the European Commission decides to suspend EBA for Cambodian goods.

“Cambodia has reformed providing operational services for investors and business people, such as removing barricades by international gateways, Kamsap, cutting electricity prices, and exporters are required to not ask for a certificate of origin. These reforms have reduced the operating costs of exporters to about $200 million,” Mr Sopheak said.

“The reforms will not only provide the ability to compete in European goods in the case of suspending the preferential system, but also help increase competitiveness for Cambodian goods,” he added.

Van Sou Ieng, Chairman of Garment Manufacturers Association in Cambodia (GMAC) said, the suspension of EBA is about the tax duty and it does not mean that EU does not allow us to export to their countries.

“I really don’t understand on what ways EU base on to suspend EBA on Cambodia because garment and footwear sectors have worked with ILO since 2000 and they went and checked with each 600 garment and footwear industries and found that they obey the labor law with international convention.

“ILO wrote a report saying that 91 percent of the factories obey 8 international conventions and other 13 conventions of the United Nations.

“When EU came and checked Cambodia, we have the evidence that garment and footwear sectors have obeyed the international labor law, reaching to 91 percent of the factories.

“If EU sees the evidence and they still suspend EBA, the world will no longer believe in EBA, because the garment and footwear sectors already obey the labor law,” Mr Sou Ieng said.

The EU market accounted for 40 percent of Cambodia’s exports, rising 227 percent between 2011 and 2016, and reaching $5.77 billion in value in 2017 alone.

(Top image: GMAC chairman Van Sou Leng speaks at the rountable discussion on Friday.)

(ASIA PACIFIC DAILY)