At the end of an assessment mission regarding human rights and the labour situation in Cambodia, which was conducted on the ground with the European External Action Service, the European Commission warned on Thursday 12 July that the withdrawal of the EU's trade preferences from the Cambodian economy under the Everything But Arms (EBA) scheme was not being ruled out.
The Commission announced that the EU will analyse the information gathered during this mission while also taking account of other contributions from the Cambodian authorities, International Labour Organisation (ILO), and bodies for monitoring Cambodia's implementation of international conventions which is required as part of the EBA scheme, in order to plan new measures.
The EBA trade scheme, which allows less developed countries to export all products (except arms and ammunition) into the EU, free of quotas and tariffs, has had "a significant impact" on Cambodia's development and eradication of poverty. The EU absorbs 40% of Cambodia's exports.
Between 2011 and 2016, Cambodia's exports to the EU rose by 227% to stand at €5 billion. The country's increased exports contributed to its growth and job creation in the textile industry, which is one of the country's most vulnerable industries and which accounts for 75% of the country's exports to the EU.
Nevertheless, "the recent worrying developments in the country" – "the serious decline" in political and electoral rights, a curbing of civil society activities, as well as "deficiencies" when it comes to land dispute resolution mechanisms, and "serious threats" to freedom of association and collective bargaining rights – require a deeper assessment of Cambodia's respect of its commitments, European Commissioner for Trade Cecilia Malmström stated.
"Removing Cambodia from the trade scheme is a measure of last resort, if all our other efforts have failed to address these concerns", she concluded. (Original version in French by Emmanuel Hagry)