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EU Moves Toward Withdrawing GSP Benefits for Cambodia

The European Commission on Nov. 12 sent its preliminary findings to Cambodia in an investigation on whether the country should keep its “Everything But Arms” trade preferences that was triggered by human rights concerns, the European Commission said in press release. Cambodia now has one month to react to the report, after which the EU will make a final decision in February 2020 on whether to temporarily end Cambodia’s tariff preferences.

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Part of the EU’s Generalised Scheme of Preferences (GSP), EBA grants duty-free access to least-developed countries for all imports other than arms and ammunition. Cambodia is the second-largest beneficiary of EBA trade preferences, with more than €5 billion in imports from the country under the scheme accounting for more than 18 percent of EBA imports in 2018. Textiles and apparel accounted for about three-quarters of that trade.

A statement issued by the EU on Nov. 11 praised the release of the Cambodian opposition politician Kem Sokha from house arrest, but noted that he remains under court supervision and banned from political activities. “We expect Kem Sokha to be fully released and his political rights reinstated so that he can play a full part in political life,” the EU said. “We also expect the Cambodian authorities to reinstate the political rights of all opposition members banned from political life and to fully release all opposition members, supporters and activists recently put under detention.”