Cambodia EBA suspension: Stakeholders respond
Following a year-long investigation, the European Commission has decided to partially withdraw tariff preferences granted to Cambodia under the EU’s Everything But Arms (EBA) trade scheme due to the serious and systematic violations of the human rights principles enshrined in the International Covenant on Civil and Political Rights. The withdrawal of trade preferences will affect selected garments and footwear, and all travel goods and sugar. Unless the European Parliament and the Council object, this decision will take effect on 12 August 2020.
We have compiled below reactions of various Cambodian and international stakeholders, including workers, unions and industry associations, asking the following questions:
How will the EU decision to partially withdraw trade preferences affect Cambodian workers and industries? What actions should be taken by your sector or by others to address these impacts?
Chheng Danou, Vice-President of the National Independent Federation Textile Union of Cambodia (NIFTUC) 'Partial EBA withdrawal will impact the operations of small sub-contracting factories due to a decrease in order from buyers that will turn to other countries for sourcing. A decrease in order from brands means that supplying factories will no longer need to sub-contract smaller factories for production. As a result, between 20% and 30% of workers employed by sub-contracting factories might lose their jobs. Unions’ membership will also be affected. Possible prevention of the loss is in the hands of the Cambodian Prime Minister. If the government, unions and other stakeholders can find ways to facilitate the process of addressing serious issues of human and labour rights raised by the European Commission, full EBA might be retained and potential impacts will be stopped.' |
Ms. Sam Thoeun, a garment worker in a factory in Phnom Penh
'EBA decision will have a significant impact on workers’ working conditions and livelihoods. In order for factories to maintain production flows in the supply chain, factories will force workers to increase productivity to offset the required paid tariffs. They will do whatever they can to restrict workers in order to meet factories’ demands for productivity. Also, I worry that if factories close, workers will lose jobs. Many workers including myself borrow money from banks. So that means we will face difficulties to pay back the bank’s loan while we have been struggling to support our family. My 3 children and an elderly mother will also be affected if I don’t have any job.
I hope that the Cambodian government will take further actions to re-open civic space and freedoms as well as respect human rights. This is the only feasible way to retain full EBA because those issues have been raised by the EU.'
Mr. Moeun Tola, Executive Director of the Center for Alliance of Labor and Human Rights (CENTRAL) 'We witnessed very little progress made related to labour rights, such as some criminal charges against union leaders being dropped or cleared. Yet hundreds of cases more are still pending, especially the criminal charges against local union leaders and activists. I still see EBA sturdily helping maintain national competitiveness and lure foreign investment to the Kingdom. Losing EBA means that Cambodia loses key elements of national competitiveness. Although the EC decided on 20% withdrawal, it creates uncertainty for the investment or business environment; it will be hard for international brands to develop their long-term business plans to the Kingdom. I recommend that the Cambodian authorities take significant measures to address the issues of concerns, such as by re-amending the Law on Trade Union in line with international conventions, making real amendments to the law on Association and NGOs (LANGO), re-opening political space in the country.' |
Sharan Burrow, General Secretary of the International Trade Union Confederation, in a statement available here
'The Cambodian government is fully responsible for the withdrawal of benefits, and we regret its lack of commitment to Cambodia’s working people. The government and companies doing business in the country must finally listen to the concerns of workers and act to ensure that freedom of association and the right to collective bargaining are fully respected. The trade benefits should only be restored once the government changes its course on democracy and labour rights. The EU should increase pressure on Hun Sen’s government in order to promote sound labour protection and stop prosecutions of trade unionists.'
Luca Visentini, ETUC General Secretary of the European Trade Union Confederation (ETUC), in a statement available here
'We support the decision of the European Commission to lift trade preferences for Cambodia. We have always advocated a strong EU stance on the international stage to respect labour rights. EU trade preferences should only be given to third countries with strict conditions on the respect for labour rights. This is the basis for fair globalisation.'
Sharon Waxman, President and CEO, Fair Labor Association 'The EU decision to withdraw some trade preferences for Cambodia is a victory for workers’ rights. When trade policies prioritize labor rights and worker protection, workers win. The Government of Cambodia still has about six months to act, in which case the tariffs may not have to change. By adopting recommendations we made in January and last year, such as stopping prosecutions of labor leaders and allowing for effective representation of workers by unions, the Government of Cambodia will be well placed to show the EU that it has met the criteria for GSP, thus allowing Cambodia’s exports—and workers—to continue to thrive.' |
Fair Wear and partners Clean Clothes Campaign, CNV Internationaal, Ethical Trading Initiative, INRetail, Modint and Mondiaal FNV, in a joint statement available here.
'The EU’s decision will take effect on the 12th of August 2020 and targets around 20% of the export including garment, footwear and accessories. It will therefore affect a significant part of the 600.000 workers employed in the sector.
'We… call upon the Government of Cambodia to increase its efforts and make additional improvements on human and labour rights violations. We would encourage the Government of Cambodia to demonstrate concrete and sustainable progress to the EU, and strongly recommend doing so before the EU deadline. As such we urge the Cambodian government to immediately address four key issues: Amend the Trade Union Law (TUL)… Repeal the Law of Associations and NGOs… Drop all outstanding criminal charges against union leaders… Respect and foster the important role of the Arbitration Council.'
European Branded Clothing Alliance (EBCA), in a statement available here
'EBCA supports the EU’s commitment to high social and labour standards and condemns any violations against human and labour rights and strongly encourages the Cambodian authorities to continue work on the Commission’s conditions for a decision reversal…
'The textile and footwear sector is one of the most important industries in Cambodia, accounting for 75 percent of Cambodia’s exports into the EU and ranking as the second and third most imported categories of goods from Cambodia to the EU. The sector employs an estimated 1 million workers, which represent some of the most vulnerable individuals that rely heavily on the sector to sustain their livelihoods.
'We urge the Cambodian authorities to commit to a better respecting of human and worker rights, as well as allowing more room for domestic political debate. We also would call upon the Commission to establish a clear roadmap and timeline for the Royal Government of Cambodia in order to track progress over the coming months. We would likewise ask for transparency and predictability from the Commission in their decision-making processes, as EBCA is committed to finding a positive solution for all parties involved.'
Garment Manufacturers Association in Cambodia (GMAC), in its statement available here
'The Garment Manufacturers Association in Cambodia (GMAC) is disappointed with the decision announced on 12 February 2020 by the European Commission...
'Employment in these sectors supported by EBA trade preferences now exceeds 750,000 and has contributed to lifting millions of Cambodians out of poverty…
'The GMAC respects and supports the EU’s engagement to improve its human rights policies. Unfortunately, summarily pulling the rug from under the feet of hundreds of thousands of Cambodians is not the way to proceed.
'The EU’s decision is bound to cause confusion with respect to our trade status. It will incentivize buyers to source from countries with far weaker legacies of trade union rights. It is likely to cause the loss of employment for tens of thousands of our workers, most of whom are trade union members. It will increase poverty in our country and make it more difficult to improve wages and benefits for other workers.
'We urge the EU to act quickly to restore full EBA benefits for our sectors for the sake of sustainable development and for the hundreds of thousands of Cambodians who have risen from poverty to gain employment, advance their rights and support their families.'
20 Chambers of Commerce and business associations, in a joint statement available here
'The Cambodian Chamber of Commerce and signatories, as representatives of the Cambodian private sector, regrets the decision taken by the European Commission…
'… Looking forward, Cambodia will continue to benefit from trade preferences for 80% of its exports to the European Union. Therefore, we respectfully call on the European Commission and the Royal Government of Cambodia to continue to engage in dialogue on the issues raised by the Commission’s review…
'The decision by the Commission, while regrettable, is viewed by the private sector as an opportunity to initiate further structural reforms that strengthen legal compliance and reduce unfair competition, which will help to accelerate the diversification of Cambodia’s economy, export markets and sources of investment.'
Bernd Lange, Member of European Parliament and Chair of the EU Parliament’s International Trade Committee, in a statement available in German here
'“It would be a strong signal and the ultima ratio”, says EU Parliamentarian Bern Lange (SPD), who is Chairman of the EU Parliament's International Trade Committee. “Withdrawing preferences does not only target all producers but ends up having a knock-on effect on seamstresses and workers as well”, Lange says. It was quite clear, however, that in the case of Cambodia things could not go on like this[, he adds]. “The government has developed a tendency towards a dictatorial regime, opposition members are in prison, trade union leaders are persecuted," says Lange. “Describing local working conditions as early capitalist may still be too nicely put.”' [Unofficial translation of German coverage in ZEIT ONLINE ahead of the EU’s decision]
For more on Cambodia’s EBA status, read Ben Rutledge’s blog: A Diplomatic Tightrope on Trade