Logo of Phnom Penh Post newspaper Phnom Penh Post - EU, US unlikely to revoke trade status, research group says

EU, US unlikely to revoke trade status, research group says

Garment workers sew sweatshirts and check for defects at a factory in Phnom Penh in 2013.
Garment workers sew sweatshirts and check for defects at a factory in Phnom Penh in 2013. Pha Lina

EU, US unlikely to revoke trade status, research group says

A global research company says the US and EU are unlikely to revoke the preferential trade agreements that underpin Cambodia’s garment sector, a prediction supported by nearly every analyst The Post interviewed in recent months.

Fitch BMI said in a report on Tuesday that the EU and the US "appear reluctant to remove preferential trade access for Cambodia’s crucial garment exports,” according to Reuters.

The report comes amid a crackdown on independent media and political opposition in Cambodia, including the widely criticised dissolution of the Cambodia National Rescue Party (CNRP), the only viable opposition party, in November.

The US and EU have been urged by rights groups to reconsider Cambodia's preferential trade access to their markets, but analysts have previously said that targeted sanctions are more likely than a complete reworking of trade agreements.

The Reuters article quotes Raphael Mok, a senior analyst at BMI Research, as saying, “At this stage, it appears that the US and the EU will likely refrain from undertaking such punitive actions against Cambodia in the near-term.”

More than 60 percent of Cambodia’s garments are exported to the US and EU markets under favourable trade agreements, and the sector employs more than 800,000 people.

The agreements are so critical to the economy that even former members of the CNRP have thus far refrained from urging the international community to revoke them.

MOST VIEWED

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • Khmer cinema classics back on big screen for free at WB Arena’s outdoor movies series

    On a recent Saturday evening at WB Arena, Bunsong was enjoying a tasty BBQ meal with his family after work on the long tables that had been arranged out in front of the restaurant as they watched a Khmer action movie on a big outdoor

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the