After today, Cambodia's garment and footwear industry will lose the EU's zero-tariff preference
Release time：2025-02-20
Source：HUIZHOU INSKY SHOES COMPANY LIMITED
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The EU's revocation of Cambodia's "Everything but Arms" (EBA) preferential tariff treatment for some goods came into effect on August 12. It is reported that if the EU cancels the EBA treatment for Cambodia, the tax rate on Cambodian textile and apparel exports to the EU will rise by 12%, and the tariff on the footwear industry will increase by 8% to 17%.
Cambodia's garment industry is one of the four pillar industries of Cambodia's economy, with an annual export volume of 7 billion US dollars. If the EU decides to withdraw some of the EBA preferential tariffs, it will mean that the Cambodian garment industry will lose the zero-tariff trade agreement provided by the EU. According to the Cambodian government's assessment, the move will cost Cambodia about $100 million a year.
On February 12 this year, the European Union Trade Commissioner issued a statement saying that the European Union decided to revoke some of Cambodia's preferential tariffs under the EBA (Everything but Arms) policy. If the EU and the Council of the European Union do not object, the resolution may enter into force on August 12 this year. So far, the EU has not made a decision to delay the withdrawal of some of the EBA's preferential tariff policies.
The Cambodian government and the private sector have repeatedly called on the EU to delay the withdrawal of preferential tariffs on the Cambodian EBA. On August 10, the president of the Cambodian Garment Manufacturers Association revealed that the association and stakeholders have been asking the EU to cancel or postpone the decision to revoke some of the EBA preferential tariffs. "We were a little disappointed because we didn't get the results we wanted, but we won't stop there and will stick to it until the end because it's the association's obligation."
Cambodian Ministry of Finance and Economics spokesman Maesau Moriyama revealed on the 11th that the Cambodian government has prepared about $1.164 billion in funds in response to the EU's withdrawal of preferential tariff treatment on some goods and in response to the new crown pneumonia epidemic.
Moriyama stressed that the EU's revocation of preferential tariff treatment for some Cambodian goods does not mean that Cambodian products have lost the EU market, and many Cambodian products can still be exported to the EU. He said that the EU has revoked the preferential tariff treatment of some Cambodian goods, and about 20% of Cambodian exports to the EU are affected by this, and many factories can still export products to the European market.
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