The British Embassy in Phnom Penh confirmed on December 18, 2020 that after the United Kingdom officially leaves the European Union, Cambodia will be granted Generalized Preferential Tariff System (GSP) treatment. The Cambodian Ministry of Foreign Affairs issued a statement on December 17, stating that Cambodian Foreign Minister Prasad Sokhonn held talks with British Ambassador to Cambodia Tinas Redshas on December 16. At the meeting, Redshasa said that the UK will officially leave the EU on January 1, 2021 and will implement an independent trade policy.
Redshasdfssdfsw said that considering the impact of the new crown epidemic on Cambodia’s vulnerable groups, especially factory workers, the UK will not implement the EU’s withdrawal of some Cambodian products exported to the EU enjoy tariff-free treatment.
According to the British GSP, Cambodia, which is a lowly developed country, will be able to enjoy duty-free and tax-free exports of all goods except weapons and ammunition (EBA) to the UK. Quota discounts.
The European Commission previously claimed on February 12, 2020 that the EU decided to revoke Cambodia’s ban on human rights and labor rights because Cambodia violated the principles of the United Nations and the International Labor Organization on human rights and labor rights. Preferential treatment for exporting to Europe (EBA) for some products. This decision will take effect on August 12, 2020. The affected products include: sugar cane, some ready-made clothing, footwear, and suitcases, etc., accounting for approximately 20% of Cambodia’s total exports to the EU. These products will be subject to the EU’s most-favored nation status. (MFN) treatment tax rate.
According to the list of export regulations released by the European Commission in February 2020, such as men’s T-shirts and pants, men’s underwear and pajamas, and women’s sportswear and pants Products such as socks and tights have been fully subject to tariffs since August 12.
Redshasdfssdfsw said that the UK is currently exploring ways to have regular dialogue with the Cambodian authorities on issues related to human rights and freedoms. Sokhonn expressed high praise for the British decision, believing that it is an encouragement to Cambodia and very good news for workers who have been affected by the epidemic.
A report issued by the General Administration of Customs of Cambodia pointed out that in 2019, 22% of Cambodia’s exports of textiles, garments, and shoes were exported to the British market.
Since the outbreak of the new crown epidemic, Cambodia’s economic activity has dropped significantly, seriously affecting the tourism industry and exports of the clothing and footwear industry.
Due to the impact of the new crown epidemic, which caused international buyers to cancel orders, the total value of Cambodian exports to the UK in the first nine months of this year was only 480 million U.S. dollars, compared with the same period last year. US$690 million, a decrease of 30.4%. </p
