The Cambodian Chamber of Commerce along with other business chambers including the Malaysian Business Council of Cambodia, European Chamber of Commerce in Cambodia and American Chamber of Commerce in Cambodia has expressed their regret over the European Union (EU)’s decision for partially withdrawal of the Everything but Arms (EBA) trade preference.
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Starting from August this year, tariffs will be applied to 20 percent of the country’s exports to the EU, representing approximately $1.3 billion of the total $5.8 billion of goods exported annually to the EU.
The tariffs will be introduced on 20 percent of selected garment products and 30 percent of selected footwear products. Bicycle and rice imports will not face any impacts of the decision.
The private sector had called for consideration towards the socio-economic impact of the decision as the approach will lead to a price increase of approximately $140 million for the selected goods.
However, the Royal Government has undertaken measures in the form of structural reforms in the last 12 months to tackle any upcoming negative impact that will result from EU’s decision.