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CAMBODIA GARMENT MANUFACTURERS WELCOME POLICY FOR BETTER COMPETITIVENESS


January 2019



Cambodia Garment ManufacturerGarment Factory in Cambodia

The Garment Manufacturers Association in Cambodia (GMAC) welcomes the government's new policy leading to increase industrial competitiveness and secure domestic trade should the European Union and America follow through with threats to revoke trade access facilities provided so far. The European Union and the United States have been the main markets for Cambodian garment exports where the European Union provides export duty-free under EBA (Everything But Arms). Market access to United States is under GSP (Generalized Preference System) for duty free. These two major markets will be more likely to revoke special market access.


Local media Khemer Times reports that Cambodian Prime Minister Hun Sen has a strategy to overcome the threat of the European Union and United States from lifting duty-free market access. Hunsen anticipates with new policy named "National Independence Policy". This policy is intended to reduce dependence on Cambodian economic growth from the European and American markets by removing trade barriers especially those that have occurred at the border crossing land to increase competitiveness


The Prime Minister will cut down expenses and reduce personnel at the border gates other agency or institution will be removed to have only immigration policy and customs officials. "At present we have so many institutions operating at the border gate that create trade barriers and costs us business. Unnecessary expenses and corruption must be reduced to reduce the country's dependence. this is critical to make the country more self-reliant. It is something that we must absolutely do. Except immigration police and customs officers, everyone else must go.", He said at a press conference with local media.


He continued saying in local media that export and import fees will be reduced as part of the new policy to make trade more profitable. "We have to have a strategy to protect and improve the business sector so we have to survive even though we no longer get EBA facilities (Everything but Arms) ". About 75.5% of garment export of the country go to Eurpe

Mid-January 2019 two American Senators Ted Cruz and Chris Coons proposed the Cambodia Trade Pact 2019 requires the American government to review the GSP given to Cambodia.


He continued saying in local media that export and import fees will be reduced as part of the new policy to make trade more profitable. "We have to have a strategy to protect and improve the business sector so we have to survive even though we no longer get EBA facilities (Everything but Arms Scheme)". Mid-January 2019 two American Senators Ted Cruz and Chris Coons proposed the Cambodia Trade Pact 2019 requires the American government to review the GSP given to Cambodia.