Cambodia is doubling down efforts to sustain its high growth economy by striking trade deals as the future portents with the potential loss of EBA and GSP amid Vietnam’s recent EU deal
Trade wars are ringing alarm bells across the globe and the Southeast Asian region is not spared. Besides the prolonged trade war between the US and China, which will impact the Asean region, there are other trade woes on the horizon.
The threat of Everything But Arms withdrawal by European Union is no longer an uncertainty as Cambodia scurries to implement reforms and measures to meet the international standards including freedom of association and addressing labour disputes.
The economic tariffs on rice exports to the EU were mainly at the behest of Italian rice producers who could not compete with imported rice. As seen in trade wars, we are likely to see more of this sort of action – certainly among the major trading blocks.
Shortly after the EU rice tariff imposition, rice farmers have to face climate risks and rising debt
The possibility of a partial suspension of the Everything But Arms (EBA) preferential trade access that might target certain industries surfaced in the buzzing aftermath of the EU beginning its review process.
Within the context of looming economic pressures by the EU, analysts have drawn quick conclusions that Cambodia’s economy is going to collapse.
EBA status allows the world’s poorest countries to sell any goods tariff-free to EU nations, except weapons. About 48 countries are EBA beneficiaries including Myanmar, Lao PDR, Bangladesh, Nepal, and Timor-Leste.