It was at midnight on Friday, Jan 31, Brussels time, that the United Kingdom officially ended its membership of the European Union, one of the largest trading blocs in the world.<\/p>\n
However, the Brexit story has not yet come to an end because the UK is now under\u00a0 what is now a nearly 10-month transition period. This means that during this time, the UK will continue to participate in the EU\u2019s custom union and single market, maintaining EU laws and regulations even though the country is no longer a member state in the bloc.<\/p>\n
Meanwhile, the Cambodian government and the UK\u2019s high-ranking officials have both pledged that the Kingdom will continue to enjoy preferential trade status in the UK after the transition period ends on Dec 31.<\/p>\n
Currently the Kingdom benefits from a preferential trade deal with the EU known as Everything but Arms (EBA). However, on Feb 12, the European Commission, which acts as the union\u2019s civil servants, announced a 20 percent cut in the free trade agreement, costing Cambodia about $1.1 billion, owing to the \u201cserious and systematic violations of the human rights enshrined in the International Covenant on Civil and Political Rights\u201d.\u00a0 This has yet to be ratified by the EU parliament, which normally rubber stamps EC recommendations.<\/p>\n
\u201cThe withdrawal of tariff preferences \u2013 and their replacement with the EU\u2019s standard tariffs (most-favoured nation) \u2013 will affect selected garment and footwear products and all travel goods and sugar,\u201d The EC said in the statement.<\/p>\n
Cambodia\u2019s yearly exports to the EU accounted for 45 percent of its total exports in 2018, reaching about $5.8 billion that year.<\/p>\n
\u201cUnless the European Parliament and the Council object, this will take effect in August 12,\u201d the statement read.<\/p>\n
However, Cambodia has high hopes over future trade relations with the UK.<\/p>\n
The UK officially left the EU after nearly five decades of membership, meaning it is no longer part of the largest trading bloc in the world currently numbering 27 countries and is keen to find new trading partners.<\/p>\n
Ky Sereyvuth, an economics professor, says he had learned the UK will seek to maintain a special trade privilege for Cambodia, citing that the official Brexit deal will give right the UK to do so \u2013 but possibly only after the transition period ends.<\/p>\n
Ky expects that the two countries would likely begin discussing a free-trade agreement sometime this year.<\/p>\n
Speaking during a graduation ceremony in early December last year, Cambodia\u2019s Prime Minister Hun Sen said he is closely monitoring the situation in the UK and its relationship with the EU.<\/p>\n
In his speech, the Cambodian premier pointed out that the UK is the largest market for Cambodian exports inside the European bloc.<\/p>\n
\u201cThe UK has the largest share of our exports in the bloc and the UK has a special trade policy that will continue even after the country [fully] leaves the EU,\u201d he said.<\/p>\n
In addition to what Prime Minister Hun Sen announced over the move, Heather Wheeler, UK Minister of the Foreign and Commonwealth Office for Asia and the Pacific, said Cambodia is among 48 less-developed countries that will retain trade privileges in the UK market.<\/p>\n
Wheeler said so during an official visit and meeting with Cambodian Minister of Foreign Affairs and International Cooperation Prak Sakhon last September in Phnom Penh, when she requested Cambodia\u2019s support for the UK to become a dialogue partner of Asean after it leaves the EU.<\/p>\n
\u201cThe fact the UK has pledged to continue a preferential trading arrangement for Cambodia means there are opportunities and potential for Cambodia to expand its exports to the UK, which is one of the largest economies in Europe and a key trading partner of Cambodia, said Chheang Vannarith, president of the Asian Vision Institute.<\/p>\n
He noted the two trade-way between the countries is\u00a0 currently around $1 billion a\u00a0 year.<\/p>\n
The Secretary-General of the Garments Manufacturers\u2019 Association of Cambodia Ken Loo says, \u201cIt\u2019s my understanding that, based on the information I have, the UK government has pledged to keep the benefits of EBA for Cambodia after [full] Brexit.<\/p>\n
The Ministry of Commerce spokesman Seang Thay says with the UK leaving the EU, Cambodia would be in a better individual trading position with the country.<\/p>\n
However, he noted the Kingdom has not yet set the timeframe for conducting a bilateral trade agreement with the UK after Brexit.<\/p>\n","protected":false},"excerpt":{"rendered":"
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