{"id":3704,"date":"2020-02-21T01:04:36","date_gmt":"2020-02-20T18:04:36","guid":{"rendered":"https:\/\/capitalcambodia.com\/?p=3704"},"modified":"2020-03-10T09:53:18","modified_gmt":"2020-03-10T02:53:18","slug":"eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market","status":"publish","type":"post","link":"https:\/\/capitalcambodia.com\/eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market\/","title":{"rendered":"EU\u2019s partial EBA withdrawal may cause some disruption in Cambodian real estate market"},"content":{"rendered":"

On Wednesday, 12 Feb, the European Commission recommended to partially withdraw Cambodia\u2019s preferential access to the EU market under the European Union\u2019s Everything but Arms (EBA) trade scheme because of the country\u2019s \u201cserious and systematic violations of the human rights\u201d, the commission said in a statement. Some experts say the move might slightly affect the country\u2019s industrial real estate market.<\/p>\n

The decision followed an in-depth engagement between the European Commission, the Cambodian government and stakeholders in which the Commission and the European External Action Service spent the last 12 months to conduct \u201cfact-finding\u201d missions to Cambodia, holding several meetings with the government officials at both technical and political levels, the statement continued.<\/p>\n

Under the EBA deal, Cambodia is granted full duty-free and quota-free access in the EU market for all products except arms and ammunition, making it Cambodia\u2019s largest trading partner. In 2018, 45 percent of Cambodian goods were exported to the EU market worth around \u20ac5.4 billion (about $5.8 billion), more than double the \u20ac2.5 billion of the country\u2019s total exports to the bloc in 2013. 95.7\u00a0 percent of these exports entered the bloc\u2019s market under EBA tariff preferences.<\/p>\n

\u00a0<\/strong><\/p>\n

Decision will take effect in six months<\/strong><\/p>\n

 <\/p>\n

If the European Parliament and the Council do not objecting to the decision, it will take effect on Aug 12. This withdrawal of tariff preferences will affect \u201cselected garment and footwear products and all travel goods and sugar\u201d that amounts to around one-fifth or \u20ac1 billion of Cambodia\u2019s yearly exports to the EU, according to the statement.<\/p>\n

Phil Hogan, the Commissioner for Trade said, \u201cThe European Union is committed to supporting Cambodia\u2019s economic and social development through trade preferences. However, the respect for human rights is non-negotiable for us. We recognise the progress Cambodia has made, but serious concerns remain. Our aim is that the Cambodian authorities end human rights violations and we will continue working with them in order to achieve that.\u201d<\/p>\n

\u00a0<\/strong><\/p>\n

Government :\u201cunjust decision\u201d<\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

In response to the European Commission\u2019s decision, the Cambodian Foreign Affairs Ministry issued a statement late on Wednesday, saying that the decision is \u201cpolitically driven and is devoid of objectivity and impartiality\u201d.<\/p>\n

\u201cThe application of the concept of serious and systematic violation enshrined in the GSP [Generalised System of Presferences] regulation [was] triggered by many misperceptions and misunderstandings about the actual realities in Cambodia,\u201d the statement said.<\/p>\n

Despite the withdrawal of the EBA deal and Cambodia\u2019s intention to continue to enhance relations with the European Union, the Cambodian government remains firm in its \u201cprincipled position in rejecting any attempt by external parties in their use of trade and development assistance as pretexts to justify their interference in Cambodia\u2019s internal affairs\u201d, the ministry added in the statement.<\/p>\n

 <\/p>\n

\u00a0Impacts on the real estate sector<\/strong><\/p>\n

 <\/p>\n

If the withdrawal of EBA actually goes into effect in August this year, it will hurt the country\u2019s industrial sector as well as the Cambodian industrial real estate. However, there will be no major disruption to the market, said James Hodge, the director of CBRE Cambodia.r<\/strong><\/p>\n

\u201cWhilst the partial EBA agreement withdrawal instigated by the EU is certainly a problem for Cambodia\u2019s industrial sector, the extent of the damage expected to existing manufacturers is predicted to be relatively contained,\u201d Hodge said.<\/p>\n

\u201cCambodian industrial real estate is currently in a good place from a landlord\u2019s perspective. There is low vacancy and rents are on the rise. These changes may dampen some of the enthusiasm but are unlikely to cause major disruption to the market,\u201d he added.<\/p>\n

CBRE Cambodia\u2019s statement also cited that some manufacturers producing affected goods might consider shutting down production temporarily ponder relocating to other countries in the region.<\/p>\n

\u201cCBRE Cambodia expects to see some moderate downward pressure on factories and the logistics sector. Some of the factories currently producing goods affected by the recommended EBA agreement withdrawal will likely be shut temporarily or will transition to goods not affected by the withdrawal,\u201d the statement said.<\/p>\n

\u201cWe may witness some relocations to other developing countries, including Myanmar and Bangladesh, but these are expected to be few. It is believed that manufacturers in the affected sectors will instead see Cambodia as less competitive for future location decisions,\u201d the statement continued.<\/p>\n

Catherine Chan, the executive director of Urban Village, also agreed with Hodge that the withdrawal of the EBA will only moderately affect the country\u2019s real estate sector because the target of the preferential deals are garments, textiles and footwear products.<\/p>\n

 <\/p>\n

Worst-case scenario<\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

In a worst-case scenario, if the full EBA access had been withdrawn and corresponding trade barriers placed by the USA, the Cambodian real estate sector could be facing a much bigger problem including factories closing down and massive increases in unemployment that could lead to more issues, according to Hodge.<\/p>\n

\u201cMass unemployment would, in turn, pose a risk to the country\u2019s banks and microfinance industry and would certainly reduce demand for housing, while simultaneously causing a significant drop in gross domestic product growth and consumer spending,\u201d Hodge said.<\/p>\n

\u201cThankfully, Cambodia appears to have been spared the worst of this, with the downside predominantly affecting the country\u2019s ability to attract new investment into the industries subject to a withdrawal of EBA access,\u201d he added.<\/p>\n

Realestate.com.kh<\/a> is proud to bring back Cambodia\u2019s biggest Property & Lifestyle Market Expo which will be held on April 24 and 25 at Koh Pich Exhibition Center.<\/em>
\nBooth sales and sponsorships for Home & Lifestyle Expo 2020 are open.<\/em><\/p>\n

For more information, please contact: <\/em>
\nNin Kang (Khmer\/Chinese)<\/em>
\n+855 78 637 323<\/em>
\n+855 93 552 305<\/em>
\nnin.kang@realestate.com.kh<\/em><\/p>\n

Tyler Stuart (English)<\/em>
\n+855 12 599 699<\/em>
\n+855 81 599 669<\/em>
\ntyler.stuart@realestate.com.kh<\/em><\/p>\n

EU\u2019s partial EBA withdrawal might cause remote disruption in Cambodian real estate market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

If the European Parliament and the Council do not objecting to the decision, it will take effect on Aug 12.<\/p>\n","protected":false},"author":3,"featured_media":3732,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_FSMCFIC_featured_image_caption":"The European Quarter of Brussels, where the final decision on the Everything but Arms deal will be made. Phan Soumy","_FSMCFIC_featured_image_nocaption":null,"_FSMCFIC_featured_image_hide":null,"footnotes":""},"categories":[257],"tags":[35,56],"yoast_head":"\nEU\u2019s partial EBA withdrawal may cause some disruption in Cambodian real estate market - CapitalCambodia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/capitalcambodia.com\/eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EU\u2019s partial EBA withdrawal may cause some disruption in Cambodian real estate market - CapitalCambodia\" \/>\n<meta property=\"og:description\" content=\"If the European Parliament and the Council do not objecting to the decision, it will take effect on Aug 12.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/capitalcambodia.com\/eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market\/\" \/>\n<meta property=\"og:site_name\" content=\"CapitalCambodia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/capitalcambodia\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-02-20T18:04:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-10T02:53:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/capitalcambodia.com\/wp-content\/uploads\/2020\/02\/Europe-Head-Quater.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"885\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ayman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@CapitalCambodia\" \/>\n<meta name=\"twitter:site\" content=\"@CapitalCambodia\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ayman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/capitalcambodia.com\/eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/capitalcambodia.com\/eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market\/\"},\"author\":{\"name\":\"Ayman\",\"@id\":\"https:\/\/capitalcambodia.com\/#\/schema\/person\/c642b689e2b2bbdc3cebc0ad1728bc26\"},\"headline\":\"EU\u2019s partial EBA withdrawal may cause some disruption in Cambodian real estate market\",\"datePublished\":\"2020-02-20T18:04:36+00:00\",\"dateModified\":\"2020-03-10T02:53:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/capitalcambodia.com\/eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market\/\"},\"wordCount\":962,\"publisher\":{\"@id\":\"https:\/\/capitalcambodia.com\/#organization\"},\"keywords\":[\"EBA\",\"European Union\"],\"articleSection\":[\"Property\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/capitalcambodia.com\/eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market\/\",\"url\":\"https:\/\/capitalcambodia.com\/eus-partial-eba-withdrawal-may-cause-some-disruption-in-cambodian-real-estate-market\/\",\"name\":\"EU\u2019s partial EBA withdrawal may cause some disruption in Cambodian real estate market - 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