EU intends to cancel preferential tariff treatment in Kampuchea

On October 5, 2018, the European Union announced that it would initiate the process of abolishing EBA preferential tariff treatment (excluding weapons) between Cambodia and Myanmar, due to the deterioration of human rights and workers'violations in both countries. This means that Cambodia may lose the EU's trade preference of "Everything but Arms" (EBA).
In announcing the commencement of the revocation procedure, the EU referred to negative issues concerning Cambodia, saying that human rights development and labour rights remained one of Cambodia's serious problems, and there was no clear improvement at all.
Harassment and intimidation persisted in Cambodia's 6th parliamentary elections, and freedom of expression, human rights and labour rights continued to deteriorate. Despite the recommendations made by the European Commission, there is no convincing improvement.
Cecilia Malmstrom, the European Commission in charge of trade affairs, recalled that the EU's preferential tariff treatment for Cambodia and Myanmar had brought great benefits to both countries, through which products (except weapons) were exported to the free market. However, the two countries need to carry out the 15 conventions of the United Nations and the International Labour Organization.
However, EU Ambassador to Cambodia George Edgar said that because Cambodia belongs to the LDC defined by the United Nations (low-level developing countries), Cambodia's products are exported to the EU market with preferential tariffs, so if Cambodia does not have any problems in the future, Cambodia may receive the tariff treatment until 2027.
Over the past (2017), Cambodia's total exports to the EU amounted to US$5.7 billion, and all exports received preferential tariff treatment. If not, Kampuchea needs to pay more than 500 million of the tax to the EU market. Cambodia's exports to the EU market include clothing, footwear, rice, cereals, leather products, rubber and bicycles.