EU businesses hurt if EBA withdrawn

The withdrawal of the special preferences under the Everyting But Arms (EBA) scheme by the European Union is likely to cause long-term negative effects in Cambodia and undermine years of effective advocacy work, said the European Chamber of Commerce in Cambodia (EuroCham).

Seeing the role it plays to represent the growing European business community and increase investment in Cambodia, the withdrawal could have a direct effect on European business competitiveness, it said.

“It could also diminish the competitive advantage of European businesses in a context where China is increasing its presence in Cambodia and the region,” EuroCham said in an Oct 15 letter to European Union (EU) Trade Commissioner Cecilia Malmstrom.

The letter was jointly signed by EuroCham president Arnaud Darc, French Chamber of Commerce and Industry chairman Guillaume Massin, German Business Group chairman Tassilo Brinzer, NordCham chairman Kjeld M Dlsen, and Italian Business Association chairman Aurelio Fiacco.

EuroCham represents the European private sector here, which is made up of 335 businesses employing more than 50,000 workers.

The letter was copied to European Parliament president Antonio Tajani, European Commission (EC) president Jean-Claude Juncker, and EC High Representative of the Union for Foreign Affairs and Security Police, and vice president Frederica Mogherini.

EuroCham joins a band of concerned groups over Malstrom’s announcement on Oct 5 over the start of the process to remove the single market preference that enables Cambodia to export tax-free into the European market, making up 40% of its overall exports.

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