EBA halt poses lasting negative impact, GMAC says in letter to EU

23 Oct 2018 2110 | Business & Trade Fairs

Any temporary suspension of the Everything-but-arms (EBA) treaty, or any short-term unilateral sanctions, might have a long-term negative impact on the lives of workers and their families, said the Garment Manufacturers Association in Cambodia (GMAC) in a letter pleading for European Trade Commissioner Cecilia Malmstrom’s consideration on the matter.

“All the progress that Cambodia has achieved over the past two decades through the efforts of all the stakeholders, including development partners like the European Union, could be destroyed very quickly,” said its secretary-general Ken Loo in the letter dated Oct 20.

The letter was also copied to European Parliament president Antonio Tajani, European Commission president Jean-Claude Juncker, and EC vice president and high representative of the Union for foreign affairs and security policy Frederica Mogherini.

Previously, the association –which represents some 400 factories that employ 700,000 workers – made more bold statements following Ms Malmstrom’s Oct 5 announcement that the commission has begun the process to withdraw the EBA, granted in 2011.

GMAC was certain the withdrawal would not occur and that the EU would notice the efforts that have been made to protect labour rights.

However, in its letter – a first from the association to Ms Malmstrom – it said the EU announcement was shocking for the private sector, including investors, workers and buyers who source from Cambodia.

“Our sectors employ more than 85 percent of women from rural provinces. It is estimated that some two million depend on our sectors. Every month, more than $150 million is paid out as salaries to the workers.

“Due to the effort of all stakeholders – including trade unions, and the government – the sectors have grown and contributed significantly to the economy and improved the livelihoods of our workers. Millions of women have been lifted out of poverty,” Mr Loo wrote.

The announcement by the EU came after a call by the bloc to Cambodia to fix its political situation or risk ‘specific targeted measures’ after opposition party Cambodia National Rescue Party (CNRP) was dissolved by the Supreme Court in November, and its leader Kem Sokha put on house arrest.