2019, the year in which Cambodia’s textile production hub was at risk

During 2019, tensions increased between the European Union and the Asian country over the elimination of tariffs, after Brussels determined that Cambodia carried out practices against human rights.

A business of 10 billion euros, about 75% of the country’s exports. These numbers reflect the importance of the textile industry for Cambodia and, at the same time, the relevance of the country in the global supply chain map. The country could now lose its leading role in global sourcing due to the European Union’s threat to withdraw tariff benefits.

At the end of 2018, European authorities announced their intention to withdraw access from the Asian country to the Everything But Arms (EBA) trade agreement, after knowing the conclusions of a Brussels delegation that determined that the current government party illegalized the opposition just before holding elections. The European organization threatened the country with this sanction in order to correct practices that violated human rights and urged member countries to vote in the council of ministers.

In full: https://www.themds.com/markets/2019-the-year-in-which-cambodias-textile-production-hub-was-at-risk.html

Related Stories

Latest News