Back in December 2019, the IMF warned that the withdrawal of the European Union’s trade preferences under the Everything But Arms scheme from Cambodia would cause a decline of exports to the EU of about 13%, and a 3 percentage point decline in GDP growth, without prejudice to other indirect effects.
In terms of jobs, an estimate was made that in the vital garment sector, 43% of workers (nearly 225,000 people) plus 20% of workers in footwear factories (more than 20,000 people) would become unemployed.
This projection is becoming reality but not because of the actual EBA withdrawal but due to the global epidemiological and economic crisis unleashed by COVID-19.
