Cambodia acts in response to EU's lifting of preferential treatment
Cambodian Prime Minister Hun Sen on March 29 announced a number of measures to boost economic independence and support local exporters, given the possible lifting of the European Union (EU)'s preferential trade arrangement under the Everything But Arms (EBA) scheme.
Phnom Penh (VNA) - Cambodian Prime Minister Hun Sen onMarch 29 announced a number of measures to boost economic independence andsupport local exporters, given the possible lifting of the European Union(EU)'s preferential trade arrangement under the Everything But Arms (EBA)scheme.
Speaking at the 18thGovernment-Private Sector Forum in Phnom Penh, PM Hun Sen said the measuresinclude cancelling certificates of origin fees, pulling out Cambodia ImportExport Inspection and Fraud Repression (CamControl) unit from all bordercheckpoints, and removing the Kampuchea Shipping Agency and Brokers (Kamsab)officers from all ports.
Also, the Cambodian Governmentwill reduce logistics costs, fees on inspection of cargo containers by scanningmachines, and fees for getting customs papers stamped, he said.
From April 1, the fees forscanning cargo containers will be cut by half to 10 USD for a 20-foot containerand 16 USD for a 40-foot container.
Electricity tariff has beenreduced by 2 US cents per kWh for the industrial sector from this year, hesaid, adding that from next year, the annual 28-day public holidays will be cutby seven days.
The measures could lower operatingcosts for exporters by about 400 million USD per year, PM Hun Sen said andnoted that if the EU requires the country to pay the tariffs, it will be ableto meet the requirement.
According to the PM, if the EBAis not withdrawn by August 2020, Cambodia will still automatically lose it whenthe nation graduates from the least developed country status.
The EU is a major trading partnerfor Cambodia, particularly in the garment and footwear sectors. As a least developedcountry, Cambodia has enjoyed exports of all products, except arms and ammunition,to the EU market with zero-percent tariff since 2001.
The EU started in February the18-month process that could lead to the temporary suspension of Cambodia'sduty-free trading access to the EU market under the EBA scheme. If the EBA issuspended, tariffs issued on the country’s garment and footwear products willincrease by 12 and 8 percent, respectively.-VNA
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Cambodian Prime Minister Hun Sen (Photo: AFP/VNA) 
