Everything But Arms to go away
- Miguelito
- Ordinary Schmo
- Reactions: 219
- Posts: 7053
- Joined: Tue Jan 13, 2015 11:19 pm
- Location: Penh's Hill
Everything But Arms to go away
The Khmer Times has published an article Cambodia and paradoxes of EBA in response to European Commissioner for Trade Cecilia Malmstrom October 5th blog post: “Today, High Representative Federica Mogherini and I have therefore notified Cambodia that we are launching the process for the withdrawal of their Everything but Arms preferences.”
The withdrawal won't happen overnight, but it will certainly have a large effect here. I actually agree with the Khmer Times article, even if it's not written the best. It's a bit hypocritical for countries to be attacking Cambodia's political record while ignoring what goes on in other ASEAN countries.
And here is the European Chamber of Commerce's response in the Phnom Penh Post: Cambodia faces ‘negative impacts’ if EBA suspended
The withdrawal won't happen overnight, but it will certainly have a large effect here. I actually agree with the Khmer Times article, even if it's not written the best. It's a bit hypocritical for countries to be attacking Cambodia's political record while ignoring what goes on in other ASEAN countries.
And here is the European Chamber of Commerce's response in the Phnom Penh Post: Cambodia faces ‘negative impacts’ if EBA suspended
- Playboy
- 20,000 Posts; I need professional help !
- Reactions: 288
- Posts: 24827
- Joined: Fri Dec 12, 2003 6:30 pm
- Location: Hotel K: Sector ZZ9 Plural Z Alpha
- Contact:
The Cambodian Garment Sector employs nearly 900,000 workers. Mostly semi-skilled labour from poor provincial families.
It represents around 86% of people employed in the Industrial Sector overall.
It is the only sector in Cambodia that has specific, and enforced, Labour Laws and minimums wages and working conditions.
Over 45% of its annual US$8B revenue comes from the EU.
The vast majority of these factories are foreign owned, with foreign investment capital. Thus granting them greater flexibility, and speed, in relocating their production centres to another country.
If the advantages of the EBA are removed, it is not the 'corrupt politicians' that the EU is aiming at that will suffer.
Nice work there by the EU in screwing over the poor.
It represents around 86% of people employed in the Industrial Sector overall.
It is the only sector in Cambodia that has specific, and enforced, Labour Laws and minimums wages and working conditions.
Over 45% of its annual US$8B revenue comes from the EU.
The vast majority of these factories are foreign owned, with foreign investment capital. Thus granting them greater flexibility, and speed, in relocating their production centres to another country.
If the advantages of the EBA are removed, it is not the 'corrupt politicians' that the EU is aiming at that will suffer.
Nice work there by the EU in screwing over the poor.
"We, the sons of John Company, have arrived"
The problem is, why would the EU grant these rights to Cambodia, but not to countries in a similar income group?
The fact most factories are foreign owned is an extra reason to remove these rights, since it's mostly Chinese companies avoiding taxes by producing in Cambodia. If these rights are withdrawn, nobody will leave, because there's hardly any other country with these special EBA rights they can move to.
The fact most factories are foreign owned is an extra reason to remove these rights, since it's mostly Chinese companies avoiding taxes by producing in Cambodia. If these rights are withdrawn, nobody will leave, because there's hardly any other country with these special EBA rights they can move to.
- Playboy
- 20,000 Posts; I need professional help !
- Reactions: 288
- Posts: 24827
- Joined: Fri Dec 12, 2003 6:30 pm
- Location: Hotel K: Sector ZZ9 Plural Z Alpha
- Contact:
True, their is no other options for EBA clearance into Europe.
However, the other options avaliable besides Cambodia as a manufacturing base have lower minimum salaries, lower energy costs, and much fewer public holidays/overtime rates.
If the EBA benefits are removed, then there are very few reasons to remain in Cambodia for these companies.
However, the other options avaliable besides Cambodia as a manufacturing base have lower minimum salaries, lower energy costs, and much fewer public holidays/overtime rates.
If the EBA benefits are removed, then there are very few reasons to remain in Cambodia for these companies.
"We, the sons of John Company, have arrived"
Bangladesh is on the EBA list, and I think they have slightly lower labour costs, and an established industry.
Most other countries on the list are in Africa, so not really an option as African hands are too big to operate a sewing machine.
Most other countries on the list are in Africa, so not really an option as African hands are too big to operate a sewing machine.
TheGrimReaper wrote: ↑Mon Sep 02, 2019 1:45 pmSlavedog, you do not belong on this forum as you talk too much sense.
Damn, I thought this would be you chipping in about how this would be great for Brexit...slavedog wrote:Bangladesh is on the EBA list, and I think they have slightly lower labour costs, and an established industry.
Most other countries on the list are in Africa, so not really an option as African hands are too big to operate a sewing machine.
Massive stalker
And according to a Taiwanese builder of shoe factories both here and in Vietnam, they are much less productive above and beyond the points you mentioned.Playboy wrote:True, their is no other options for EBA clearance into Europe.
However, the other options avaliable besides Cambodia as a manufacturing base have lower minimum salaries, lower energy costs, and much fewer public holidays/overtime rates.
If the EBA benefits are removed, then there are very few reasons to remain in Cambodia for these companies.
I think one of the EU's main conditions for continued EBA access is that the CNRP be reinstated. I doubt very much whether that is going to happen in the next few years.
In answer to another poster, yes the Cambodian poor have been badly affected. Already. Nothing to do with the EBA. That's just one of the effects that were no doubt foreseen when immunity was stripped away from key opposition members; the public, both here and abroad, were threatened with violence; opposition lawmakers were badly beaten by government thugs; the most popular party was disbanded on very little evidence etc etc ad nauseum.. Sorry, there's far too much to write about what this government have done to its people. if you don't know i already, I doubt epeating it fully will help. As to the continued government rhetoric: actions speak louder than words.
Last edited by Blodwyn on Wed Oct 17, 2018 7:16 pm, edited 1 time in total.
- Felgerkarb
- Sir Felgerkarb, Kt Pb
- Reactions: 240
- Posts: 9140
- Joined: Mon Jun 18, 2007 3:22 am
- Location: Castle Felgerkarb, Felgerkarbia (Formerly Preah Vihear)
- Contact:
Interesting times ahead.
====================
Why are the gods such vicious cunts?
Where is the god of tits and wine?
Why are the gods such vicious cunts?
Where is the god of tits and wine?
- Playboy
- 20,000 Posts; I need professional help !
- Reactions: 288
- Posts: 24827
- Joined: Fri Dec 12, 2003 6:30 pm
- Location: Hotel K: Sector ZZ9 Plural Z Alpha
- Contact:
The EU demanding that the CNRP be reinstated is a ridiculous condition, one that will never be met, and is nothing to do with the EU in the first place.
They know this, and yet they still make this demand and put the livelihoods of 100,000s of people at risk for their own political agenda.
They know this, and yet they still make this demand and put the livelihoods of 100,000s of people at risk for their own political agenda.
"We, the sons of John Company, have arrived"
The 12 conditions of the EBA need to be met to qualify. As far as your CNRP comment: the Paris Peace Accord says different, as the CNRP come under that bit about democracy. The big man certainly knew what was doing all along. If he felt like he could string them along as before, he seems to have been very much mistaken. Who knows what's going to happen if the EU and US stop playing ball. It's certainly a massive pressure. Hopefully just a political one. A lot of even angrier people about if it happens.Playboy wrote:The EU demanding that the CNRP be reinstated is a ridiculous condition, one that will never be met, and is nothing to do with the EU in the first place.
They know this, and yet they still make this demand and put the livelihoods of 100,000s of people at risk for their own political agenda.
- Playboy
- 20,000 Posts; I need professional help !
- Reactions: 288
- Posts: 24827
- Joined: Fri Dec 12, 2003 6:30 pm
- Location: Hotel K: Sector ZZ9 Plural Z Alpha
- Contact:
Which the PM will effortlessly spin into anti-US and anti-EU rhetoric.
Scoring himself yet more brownie points with the big red ChiComs
Scoring himself yet more brownie points with the big red ChiComs
"We, the sons of John Company, have arrived"
Scrap that bit about the Paris Peace Accords, even though it's still relevant, they don't need it.
What is EBA?
The Everything But Arms scheme grants full duty free and quota free access to the EU Single Market for all products (except arms and armaments).
Conditions
A country is being granted EBA status if it is listed as a Least Developed Country (LDC) by the UN Committee for Development Policy.
Countries do not need to apply to benefit from EBA, they are added or removed to relevant list through a delegated regulation.
EBA preferences can be withdrawn in case of some exceptional circumstances, notably in case of serious and systematic violation of principles laid down in fundamental human rights and labour rights conventions (see article 19 of Regulation (978/2012).
Unlike under the Standard GSP, countries do not lose EBA status by entering into a Free Trade Agreement with the EU. A 'graduation mechanism' for products also does not apply.
https://eur-lex.europa.eu/legal-content ... 32012R0978
All us not necessarily doom and gloom, it could just be a temporary withdrawal, or even be stopped at the last minute of implementation. A good bit of pressure though.
The Commission shall publish a notice in the Official Journal of the European Union announcing the initiation of a temporary withdrawal procedure, and shall notify the beneficiary country concerned thereof. The notice shall:
(a)
provide sufficient grounds for the implementing act to initiate a temporary withdrawal procedure, referred to in paragraph 3; and
(b)
state that the Commission will monitor and evaluate the situation in the beneficiary country concerned for six months from the date of publication of the notice.
5. The Commission shall provide the beneficiary country concerned with every opportunity to cooperate during the monitoring and evaluation period.
6. The Commission shall seek all information it considers necessary, inter alia, the available assessments, comments, decisions, recommendations and conclusions of the relevant monitoring bodies, as appropriate. In drawing its conclusions, the Commission shall assess all relevant information.
7. Within three months from the expiry of the period referred to in point (b) of paragraph 4, the Commission shall submit a report on its findings and conclusions to the beneficiary country concerned. The beneficiary country has the right to submit its comments on the report. The period for comments shall not exceed one month.
8. Within six months from the expiry of the period referred to in point (b) of paragraph 4 the Commission shall decide:
(a)
to terminate the temporary withdrawal procedure; or
(b)
to temporarily withdraw the tariff preferences provided under the preferential arrangements referred to in Article 1(2).
What is EBA?
The Everything But Arms scheme grants full duty free and quota free access to the EU Single Market for all products (except arms and armaments).
Conditions
A country is being granted EBA status if it is listed as a Least Developed Country (LDC) by the UN Committee for Development Policy.
Countries do not need to apply to benefit from EBA, they are added or removed to relevant list through a delegated regulation.
EBA preferences can be withdrawn in case of some exceptional circumstances, notably in case of serious and systematic violation of principles laid down in fundamental human rights and labour rights conventions (see article 19 of Regulation (978/2012).
Unlike under the Standard GSP, countries do not lose EBA status by entering into a Free Trade Agreement with the EU. A 'graduation mechanism' for products also does not apply.
https://eur-lex.europa.eu/legal-content ... 32012R0978
All us not necessarily doom and gloom, it could just be a temporary withdrawal, or even be stopped at the last minute of implementation. A good bit of pressure though.
The Commission shall publish a notice in the Official Journal of the European Union announcing the initiation of a temporary withdrawal procedure, and shall notify the beneficiary country concerned thereof. The notice shall:
(a)
provide sufficient grounds for the implementing act to initiate a temporary withdrawal procedure, referred to in paragraph 3; and
(b)
state that the Commission will monitor and evaluate the situation in the beneficiary country concerned for six months from the date of publication of the notice.
5. The Commission shall provide the beneficiary country concerned with every opportunity to cooperate during the monitoring and evaluation period.
6. The Commission shall seek all information it considers necessary, inter alia, the available assessments, comments, decisions, recommendations and conclusions of the relevant monitoring bodies, as appropriate. In drawing its conclusions, the Commission shall assess all relevant information.
7. Within three months from the expiry of the period referred to in point (b) of paragraph 4, the Commission shall submit a report on its findings and conclusions to the beneficiary country concerned. The beneficiary country has the right to submit its comments on the report. The period for comments shall not exceed one month.
8. Within six months from the expiry of the period referred to in point (b) of paragraph 4 the Commission shall decide:
(a)
to terminate the temporary withdrawal procedure; or
(b)
to temporarily withdraw the tariff preferences provided under the preferential arrangements referred to in Article 1(2).
Last edited by Blodwyn on Wed Oct 17, 2018 8:41 pm, edited 2 times in total.
-
- Damn, I just saw my Internet Bill !
- Reactions: 3
- Posts: 4420
- Joined: Sun Dec 09, 2012 3:04 pm
Perhaps, but it will still directly affect the ruling elite, as they obviously don't want 500 000 unemployed people on their hands. Just ask Marcos and Suharto how that ended up for them. Luckily most garment workers aren't young men, but it's still a huge cause for concern. The EU knows this, and the leaders here aren't stupid and I do think they're probably stressing out about this. HE will likely try to posture for a while to avoid losing face, and then try to find a compromise as he usually does.Playboy wrote: If the advantages of the EBA are removed, it is not the 'corrupt politicians' that the EU is aiming at that will suffer.
Nice work there by the EU in screwing over the poor.
Other ASEAN countries' track records have nothing to do with this. Cambodia was the world's nation-building poster child for quite a while. It was the UN's pet-project right after the failures in Rwanda and the fall of the USSR, and the EU invested heavily in it's success as well. Although we've known for well over a decade it wasn't really democratic, nor would it ever be, I think the ever-optimistic diplomatic circles from the EU and elsewhere still held hope for a ridiculously long time, and this was the final straw. All HE had to do was play ball as he usually did and at least show a veneer of "democracy" to please them and keep the cash flowing. Instead, he spat in their faces by becoming overtly authoritarian. I for one am quite glad about this and hope it goes through. Tired of seeing millions in foolishly given "aid" go into the pockets of the few, incessantly overt nepotism and corruption at all levels, and then people still claiming Cambodia is "poor" and needs payouts/privileges from other nations. Screw it. Stop acting like a spoiled child and pay the duties like everyone else. Learn to be competitive. Besides, as mentioned elsewhere, the EBA was used as a convenient loophole by several foreign nations/companies to get into the EU market on the cheap. It may very well end up being a blessing in disguise for the country's competitiveness and rather lackluster economic diversity.Miguelito wrote:It's a bit hypocritical for countries to be attacking Cambodia's political record while ignoring what goes on in other ASEAN countries.
-
- Bark plop plop bark woof woof
- Reactions: 8
- Posts: 1627
- Joined: Sat Aug 27, 2011 8:57 am
Isn't this exactly what he's been doing for the last few years? Moving towards the Chicoms with a big middle finger pointing backwards to the West.Playboy wrote:Which the PM will effortlessly spin into anti-US and anti-EU rhetoric.
Scoring himself yet more brownie points with the big red ChiComs
If this deal ends, who really gives a shit if they turn it into Anti-US or Anti-EU rhetoric? The damage will already have been done. And by doing that they'll make it worse.
Aren't these kinda of special relationships built on reciprocal agreements?
The people in charge clearly want to have some sort of autocratic, familial dictatorship style government without public freedoms, freedom of the press, you can go on and on and on. Yet they will still hold their hat out for foreign aid and support such as the EBA deal whilst doing the exact opposite of what they signed on to do to get such preferential treatment. Under the guise of sovereignty.... which is hilarious because they've sold half of their fucking country to a foreign communist government.
Does the old saying "don't bite the hand that feeds you" apply here?
It seems as the leadership here are the ones that have thrown all their eggs in one basket. If I, as a lowly Foreigner here knew that something like this could happen in response to their actions in the past year or two, are we to really believe that they didn't think that this would happen?
This whole thing could be devastating to Cambodia....
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Jayavarman Finds His Arms
by The Steve » Sat Jan 28, 2023 5:36 pm » in Cambodian History and Culture - 0 Replies
- 387 Views
-
Last post by The Steve
Sat Jan 28, 2023 5:36 pm
-
-
- 21 Replies
- 4979 Views
-
Last post by vladimir
Tue Jun 04, 2019 6:30 am
-
- 0 Replies
- 1810 Views
-
Last post by Orichá
Tue Apr 28, 2020 3:01 pm