The European Commission's decision in the EBA case It was officially announced at 6 pm on February 12. The European Commission has decided to temporarily lift the tax exemption from Cambodia on 40 items, most of which are garments. These products are exported from Cambodia to Europe for a total of about 1 billion euros each day Year.
The European Union has decided to suspend its tax system in Cambodia on all goods except weapons, or Everything But Arms (EBA). These items will affect more than $ 1 billion of exports The totality of Cambodia goes to the European Union.
According to the ruling, the suspension will affect a number of footwear and clothing products. Travel goods and sugar are completely suspended. The suspension will affect exports at an estimated cost, it said $ 11 billion annually, which accounts for about 20% of the total export value From Cambodia worth about $ 580 million.
The ruling states that if there is no opposition from the European Parliament and the Council in the coming time, the suspension Will be in force on August 12, 2020.
The EU Commission will continue to monitor civil rights, political, labor and land rights, the decision says. There are also homes in Cambodia, and the Commission may amend the ruling if the situation persists. There are better things in Cambodia.
Cambodia has been subject to EBA tax status since 2001.
According to the European Union, Cambodia's exports to the European market in 2018 were Approximately US $ 5.8 billion, of which garments make up 73.4% of skin exports About 1 2, 7%, 5.7%, and 3% rice.
Heng Ratana, CEO of CMAC, said on Facebook on February 12 that he would like to thank the European Union and congratulate the Royal Government as well as its workers and workers. All that results is that the EBA maintains 80% of the goods that are going to the European Union. And will be reduced by only 20% in 6 months From today (12 February 2020). This EBA has been threatening Cambodia for over two years! So, 80% of this is understanding and acknowledging 80% of the facts in Cambodia, while the remaining 20% is required. Six months later, attached with the final article, can be considered for further review if improvement is achieved. Therefore, this 20% is not fixed, so continue to evaluate and collaborate….! It can be said that everything is gone!
In addition, the 20% reduction is also a test to gradually improve the ability to completely eliminate the E BA at any given time. The future for Cambodia is here too! And commerce is a choice, sometimes to lose something! Business is a trade off!