CSR Cambodia: suspension of GSP strongly impacts the textile sector
The Cambodian economy, affected by the VOCID-19 pandemic, is beginning to measure the negative impact of withdrawing the benefits of the Generalised Preferences System (GSP) European Union.
Since August 2020, certain categories of products, including clothing, are now subject to 12% customs duties instead of 0% on imports into the EU *.
The country's main export market, the textile and clothing sector and footwear (700,000 jobs) is the most affected: the loss of GSP benefits, and hence the rise in cost prices for European customers, has led to a sharp drop in orders.
When they are not simply laid off, Cambodian textile workers see their worsened wage conditions Due to a reduction in working hours: according to the Association of Clothing Manufacturers in Cambodia, 450 factories in the sector had suspended their production in the first half of 2020, 83 of which were permanently depriving of nearly 150,000 workers...
The Association brought a complaint against the European Commission before the Court of Justice of the European Union seeking the annulment of the suspension.
* As a reminder:
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