21 November, 2019

EU/Cambodia: end of the TSA preferential tariff regime in 2020?

SUPLY CHAIN

Following the investigation initiated by the European Commission in February 2019, a preliminary report was sent on 12 November to the Cambodian authorities. The decision to exclude Cambodia from the scheme « Everything but the Arms » (TSA) of the EU Generalised Preferred System (GSP) could be taken early 2020...

The objective of the Community procedure is to: « respond tohuman rights and labour law concerns in Cambodia« .

In accordance with the rules laid down in the Regulation on Generalised preference scheme (GSP) Cambodia now has one month to respond to this preliminary report.

The Commission will then finalise the report and take a decision on February 2020 on the temporary or non-removal of Cambodia's tariff preferences.

Representing over 18% of all imports entering the EU market under the TSA scheme in 2018, Cambodia is the second largest beneficiary of the EU GSP TSA scheme.

EU imports from Cambodia totalled EUR 5.3 billion in 2018, including 95% entered the EU free of customs duties.

The Textile and clothing sector account for about 75% of EU imports from Cambodia (EUR 4 billion).

Source:

Source(s): European Commission press release (English)

Further information: EU/Cambodia: towards an exclusion from the GSP regime "Everything but Arms"?

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