EU/Cambodia: towards exclusion from GSP scheme « Everything but weapons » ?

RECALL

The GSP is a unilateral agreement granted by the European Union to the least developed countries, to contribute to the economic development of these countries and their integration into the world trade system.

It has 3 components* :

• The general GSP schemewhich benefits all countries other than those in the high-income category for 3 consecutive years. This scheme essentially gives partial tariff preference to products originating in beneficiary countries.
• The scheme « GSP+ », which offers increased preferences to countries meeting strict selection criteria and conditionalities (criteria of « vulnerability » and compliance with 27 international conventions). This special incentive regime for sustainable development and good governance (including the fight against trafficking in drugs and human beings) offers a total tariff preference (0 customs duty).
• The scheme « Everything but the Arms » (TSA), which provides access to the European Union market without customs duties (total tariff preferences) and without quotas to the Least Developed Countries (LDCs), for all productsexcept arms and ammunition.

* Updated list of GSP countriesavailable to our subscribers on request.

Considered part of the LDCsCambodia benefits from the « Everything but the Arms » under thescheme of generalised tariff preferences (GSP)European Union.

Since the establishment of the TSA programme, the EU has gradually imposed itself as the Cambodia's 2nd trading partner after China For the Cambodian economy, the Community market accounted for 40% of exports in 2017, mainly made up of textile products – clothing (clothing, footwear, etc.) and agricultural products.

The EU intensified its dialogue with Cambodia (seebiannual report on the EU GSP of January 2018) following serious concerns related to infringements of democracy and the rule of law, also highlighted in the European Parliament (resolution of 14 September 2017) and the Council (Foreign Affairs Council of 26 February 2018).

Current July 2018, uEuropean Commission delegation visited Cambodia to assess the situation on the ground.

The GSP Regulation provides for procedure for suspending trade preferences in certain cases under article 19: serious unfair commercial practices, violation of international conventions on human rights and workers' rights, etc. It is this second lever that the European Commission intends to use to stop the deterioration of the political and social situation in the country.

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