The unions of the ranks of the Phnom Penh regime and the Association of Independent Labor Workers and Unions have been opposed to the elimination of the import tax except for the EBA from Cambodia after the event. July 29 received criticism from around the world.
Workers and unions are concerned that the European Union will cut off import tax preferences in Cambodia soon because of the political crisis and the loss of democracy in Cambodia. They said that those who were directly affected were workers, unemployed, and unemployed, with widespread incidence of IDPs. Of workers, workers only send money to supply every month People, including civil servants, who benefit from the tax collection and renting Goods
A worker at Violet factory in Phnom Penh, Ms. Ung Chanthoeun, told Asia Sites that workers worried about sustainability when she heard that the EU could cut exemptions from tax preferences. Because of political pressure in Cambodia. The worker wants politicians to quit the activities like today because controversial activities like today will bring misery to workers in the future. ""
The EU import tax preference, called Everything But Arms-EBAs, was approved by the European Union Council on 28 February 2001 (No. 416 / 2001). The EBA is an EU initiative that allows imports of all goods, except arms to the European Union, from the least developed countries. Non-tax exemptions. EBA is part of the EU's Generalized System of Preferences, which has entered into force since March 5, 2001, and has no timetable for completion.
The article of the European Central and Middle East Department of the Ministry of Commerce on its website published January 29, 2015, shows that all imported goods will be Receive import non-tax preferences and quotas if they comply with original goods and other relevant rules. Only 48 of the least developed countries, including Cambodia, have benefited from the initiative. Customs duty exempted from the European Union has about 7,200 or so-called tariff lines. The Ministry of Commerce has said that for Cambodia, EBA has great benefits to the agricultural sector, especially rice and other potential products. In recent years, Cambodia has increased rice exports to the European Union, especially France, Italy, and so on. Similarly, clothing exports to the EU have also risen dramatically. Exports may be due to a relaxation of the rules of origin that define local ingredients as Only 30 percent.
Commerce Minister Pan Sorasak sent a letter to Hun Sen on Dec. 4, 2017, showing Cambodia's total export value to EU markets. In 2016, US $ 6,259 million. Cambodia enjoys a complete tax preference from the market. Minister of Commerce Pan San Sarak told Hun Sen that without tax preferences, Cambodia had to pay $ 676 million. Cambodia's exports to the market are not just shoes, socks, footwear, grains, cereals, Made of leather, rubber, and bicycles.
Shipments to the United States are $ 2.916 million in 2016. The Cambodian government pays US $ 300 million (the US $ 12 percent). Minister of Commerce claims Cambodia's exports to the United States pay full tax except for travel goods, To Cambodia in late 2016. If Cambodia is to pay the tax on this commodity, it is about $ 10 million (at a tax rate of 5 percent). Cambodia's products are in the US market including cosmetics and footwear, toys, cosmetics, and furniture.
Meanwhile, Pan Sorasak advised Mr. Hun Sen that in order to prevent the suspension of all customs duties by the European Parliament, the situation should be Encourage member countries of the European Union through diplomatic and trade networks, as the EU is more flexible and understanding. To Cambodia A.
Apart from the suggestion of the Commerce Minister, Phnom Penh sent a delegation to the European Union quietly to convince the EU not to pull the system Trade preferences from Cambodia. Mr. Hun Sen appointed Mr. Sok Saphana, a consultant and diplomatic expert to lead the European Union convoy mission since the day June 18th
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