The European Branded Apparel Alliance (EBCA) requires the European Union to delay the withdrawal of the EBA concession for Cambodia’s export to the EU.
EBCA Chairman Serra considered the economic impact and challenges the COVID-19 epidemic has brought to the world, leading to the closure of more and more clothing retail stores and shrinking demand, fearing that It has seriously affected Cambodia’s development, employment and growth, so we wrote to the President of the European Union to express the above opinions.
The Cambodian Garment Workers Association and the Cambodian Garment Manufacturers Association recently stated that due to the spread of the COVID-19 epidemic, about 60% of Cambodia’s garment factories have been affected by the cancellation of export orders. Most of these canceled orders come from the European Union and the United States, which account for 46% and 28% of Cambodia’s export market respectively. They may affect the livelihoods of about 500,000 garment workers and their families. Cambodia’s garment and footwear exports in 2019 were approximately US$8.1 billion.
Serra recommended that the EU and member states provide support measures to increase policy certainty so that member companies can continue to support their employees in the EU and workers in manufacturing countries , one of the measures is to ask the EU to postpone the withdrawal of some of the EBA export preferential treatment granted to Cambodia. The withdrawal resolution was originally scheduled to take effect on August 12, 2020. Once it takes effect, it will affect Cambodia’s clothing, footwear products, travel supplies, sugar, etc. Export strength, accounting for nearly 20% of Cambodia’s annual exports to the EU, worth approximately 1.1 billion euros.
Serra said that due to the COVID-19 epidemic, the sales of the EU brand clothing department have dropped by about 90%. In addition to state support, existing employees must receive financial support from their employers to avoid unemployment, but this is not a long-term solution. The garment industry has enabled manufacturing countries to create a large number of jobs and investments. As garment production and exports have increased, poverty rates have declined. Branded apparel companies have also taken considerable social and environmental measures to protect labor rights and maintain the environment.
EBCA is headquartered in Brussels. The alliance represents more than 60 retail apparel brands. The purpose of the alliance is to ensure a positive trade agenda, a more predictable business environment, and sustainable trade. sustainable global value chain.
Serra believes that the road to recovery from the epidemic will be long, but as a brand clothing company, it hopes to use its procurement and manufacturing capabilities to produce the supply chain of personal protective equipment. , and use the global network to transport it to medical institutions as quickly as possible to make a contribution in this global crisis.
