A biennial report points out that according to the Generalized System of Preferential Tariffs (GSP, referred to as the Generalized System of Preferences), most developing countries that use the EU’s GSP preferential tariffs in 2018 Exports to the EU hit a new high, with apparel products accounting for the majority.
According to the European Commission report, the data period covered by the report covers 2018-2019, and the 71 GSP beneficiary countries reached 184 billion euros in 2018. Export value (equivalent to US$199.92 billion). Nearly 69 billion euros of this amount used GSP special preferential measures.
In terms of products, the bulk of imported goods using GSP preferences is still garments (amounting to 33 billion euros, accounting for 47.9%), followed by footwear (11%) , machinery and equipment (7%), fish products (4%), leather (3.7%), plastics (2.7%).
European Commission Vice President Josep Borrell said: Trade is one of the important tools for the EU to solve, support and improve human rights, labor rights and good governance. Trade is also promoted globally. The basis for sustainable development. Through EU GSP measures, we support developing countries to promote development and progress in a sustainable manner, especially in climate action plans. Our trade preferential tariffs help eliminate poverty for millions, reduce inequality and stimulate economic growth.
GSP provides developing countries with preferential treatment for exports to the EU. By creating more export opportunities, this measure will help solve poverty problems in various countries and create more employment opportunities, while also adhering to the principles of sustainable development.
The report warns that among the 71 GSP beneficiary countries, many countries still have many restrictions, including freedom of expression for civil society and the media, justice, minority Human rights, the death penalty and freedom of association.
There is still insufficient progress in some of the largest beneficiary countries, despite the EU’s increased supervision and engagement, especially in the area of human and labor rights.
As far as Cambodia is concerned, the country’s serious and deliberate violation of the core principles of the United Nations and the International Labor Organization has led the EU to activate the temporary withdrawal of preferential treatment from the EU.
Last week, the EU partially withdrew Cambodia’s preferential market access to the EU market. This move means that the EU will begin to target certain garments and shoes to Cambodia from mid-August 2019. Products and suitcases are subject to tariffs, and their tax rates are subject to EU Most Favored Nation (MFN) treatment.
The amount of the preferential tariff withdrawal accounts for about 1/5 of Cambodia’s annual exports to the EU, or about 1 billion euros (US$1.09 billion). This decision will take effect from It will come into effect on August 12, 2020.
The EU is Cambodia’s largest trading partner, with a trade volume of 5.4 billion euros (equivalent to 5.9 billion U.S. dollars), accounting for 45% of Cambodia’s exports in 2018. Export products include ready-made clothing (74.2%) and footwear (12.6%), most of which take advantage of Cambodia’s preferential treatment from the European Union (EBA).
