Cambodia’s garment manufacturers association has brought up a case against the European Commission at the EU court of justice following the withdrawal of duty-free and quota-free access to the EU market over the summer.
According to the plaintiffs, the EU executive failed to properly assess the proportionality” of the move for the garments, footwear and travel goods sectors, and has violated the industry’s “right to good administration under the EU treaties.
Garments, footwear and travel goods sectors totaling €1.1 billion in exports are now subject to general World Trade Organization tariffs, in a move aimed at putting economic weight behind the EU’s calls for an improvement of the human rights situation in the country.
The European Commission began the procedure to partially withdraw Cambodia’s preferential access to the single market in 2018. The EU’s decision came after the dissolution in November 2017 of the only viable opposition party in the country, the Cambodia National Rescue Party (CNRP), accompanied by treason charges brought against its leader, Kem Sokha.
Before the withdrawal, the union reported 30,000-40,000 layoffs, from the 150,000 people employed by the industry at the beginning of the year. The organization said the numbers represent a “crushing impact of the pandemic on global demand for footwear.
