The EU is thinking of revoking GSP for Myanmar.
Reasons include abuses by Myanmar’s military, including crimes against humanity and genocide.

This move is certain to devastate key sectors of the economy. The export-oriented garment sector, one of the country’s few economic bright spots, would be especially hard hit.

Garment exports account for 72 per cent of Myanmar’s shipments to the EU , making the EU one of the few markets with which Myanmar enjoys a trade surplus.

The EU granted Myanmar GSP status in 2013 following a series of political and economic reforms that eventuated in the 2015 elections after decades of military rule.

Myanmar’s garment sector employs about 5,00,000 people, and 95 per cent of these are women. The country’s business scene is increasingly dominated by Asian investors including from China. Chinese investment started to flow into the garment sector in 2013 to capitalize on Myanmar’s GSP status in the EU’s lucrative markets.

While the presence of European business in Myanmar champions European values including gender equality, transparency, accountability as well as social and environmental responsibility, Chinese-owned garment factories are not known for strictly abiding by these principles.

This is not the first time Myanmar’s garment sector has been threatened by sanctions. In 2003, the US imposed economic sanctions on Myanmar for chronic rights abuses, effectively decimating a then fledgling garment sector.