The EU is about to impose trade sanctions against Cambodia as a result of alleged human rights violations in the country. That means, Cambodia won’t be allowed to export goods duty-free and quota-free to the EU. Sanctions will damage Cambodia’s economy, where a $5 billion garment industry employs 7,50,000 people and is the biggest exporter.

In addition, the EU is mulling imposing tariffs on Cambodian rice for three years as a result of a surge in imports deemed to have hurt European rice producers. Progress on workers' rights in Cambodia has slowed significantly. While the government still allows some independent unions and workers'-rights organisations to operate, the space for them to advocate effectively is shrinking.

A number of labor union and human rights leaders have been targeted for official harassment, and some have been arrested or criminally charged. In several high-profile cases, labor leaders who were charged with baseless crimes in 2013 still have those charges pending against them. A law restricting freedom of association, adopted in 2015, restricts the activities of a wide range of non-governmental organisations, including those advocating on behalf of workers. Another law adopted in 2016 places onerous constraints on those who wish to form new unions.