Cambodia could face potential economic collapse, leading to a devastating impact on garment manufacturing, if the European Union follows through on its threat this month to withdraw Cambodia’s special trade status with Europe due to human rights concerns.

The EU warned Cambodia in July that the southeastern Asian nation could lose its special access to Europe if elections returned Prime Minister Hun Sen to power and extended his 30-year rule.

Global observers, and the EU specifically, have criticised the Cambodian government for its attacks against critics and opposition parties, its crackdown on independent media and nongovernmental organisations, and its disregard for human rights.

Observers also consider the most recent election to have been a rigged election after the opposition party, the Cambodia National Rescue Party (CNRP), was forcibly dissolved.

Cambodia enjoys tariff-free access to the European market, except for weapons and ammunition, and its exports to European countries account for roughly 40 percent of Cambodia’s foreign sales and generate nearly $6 billion, according to EU data. The majority of Cambodia’s exports come from its textile, garment and footwear industry, which employs an estimated 800,000 people.