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សម្ព័ន្ធសហជីពចលនាកម្មករ

Collective Union of Movement of Workers

LOGO CUMW

សម្ព័ន្ធសហជីពចលនាកម្មករ

Collective Union of Movement of Workers

29/01/2023

Union leaders: EBA and GSP are still important for Cambodia

Phnom Penh: President of the Collective Union of Movement of Workers, Mr. Pav Sina, said that the EBA and GSP are still very important for Cambodia, contrary to the words of Mr. Vongsey Visoth, Deputy Prime Minister and Permanent Secretary of the Ministry of Economy And Finance who said that even though Cambodia does not have EBA and GSP, Cambodia's exports are still growing.

Mr. Pav Sina deplored Mr. Vongsey Visoth's claim that even without the EBA and GSP, Cambodia would not have died, "I do not think this should be said like that now. Nearly 1 million garment workers in the garment, footwear and bag sectors, including more than 2 million indirect beneficiaries."

"So if we do not have EBA and GSP, we would like to ask how many investors have come to invest in Cambodia so far because of these two preferential tariffs that help create hundreds of thousands jobs for our citizens and workers," he said.

His remarks came after Mr. VongSey Visoth said that despite these two sub-tariff systems, Cambodia's exports were still growing and the economy was still growing.  "We imagine if there were no preferential tariffs, investors would not be able to do business in our country because they came to do business because of the preferential tariffs that make investors profitable," he said.

He added that if there were no preferential tariffs and exports were taxed, investors would consider countries with preferential tariffs and wages, which are lower than Cambodia and have serious repercussions.  Most will fall on the people, especially the workers working in this sector.

"On the other hand, I see that in 2023, the situation in all factories, whether shoes, clothes or travel products, will decrease.  The issue is orders and it has negatively affected the workers, causing them to face the problem of declining incomes. We see some factories have closed.  There are also factories that have suspended operations. Even if they work normally, they are not fully operational, all of which will affect the revenue of the workers."

Other challenges that have led to declining orders, he said, are due to the war between Russia and Ukraine and the outbreak of Covid-19, which has left buyers difficult to find and all countries also face problems.

He expressed concern about the future unemployment of workers due to the lack of buyers. Some factories are facing closure in Cambodia.

Mr. Pav Sina added that if Cambodia loses the EBA and GSP, it will put Cambodia at serious risk, leaving investors in the garment, footwear and manufacturing sectors. The process of turning away from Cambodia.

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