Preferential Tariffs Create Garments For The Main Products Exported To Europe

According to a biennial report, according to the generalized preferential tariff system (GSP), most developed countries using the preferential tariff system of the EU GSP, in 2018, exports to the EU were high, most of which were clothing products.

According to the report of the European Commission, the data period covered by the report covers 2018-2019 years, and the 71 GSP beneficiary countries reached 184 billion euros in 2018 (equivalent to 199 billion 920 million US dollars). Nearly 69 billion euros use GSP special preferential measures.

In terms of products, the use of GSP preferential imports is still mainly made of garments (amounting to 33 billion euros, 47.9%), followed by footwear (11%), mechanical equipment (7%), fish products (4%), leather (3.7%), plastics (2.7%).

JosepBorrell, vice chairman of the European Commission, said: trade is one of the important tools for the EU to solve, support and improve human rights, labor rights and good governance. Trade is also the foundation for promoting sustainable development worldwide. Through the EU GSP measures, we support developing countries to promote development and progress in a sustainable manner, especially in the climate action plan. Our preferential tariffs will help eliminate thousands of poverty, reduce inequalities and drive economic growth.

GSP provides preferential treatment for developing countries to EU exports. By creating more export opportunities, this measure will help solve poverty problems and create more job opportunities, while also complying with the principle of sustainable development.

The report warns that many countries still have many restrictions in 71 GSP beneficiaries, including civil society and media freedom of expression, justice, minority rights, capital punishment and freedom of association.

There are still insufficient progress in some of the biggest beneficiaries, although the EU has stepped up its regulatory efforts to strengthen participation, especially in terms of human rights and labor rights.

As far as Kampuchea is concerned, the European Union has activated the temporary cancellation of preferential treatment to the EU because of its serious and deliberate violation of the principles of the core conventions of the United Nations and the International Labour Organization.

Last week, the European Union withdrew part of Kampuchea's preferential access to the EU market. This means that since mid August 2019, the EU has begun to impose tariffs on certain garments, footwear products and suitcases in Kampuchea. Its tariff rate applies to the most favored nation (MFN) treatment of the EU.

The cancellation of the preferential tariff will account for about 1/5 of Kampuchea's annual exports to the EU or about 1 billion euros ($1 billion 90 million). The decision will take effect from August 12, 2020.

The EU is Kampuchea's largest trading partner. Its trade volume is as high as 5 billion 400 million euros (5 billion 900 million US dollars), accounting for 45% of Kampuchea's exports in 2018. Export products include garments (74.2%) and footwear (12.6%), most of which are exported to Kampuchea by the European Union (EBA).