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Brussels officially launches a procedure for the temporary suspension of trade preferences enjoyed by Cambodia. Like other developing countries, the country enjoys a customs duty exemption on its exports to the European Union. The decision announced by the European Commission launches a countdown of 18 months. 18 months of study and negotiations at the end of which this agreement could be suspended, which would deeply impact the Cambodian economy.
With our correspondent in Phnom Penh, Juliette Buchez
Last year, Cambodian exports to the European Union amounted to nearly 4.9 billion euros. It is the most important market for Cambodian exports.
Cambodian products are now exempt from customs duties on the single market under the "all but arms" agreement. But these taxes could be restored as early as 2020.
The preferential agreement is conditional on respect for human rights and work, and in its statement the European Commission says it finds serious and systematic violations of these rights.
Last July, contentious parliamentary elections conceded all seats in Parliament to Prime Minister Hun Sen's party , which has headed the government for 34 years.
Cecilia Malmström, EU Trade Commissioner, says this is not a final decision or the end of the process, but concrete measures are expected as soon as possible.
In Cambodia, the announcement is coldly received by the government. He is indignant at a decision he describes as particularly unfair.
If economic sanctions come into effect, they could directly affect the 750,000 Cambodians working in the textile industry. The sector alone accounts for 70% of Cambodian exports. Nike, Gap, H & M or Adidas for example have products today manufactured in Cambodia.