Cambodia and Romania talk trade, EBA

Cambodia has pleaded with the European Union to continue trading with the kingdom under the Everything-but-arms initiative, arguing it plays a key role in the development of the country.

The request was made by Cambodian officials during a meeting Monday with a visiting delegation from Romania, a member of the EU located in Southeastern Europe.

Tek Reth Kamrang, Cambodia’s Secretary of State at the Ministry of Commerce, told the Romanian Deputy Minister of Foreign Affairs, Monica Dorina Gheorghita, that EBA (everything-but-arm) has helped the kingdom reduce poverty levels and diversify its industry.

“The visit of the Romanian delegation is very important as it allows them to see first-hand the positive impact of the EBA treaty in our economic development,” said Ms Reth Kamrang.

Everything-but-arms, or EBA, is an initiative of the EU under which all imports to the bloc from the Least Developed Countries are duty-free and quota-free, with the exception of arms. EBA entered into force in 2001 as part of EU’s Generalized System of Preferences, or GSP.

Ms Gheorghita acknowledged the impact of EBA on Cambodia’s economic development and agreed to ask fellow European leaders to continue to support the scheme.

In late February, EU’s foreign ministers issued a statement expressing concern over the deterioration of democracy in Cambodia, and urged the government to engage in a constructive dialogue with the elected opposition.

The statement pointed out that the EU is Cambodia’s biggest export market, and that the European bloc grants the kingdom preferential access to its vast market under the EBA scheme.

Kaing Monika, deputy secretary general of the Garment Manufacturers Association in Cambodia, told Khmer Times that despite its relatively small size, Romania has a lot of potential when it comes to trade.

“It has a sizable population of about 20 million and is one of the fastest growing economies in the EU. The country could absorb a lot of our exports,” he said.

The EU market now absorbs nearly 40 percent of Cambodia’s garment and footwear exports, according to the General Department of Customs and Excise.

Source: Khmer Times