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HOLD for NOON - Cambodian Garment Workers Struggle After EU Withdraws Trade
Perks

Luke Hunt

   PHNOM PENH - The Cambodian government is shoring up its finances as the
   withdrawal of some European Union trade preferences leaves its mark on
   an economy already struggling with the COVID-19 pandemic and an exodus
   of Western businesses.
   Hardest hit is the $7 billion garment, textiles and footwear industry,
   where about 700,000 workers earn a basic $190 a month, including $7 for
   transportation and rent, producing for big name brands such as Levis
   Strauss, H&M, and Adidas, six days a week.
   The government has allocated a $1.2 billion spending package to help
   offset losses from the partial withdrawal of trade preferences under
   the 'Everything But Arms' program -- which provides duty- and
   quota-free access to the EU market for all products other than arms --
   that went into effect last month
   ((https://www.voacambodia.com/a/eu-trade-sanction-against-cambodia-s-cr
   ackdown-enters-into-force-/5541730.html)) and the impact of the
   pandemic which has taken a heavy toll on a once-thriving industry.
   Phen Kosal, who has worked at Hung Wah Cambodia garment factory
   producing clothing for export for the last six years, says the EBA
   partial withdrawal was having a dreadful impact on her work prospects
   amid layoffs, loss of overtime and reduced hours.
   "Now, I am begging for the government's help because of this issue. I'm
   also in debt with the banks and finance institutions, which is why I'm
   desperately seeking help."
   Her sentiments were echoed by Sao Chen, who works at the Meng Da
   Footwear factory. He estimated that overall earnings - including his
   own - were down 20%, while many workers had been laid off for four to
   six months.
   "The main problem we are facing today is some workers are the only
   breadwinners feeding an entire family at home. Sometimes their monthly
   income is only $100 to $200 and they spend everything on rent, food,
   kids' school -- and there are many more costs."
   EBA trade preferences go to least developed countries that meet
   international standards of democracy and human rights.

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