Nike, Gap fear the threat of trade sanctions on Cambodia

 

In a letter addressed to Cambodian Prime Minister Hun Sen on 2 May, several international buyers including Nike, Gap and Levi Strauss have called the Government to seriously look into the concerns raised by international community, which if ignored may lead to heavy trade sanctions on the country.

The letter, signed by many renowned brands, reportedly highlighted Cambodia’s declining respect for labour standards that also included freedom of association.

The brands voiced in unison that the current labour and human rights situation in the country posed a huge risk to trade preferences for Cambodia.

Several companies that signed the letter expressed disappointment that they were yet to get response to another letter they had sent on 1 November 2018, wherein they gave recommendations for action.

 More on the same, Rong Chhun, President, Cambodian Confederation of Unions, said that government should not ignore such requests because if the buyers do not buy products from Cambodia, then the export will be significantly impacted.

Notably, the European Union, in February 2019, had initiated a six-month monitoring period to determine whether the products exported from Cambodia should get any tax benefits while entering European market.

 

 

 

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