Nike, Gap fear the threat of trade sanctions
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
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.
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