Already hit by the impact of the pandemic on their industry, the removal of Cambodia’s trade preferences by the European Union in response to ‘serious and systematic violations’ of human rights will hurt them further. The Cambodian government can re-establish the preferences now by upholding fundamental rights and democratic space in the Kingdom, and ending attacks on people defending workers’ rights and civic freedoms, writes Business & Human Rights Resource Centre Executive Director Phil Bloomer.
On 12 August 2020, the European Union partially suspended Cambodia’s trade preferences. For around 20% of exports, including from the economically significant garment, footwear, and travel goods sector, Cambodian exports will be subject to increased tariffs into the EU market (from zero to standard WTO world tariffs), removing substantial competitive advantage, despite the very low wages paid to women workers in cloths and footwear manufacture.
For the more than 800,000 Cambodians employed in the country’s garment sector, who already face reduced wages or lost jobs as the industry reels from the global pandemic, the consequences could be disastrous.
The EU has found a surprising ally in its concern about the deteriorating human rights situation in the Kingdom: businesses and multi-stakeholder initiatives. In March 2018, a group representing some of the largest apparel brands in the US and Europe expressed “growing concern” over controversial labour laws and ongoing court cases against trade unionists, warning that restrictions on freedom of association “will make Cambodia an unattractive and expensive place to do business”.
They released another similar strongly worded statement in January 2020. Three weeks before the withdrawal, 33 leading human rights organisations and multi-stakeholder initiatives, representing both companies and civil society, called on governments to echo the EU and urge the Cambodian Government to respect fundamental freedoms so that trade preferences may be restored and suspensions of bilateral aid lifted.
Despite these messages from a broad alliance of concerned governments, investors, and civil society, at every step the Cambodian Government has refused to take the opportunities offered by the EU to avoid withdrawal of preferences, and seemingly doubled down on its neglect of democratic freedoms and human rights. The withdrawal process was first initiated in February 2018, in response to the dissolution of the main opposition party and arrest of its leader Kem Sokha in late 2017. Since then, there have been at least 200 cases of harassment and judicial action against opposition supporters in 2019 and 2020. Equally, outside party politics, over the ensuing two-and-a-half-year period, Cambodian Government has continued to subject trade unionists, human rights defenders, and civil society organisations to intimidation.
On 31 July 2020, Cambodian authorities arrested independent trade union leader and prominent government critic Rong Chhun, who remains in pre-trial detention. For trade preferences to be reinstated, the European Union has been clear: Cambodian authorities need to ensure the right to political participation and respect the rights to freedoms of expression and association. Cambodia has a stark choice: meaningful action now to bring the legal framework in line with Cambodia’s international obligations and end harassment of government critics could still avoid needless economic pain. More importantly, it would begin to restore the confidence of Cambodia’s civil society, repair damage caused to democracy, and Cambodia’s tarnished image as an attractive place to do business.
The Cambodian Government can take concrete steps now to amend or repeal laws that do not conform to international human rights and labour standards; release opposition activists who have been arbitrarily detained; and end politically motivated prosecutions of trade unionists, community leaders, and human rights defenders.
These valuable first steps would demonstrate the government’s seriousness in improving respect for human rights and democracy and re-establish the rule of law. This could be achieved quickly to reverse the EU’s decision. The executive can act alone or with the majority of legislators who are members of the ruling party. In this global pandemic, workers in Cambodia are calling for decent work, and their rights to prevent abuse. Many global businesses, European governments, and civil society organisations agree.