Phnom Penh: The European Commission has finally decided to partialy withdraw the EBA tax incentive system from Cambodia without cutting it off.
The tariff free agreement to the EU trading bloc, which is given to the world’s poorest economies, will affect about 20% – about 1 billion euros of the trade between Cambodia and the EU, according to a press release published on the European Commission’s website on February 12, 2020.
In a statement, the European Commission said that the decision to impose tariffs on certain sectors included garments, footwear, all travel goods and sugar.
The new import tariffs will commence in August 2020.
The European market was worth 4.6 billion euros in 2018, and up to 5.3 billion in 2019.
The EBA tax-exempt system exempts the tax on 7,200 types of Cambodian goods.
Read the full press release: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_229