US denies Cambodia full quota of garment imports

[Ulhas Joglekar]

12 January 2000
US denies Cambodia full quota of garment imports
PHNOM PENH: The US has declined to award Cambodia a full 14 percent increase
in its quota on garment imports ostensibly due to lingering labour-standard
problems, the Cambodian Minister of Commerce said on Tuesday.
Cham Prasidh said the value of Cambodia's garment exports in 1999 was $606
million, a 60 percent increase over the previous year's $378 million. But he
said manufacturers will have to find new markets in Europe if the rate of
increase is to be sustained.
The US will raise its quotas on some Cambodian garments by 5 percent, with
the possibility of an increase at the end of the first half of the year, he
said.
He attributed the US reluctance to pressure from US trade unions. "They (the
US) have answered that labour conditions are not yet perfect, that we're not
complying entirely with labour standards."
"So they gave us five percent with the possibility of increasing that in the
first six months of the year," he said.
Cambodia's garment industry has grown to become the country's top export
earner in recent years. There are now 178 factories, many owned by investors
from the region, employing more than 100,000 compared with only some 70
factories at the end of 1997.
The US has been Cambodia's biggest export market by far, but US authorities
imposed their first quotas in January last year, setting limits on 12
categories of clothes.
But the US had said those quotas would be raised by up to 14 percent if
there was concrete improvement in working conditions in Cambodia's garment f
actories. Cham Prasidh said the US had acknowledged efforts made by the
government and garment manufacturers to improve conditions, but had still
found problems.
He said: "It's not really labour standards that has prevented the US from
giving us the full quota. We feel we're under pressure from US politics.
There are some unions which try to prevent the granting of the reward quotas
to us because they're worried about job losses."
"They're playing politics but we're still hopeful they will reconsider their
position."
He said manufacturers will have to find new markets in the European Union if
garment industry growth is to be maintained.
"Our exports to the European Union are going duty free and quota free,
that's why there is this kind of boom in the garment industry again towards
the European Union," he said.
"But for the USA it's stable now, we won't be able to increase much more
there, so it depends on whether manufacturers can find buyers in Europe or
not."
"European buyers are buying small quantities compared to American buyers, so
it's a question of being able to find buyers in Europe. The total (value of
exports this year) will depend on that."
For reprint rights: Times Syndication Service
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