The United States Cambodia Textile Agreement: What You Need to Know
On October 16, 2020, the United States and Cambodia signed a new textile agreement, allowing Cambodian manufacturers to export textiles and apparel duty-free to the United States until 2030. This agreement is an update to the previous Cambodia Trade Act of 2016, which expired in 2018.
The new agreement has been met with celebration from both the Cambodian and American governments. Cambodian Prime Minister Hun Sen called it a “historic achievement” for his country`s economy, while U.S. Trade Representative Robert Lighthizer praised the agreement as a way to “support America`s economic recovery.”
So, what exactly does this agreement entail? Here are the key details you need to know:
– Duty-free treatment: Under the agreement, certain Cambodian textiles and apparel products will be exempt from U.S. duties until 2030. This includes items such as knit shirts, blouses, trousers, skirts, and dresses made from specific materials. This is expected to provide a significant boost to Cambodia`s textile and garment industry, which is a major driver of the country`s economy.
– Worker protections: The new agreement includes provisions to ensure worker rights and labor standards are upheld in Cambodian textile factories. This includes measures to prevent forced labor and to promote freedom of association and collective bargaining.
– Addressing trade imbalances: The agreement includes measures to address trade imbalances between the two countries. This includes provisions to promote U.S. exports to Cambodia and to address non-tariff barriers that may be hindering U.S. exports.
– Environmental protections: The agreement includes commitments from both countries to promote environmental protections and sustainable development in Cambodia`s textile and apparel sector.
Overall, the U.S. Cambodia Textile Agreement is expected to provide a significant boost to Cambodia`s economy and to deepen the economic ties between the two countries. It is also a positive step towards promoting worker rights and environmental sustainability in the textile and apparel industry. As the agreement moves forward, it will be important for both countries to continue working together to ensure its success.