Tuesday, October 23, 2007

Cambodia to benefit from possible extensive duty-free garment access to U.S.

October 23, 2007

Cambodian garment producers predicted pivotal benefits upon the U.S. Congress' possible approval of a draft law to offer extensive duty-free access for garments produced in the kingdom, local media said on Tuesday.

"I think the bill will put us in a better position to compete with Vietnam and China," Ken Loo, secretary general of the Cambodian Garment Manufacturers Association, was quoted by English-Khmer language newspaper the Cambodian Daily as saying.

The bill, dubbed the New Partnership for Development Act and currently in the house for debate, would eliminate tariffs on trousers, shirts and coats imported at 2007 levels from Cambodian and Bangladesh.

According to an anonymous official at the Cambodian Commerce Ministry, a seven-member ministry delegation in its July visit to the U.S. detected no strong opposition in Washington to providing preferential access to Cambodian garments.

Cambodia, now the fifth largest exporter of garments to the U.S. , has lobbied U.S. lawmakers to reduce tariffs on clothing produced here, fearing that the competition from other countries could reduce Cambodia's U.S. market share.

In the first five months of 2007, Cambodian clothing exports went up by 17.9 percent, generating revenues of 984.9 million U.S. dollars, of which 738.28 million U.S. dollars came from the exports to the U.S., said official figures.

Garment has been the kingdom's largest pillar industry, which used to make up more than 70 percent of its export volumes.

Source: Xinhua

4 comments:

Anonymous said...

Yes, this should encouraged more businesses to come to Cambodia. And to capitalize on this benefit, we should send some of our top lawmakers out to spread the message and to offer support to investors who want to come to Cambodia for business.

Anonymous said...

$738 million is a lot of money and I am sure there is quite a bit of profit too. The question is whether the profits are being reinvested or just repatriated to the foreign owners' home countries. Now the garment industry provides jobs, which is a good and much needed thing, but real growth can only come about when money is reinvested in the country.

Anonymous said...

If the poor not buy food from Vietname, then the money is reinvest in the country!

Anonymous said...

Yes, but the poor be dead of starvation.