Even when garment factories are wholly Chinese-owned and utilise supplies produced in China, they might take pleasure in calm tax regimes and quotas when exporting to Europe and the United States, provided products and solutions are assembled in Cambodia. On the other hand, in August 2020, the EU partially withdrew Cambodia’s EBA privileges because of human legal rights worries. This withdrawal impacts 20% of exports on the EU, generally clothes—which can be A serious concentrate for firms functioning throughout the SSEZ.
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This was signed by big US and EU brand names which include H&M, Nike, Adidas, Gap, Puma and Specialised. Some of these firms resource in the SSEZ, and once the zone’s plant is operational and it moves to a hundred% coal electrical power, they can probably stop sourcing from factories there, Placing at risk numerous Work.
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A report by an area civil Modern society team (Khmer, English) in 2018 documented interviews with twenty staff from ten factories within the SEZ, who recounted a number of clear labour legal rights violations, like docked purchase individuals taking Unwell depart and stress to operate additional time. Enterprise Reps had been asked for touch upon these accusations and denied their validity, stating that their firms operated in compliance With all the labour law.
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