The Garment Manufacturers
Association of Cambodia (GMAC) has sent a petition to the US Senate requesting
preferential trade treatment for Cambodian garment and footwear exports.
The US generalised system of preferences (GSP) scheme allows duty-free entry of
certain non-sensitive items from 120 developing nations and excludes garment
and footwear products. GMAC has hired a Washington-based law firm to
help with its request, which if successful, would immensely help Cambodia in
export growth, new investment and employment generation for thousands, a
Cambodian news report quoted GMAC deputy
secretary general Kaing Monika as saying.
GMAC’s petition follows the announcement that
the United States will be reviewing its GSP programme by the year end and
voting on the GSP Footwear Act of 2017, which would allow outdoor shoes and
boots, as well as other footwear manufactured abroad, to be included in the
programme.
Footwear remains a sensitive industry in US
trade policy, which prevents the inclusion of certain types of footwear in the
GSP scheme. The amount of potential lost tariff revenue also limits the scope
of footwear that can be included, said Monika. GMAC estimates about
$180 million of Cambodia’s $245 million in 2016 footwear exports are in
categories that would be eligible for GSP under the proposed GSP Footwear Act
of 2017.