Cambodia: Cambodian GMAC urges US to extend GSP to garments, footwear

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. 

Source: Khmer Times, Cambodia
Tuesday, 14 November 2017

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