TUC General Secretary writes to Vince Cable on GSP and labour rights in Cambodia

The General Secretary has written to Vince Cable, Secretary of State for Business Innovation and Skills on the need for the UK to call for Cambodia's trade privileges granted under the EU's 'Generalised System of Preferences' (GSP) to address the dramatic increase in repression against workers in Cambodia and for the government to raise this matter with UK companies who source from Cambodian factories. More information on recent attacks on workers rights in Cambodia is detailed in the ITUC/ETUC background document, below.

Dear Vince

Cambodia

On behalf of the TUC, I urge you to address the serious violations of freedom of association taking place in Cambodia by requesting the EU to negotiate a ‘Sustainability Compact’ with Cambodia. We urge the government to also raise this matter through bilateral relations and with companies doing business in the UK that source garments from Cambodia.

As you will know, Europe is an important market for Cambodia’s exports: according to the Cambodian Ministry of Commerce, the value of Cambodia’s garment and footwear exports to the EU exceeded $1.81 billion in the first 11 months of 2013, an increase of 31 per cent from the same time in 2012. There is no sign that bilateral trade in garments is waning in 2014.

Trade in garments is facilitated by Cambodia’s inclusion in the EU’s Generalised System of Preferences “Everything but Arms” (EBA) scheme for least developed countries, which provides duty free access to exports from EBA countries. As a condition for continued trade preferences, the EU has included important provisions that require beneficiaries to guarantee the exercise of fundamental labour rights in law and in practice. However, the International Labour Organisation (ILO) has for several years criticized Cambodia for its continued failure to respect and promote freedom of association. In 2014, repression against workers taking strike action dramatically increased, as summarised in the ETUC/ITUC document attached.

If the labour provisions of trade preference schemes are to be a tool for raising labour standards and combating income inequality, the EU must take enforcement seriously. The International Trade Union Confederation (ITUC) and European Trade Union Confederation (ETUC) suggest that, at a minimum, the EU should negotiate a ‘Sustainability Compact’ with Cambodia like the one negotiated with Bangladesh on the issue of freedom of association. We support this proposal, as the dire situation in Cambodia undoubtedly merits such action. The EU’s commitment to labour rights in this context would show leadership where it is most needed today.

Additionally, the TUC urges the government to raise this matter in its bilateral relations with Cambodia, and with all brands incorporated and/or doing business in the UK which source garments from factories in Cambodia. European based corporations have a responsibility to ensure that workers’ rights are respected in their supply chains.

I look forward to hearing from you what steps the government will take at the national and European levels to ensure that workers’ rights are respected in Cambodia. Please get in touch should you want to meet to discuss our proposals or should you need further information on the situation facing working people in Cambodia.

Yours sincerely

FRANCES O’GRADY

General Secretary