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Businesses foresee challenge from EU-VN trade deal


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Industry insiders say that the looming Vietnam-EU free trade agreement, which gives Cambodia’s neighbour duty-free exports to the European market, may not have an immediate impact, but will potentially eat into similar advantages the Kingdom enjoys in the longer-term.

Yesterday’s in-principle agreement, which still needs to be passed by the EU Council and Parliament, will, over time, eliminate 99 per cent of tariffs for selected Vietnamese sectors, including in the garment and rice industries – mainstays of Cambodia’s economy.

Ken Loo, secretary-general at the Garment Manufacturer Association of Cambodia (GMAC), said the new free trade agreement (FTA) was sure to impact Cambodia’s garment sector, however, he said it would take time.

read more: http://www.phnompenhpost.com/business/businesses-foresee-challenge-eu-vn-trade-deal

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