Cambodia has been witnessing a surge in its apparel exports to the US. However, a strain in trade relations with the US could prove to be the stumbling block.
Media reports claim that over 100 Cambodians have been detained across the US in last one month. Southeast Asia Resource Action Center (SEARAC) states that most of these people are immigrants and many of them have Green Cards as well.
The garment manufacturing hub may find it difficult to further sustain the growth as the US has declined to take back people who they have deported, and thereby imposed sanctions on Cambodia.
Cambodia exported US $ 2.18 billion worth apparel and textile products to the US till September 2017, down 3.2 per cent from the same period in 2016. Sadly, the situation is not much different with the European Union (EU) as well.
Last week, European Parliament too issued a warning to Cambodia over the human rights issue, which has hardly seen an improvement in the recent times.
Cambodian Government has of late taken an initiative and finalised a significant hike of 11 per cent in the minimum wages of the workers. The raise will take their salary to US $ 170 per month (from January 2018).
It remains to be seen if Cambodia’s exports to these two (US and EU) key markets improve or sustain growth the coming months.
The Garment Manufacturers Association in Cambodia (GMAC) has, however, predicted that the country’s garment exports will increase by 5 per cent this year.
