APD | AmCham Cambodia Condemned U.S Lawmaker over the trade scheme

By APD writer Kin Ratha

PHNOM PENH, Mar.14 (APD)-The American Chamber of Commerce Cambodia (AmCham Cambodia) on Wednesday raised the Introduction of the Cambodia Trade Act of 2019 in January is the political driven. 

In January, US senators Ted Cruz and Chris Coons introduced the Cambodian Trade Act of 2019, which required the US government to review the preferential trade treatment Cambodia receives under the GSP system, according to a press release from Sen. Cruz.

AmCham Cambodia on Wednesday wrote a letter that the spirit of the 1974 Trade Act is to “provide opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of poverty,”  which has been realized in Cambodia. 

Through this policy, the letter read, the US has contributed directly to the livelihoods tens of thousands low income Cambodians, each of whom use their salaries to feed another five family members. The American businesses whose goods are produced in these factories also benefits greatly; the majority of the monetary value generated from these goods is captured in the United States, both on US corporate balance sheets and by the American Consumer and American service workers through retail sales.

“The American Chamber of Commerce Cambodia is deeply concerned by the introduction of the ‘‘Cambodia Trade Act of 2019’’ by Sen. Chris Coons, Sen. Ted Cruz, Rep. Lowenthal and Rep. Chabot. While we know the desire of our honorable lawmakers to pressure the Royal Government of Cambodia (RGC) for domestic political actions is viewed as unacceptable, we believe this approach to be counterproductive,” quoted the letter which was signed by Chairman and Board members of the AmCham Cambodia. 

The primary effects of GSP removal will be felt by the factory workers and their families whose livelihoods depend on the trade supported by this preference. Additionally, American businesses will suffer from a perceived lack of stability in the Cambodian economy and a further degradation of the trade relationship between our nations, it said. 

 “We believe the use of the GSP review process as a means for sending a political message, which is unrelated to the spirit of the 1974 Trade Act, will drastically decrease the goodwill and progress this system has created among the ordinary Cambodian citizen,” it said. 

 “We urge our lawmakers to carefully consider this step which would further distance our nations and the weaken the regional strategic interests of Americans. In closing we humbly invite Sen. Chris Coons, Sen. Ted Cruz, Rep. Lowenthal and Rep. Chabot, along with all of our interested Lawmakers, to visit Cambodia and to give us the opportunity to share the situation firsthand,” the letter added. 

(ASIA PACIFIC DAILY)