What is Everything But Arms (EBA)? What are the benefits of this preferential treatment for Cambodia regarding a number of potential sectors including garment, textile and agriculture?
Everything But Arms was adopted by the resolution of the EU Council No. 416/2001 dated 28 February 2001. EBA was initiated by EU allowing the importation of all kinds of goods from Leased Developed Countries except arms into EU Countries both duty free and quota free. EBA is part of EU generalized system preference which entered into force on 05 March 2001 with no time limit. The importation enjoys duty free/quota free if it complies with the Rule of Origin and other relevant measures. This project covers around 7200 product tariff lines, 919 of which are agricultural products. 48 least developed countries including Cambodia enjoy this preferential initiative. For Cambodia, EBA provides a lot of benefits to the agriculture industry, in particular, rice and a number of other potential products. In the last couple years Cambodia significantly increased rice export to EU, specially, to France and Italy. The garments exported to EU also increased. The exportation can be carried out due to the relief from the Rule of Origin determining the local content being a minimum of 30%.