EU slashes Cambodia trade benefits

The European Union on Wednesday slashed trade benefits for Cambodia over the kingdom's human rights record, top officials said. The EU said it would partially suspend duty-free preferences under the "Everything But Arms" (EBA) deal, a scheme meant to help boost trade in some of the world's poorest economies.

"The European Union will not stand and watch as democracy is eroded, human rights curtailed, and free debate silenced," EU foreign policy chief Josep Borrell said in a statement.

The decision was however a partial one, with the withdrawal hitting about 20 percent or one billion euros of Cambodia's yearly exports to the EU.

"The respect for human rights is non-negotiable for us. We recognise the progress Cambodia has made, but serious concerns remain," EU Trade Commissioner Phil Hogan said. In anticipation, Cambodia's strongman leader Hun Sen said Tuesday his country would not "bow its head" in the face of the EU's criticism. But the premier warned of economic rough seas ahead for his country, with some garment factories likely to close in the coming weeks as key supply chains from China slow amid the coronavirus crisis.