Exports of bicycles to dip in 2014
Exports of bicycles to dip in 2014
Cambodia's bicycle exports to the European Union are expected to decline this year after changes to EU trade preferences in early January excluded Malaysian and Singaporean parts from the scheme.
Under EU preferences, a bicycle is considered a Cambodian product when at least 30 per cent of its value is constructed in the Kingdom. That 30 per cent, however, can include material imported from ASEAN member countries.
As of January 1, Singapore and Malaysia – two of Cambodia’s most important contributors of bicycle parts, are no longer considered part of the 30 per cent as the EU begins to graduate more developed countries from its trade-preference schemes.
“This new situation makes it much more difficult for our exporters to meet the EU rules of origin, and many bicycle models that previously could qualify for duty-free entry to the EU can no longer qualify,” Sok Sopheak, director-general for international trade at the Ministry of Commerce, said by email yesterday.
“As a result of this change, we expect that Cambodia’s exports to the EU in 2014 will be lower than in 2013.”
Cambodia exported more than 1.8 million bicycles in 2013, a 23 per cent increase over 2012. Last year’s export value was $357 million.
phnompenhpost
