JOINT STAFF WORKING DOCUMENT Report on EU Enhanced Engagement with three Everything But Arms beneficiary countries: Bangladesh, Cambodia and Myanmar Accompanying the document Joint Report to the European Parliament and the Council Report on the Generalised Scheme of Preferences covering the period 2018-2019
Date: 2020-02-10
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: Bangladesh, Cambodia, EU market, Myanmar/Burma, common commercial policy, development aid, generalised preferences, human rights, international convention, sustainable development

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 10.2.2020  SWD(2020) 19 final  JOINT STAFF WORKING DOCUMENT  Report on EU Enhanced Engagement with three Everything But Arms beneficiary countries: Bangladesh, Cambodia and Myanmar         Accompanying the document Joint Report to the European Parliament and the Council Report on the Generalised Scheme of Preferences covering the period 2018-2019               {JOIN(2020) 3 final} - {SWD(2020) 16 final} - {SWD(2020) 17 final} - {SWD(2020) 18 final} - {SWD(2020) 20 final} - {SWD(2020) 21 final} - {SWD(2020) 22 final} - {SWD(2020) 23 final} - {SWD(2020) 24 final} - {SWD(2020) 25 final}  
 
 
Enhanced Engagement 

1. Introduction 

As set out in the Trade for All Communication of 20151, in 2017 the European Commission 
and  the  European  External  Action  Service  (EEAS)  stepped  up  engagement  with  three  GSP 
beneficiary countries:  Bangladesh,  Cambodia  and  Myanmar. In the GSP Report covering 
the period 2016-20172 the Commission reported on the start of its enhanced engagement with 
these beneficiaries. 

Enhanced engagement is built on EU experience gained from the GSP+ monitoring process. 
Its aim is to facilitate and incentivise partner countries to make progress on critical areas with 
regard to the 15 core human rights and labour rights international conventions covered in the 
GSP  Regulation.  While  these  countries  have  not  necessarily  ratified  these  conventions  (as 
GSP+  beneficiaries  have),  they  are  obliged  by  Article  19  of  the  GSP  Regulation3 requires 
them to adhere to the principles of those conventions.  

The three EBA beneficiaries were identified for enhanced engagement taking into account: 

  The  seriousness  of  violations  of  principles  of  international  conventions  (laid  down  in 

United Nations (UN) and International Labour Organisation (ILO) reports); 

  The  deep  concerns  regarding  these  violations  as  expressed  by  the  European  Parliament 
and the Council, international organisations, and civil society, including trade unions; 

  The countries’ substantial  trade with  the EU under the GSP/EBA arrangement.  In 2018, 
the EU imported from Bangladesh, Cambodia and Myanmar €23.7 billion or 87.3% of its 
preferential imports from all EBA beneficiaries.  

Through enhanced engagement, the EU asks for concrete actions and sustainable solutions to 
serious  and  systematic  shortcomings  in  respecting  fundamental  human  rights  and  labour 
rights.  Action  is  expected  from  the  countries  concerned  that  leads  to  discernible  progress  
either in the short term or – if, as is often the case, issues are more complex and sensitive – 
over the medium term.  The overall objective of enhanced engagement is  the same as in  the 
case  of  all  GSP  beneficiaries,  namely  to  support  countries  through  trade  and  engagement 
towards sustainable development. 

Enhanced  engagement  builds  on  the  recommendations  and  conclusions  of  the  ILO  and  UN 
monitoring responsible for overseeing the implementation of the15 human rights and labour 

1 Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions - Trade for All Towards a more responsible trade 
and  investment  policy,  COM/2015/0497  final,  Brussels,  14.10.2015.  https://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52015DC0497&from=en 
2 COM(2018) 36 final of 19.1.2018. https://ec.europa.eu/transparency/regdoc/rep/1/2018/EN/COM-2018-36-F1-
EN-MAIN-PART-1.PDF 
3 Regulation (EU) No 978/2012 of the European Parliament and of the  Council of 25 October 2012 applying a 
scheme  of  generalised  tariff  preferences  and  repealing  Council  Regulation  (EC)  No 732/2008,  OJ  L  303, 
31.10.2012. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32012R0978&from=EN  

1 

 
 
 
 
                                                 
rights  conventions  listed  in  the  GSP  Regulation.  In  addition,  information  from  stakeholders 
like civil society and social partners is taken into account. The use of these recommendations 
and conclusions facilitates an objective and transparent way of assessing the adherence to the 
principles of the international conventions. 

The process includes, among others:  

  Political and senior officials’ level dialogue/engagement; 

  Presentation of a "list of issues" to the countries to which they are requested to respond; 

  Monitoring missions including official dialogues, discussions with  stakeholders, and on-

the-spot visits;  

  Exchange of letters and discussions on progress made and to be made. 

Table 1: EU imports by GSP arrangement and from EBA enhanced engagement 
countries4 

EU28 imports (€ M), including non-preferential 

growth 

share of EBA 
preferences* 

World / Extra EU28 

1,727,322 

1,708,303 

1,856,864 

1,977,487 

2015 

2016 

2017 

2018 

GSP 

GSP - general 

GSP - plus 

GSP - EBA 

Enhanced Engagement 

Bangladesh 

Cambodia 

Myanmar 

185,247 

126,785 

17,921 

40,542 

15,326 

4,148 

682 

175,539 

120,909 

17,672 

36,958 

16,434 

4,622 

996 

196,644 

139,220 

19,473 

37,951 

16,961 

5,011 

1,561 

* Imports under EBA as part of total EU EBA imports 

212,855 

150,890 

20,056 

41,909 

14.5% 

14.9% 

19.0% 

11.9% 

3.4% 

17,836 

5,359 

2,293 

16.4% 

29.2% 

236.1% 

87.3% 

61.8% 

18.4% 

7.1% 

If  the  enhanced  engagement  fails  to  produce  results,  the  Commission  has  the  option  of  a 
temporary  withdrawal  of EBA tariff preferences.  In the case of Cambodia, the Commission 
launched the procedure for a temporary withdrawal in February 20195. 

The withdrawal procedure is detailed in Article 19 of the GSP Regulation, which provides a 
number of grounds that can constitute the basis to launch the process (see box 1). It marks the 
start of a formal monitoring and evaluation process within a specific procedural framework. 
This provides the possibility for interested third parties to intervene as well. 

4 Statistics presented include all EU imports (‘regime 4’). GSP-specific statistics are reported under 
’regime 1’ which excludes some EU-imports, like goods imported for inward and outward processing. 

5 OJ C55 of 12.2.2019, p.11 

2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
The  launching  of  the  withdrawal  process  does  not  lead  automatically  to  a  withdrawal  of 
preferences.  The  EU's  goal  remains  to  support  the  beneficiary  country  to  demonstrate 
commitment  and  take  the  necessary  measures  to  address  concerns  in  order  to  benefit  from 
preferential  EU  tariffs.  This  is  instrumental  to  the  country’s  sustainable  development 
objectives. Withdrawal of preferences remains, therefore, a measure of last resort6. 

Box 1: If all engagement fails… temporary withdrawal of preferences 

Under  the  GSP  Regulation,  EBA  preferences  are  conditional  upon  the  beneficiary  country 
respecting the principles of 15 core United Nations (UN) and International Labour Organisation 
(ILO) Conventions on human rights and labour rights. Article 19 of the GSP Regulation spells 
out  that  the  preferential  tariffs  may  be  withdrawn  temporarily,  in  respect  of  all  or  of  certain 
products originating in a beneficiary country. 

The  Commission  can  launch  a  temporary  withdrawal  procedure  if  it  considers  that  there  are 
"sufficient grounds" of serious and systematic violations. In its assessment, the Commission uses 
the  reports  and  recommendations  of  the  relevant  UN  and  ILO  bodies  as  well  as  additional 
information  including  the  analyses  made  by  the  EU  Delegations,  EU  Member  States,  the 
European Parliament, civil society and social partners.  

The  withdrawal  procedure  starts  with  an  Implementing  Decision  adopted  by  the  Commission 
after having consulted the EU Member States. The country concerned is informed and a Notice 
of Initiation is published in the Official Journal (C series), to announce the start of the procedure 
and to invite interested parties to register to the procedure.  

Following a six-month monitoring and evaluation period, the Commission has three months to 
submit  a  Report  of  Findings  and  conclusions  to  the  beneficiary  country,  which  then  has  one 
month to comment. Finally, within 12 months from the start of the procedure, the Commission 
takes a decision whether or not to go ahead with the temporary withdrawal.  

Throughout  the  procedure,  the  Commission  provides  the  country  with  every  opportunity  to 
cooperate and to provide additional information. 

Since the first letters announcing the enhanced engagement were sent to the three countries, 
engagement with each has followed a different track. The engagement with  Bangladesh has 
initially  focused  on  compliance  with  international  conventions  related  to  labour  rights.  The 
enhanced  engagement  with  Myanmar  focused  more  broadly  on  compliance  with  human 
rights  conventions,  and  labour  rights.  Lack  of  results  in  Cambodia  on  human  rights  and 
labour rights led to the start of a formal withdrawal of EBA preferences procedure.   

Enhanced EU engagement has helped to create awareness of and responsiveness to the issues 
of concern related to principles of fundamental human rights and labour rights conventions by 

6 The EU withdrew preferences in the past (though not under the current GSP Regulation): from Myanmar and 
Belarus. 

3 

 
 
                                                 
Bangladesh, Cambodia, and Myanmar, leading to a more intensive dialogue on addressing the 
above mentioned concerns.  

Pressure  will  be  kept  up  with  the  three  countries  to  ensure  further  progress  takes  place  and 
accelerates  in  order  to  align  legislation,  policies,  and  practice  with  international  standards. 
This  is  also  with  a  view  to  contributing  to  a  global  level  playing  field  and  to  preventing  a 
race-to-the-bottom as regards fundamental human rights and labour standards. 

This  report  first  covers  the  two  countries  –  Bangladesh  and  Myanmar  –  with  which 
enhanced engagement is ongoing. Overall, since the start of this process, these countries have 
become more responsive and adopted some legislative changes or improved implementation 
regarding the principles of the conventions. 

For Bangladesh, and Myanmar, the Commission will review the situation and decide on the 
next  steps.  If  dialogue  fails  to  produce  sufficient  results,  the  EU  remains  ready,  as  a  last 
resort, to  launch the procedure for withdrawal  of preferences with  due consideration for the 
economic  and  social  impact  of  such  a  withdrawal.  For  Myanmar,  discussions  on  restrictive 
measures will continue concurrently with the EU Member States to review the list of targeted 
individuals and to explore possibilities for expanding the scope to include economic entities.  

The  report  then  describes  EU  actions  regarding  Cambodia.  However,  the  information 
provided is limited as the temporary withdrawal procedure is ongoing at the time of writing of 
this report. 

For  Cambodia,  the  Commission  should  adopt  the  relevant  legal  act  in  February  2020 
deciding  whether  to  terminate  the  withdrawal  procedure  or  withdraw  trade  preferences. 
Meanwhile,  Cambodia  is  encouraged  to  continue  addressing  the  issues  of  concern  and 
engaging with the EU. 

Engagement will continue with the countries, who need to demonstrate they will address the 
most salient issues. 

The EU provides these countries with every opportunity to cooperate and continue dialogue 
on any of the issues addressed in this report.   

4 

 
 
 
 
 
 
2. Enhanced Engagement: Bangladesh 

Context  

EU concerns with Bangladesh include both human rights and labour rights. Labour rights are 
also  being  raised  through  the  Compact  for  Continuous  Improvements  in  Labour  Rights  and 
Factory  Safety  in  the  Ready-Made  Garment  and  Knitwear  Industry  in  Bangladesh 
(Sustainability Compact) established in reaction to the collapse of the Rana Plaza factory in 
April 2013. The Sustainability Compact is a collaborative initiative whereby the EU has been 
engaging with the Government of Bangladesh, together with the US, Canada (since 2016) and 
the  ILO.  The  Sustainability  Compact  outlines  concrete  commitments  to  be  undertaken  by 
Bangladesh in respect of labour rights. This includes in particular freedom of association and 
the  right  to  collective  bargaining  -  as  well  as  structural  integrity  of  factory  buildings, 
occupational safety and health, and promotion of responsible business conduct. Therefore, the 
enhanced  engagement's  initial  focus  has  been  on  labour  rights,  building  upon  the  Compact 
engagement.  Progress  expected  on  labour  rights  includes  the  need  to  bring  the  Bangladesh 
Labour Act (BLA), its implementing rules, and the Export Processing Zones (EPZ) Act in line 
with the ILO Conventions. 

The  Commission  and  its  partners  actively  monitor  the  implementation  of  the  Sustainability 
Compact, including through yearly high-level meetings (the last one took place in June 2018) 
and dedicated reports. In addition to existing Compact activities, new actions aim to facilitate 
consensus on priority issues and to enhance cooperation with EU garment brands in order to 
maximize  industry  leverage.  The  Sustainability  Compact  and  the  EBA  processes  are 
complementary. 

With regard to human rights, EU concerns include the shrinking civil society space, freedom 
of expression and right to peaceful assembly, extrajudicial killings,  enforced disappearances 
and  torture,  discrimination  and  violence  against  ethnic  and  religious  minorities.  These    and 
other pertinent human rights issues are addressed in the Subgroup on Human Rights and Good 
Governance under the EU-Bangladesh Cooperation Agreement. 

Economic impact of EU tariff preferences under EBA  

Bangladesh  remains  by  far  the  most  important  beneficiary  of  the  EU's  EBA  arrangement. 
EBA  has  directly  contributed  to  Bangladesh's  economic  growth  and  social  and  economic 
development. Exports from Bangladesh to the EU have more than tripled between 2006 and 
2018. The EU is currently the main trading partner of Bangladesh, absorbing almost half of its 
exports. EBA has contributed to the generation of millions of employment opportunities in the 
ready-made garment industry. In 2018, figures show that EBA exports from Bangladesh to the 
EU  amounted  to  €17.4  billion  and  approximately  €2  billion  in  duties  were  saved  in 
Bangladesh on an annual basis.  

Key Concerns  

The  benefits  that  Bangladesh  enjoys  thanks  to  the  tariff  preferences  while  exporting  to  EU 
market under EBA must go hand-in-hand with the respect of human rights and labour rights. 

Bangladesh  has  been  marked  as  a  serious  and  urgent  case  for  many  years  by  the  ILO 
supervisory  mechanism.  The  ILO  has  issued  detailed  recommendations  to  Bangladesh  on 
necessary amendments in legislation and changes in practice to align with international labour 

5 

 
 
standards. The Commission has raised concerns regarding labour rights, in particular freedom 
of association under the Sustainability Compact, and, as from 2017, in the context of the EBA 
enhanced  engagement.  The  EU  has  in  particular  raised  the  alignment  of  the  Bangladesh 
Labour  Act  and  the  Export  Processing  Zone  (EPZ)  Act  with  the  fundamental  ILO 
Conventions 87 and 98.7. 

Specifically Bangladesh is asked to:  

  Remove  legal  obstacles  to  the  right  to  establishment  of  trade  unions  and  the  free 
organisation  of  their  activities,    reduce  the  minimum  membership  requirements  to  form 
trade  unions,  enabling  coverage  of  all  sectors  and  workers,  and  allow  the  formation  of 
trade unions in EPZs; 

  Eliminate anti-union discrimination including violence, harassment, dismissal, and arrest 

of workers including through proper investigations and prosecutions of such cases; 

  Put in place a simple, objective, and transparent process of trade union registration; 

  Reinforce  the  labour  inspectorate  (ensuring  sufficient  capacity  in  terms  of  numbers  and 

ability), with a view of promoting fundamental rights at work; 

  Eliminate forced and child labour through concrete action plans; 

 

 

Improve freedom of expression and civil society space; 

Investigate  cases  of  alleged  torture,  ill  treatment,  extra  judicial  killings,  and  enforced 
disappearances. 

Process of Engagement 

Since  the  start  of  enhanced  engagement  in  March  2017,  this  process  included  numerous 
communications to Bangladesh on the EU’s concerns as well as two monitoring missions (11-
15 September 2018 and 14-21 October 2019).  

EU  concerns  on  non-compliance  with  labour  rights  under  the  EBA  arrangement  were 
communicated  to  the  Bangladesh  authorities  in  March  2017.  During  the  enhanced 
engagement dialogue, clear messages have been passed that the tariff preferences under EBA 
are  conditional  on  the  respect  for  labour  standards  and  human  rights,  as  reflected  in  the 
international  conventions  enumerated  in  the  GSP  Regulation.  As  a  result  of  the  dialogue, 
Bangladesh made commitments to address the ILO recommendations. In September 2018, the 
first EBA monitoring mission focused on labour rights. In the period October 2018 - March 
2019,  Bangladesh  made  certain  amendments  to  its  labour  laws  and  a  second  EBA  mission 
took place in October 2019. The mission noted progress in certain areas but also underlined 
that  this  was  insufficient  and  there  was  need  for  further  efforts  to  fully  align  Bangladesh 
labour  laws  and  practice  with  ILO  standards.  Further  to  the  mission,  Bangladesh  agreed  to 
develop  a  roadmap  with  concrete  timelines  envisaging  actions  on  the  concerns,  with  the 
involvement of EU experts. In parallel, the legislative amendments are in the process of being 

7 Convention No 87 on the Freedom of Association and Protection of the Right to Organize and Convention No 
98 on the Rights to Organize and Collective Bargaining. 

6 

 
 
 
                                                 
formally  evaluated  by  the  ILO  supervisory  mechanism  (the  next  report  is  expected  by 
February/March 2020). 

With regard to human rights, the EU engages with Bangladesh also in the framework of the 
Sub-group  on  Human  Rights  and  Good  Governance  under  the  EU-Bangladesh  Cooperation 
Agreement.  At  the  last  meeting  of  the  Sub-group  (17  October  2019),  both  sides  reaffirmed 
their  commitment  to  strengthening  cooperation  in  the  field  of  human  rights  on  the  basis  of 
internationally recognised human rights standards. The meeting of the Sub-group allowed for 
an extensive exchange on a number of issues  of concern in Bangladesh, namely transparency, 
the rule of law, law enforcement, extrajudicial killings, enforced disappearances and torture, 
elections,  women’s  and  children’s  rights,  rights  of  the  persons  belonging  to  minorities  and 
marginalised  groups,  freedom  of  expression  and  of  the  media,  freedom  of  assembly,  death 
penalty, and the implementation of Chittagong Hill Tracts Peace Accord. Fundamental labour 
rights,  trade  unions’  registration,  and  unfair  labour  practices  were  also  discussed  at  the 
meeting  of  the  Sub-group.  Both  sides  agreed  to  continue  working  to  address  human  rights 
challenges in Bangladesh, including in the context of the EU-Bangladesh Joint Commission. 

State of Play 

In  2018  and  2019,  Bangladesh  started  adopting  amendments  on  freedom  of  association  and 
collective  bargaining  to  its  labour  law.  This  includes  the  Bangladesh  Labour  Act  and  EPZ 
Act.  

The EBA dialogue  and the recent  mission established that there were still difficulties in  the 
registration  process  of  trade  unions  and  allegations  of  arrests,  surveillance,  violence,  and 
intimidation of workers persist. Serious legislative restrictions, such as the existing minimum 
membership  requirement,  hamper  the  establishment  of  trade  unions.  The  minimum 
membership  requirement  has  been  reduced  in  October  2018  from  30%  to  20%  of  the 
workforce, but remains a major barrier to the formation of trade unions and does not  go far 
enough to bring the country in compliance with the ILO rules. Therefore, further efforts are 
necessary to fully address the concerns raised by the ILO supervisory mechanism.  

Furthermore, Bangladesh law foresees disproportionate sanctions - such as imprisonment - for 
taking  part  in  activities  of  unregistered  trade  unions.  Certain  sectors  are  excluded  from  the 
scope of the Bangladesh Labour Act and the EPZ labour law. Workers in EPZs do not have 
the  same  rights  as  other  workers  (for  example,  they  are  not  allowed  to  affiliate  with  trade 
unions or non-governmental organisations outside the EPZs). A complaint has been currently 
filed  to  the  Governing  Body  of  the  ILO  against  Bangladesh  with  a  view  to  appointing  a 
Commission of Inquiry on the non-effective observance of ILO Convention 87 on freedom of 
association. 

In  2019  Bangladesh  was  denoted  as  a  serious  case  under  ILO  Convention  81  on  labour 
inspection. The ILO found that the 575 posts for labour inspectorates are not being filled and 
that in 2018 the number of inspectors has even decreased from 345 to 320. 

There  are  also  serious  shortcomings  in  addressing  child  labour.  Though  legal  provisions 
allowing  light  work  for  children  as  of  the  age  of  12  were  removed,  Bangladesh  has  not 
provided a concrete plan to eliminate (hazardous) child labour by 2021 as earlier announced, 
and  in  all  its  forms  by  2025  in  line  with  the  2030  Agenda  (Sustainable  Development  Goal 
8.7). There seems to be in particular a lack of effective law enforcement with only few (204) 

7 

 
 
cases being filed against companies’ management for using child labour while a total of 1.2 
million children are estimated to be involved in hazardous work.  

On human rights, Bangladesh indicated its intention to adopt a National implementation plan 
to implement the large number of UPR recommendations accepted by the country.  

Looking ahead 

The  October  2019  EBA  mission  asked  Bangladesh  to  take  urgent,  comprehensive,  and 
sustainable action to fully bring its laws and practices in compliance with ILO standards. As a 
result  of  the  discussions  during  the  mission,  Bangladesh  and  the  EU  agreed  on  the 
development of a joint roadmap with timelines addressing suggested actions on labour rights. 
Furthermore,  Bangladesh  and  the  EU  agreed  for  their  experts  to  work  together  in 
implementing the roadmap. 

Enhanced  engagement  takes  due  consideration  of  the  recommendations  of  the  ILO 
supervisory  mechanism.  In  that  respect,  the  next  ILO  report  assessing  all  recent  legislative 
reforms is expected to be published by February/March 2020.  

Labour  issues  will  also  be  discussed  in  2020  at  the  next  meeting  of  the  Sustainability 
Compact.  

Progress, among others, is expected in the following areas:   

  Removing various legal obstacles in the right to establish and organise trade unions, to 

elect officers, and to carry out freely activities of a trade union; 

  Tackling violence and anti-union discrimination;  
  Making urgent progress on the full elimination of forced and child labour; 
  Addressing  gaps  in  implementing  occupational  safety  and  health  and  fundamental 

 
 

labour rights in practice through reinforcing the labour inspection’s capacity;  
Improving freedom of expression and civil society space; 
Investigating cases of alleged torture, ill-treatment, extra-judicial killings and enforced 
disappearances;  

  Ratifying the Convention on Enforced Disappearances; 
  Fully  implementing  the  recommendations  of  the  Human  Rights  Council  Universal 

Periodic Review and the conclusions by UN treaty monitoring bodies.  

8 

 
 
 
 
3. Enhanced Engagement: Myanmar 

Context 

In  2011,  Myanmar's  military-led  government  embarked  on  a  substantial  reform  process  by 
taking the first steps towards democratisation, peace with the country's ethnic armed groups, 
and  socio-economic  recovery.  In  April  2012,  National  League  for  Democracy  (NLD) 
candidates  swept  the  board  in  parliamentary  by-elections,  with  Daw  Aung  San  Suu  Kyi 
becoming a member of parliament. The European Union suspended all non-military sanctions 
against  Myanmar  for  a  year.  As  a  recognition  of  its  efforts  to  launch  ambitious  democratic 
reforms in 2013, the EU lifted all restrictive measures with the exception of an arms embargo 
and  an  embargo  on  equipment  that  can  be  used  for  internal  repression.  Myanmar  was 
reinstated as an EBA beneficiary in 2013. 

The  holding  of  credible  and  competitive  elections  in  November  2015  marked  an  important 
milestone  in  the  transition  process  and  gave  the  NLD,  led  by  Daw  Aung  San  Suu  Kyi,  an 
absolute majority in parliament. The new government took office in April 2016, with U Htin 
Kyaw  becoming  the  first  civilian  president  in  more  than  half  a  century  and  Daw  Aung  San 
Suu Kyi serving as State Counsellor and Minister of Foreign Affairs. 

Less  than  two  years  later,  the  international  community  became  seriously  concerned  about 
gross human rights violations and abuses amounting to crimes against humanity, particularly 
in  Rakhine,  Kachin  and  Shan  States.  This  was  also  described  in  the  final  report  of  the 
Advisory  Commission  on  Rakhine  State  (Annan  Report), 8  the  various  reports  of  UN 
Independent  International  Fact-Finding  Mission  (IIFFM), 9  the  Special  Rapporteur  on  the 
situation  of  Human  Rights  in  Myanmar,  the  Office  of  the  High  Commissioner  for  Human 
Rights, and the reports of the ILO supervisory mechanism.10 

These  concerns,  also  expressed  by  the  EU,  are  notably  with  regard  to  full  accountability  of 
those who have committed serious atrocities and violations of human rights that took place in 
Rakhine  State  and  elsewhere  in  the  country.  The  EU  has  also  requested  full  humanitarian 
access not only to Rakhine State, but also to Kachin and Shan States; and the establishment of 
conditions conducive to the safe, dignified, sustainable, and voluntary return of refugees from 
Bangladesh  and internally  displaced persons (IDPs), in  particular by  fully  implementing the 
recommendations made by the Advisory Commission on Rakhine State. 

In  September  2016,  following  a  request  made  by  State  Counsellor  Aung  San  Suu  Kyi,  an 
Advisory Commission on Rakhine State, led by former UN Secretary General Kofi Annan, 
was established in order to address the root causes of the latent conflict in Rakhine State. The 
final  report  of  the  Advisory  Commission  on  24  August  2017  gave  88  recommendations. 
These  include  proposed  measures  to  address  the  systematic  discrimination  faced  by  the 
stateless Rohingya people and other related issues such as freedom of movement, citizenship 

8 See Annex No 15, Advisory Commission on Rakhine State Report (Annan Report). 

9 See  Annex  No  16  for  UN  FFM  Report  from  August  2018;  and  Annex  No  17  for  UN  FFM  Report  of  the 
Detailed Findings from September 2018. 

10 ILO Committee of Experts on the Application of Conventions and Recommendations, ILO Committee on the 
Application of Standards, ILO Committee on Freedom of Association.  

9 

 
 
                                                 
status,  and  ensuring  that  all  communities  have  equal  access  to  education,  health,  livelihood 
opportunities, and basic services11.  

Following  serious  violence  against  the  Rohingya  in  Rakhine  State  in  October  2016,  an 
Independent International Fact-Finding mission (IIFFM) was established by means of an EU 
sponsored  UN  Human  Rights  Council  resolution.12 This  Mission  was    to  establish  the  facts 
and circumstances of the alleged human rights violations and abuses by military and security 
forces in Myanmar, in particular in Rakhine State. After the coordinated attacks on 30 border 
guard police and an army post on 25 August 2017 by the Arakan Rohingya Salvation Army 
(ARSA),  the  Myanmar  military  (Tatmadaw)  and  security  forces  undertook  a  large-scale 
security clearance operation in northern Rakhine State. The EU has condemned these attacks 
as well as the violence that followed in northern Rakhine State. The use of disproportionate 
and excessive force against civilians triggered a massive and unprecedented displacement of 
Rohingya refugees into Bangladesh. About 730,000 Rohingya crossed the border and reside 
in crowded refugee camps in Cox's Bazaar. 

In this regard, Council Conclusions were adopted on 16 October 2017, 28 February 2018, and 
10  December  2018  to  express  the  EU’s  concerns  in  particular  about  the  lack  of  full 
accountability for serious and systematic human rights violations committed by the Myanmar 
armed  forces,  for  restrictions  to  humanitarian  access,  the  situation  of  internally  displaced 
persons (IDPs) in Rakhine, Kachin, and Shan States, and the slow progress in implementing 
the recommendations of the Advisory Commission on Rakhine State.  

In its Conclusions of 28 February 2018, the Council recalled "that the respect of human rights 
and  fundamental  freedoms  is  a  crucial  part  of  the  EU's  trade  policy  and  underpins  the 
granting  of  trade  preferences  to  Myanmar  under  the  EBA"  and invited  the  Commission  "to 
continue  monitoring  the  situation  and  to  step-up  engagement  with  Myanmar  in  light  of  the 
provisions of Regulation (EU) No.978/2012". 

The  EU  also  put  in  place  in  April  2018  an  enhanced  arms  embargo  and  embargo  on 
equipment  that  can  be  used  for  internal  repression,  a  framework  for  targeted  restrictive 
measures  including  asset  freezes  and  travel  bans  against  14  senior  officers  of  the  Myanmar 
military, the border guard, and police officials responsible for serious and systematic human 
rights violations13. Moreover, the Council, in its Conclusions of 10 December 2018, agreed to 
explore possibilities for extension of these targeted restrictive measures to entities14. 

The European Parliament also adopted several resolutions, including on 13 December 201715, 
on  14  June  2018  and  13  September  201816.  In  its  Resolution  on  19  September  2019,  the 

11 See Annex No 15, Advisory Commission on Rakhine State Report (Annan Report). 
12 A/HRC/RES/34/22, Resolution adopted by the Human Rights Council on 24 March 2017. 
13  Council  Decision  (CFSP)  2018/655  of  26  April  2018  amending  Decision  2013/184/CFSP  concerning 
restrictive measures against Myanmar/Burma, OJ L 108 of 27.4.2018. 
14  Council  Decision  (CFSP)  2019/678  of  29  April  2019  amending  Decision  2013/184/CFSP  concerning 
restrictive measures against Myanmar/Burma, OJ L 114 of 30.4.2019. 
15 P8 TA (2017) 0500, European Parliament resolution of 14 December 2017 on the situation of the Rohingya 
people. 
16 P8 TA (2018) 0261, European Parliament resolution of 14 June 2018 on the situation of Rohingya refugees, in 
particular  the  plight  of  children;  P8  (TA  (2018)  0345,  European  Parliament  resolution  of  13  September  on 
Myanmar, notable the case of journalists Wa Lone and Kyaw Soe Oo. 

10 

 
 
                                                 
European  Parliament,  called  on  the  Commission  to  launch  an  investigation  under  the  EBA 
scheme.  The  Council  and  the  European  Parliament  called  on  the  authorities  of  Myanmar  to 
cooperate with the International Criminal Court (ICC), and to become a signatory to the Rome 
Statute.  It  reiterated  its  call  for  the  EU  and  its  Member  States  to  take  the  lead  at  the  UN 
Security Council to refer the situation in Myanmar to the ICC and to support efforts to open a 
case  on  Myanmar’s  possible  violation  of  the  UN  Genocide  Convention  before  the 
International Court of Justice; to extend the scope of the arms embargo; and to "reinvigorate" 
the EU-Myanmar Human Rights dialogue. 

The IIFFM released its first report on detailed findings on 17 August 2018 which stated: “The 
Mission  concluded  on  reasonable  grounds  that  gross  human  rights  violations  and  serious 
violations  of  international  humanitarian  law  have  been  committed  in  Myanmar  since  2011 
and  that  many  of  these  violations  undoubtedly  amount  to  the  gravest  crimes  under 
international  law.”  In  its  Final  Report  released  on  5  August  2019,  the  IIFFM  stated  that 
further  investigations  confirmed  its  initial  finding  that  "clearance  operations  against  the 
Rohingya that began on 25 August 2017 gave rise to an inference of genocidal intent". In its 
recommendations,  the  IIFFM  welcomed  the  establishment  of  the  Independent  Investigative 
Mechanism  (IIMM)  through  a  joint  EU-OIC  tabled  resolution  in  the  UN  Human  Rights 
Council in September 2018 and confirmed by the UN General Assembly in December 2018. 
The IIMM is collecting, consolidating, preserving and analysing evidence of the most serious 
crimes  and  violations  of  international  law  committed  in  Myanmar  since  2011.  It  is  further 
tasked  with  preparing  files  to  facilitate  and  expedite  fair  and  independent  criminal 
proceedings, in accordance with international law.  

On  11  November  2019,  The  Gambia  brought  a  case  against  Myanmar  in  the  International 
Court  of  Justice  (ICJ).  On  13  November  2019  Rohingya  and  Latin  American  human  rights 
groups lodged a lawsuit in Argentina under the principle of "universal jurisdiction" for crimes 
against  the  Rohingya.  On  14  November  2019  the  International  Criminal  Court  launched  an 
investigation into the "forced deportation" of the Rohingya. The ICJ has held public hearings 
in the case of the proceedings brought by The Gambia against Myanmar on 10-12 December 
2019 on the request for the indication of provisional measures.  

Myanmar has received urgent requests from the ILO supervisory mechanism for many years, 
in particular on forced and child labour and freedom of association. The EU and its Member 
States  have  closely  followed  the  cases  and  developments  and  urged  Myanmar  for  concrete 
and swift action17. 

Economic impact of EU tariff preferences under EBA  

Based on statistics of the Ministry of Commerce of Myanmar (as of February 2019), the EU is 
the 3rd largest trading partner of Myanmar (after China and Thailand) and the 3rd largest 
export market (following China and Thailand), absorbing 18.6% of its total exports.  

17 See  in  2019:  EU  statement  at  108th  International  Labour  Conference,  https://eeas.europa.eu/delegations/un-
geneva_en/64951/ILO%20-%20ILC%20108%20-%20EU%20Statement%20-
%20Committee%20on%20Application%20of%20standards:%20Republic%20of%20the%20Union%20of%20M
yanmar;  EU  statement  at  335th 
ILO  Governing  Body,  https://eeas.europa.eu/delegations/myanmar-
burma/61456/ilo-gb-335-eu-statement-ins-12-follow-resolution-concerning-remaining-measures-subject-
myanmar_en. 

11 

 
 
 
                                                 
Total  EU  imports  from  Myanmar  in  2018  increased  by  46.8%  (compared  to  +56.7%  in 
2017),  totaling  around  €2.3  billion.  The  EBA  resulted  in  around  €250  million  import  duty 
savings. The strong growth of imports from the country continued in the first seven months of 
2019 (+35.5%). This growth is mainly driven by garments and footwear. 

Imports  of  garment  and  footwear  from  Myanmar increased by 50.6% and made up nearly 
80% of exports to the EU in 2018. In the first seven months of 2019, this growth continued 
at a similar rate (+44.3%) and the share of garment and footwear in the import basket is now 
nearly  85%  of  total  imports  from  Myanmar.  Imports  of  rice,  the  second  largest  import 
commodity from Myanmar, increased in value by 27.5% and in quantity by 14.7% in 2018. In 
January  2019,  the  EU  imposed  –  under  the  GSP  regulation  -  safeguard  measures  on  Indica 
rice from Cambodia and Myanmar for three years, thus introducing normal customs duties on 
this product for the first year (€175 per tonne), and then progressively reducing it to €150 per 
tonne in year two and €125 per tonne in year three.  

EU  industry  in  Myanmar  is  present  in  telecom,  logistics,  manufacturing,  and  services.  A 
recent  business  survey  showed  that,  despite  the  current  political  situation,  EU  industry  sees 
potential in the country especially in sectors of wholesale, retail, banking, and insurance. The 
country is attractive thanks to its growing middle class, young population, economic reforms, 
and regional perspective.  

Analysts foresaw robust FDI flows into manufacturing, as well as foreign funding for power-
generation  and  infrastructure  projects,  to  underpin  continued  strong  GDP  growth  in  2019-
2023. The acceleration was driven by the recovery of natural gas exports and strong garment 
exports.  Growth  in  the  services  sector  remains  strong,  in  particular  in  finance  and 
telecommunications.  Some  of  the  more  recent  reports,  however,  note  a  drop  in  interest  of 
foreign  investors  in  the  country  also  due  to  challenges  in  terms  of  human  resources, 
infrastructure, and slow pace of reforms.  

Key concerns 

Key EU concerns regarding the situation in Myanmar relate to the non-implementation of the 
principles  of  several  international  human  rights  conventions  listed  in  the  GSP  Regulation, 
namely:  the  Convention  on  the  Prevention  and  Punishment  of  the  Crime  of  Genocide,  the 
International  Covenant  for  Civil  and  Political  Rights  (ICCPR),  International  Covenant  on 
Economic,  Social  and  Cultural  Rights  (CESCR),  Convention  on  the  Rights  of  the  Child 
(CRC), the Conventions on Elimination of Racial Discrimination (CERD), Convention of the 
Elimination  of  Discrimination  against  Women  (CEDAW),  Convention  against  Torture 
(CAT); and fundamental labour (ILO) principles. The EU concentrates on the following areas: 

  Full accountability  of those individuals who have committed serious and systematic 

violations of human rights; 

  Co-operation with all UN procedures and mandates; 

  Full and unhindered humanitarian access to Rakhine, Kachin, and Shan States; 

  Improvement  in  the  situation  of  internally  displaced  persons  (IDPs)  in  Rakhine, 

Kachin and Shan States; 

  Conditions  conducive  to  voluntary,  safe,  dignified,  and  sustainable  return  of 
refugees  to  their  places  of  origin  in  Rakhine  State,  in  particular  with  regards  to 
discrimination against ethnic minorities; 

12 

 
  Tackling hate speech and discrimination; 

  Freedom  of  expression 

including  restrictive 

legislation  and  abuses 

in 

its 

implementation; 

  Respect  for  labour  rights. This  includes alignment with  the fundamental  principles 
and  rights  at  work,  in  particular  eliminating  forced  and  child  labour,  and  ensuring 
freedom of association both in legislation and in practice. 

Process of Engagement 

Concerns  were  communicated  already  in  October  2017.  Following  the  Council  Conclusions 
of 28 February 2018, the Commission stepped up its engagement, starting with a preliminary 
analysis of the issues to be monitored under the EBA enhanced engagement. A Non-Paper on 
key  concerns  was  handed  over  to  the  Myanmar  authorities  in  October  2018.  The  first  EBA 
mission  to  Myanmar  on  28-31  October  2018  was  followed  by  a  visit  to  Brussels  of  the 
Permanent  Secretary  of  the  Ministry  of  Foreign  Affairs  for  further  dialogue  in  December 
2018.  From  18  to  22  February  2019,  a  second  high  level  EBA  mission  took  place  that 
included a visit to an Internally Displaced People’s camp in central Rakhine State. The EBA 
engagement  was  also  discussed  in  the  margin  of  the  22nd  EU-ASEAN  Foreign  Ministerial 
Meeting in Brussels in January 2019; and follow-up meetings on 16 May 2019 when the first 
EU-Myanmar  Senior  Officials  Meeting  took  place  in  Brussels;  and  during  the  Fifth  Human 
Rights Dialogue and bilateral meetings of the EU Special Representative for Human Rights in 
June  2019  (including  meetings  with  the  State  Counsellor  and  Commander-in-Chief)  in 
Myanmar. 

State of Play 

Myanmar  has  shown  a  constructive  attitude  and  engagement  on  the  issues  of  concern 
raised  by  the  EU.  There  are  some  positive  signs  but  progress  on  more  complex  issues 
remains  difficult.  Serious  human  rights  violations  in  conflict  areas  are  reported  to  continue. 
Further challenges are due to the continued conflicts in Rakhine State with the Arakan Army 
and  renewed  fighting  in  northern  Shan  State  between  various  non-state  actors  and  the 
Tatmadaw. General elections are announced for late 2020.  

In terms of the key areas of concern the following can be reported:  

Accountability:  Myanmar's  Independent  Commission  of  Enquiry  (ICoE)  established  by 
presidential order in May 2018, has collected victim testimonies but has so far been unable to 
perform in-depth field investigations into possible sites of mass atrocities in Rakhine State. Its 
core  team  visited  Bangladesh  to  prepare  for  future  interviews  with  victims  of  atrocities. 
Despite some contacts, the ICoE has so far failed to cooperate with the relevant international 
mechanisms  (IIFFM  and  the  Independent  Investigative  Mechanism  (IIMM),    and  the 
International Criminal Court (ICC)). The ICoE's mandate was extended and work is ongoing 
on a final  report, which is  expected to  be submitted to  the Government  in January 2020.  In 
March 2019 the Tatmadaw formed its own Court of Inquiry to "further scrutinise and confirm 
the respective incidents" during the military's security clearance operations following the 25 
August  2017  ARSA  attacks.  On  26  November  2019  court  martial  proceedings  started  for 
Tatmadaw  soldiers  in  Buthidaung  accused  of  violating  the  military's  rules  of  engagement 

13 

 
 
 
during operations in Gu Dar Pyin village in 2017. There is cooperation between the ICoE and 
the Court of Inquiry.  

On  17  September  2019,  the  IIFFM  presented  its  final  report  to  the  UN  Human  Rights 
Council, and handed over the evidence collected to the Independent Investigative Mechanism 
for Myanmar (IIMM) which will prepare future case files to ultimately determine individual 
criminal  responsibility.  The  IIFFM  recommended that the international  community  adopts a 
global arms embargo and imposes restrictive measures on individuals and economic entities 
linked or controlled by the Tatmadaw, while supporting the development of the non-military 
economy.  

Cooperation  with  the  UN  procedures  and  mandates:  Myanmar  cooperates  with  the  UN 
Special  Envoy  and  several  other  UN  special  procedures  and  mandates,  notably  on  sexual 
violence in armed conflict and children in armed conflict. At the same time, cooperation was 
discontinued with the UN Special Rapporteur on the situation of human rights in Myanmar in 
December 2017. Myanmar  refused to cooperate with the IIFFM and so far with the IIMM, 
and  has  not  allowed  OHCHR  to  open  an  office  in  Myanmar.  Myanmar  announced  that  it 
would sign the International Covenant for Civil and Political Rights (ICCPR) and ratified the 
Optional Protocol to the Conventions on the Rights of the Child on the involvement of 
children  in  armed  conflict  (OPAC)  in  September  2019.  A  new  Child  Rights  Law  was 
enacted on 24 July  2019  which contains important provisions such as on minimum age for 
marriage  and  birth  registration  for  all  children,  while  gaps  remain  in  tackling  statelessness. 
Myanmar  indicated  its  intention  to  ratify  ILO  convention  138  on  minimum  working  age 
(linked  to  labour  reform)  and  a  discussion  in  Parliament  is  expected  to  take  place  in  the 
beginning of 2020. 

Humanitarian  access:  Access  to  Rakhine,  Kachin,  and  Shan  States  remains  severely 
restricted also as a result of fresh clashes with the Arakan Army since early 2019. Myanmar 
signed  a  tripartite  Memorandum  of  Understanding  (MoU)  on  6  June  2018  with  UNDP  and 
UNHCR to prepare for the return of refugees from Bangladesh that is now valid until 5 June 
2020. This MoU, however, covers only approximately 10% of the remaining communities in 
northern Rakhine state. There is also cooperation with the ASEAN Humanitarian Assistance 
Centre (AHA), who issued its first assessment report in 2019.    

Situation  of  internally displaced  people  (IDPs): Progress, albeit partial, has been made in 
this area, notably with the adoption by the government of a national camp closure strategy on 
19  November  2019.  Although  this  is  an  important  deliverable  in  itself,  it  is  diluted  in 
particular  in  regards  to  a)  human  rights  (notably  freedom  of  movement,  citizenship  and 
reference to international standards b) engagement with IDPs, UN and INGOs in the process; 
and  c)  Humanitarian  access.    Myanmar  was  asked  by  the  UN  to  abstain  from  further  IDP 
camp closure as long as this strategy is not adopted and to consult actively local communities 
when  implementing  this  strategy.  Unfortunately,  the  Government  continued  with  its  plans 
during  the  final  drafting  period  (construction  of  houses,  schools  in  “closed  camps”)  and 
consultations  with  IDPs  were  not  conducted  in  a  meaningful  manner.  The  Government  will 
need  to  follow  through  with  the  development  and  implementation  of  robust  and  coherent 
Action  Plans  with  clear  timelines,  and  with  the  assurance  that  return  is  only  done  once 
conditions on the ground are effectively in place, and in line with international standards.  

Conditions  for  voluntary,  safe,  dignified,  and  sustainable  return:  Two  years  after  the 
release of the Annan Report and its endorsement by the Government, little progress has been 
achieved in the implementation of its 88 recommendations. The Myanmar Government is still 

14 

 
establishing a related Action Plan with focus on five priority areas: (i) freedom of movement; 
(ii)  citizenship;  (iii)  IDP  camp  closure;  (iv)  education;  and  (v)  health.  The  situation  on  the 
ground for the remaining Rohingya people in Rakhine State, including for 124,000 Rohingya 
in squalid IDP camps since 2012, remains largely unchanged without freedom of movement 
and  only  very  limited  access  to  education,  health,  and  livelihood.  Myanmar  senior  officials 
visited  Cox's  Bazar,  Bangladesh,  in  July  2019  and  distributed  a  "Fact-sheet"  to  Rohingya 
community  representatives  on  the  condition  of  return  to  Myanmar,  including  the  national 
verification  process  but  no  detailed  information  is  given  about  the  situation  prevailing  in 
envisaged  places  of  return  to  allow  for  informed  decisions  by  the  potential  returnees.  Two 
Bangladesh-Myanmar coordinated attempts to repatriate refuges failed in 2019. A Tri-lateral 
Working Group (Myanmar-Bangladesh-China) has been set  up to  facilitate return; however, 
the Government of Myanmar refused a proposal from China to allow “go-and-see” visits of 
Rohingya  from  Cox's  Bazar  to  Rakhine  State.  In  parallel,  some  450  Rohingya  have  so  far 
reportedly returned spontaneously from Cox's Bazar to Rakhine State.  

Hate speech, discrimination and integration of returnees: A draft anti-hate speech law has 
been prepared since 2015 and the Government stated some openness to cooperate with the EU 
in this area. Institutional discriminatory practices against Rohingya or other ethnic minorities 
continue to exist and there is no overarching anti-discrimination legislation in place. No real 
progress can be observed on access to mixed ethnic schools in Rakhine State. Equally, there is 
very limited prospect for amending the 1982 Citizenship law. 

Media  freedom: The release of the two Reuters journalists by means of presidential pardon 
on  7  May  2019  contrasts  with  the  fact  that  some  legislation  such  as  Art.  66d  of  the 
Telecommunication Law or Art. 505b of the Penal Code or the Official Secrets Act continue 
to  be  used  to  charge,  arrest,  and  detain  journalists,  political  activists,  and  human  rights 
defenders  critical  of  the  government  or  the  Myanmar  military.  A  new  Media  law  has  been 
under consideration, taking into account comments made by the Myanmar Press Council, still 
to be adopted by the Parliament.    

Labour  rights:  Myanmar  ratified  the  fundamental  ILO  Convention  138  on  minimum 
working age in December 2019 and assured that the provision to raising the minimum age of 
work of children was included in the new Child Rights Law. Similar commitments on the list 
of hazardous work are yet to materialise. Following the reinstatement of the tripartite dialogue 
mechanism, the Government adopted an Occupational Health and Safety Law. Myanmar was 
a  serious  and  urgent  case  at  the  2019  International  Labour  Conference  due  to  persisting 
challenges  in  addressing  forced  labour.  Myanmar  has  committed  to  take action  to  eliminate 
forced labour, while it still needs to concretise the action. Among others there is the pending 
establishment  of  a  National  Complaint  Mechanism.  Concerns  remain  also  regarding  the 
Labour  Organisation  Law.  .  The  Settlement  of  Labour  Disputes  Law  was  adopted  by  the 
Parliament in May 2019. 

Looking Ahead 

The  EU  will  continue  its  active  engagement  with  the  Government  of  Myanmar  including 
within  the  EBA  enhanced  engagement  and  in  multilateral  fora  such  as  UN  Human  Rights 
Council,  UN  General  Assembly,  and  ILO  and  will  possibly  consider  additional  targeted 
restrictive measures in order to promote progress in all areas of concern. 

Progress, among others, is expected in the following areas:   

15 

 
 
 

reviewing legislation on freedom of expression and right to peaceful assembly; 

  effectively combating hate speech, while safeguarding freedom of expression;  

 

 

facilitating  humanitarian  access  to  Rakhine,  Kachin  and  Shan  States,  also  by 
simplifying relevant administrative procedures; 

improving the conditions for IDPs in Rakhine, Kachin and Shan States, including for 
those living in camps;  

  making substantial progress in the implementation  of  the  recommendations  of  the 
Report  of  the  Advisory  Commission  on  Rakhine  State,  including  on  citizenship, 
freedom of movement, access to basic social services and education and livelihood;  

  stepping  up  domestic  efforts  on  accountability  for  human  rights  violations  and 
cooperating with all UN-mandated bodies, including the Special Rapporteur on the 
situation  of  human  rights  and  the  UN  Independent  Investigative  Mechanism  on 
Myanmar (IIMM); 

  eliminating  hazardous  child  labour,  including  through  strengthening  the  capacity 
and expanding the reach of labour inspectors; adopting the list of hazardous jobs; 

  addressing  child  and  forced  labour;  immediate  action  is  needed  with  regard  to 
eliminating 
thorough 
investigation and prosecution and through the establishment of an effective complaints 
handling procedure in cooperation with the ILO;  

labour  used  by  Tatmadaw, 

including 

through 

forced 

  providing  a  timeline  on  amending  section  359  of  the  2008  Constitution,  which 
exempts  from  the  prohibition  of  forced  labour.  It  is  to  be  noted  that  a  constitutional 
amendment process is currently ongoing; 

  ensuring freedom of association and collective bargaining in line with international 
labour  standards;  aligning  the  draft  Labour  Organisation  Law  with  the  ILO 
fundamental  principles  and  ensuring  freedom  of  association  in  practice  including 
protection  against  harassment,  free  choosing  and  establishment  of  organisations,  and 
effective registration of trade unions. 

16 

 
 
 
 
4. Temporary withdrawal procedure: Cambodia 

Context 

Over  the  last  three  years,  there  has  been  a  deterioration  of  democracy,  respect  for  human 
rights and the rule of law, including shrinking space for political opposition, media, and civil 
society in Cambodia. In September 2017, the Cambodian authorities arrested Kem Sokha, the 
leader of the main Cambodian opposition party (Cambodia National Rescue Party - CNRP) on 
charges  of  treason. 18  In  November  2017,  the  Cambodian  Supreme  Court  ordered  the 
dissolution of the CNRP and banned 118 of its senior officials from political activity for five 
years. The dissolution of the party also led to the removal from their positions of 5007 CNRP 
commune councillors who had been elected in June 2017.  

Following this, Cambodia's ruling party, Cambodia’s People’s Party (CPP), won all 125 seats 
in the National Assembly at the 29 July 2018 general election. For the first time since the UN-
supervised election in 1993, there is no parliamentary opposition in Cambodia.  

Since  2017,  the  Commission  and  the  EEAS  have  engaged  actively  with  Cambodia  in  the 
context  of the GSP Regulation.  The Commission had for many  years raised its concerns on 
issues related to Economic Land Concessions (ELCs) in the sugar sector, recommending the. 
establishment of an independent and transparent mechanism in order to deal with claims for 
compensation arising from the granting of ELCs for sugar cane plantations. 

Following the deterioration of democracy, human rights  and labour  rights  in Cambodia, the 
EU  concerns  covered  the  following  main  areas:  a)  political  rights  and  the  shrinking  of  the 
democratic space; b) freedom of expression and freedom of association; c) labour rights; and 
d) concerns over land issues arising from ELCs in the sugar sector. 

The  EU  outlined  its  concerns  on  a  number  of  occasions,  including  in  particular  in  the  EU 
Foreign Affairs Council Conclusions in February 201819, the European Parliament resolutions 
of 13 December 201720 and 13 September 201821, as well as by the Commission services and 
the EEAS throughout the period of enhanced engagement with Cambodia.  

On  11  February  201922,  the  Commission  decided  to  launch  the  procedure  for  a  temporary 
withdrawal  of  the  tariff  preferences  provided  to  Cambodia  under  Article  1(2)  of  the  GSP 
Regulation23.  

18 Opposition leader Kem Sokha was released on bail on 10 September 2018 and put under judicial supervision, 
confined to a small area around his house and still faces treason charges. On 12 November 2019, he was released 
from house arrest. However, his case is not closed and he still faces criminal charges. In addition, he is banned 
from engaging in any political activities, and cannot travel abroad. 
19 http://data.consilium.europa.eu/doc/document/ST-6416-2018-INIT/en/pdf 

20 http://www.europarl.europa.eu/doceo/document/RC-8-2017-0686_EN.html 

21 http://www.europarl.europa.eu/doceo/document/TA-8-2018-0346_EN.html  
22 In accordance with the provisions of Article 19, paragraph 1, point (a) of Regulation EU No 978/2012 (GSP 
Regulation). 
23OJ C55, 12.02.2019, p 11.  

17 

 
 
                                                 
The  Commission  found  that  there  were  sufficient  grounds  to  substantiate  the  existence  of 
"serious and systematic violations"24 of principles laid down in the following conventions: 

 

 

 

 

International Covenant on Civil and Political Rights (ICCPR);   

ILO  Convention  87  on  Freedom  of  Association  and  Protection  of  the  Right  to 
Organise; 

ILO Convention 98 on the Right to Organise and to Bargain Collectively; and 

International Covenant on Economic, Social and Cultural Rights. 

The  Commission  prepared  the  report  of  findings  and  conclusions,  taking  into  account  the 
information gathered during the monitoring and evaluation phase, and sent it to Cambodia on 
12 November 2019 

Economic impact of EU tarriff preferences under EBA  

Over the last twenty years, Cambodia’s economy has had a strong growth rate averaging over 
7%.  A  major  factor  in  this  has  been  the  growth  of  export  industries,  notably  garments  and 
footwear, and the development of significant  exports of  rice and other  agricultural  produce. 
Growth  in  exports  has  been  facilitated  by  Cambodia's  free  access  to  EU  markets  under  the 
EBA. In terms of socio-economic development, the percentage of the population living under 
the poverty line has steadily declined from 50.1% in 2007 to 13.5% in 2014. 

In 2014, the EU became the first Cambodian export market, ahead of the US. The EU market 
currently  accounts  for  more  than  one-third  of  Cambodia’s  exports,  particularly  garment, 
footwear and bicycles. The EU ranked as the second biggest trade partner of Cambodia (after 
China),  accounting  for  17.3%  of  the  country’s  total  trade  (China  23.8%).  Cambodia  is  the 
EU’s  56th  largest  trading  partner  (accounting  for  0.2%  of  the  EU’s  total  trade).In  2018, 
Cambodian  exports to  the  EU  registered  a  record  of  €5.3  billion  (compared  to  €3  billion in 
2014),  concentrated  on  garments  at  73.4%  of  total  exports,  footwear  12.7%,  bicycles  5.7%, 
and rice 3%. Total trade in goods between the two partners equalled €6.2 billion. Over 95% of 
these exports entered the EU market under EBA tariff preferences (one of the highest ratios of 
any  EBA  beneficiary  country).  Overall,  Cambodia  is  the  second  largest  user  of  EBA 
preferences, after Bangladesh. In January 2019, the EU imposed – under the GSP regulation - 
safeguard  measures  on  Indica  rice  from  Cambodia  and  Myanmar  for  three  years,  thus 
introducing normal customs duties on this product for the first year (€175 per tonne), and then 
progressively reducing it to €150 per tonne in year two, and €125 per tonne in year three. 

Key Concerns  

Political  participation.  Over  the  last  three  years,  the  Cambodian  authorities  have  taken  a 
series of repressive actions against the opposition, civil society organisations, and media. The 
democratic  space  for  political  opposition  has  significantly  narrowed.  The  29  July  2018 

24 See in particular point 5 of the Annex to the Notice of Initiation, OJ C55, 12.02.2019, p. 13. 

18 

 
 
 
                                                 
general  elections  were  held  in  a  highly  restrictive  political  atmosphere  marked  by  the 
exclusion  of  the  main  opposition  party  (CNRP)  and  growing  repression,  harassment  and 
intimidation of the opposition, civil society, and human rights defenders. The Commission’s 
analysis  has  been  confirmed  by  several  UN  reports,  including  reports  and  statements  of  the 
UN Special Rapporteur on the situation of human rights in Cambodia. 

Freedom  of  expression.  Under  Cambodia’s  Constitution  Articles  31  and  41,  freedom  of 
expression  is  guaranteed.  However,  the  use  of  certain  laws  as  well  as  other  actions  by  the 
Government, in particular repressive actions against journalists, repression of press and media 
activities, have restricted the right to freedom of expression. 

Freedom of association and of peaceful assembly. Restrictions to freedoms of assembly and 
association,  including  a  shrinking  of  the  space  for  civil  society,  remain  a  cause  of  concern. 
Procedural requirements going beyond the law are creating additional obstacles to legitimate 
work of civil society organizations. Some positive steps took place such as the Instruction of 
the Ministry of Interior to repeal the ‘three-day notice requirements’ and the establishment of 
a  Government  Working  Group  under  the  Ministry  of  Interior  to  consult  with  civil  society. 
However,  no  concrete  actions  were  taken  to  amend  restrictive  provisions  of  the  Law  on 
Associations  and  Non-Governmental  Organizations  (LANGO). Harassment  and  intimidation 
of  journalists,  human  rights  defenders,  trade  union  members  and  workers,  land  and 
environmental activists continued to be reported by the UN and civil society organisations. 

Non-discrimination,  land  and  housing  rights.  Dispossession  with  no  or  inadequate 
compensation  of  families  living  or  working  on  land  designated  as  Economic  Land 
Concessions  related  to  sugar  farming  constitutes  a  violation  of  the  relevant  international 
conventions:  International  Covenant  on  Economic,  Social  and  Cultural  Rights  (ICESCR), 
Committee  on  the  Elimination  of  Racial  Discrimination  (CERD)  and  ICCPR.  The  EU 
recognises  the  actions  taken  by  the  Cambodian  authorities  to  resolve  these  issues,  but 
continues to be concerned over lack of transparency in the process, and the lack of a clear set 
of  criteria  for  establishment  of  the  validity  of  claims  and  the  appropriate  level  of 
compensation. 

Labour  rights,  notably  freedom  of  association  and  collective  bargaining.  The  ILO  has 
repeatedly  urged  Cambodia  to  take  immediate  measures  to  address  serious  and  systematic 
problems related to the application of the fundamental ILO Conventions 87 on freedom of 
association and 98 on collective bargaining. These relate to the need to address and prevent 
anti-union  harassment  and  discrimination.  In  addition,  legal  changes  introduced  since  2014 
contributed to the limitations and restrictions in trade unions’ activities and has significantly 
deteriorated the social dialogue. There are particular concerns over the Law on Trade Union 
(LTU) of 2016, which is not in line with the two conventions, including for restrictions and its 
effects to the right to join and establish worker’s organisations. Meanwhile, the Annual report 
by the ILO and the International Finance Corporation (IFC) 201825, shows that Cambodia is 
making  progress  in  the  welfare  of  garment  and  factory  workers,  but  significant  concerns 
remain over health and safety issues. 

25 Better Factories Cambodia:  Annual Report 2018 An Industry and Compliance Review. 

19 

 
 
  
 
 
 
                                                 
Process of Engagement  

In  its  Conclusions  of  26  February  2018,  the  EU  Foreign  Affairs  Council  expressed  its 
serious concerns with regard to the deterioration of the situation in Cambodia, and the impact 
this  deterioration  could  have  on  relations  between  the  EU  and  Cambodia.  Furthermore,  the 
European Parliament in its resolutions in 2017 and 2018 noted the decline in civilian and 
political rights in Cambodia, in addition to other long-standing issues linked to economic land 
concessions  and  labour  rights.  The  EU  has  urged  the  Cambodian  Government  to  take  all 
necessary  measures  to  address  key  concerns  of  the  international  community  and  relevant 
United  Nations  monitoring  bodies  linked  to  political  participation,  freedom  of  expression, 
freedom of association and collecting bargaining, and land concession. 

Some  of  these  concerns  were  discussed  on  14  March  2018,  during  the  10th  EU-Cambodia 
Joint Committee. A Commission/EEAS fact finding mission visited Cambodia in July 2018 in 
order to assess the situation in terms of human rights and labour rights. On 18 October 2018, 
the  EU’s  High  Representative/Vice  President,  Federica  Mogherini,  met  Cambodia's  Prime 
Minister  Hun  Sen  in  Brussels  and  reiterated  the  EU's  concerns  regarding  the  situation  in 
Cambodia. This was followed by a meeting on 21 January 2019 of Commissioner for Trade, 
Cecilia Malmström, and Cambodian Deputy Prime Minister/Minister of Foreign Affairs Prak 
Sokhonn. 

On  11  February  2019,  the  Commission  adopted  a  decision  launching  the  procedure  for  a 
temporary  withdrawal  of  Cambodia's  trade  preferences  due  to  the  severe  deterioration  of 
democracy and human rights and labour rights in Cambodia. A Commission/EEAS high-level 
mission visited Cambodia on 19-20 March 2019, as part of the continued political  dialogue 
and  engagement  with 
the  Government  of  Cambodia.  This  was  followed  by  a 
Commission/EEAS  EBA  fact-finding  mission  to  assess  the  situation  of  human  rights  and 
labour rights on 3-10 June 2019.  

State of Play 

The monitoring and evaluation period ended on 12 August 2019. On 12 November 2019, the 
Commission  submitted  its  EBA  report  of  findings  and  conclusions  to  Cambodia.  Cambodia 
provided its comments on 12 December 2019. 

The EU’s aim is to have Cambodia address the human rights and labour rights concerns. The 
EU  is  committed  to  continue  working  with  the  Cambodian  authorities  to  achieve  this. 
Cambodia must show real,  credible improvement on the issues of concern in  order to avoid 
the withdrawal of EBA trade preferences. 

Looking ahead 

The Commission should take a decision on the outcome of the temporary withdrawal process 
in February 2020.  

20