Article content continued

The percentage equates to about 1 billion euros ($1.1 billion) of exports.

Hun Sen said in a speech on Monday that any factories that are “strongly affected” because of the coronavirus or EBA tariffs will be exempt from tax for at least six months.

He also said the government would help pay partial wages to workers if production is halted.

“When these factories suspend operations, they will pay 40 percent of the current minimum wage (to their workers), while the government will pay workers an additional 20 percent. So, in total, workers will get 60 percent of their current wage.”

Hun Sen was defiant at the loss of the trade preferences, which the EU said was the result of his government’s “serious and systematic violations” of human rights.

The Commission will replace zero duties with standard tariffs for certain garments and footwear, all travel goods and sugar. The standard tariff for clothing is 12%.

Cambodia’s total exports to the EU in 2018 reached 5.4 billion euros ($5.9 billion), more than double the 2013 level.

Hun Sen dismissed the EU’s human rights criticism and said he would not be coerced into releasing dozens of jailed opposition politicians and activists who oppose his rule, now in its fourth decade.

“Don’t try negotiate to get them released and give back 20%. There will be no release,” he said. (Writing by Kay Johnson, editing by Ed Osmond)