Legal challenges facing Cambodia’s garment industry Commentary
Legal challenges facing Cambodia’s garment industry
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Andrew Wood [University of Pittsburgh School of Law 2L, in Cambodia]: "Cambodia's role in the Textile and Garment (T&G) industry has only recently developed into the nation's largest export industry. With Cambodia's first garment factories opened in 1994, the industry is relatively young, especially when compared to its neighbors such as China. Over 70% of Cambodia's textiles are exported to the United States, thereby reflecting the importance of the relationship between the USA and Cambodia. The T&G industry in Cambodia grew rapidly under the US-Cambodia Trade Agreement on Textile and Apparel (TATA) from 1999-2005, and, for the first time, this experimental agreement linked the improvement of trade to labor rights. Its relative success has seen Cambodia rise to an international spotlight; the nation can, in some ways, be perceived as a showcase to reflect the unique relationship between export-oriented manufacturing and poverty reduction (though it is arguable that with the minimum wage set at $45 USD per month, poverty reduction is not significantly impacted).

Cambodia has one of the highest percentages worldwide of trade union members in the T&G industry (approx. 60%). The number of workers employed in the Garment sector in Cambodia has grown from next to nothing in the mid-1990s to around 293,600 in April, 2006. In some regards, the Cambodian situation appears ideal in theory, attracting "reputation conscious" brands; the current trend toward pursuing and advertising "fair trade" products is pervasive in many American businesses, and Cambodia's relatively good reputation is certainly one of its main advantages.

However, the Cambodian T&G industry is in a vulnerable state of existence and many problems inevitably persist. While Cambodia has fared surprisingly well since the Multi-Fibre Agreement and Quota Era ended on 31 December 2004, additional major challenges loom large around the corner. It remains to be seen how the end of quota restrictions on China in 2008 and Vietnam's upcoming ascension into the WTO will affect the industry in Cambodia. The added competition of nations like China and Vietnam, combined with Cambodia's internal problems, increases the likelihood of the garment industry shifting from Cambodia to more economically poised nations. Further, the increase of violent incidents and criminal punishments against union activists may potentially tarnish Cambodia's relatively good reputation as an ethical producer. Cambodia cannot directly control the rise of international competitors; however, the realities of the situation make it crucial for Cambodia to adapt and address problems within the industry.

Many underlying problems put the T&G industry in Cambodia at risk, including corruption, the arrests, threats, abuse, and murder of union activists, and Cambodia's relatively high electric and petroleum costs — to name a few. Lawyers at the Community Legal Education Center of Cambodia (CLEC) are working to address some of these issues in a number of ways: they conduct training sessions to educate union workers and village leaders about aspects of labor law, such as the benefits of achieving collective bargaining agreements; they work with other local organizations to further the development of the garment industry; and they conduct studies for International organizations such as the ILO. They also try to advocate workers' rights granted in Cambodia's labor law. Part of my position was to conduct a study highlighting instances in which union leaders have been arrested in the course of fighting for workers' rights. I recently accompanied two CLEC lawyers to an Oxfam-led workshop held in Phnom Penh that shed light on the activity regarding this issue. About 30 representatives from various International NGOs, local NGOs, labor unions, and private law firms were in attendance, the majority of whom identified corruption as the number one problem threatening to frustrate relationships with foreign investors. It was encouraging to see these groups working together to discuss how best to approach their nation's challenges, and interesting to see the many facets of their work. In addition to the work that local NGOs like CLEC are doing, Cambodian union leaders are currently negotiating with employers' associations to decide on a new minimum wage, local lawyers are defending union leaders facing charges resulting from labor disputes, and international organizations are attempting to raise international awareness to the industry's situation.

When I went to Cambodia to work for the summer, I had the Khmer Rouge and the upcoming tribunal in mind; fresh was the brutal history of the country about which I had personally studied, visited, and come to love. However, by working in the nation's capital, and existing within a community working to develop the country, I witnessed many effects of the Khmer Rouge legacy. In some ways, the Khmer Rouge did, in fact, achieve its goal of creating their "year zero"; today, Cambodia is struggling to catch up to the rest of the world — to turn its calendar forward to 2006. In many ways, the country has had to start over, and currently remains in a rebuilding phase on a variety of social and economic levels. The garment industry has the potential to assist in Cambodia's development, yet it remains to be seen what the future will bring. It is daunting to consider all the factors that will determine the industry's fate, but it is encouraging to witness some of the Cambodian leaders' dedication to their country's improvement."

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