Cambodia peddling bikes in EU

Import duties and limits, as well as rising wages in neighbouring countries, made Cambodia the second largest exporter of bicycles to the European Union after Taiwan, an industry newsletter reports. According to Bike-EU.com, which quoted data from Eurostat, Cambodia exported 519,389 units to EU countries between January and June of 2012, compared to 139,988 units during the same period in 2011. … According to Bike-EU.com a unit produced in Cambodia cost €191 ($258) in the first half of 2012, an increase of 34 per cent on the same period in 2011. “Cambodia is turning even more towards high-end bikes, which is reflected in the average value per unit.” Ambassador Jean-François Cautain, head of the EU Delegation to the Kingdom of Cambodia, said the expansion in bicycle exports from Cambodia to the EU “can be traced to the fact that investment relocation has taken place, partly as a result of an EU decision to impose anti-dumping duties on bicycles originating from Vietnam.” “Dumping” occurs when a product is exported and sold at a price that undercuts the price of that product in the home market. … “Secondly, access to the market is an important factor to bring in investors; thanks to the EU’s Everything But Arms arrangement, Cambodia can export goods to the EU duty and quota free. The same goods produced elsewhere would be subject to import taxes when they enter the EU.” …

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