EU’s Bike Imports from Cambodia Grows Enormously
BRUSSELS, Belgium – During the first half of 2013 the import of bicycles in the 27 European Union member states dropped with a big 11%. Almost all EU bike supplying countries saw their export drop; except for one. Cambodia stands out as their export of bicycles to the EU is accelerating year by year.
The number of bike manufacturers in Cambodia continues to grow thanks to the country’s duty free export status to Europe and its low labor costs. Currently there are six bike making facilities in the country of which five are from Taiwan origin. The latest Taiwan maker that has set up shop in Cambodia is Cronus Sports Science & Technology Co. Ltd. This company is also behind Tunisia based Mui and started production earlier this year.
Cambodia’s six bike making facilities profit from the big relaxation in the General System of Preferences (GSP) rules with which the European Union grants trade benefits to Least Developed Countries (LDC’s). It brings them the import duty free status for bike export to the EU which saves 14% import tax on complete bikes while there’s no dumping tariff to consider.
Minimum wages in Cambodia
These benefits, next to much lower labor costs (minimum wages in Cambodia are set at just US$ 61 – € 45 per month) compared to other bike producing and exporting countries results in a bike export to the European Union markets that is accelerating every year. In the first half of 2013 by a big 49% even, to close to 800,000 units.
Specialized bikes being assembled in Cambodia
And as for instance Specialized bikes are now also being assembled in Cambodia, the average value per to the EU exported unit has reached 190 euro! Only Taiwan manages to export such high priced bikes.