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BBC Sinhala, Colombo
BBC News, Phnom Penh
Ghetto imagesThey already live from hand to mouth, millions of clothing workers in Asia are afraid of their work as a deadline to achieve a trade deal with the United States – or to face penalty tariffs – they are approaching.
On July 9, after a 90-day pause on the tariffs for countries to negotiate transactions, the US President notified several countries in the region of new levies, which should start on August 1. New prices, although lower than those offered in April, have made a bit to relieve concerns.
Among the nations that received letters from Donald Trump were hubs for clothing such as Cambodia and Sri Lanka, which are highly dependent on the United States as an export market. The letters state that the two countries will face 36% and 30% rates respectively.
Nike, Levi’s and Lululemon are among the brands with big names in the United States that have most of their clothing made in these countries.
“Can you imagine what would happen if we (we) lose our job? I’m so worried, especially for my children. They need food,” says Sun Sokin, who works at a clothing factory in Southeast Cambodia.
G -ja Sokin and her husband Cock Taok make food for sewing bags for 10 hours a day. Together, they earn about $ 570 a month – barely enough to cover the rent and secure their two young sons and elderly parents.
“(I want) to send a message to President Trump to tell him to raise the tariff in Cambodia … We need our jobs to support our families,” she told the BBC.
Cambodia, which has become a popular alternative to Chinese retailers because of its ready -made low salary labor, gave more than $ 3 billion to the United States last year, according to Asean Statistics Department. The sector, which employs more than 900,000 people, accounts for more than a tenth of the country’s total exports.
For Sri Lanka, exports to the United States helped the clothing industry, which directly employs about $ 350,000-bakes $ 1.9 billion last year, making it the third largest profitable currency in the country.
“If (30%) is the final number, Sri Lanka is in difficulty because our competitors, such as Vietnam, have received a smaller tariffs,” said Johan Lawrence, Secretary General of the Sri Lanka Joint Association.
Sri Lanka’s authorities are hoping to negotiate a further reduction in tariffs, but have not revealed what they would consider as an acceptable course.
Some of its leaders note that the country has received the highest discount – from 14 percentage points – insofar as it is the result of more negotiations. “We see this as the beginning of a very good situation,” said Finance Minister Harsana Secretary Suriaptum last week.
Cambodia, which received a 13 -percent concession, is also looking for additional conversations. “We are doing our best to protect the interests of investors and workers,” said Deputy Minister Sun Shanthol, who heads the negotiation team.
“We want the tariff to be zero … But we follow their decision and we will continue to try to negotiate a lower rate,” he said.
Ghetto imagesTrump says tariffs are needed to reduce the difference between the value of the goods that the United States is buying from other countries and those they sell.
“Our relationship, unfortunately, is far from reciprocal,” writes the US leader in letters to different countries last week, which he also posted on his social platform for the truth.
But analysts do not agree.
Trump’s tariffs neglect the benefits of the US enjoy existing commercial agreements, including lower-cost clothing and higher profits for US companies that are delivered from countries such as Sri Lanka or Cambodia, says Mark Anar, Dean at Rutge’s Management and Labor Relations School.
For decades, the United States, the European Union and Canada have had a quota system that retained a certain share of their markets for developing countries such as Sri Lanka. The system, which was terminated in 2005, helped the Sri Lanka clothing sector flourish despite firm competition.
“The US is now imposing prohibition tariffs that effectively exclude these market countries, contrary to the development path itself, which it once prescribed,” Prof. Anar said.
Ghetto imagesIt is unrealistic to expect that small, developing economies not to manage a trade deficit with the United States, says Shen Lou, a professor at the Department of Fashion and Clothing at the University of Delaware.
“How many Boeing planes need Cambodia or Sri Lanka and can afford to buy every year?” he asked.
Asst Prof lu believes that strategic rivalry between the US and China is also a factor in trade conversations, given how these clothing countries are integrated into supply chains that rely largely on Chinese contributions.
They now need to “achieve a delicate balance” between maintaining economic ties with China while meeting the new US requirements, which may include reducing the use of Chinese production contribution, he says.
Washington’s tariffs add new pressure to the well -known challenges in the industry: poverty and poor work rights in Cambodia and a continuing economic crisis in Sri Lanka.
Women who make up seven in 10 of the region’s clothing are ready to carry the main weight of the tariffs. Lower pressure on their already chronically low salaries means that their children can remain hungry, while potential cuts will be even more persistent.
May TitarSurangi Sandia, who works at a factory in Sri Lanka, Navalapia, says she feels an ax hanging over her.
“Companies do not work with loss … If orders decrease, if there is a loss, the company may be closed,” she says. Mrs. Sandya started as a seamstress for rank and performance in 2011, after which she made her way up to become a team leader of 70 women.
If the push comes to throw, some Cambodian workers say they will consider moving to Thailand to find a job – even if they have to do it illegal.
“Our livelihood depends on the clothing factory. We will not survive if our boss excludes it,” he tells the BBC of his tiny room 16 square meters in the capital of Cambodia Pnom Pen.
“We have a little education. We can’t find other jobs. We pray every day President Trump will raise the tariff. Please think about us and our poor country.”