Fashion brands weigh Cambodia strategy after EU curbs trade

H&M, Adidas and others assess cost of suspended duty-free access

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An Adidas logo is pictured inside a shoe. The German company sources 22% of its textiles from Cambodia. © Reuters

SHAUN TURTON, Contributing writer

PHNOM PENH -- Stripped of some of its European trade privileges, Cambodia is bracing for an economic hit as major brands such as H&M review their production in the country.

The European Commission on Wednesday announced it would suspend duty-free access for 40 products from Cambodia, equal to about 20% of the country's exports to the bloc, or some 1.1 billion euros ($1.19 billion).

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