The Everything But Arms (EBA) scheme and the EU’s normative dilemma: the case of Myanmar’s garment sector

Abstract

Amid the escalation of the so-called Rohingya crisis and rising human rights concerns, EU institutions have repeatedly threatened a suspension of the Everything But Arms (EBA) trade arrangement with Myanmar, which is conditional on respect for fundamental human and labour rights. Despite Myanmar’s human rights situation having dramatically deteriorated, when in February 2021 the military seized power in a violent coup, the EU has failed to invoke a withdrawal of trade preferences. This article seeks to explore the rationale for the EU trade approach, which has so far received limited attention in the literature. By examining the case of Myanmar’s garment industry, which has been one of the most important sectors benefitting from EBA preferences, this article highlights the fact that, contrary to EU claims of a more assertive trade policy, EU trade decisions have been primarily influenced by normative dilemmas connected to the unwanted consequences of punishing trade instruments. In turn, the article shows that the EU’s normative dilemmas are paving the way for a targeted withdrawal of trade preferences.