EU imposes tariff on rice from Cambodia, Myanmar

Sok Chan / Khmer Times 1 Comment Share:
People move sacks of rice in a warehouse in Phnom Penh. KT/ Mai Vireak

The European Commission has imposed tariff on rice coming from Cambodia and Myanmar by implementing the safeguard measures.

The EC said in a press release on Wednesday that a significant increase of imports of Indica rice from Cambodia and Myanmar into the European Union caused economic damage to the EU producers.

“Therefore, the EU commission has decided to re-introduce import duties that will be steadily reduced over a period of three years,” it said.

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According to the Commission’s decision, the EU will reinstate the normal customs duty with 175 euro per tonne in January, 150 euro per tonne a year later, and 125 euro per tonne the subsequent year.

During the investigation in last March, the Commission found that imports of Indica rice from both countries increased by 89 percent in the past five rice-growing seasons, it said.

It said the investigation found that the prices were substantially lower than those on the EU market and had decreased over the same period.

The surge in low-price imports caused serious difficulties for EU rice producers to the extent that their market share in the EU dropped from 61 percent to 29 percent, it said.

Data from the Secretariat of One Window Service for Rice Export showed that between January and November 2018, Cambodia exported 497,420 tonnes, down 13 percent compared to the corresponding period in 2017. That year rice exports rose 17.21 percent to reach 635,325 tonnes, with a total value of $333.1 million.

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Cambodian rice exports in 2017 represented 1.6 percent of global rice exports, World’s Top Exports research portal showed.

That year Cambodia was the ninth biggest exporter in the world, while Myanmar held the tenth spot.

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1 Comment

  1. Good news I believe, perhaps this can kick some out of their office and perform, the markets are there, Cambodia have the quality rice, Jasmine been awarded for years, just need some hard work coordinated and cleaned for individual interests and the export of rice, among other agriculture products, will increase.

    To increase productivity and lift farmers out of poverty, you must understand the Cambodian rice sector, farmers and what blocks for the development.

    BUT, to increase the export of “Milled Rice”, as a commodity, you have to understand the Rice Millers, Market, the Political- and Commercial risks, Incentive cleaned for individual interests with a strong platform/network to make things happen.

    What Cambodia is in need of is; “bridge building” between these two important links in the supply chain, clear strategy with common interest, facilitating the strategy, access to new markets, not to be greedy but aggressive, consistent and competitive to win your customers trust.

    Many keep saying lack of financing is why export of Milled Rice decrease. From our research we see this issue from another angle, believe in cooperation, coordination, communication, transparency and trust with no room for individual interests but focused on common goals.

    Barter Trading been at the table for GCD in few years now, unable to identify local partner with incentive to join, we continue the work from alternative angles to gain commitment.

    The combination of energy and agriculture could be the key to success, we continue the good work in Cambodia as our preferred platform, after seven (7) years presence it’s now decided to give it six (6) month more, but with parallel activities as time is running and we all lose business (huge potential, also known as low hanging fruits, but lack of trust and collaboration neighboring countries harvesting the fruits).

    Next stop Vietnam, open NEW Trading office in Ho Chi Minh February 1, 2019, our commodity trading arm might find the platform, although Cambodia is still our preferred platform, but due to local business environment seem to be very difficult and local partners little or no interest.

    Best regards
    Green Country Development (GCD) Co., Ltd

    Tommy Christensen
    Chairman and CEO