Cambodia prepared for EU rice tariffs: Ministry

The government has downplayed the effects tariffs imposed by the European Union will have on the rice industry, arguing that it had been preparing for this scenario through a strategy to make the trade industry less dependent on the European bloc.

Last week, the European Commission officially imposed tariffs on rice imports from Cambodia and Myanmar that, it says, are hurting farmers in Europe.

EC argues that a significant increase in shipments of Indica rice from Cambodia and Myanmar into the EU are causing economic damage to producers in Europe.

During the first year, the EU will levy 175 euros ($199.5) per tonne on imports of Cambodian rice, 150 euros ($171) in the second year, and 125 euros ($142.5) in the last.

Speaking at a press conference on Friday, Sok Sopheak, secretary of state of Ministry of Commerce, said the actions taken by the EU are not of great concern to the government, and that officials were not “surprised” by the re-imposition of tariffs.

He said safeguard actions like the one carried out by the EU are common, and that many Word Trade Organisation members use safeguard measures to protect their producers and ensure trade is balanced and just.

Despite this, he said the Cambodian government is launching an investigation into whether the EU’s actions go against international law.

“We are now verifying national and international law, and the scientific proof presented by the EU to find out if our rice is really competing directly with products in Italy and Spain. We are looking for evidence to make our case against the tariffs.

“The EU has the right to establish tariffs, but we have the right to protest based on national and international law.

“Our statement on January 17 clearly showed that the EU’s actions were not fully in agreement with international law and scientific proof, and does not accurately reflect social and economic realities,” he added.

According to the official statement from the EU released last week, during an investigation last year launched at the behest of Spain and Italy, the European Commission found that imports of Indica rice from Cambodia and Myanmar increased by 89 percent in the past five rice-growing seasons.

It said the investigation found that rice prices from these countries were substantially lower than those in the EU market, and had decreased over the same period. The surge in low-priced 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, the statement read.

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