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An employee works at a rice shop in Phnom Penh Italy is arguing that its
locally grown rice is unable to compete against tax-free imports from
Cambodia. Eli Meixler
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Italy has demanded that the European Union restrict Cambodia’s
duty-free import status, as concerns over the survival of that country’s
rice sector appear to be reaching a fever pitch.
According to rice industry website Oryza, the Italian government has
officially submitted a request to the EU calling for a new safeguard
clause which, if approved, could end EU nations’ zero-tariff treatment
of rice imports from Cambodia.
“Abnormal increase of import is reducing quotations of European rice,
bringing it under production costs level; this is strongly damaging our
farmers and millers,” Italy’s vice minister for economic development
was quoted as saying in Oryza’s report, posted late last week.
Under the Everything But Arms (EBA) agreement, which is granted only
to developing countries, Cambodia pays zero tax on all non-weapon
exports to EU member states, including rice.
The official complaint came a month after rice industry website
risoitaliano.eu leaked excerpts from a dossier prepared by the Italian
government. The document claims that the special treatment given to
Cambodia by the EU triggered a 22 per cent decline in annual rice
plantings in Italy.
The dossier adds that, with Italian rice prices at about $870 per
tonne and Cambodian prices at $590 per tonne, Italian producers are
unable to compete. The dossier requests that the EU impose a tariff of
$230 per tonne on Cambodian rice imports to level the playing field.
Earlier this month, an Italian agriculture collective of farmers,
including representatives from the Italian Association of Rice
Industries, protested in some of Italy’s largest rice-growing regions.
EU Ambassador to Cambodia Jean-Francois Cautain yesterday said he was
awaiting information from EU headquarters in Brussels and was unable to
comment on Italy’s complaint.
Cambodian Rice Federation (CRF) president Sok Puthyvuth said there
were mixed feelings in the Cambodian rice industry over the seriousness
of Italy’s claims and that the EU had repeatedly assured the rice body
of the future of Cambodia’s EBA status.
“We feel we still have the support from the EU. Some say we need to
start bilateral talks with Italy; some say not to worry,” Puthyvuth
said, adding that he hoped to commence communications with the Italian
government as early as this week.
“We want to solve this problem but there needs to be better communication and there needs to be some compromise,” he said.
Ken Ratha, spokesman for the Ministry of Commerce, said the
government was waiting for the CRF to clarify Italy’s complaint before
issuing an official response.
Cambodian rice exports to the EU reached 380,000 tonnes at the end of 2013, up from 200,000 tonnes at the end of 2012.
Sourced by Phnom Penh Post
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