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BANGKOK 23 April 2019 14:53
geovalin

Cambodia takes EU to court over rice import tariffs

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BRUSSELS (Reuters) - Cambodia has filed a challenge at the European Court of Justice against the European Union’s decision to impose import duties on Cambodian rice.

 

The bloc imposed tariffs for three years in January on rice from Cambodia and Myanmar to curb what it said was a surge in imports as a safeguard to protect EU producers such as Italy.

 

However, the Cambodian Rice Federation said on Thursday the safeguard measure did not relate to any unfair behaviour and was based on broad generalisations and the flawed use of data.

 

A majority of EU countries had backed the introduction of measures, but not the sufficient “qualified majority” of member states normally required. The European Commission then took the decision to go ahead itself.

 

Cambodia and Myanmar benefit from the EU’s “Everything But Arms” trade scheme which allows the world’s least developed countries to export most goods to the EU free of duties.

 

Both already face losing their special access to the world’s largest trading bloc over their human rights records, although that potential sanction is separate from the rice safeguard measures.

 

Indica rice from the two countries is subject to a duty of 175 euros ($197.31) per tonne in the first year, dropping to 150 euros in the second and 125 euros in year three.

 

The Commission said it had found that imports of Indica rice from the two countries had risen by 89 percent in the past five rice-growing seasons, and a surge in cheap imports had reduced EU producers’ market share in Europe to 29 from 61 percent.

 

Cambodia’s ministry of commerce has called the EU decision a “weapon to kill Cambodian farmers” and against international trade rules.

 

($1 = 0.8869 euros)

Reporting by Philip Blenkinsop; editing by David Evans

 

-- Reuters

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Press Release from the EU is more explanatory.

  • During the investigation launched in March 2018, the Commission found that imports of Indica rice from both countries combined have increased by 89% in the past five rice-growing seasons.
  • At the same time, the investigation found that the prices were substantially lower than those on the EU market and had actually decreased over the same period.
  • This surge in low-price imports has caused serious difficulties for EU rice producers to the extent that their market share in the EU dropped substantially from 61% to 29%.

http://europa.eu/rapid/press-release_IP-19-427_en.htm

Sounds like product dumping which has caused significant economic damage.

Not many nations tolerate such act, even the US would react in kind.

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Hun Sen is use to having his way and perhaps his Chinese minders will step in to protect his profits.

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EU protecting high prices. Consumers pay more at the supermarket. 

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EU protects the rice farmers inside the EU, especially in Italy and Spain. 

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In the UK, hardly any of the rice seems to come from Europe any more (talking about plain rice, not added value stuff). But you can still buy rice for 20 baht a kilo .... but most is around 50 baht a kilo (with plenty of posh stuff at stupid prices). Would need to check the labels to find country of origin. 

 

Every country needs to protect it's own producers to some degree. There will nearly always be somewhere in the world that can produce a foodstuff  cheaper than your own country. Plenty of farmers have been ruined by that. Do you really want to be totally dependent on imports? You need a balance.

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hey hun sen, you do it your way and they do it theirs. remember, they not same you. you eat rice, they eat bread. ha ha

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On ‎4‎/‎12‎/‎2019 at 10:15 AM, justin case said:

why not Thailand ?

Maybe because Thailand does NOT belong to: the world’s least developed countries to export most goods to the EU free of duties

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3 minutes ago, puipuitom said:

Maybe because Thailand does NOT belong to: "the world’s least developed countries"...

 

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On ‎4‎/‎12‎/‎2019 at 11:14 AM, Snow Leopard said:

EU protecting high prices. Consumers pay more at the supermarket. 

You think, a € 175/ton = € 0,175 / kg gives a gigantic difference ? ? U think 99% of the consumers even do not have an idea about rice prices.  Remind: the average consumption of rice in Netherlands, Belgium Germany is approx 1.5 kg. per head per YEAR... Second: this import duty goes in the Big Common Wallet", also called the NATION'S TREASURY, out of which all governmental costs are paid. So, less import duty = increase taxes otherwise or austerity on the other way..

Edited by puipuitom

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