Cambodia Efforts to Resolve EU Allegations over Rice Origin Authenticity

[geovalin]

Cambodia Efforts to Resolve EU Allegations over Rice Origin Authenticity Will Fall Short without Third-Party Verification

Seeing declining rice acreage and depressed prices at home, the EU rice industry fears that Least Developed Countries (LDCs) like Cambodia are abusing the EU’s zero import duty status under the Everything But Arms (EBA) agreement. Part of the expressed fear is that exporters are shipping non-Cambodian rice to the EU under the guise that it is Cambodian rice, in order to illegally enjoy the zero-import duties. EBA zero duty privilege was granted to help Cambodian farmers and alleviate rural poverty.

In response, Cambodia is working to set up oversight infrastructure to improve the accountability of exporters, to verify that it is Cambodia origin rice being exported to the EU with zero import duties, not Vietnam or Thailand rice.

If Cambodia loses the zero import duty privilege, it would be a major blow to the nation’s efforts to increase its rice exports and reach one million tons annually by 2015; Cambodian rice would simply not be as price competitive. Cambodia exported 378,856 tons of milled rice in 2013, out of which 234,679 tons were exported to the European Union.

Local sources tell Oryza that Cambodia is now finalizing an official Code of Conduct (CoC) designed to assure the EU of the origin of rice supplies label as being from Cambodia. The CoC outlines that Cambodia will take seriously any EU accusations and will prosecute those found guilty. However, a much better option, and one the EU would take more seriously, is to outsource the process to a third party.

Cambodia should use an international inspection company/surveyor such as SGS to do the IP inspection at the point of production and milling. For example, a Cambodian mill will be inspected by third party surveyors who certify that the mill bought Cambodian paddy, and that paddy was milled in Cambodia, and then containers would be sealed at origin to destination points with third-party certification.

This will be an additional cost of course, but would clear the air and potentially allow Cambodia to keep the zero duty status under the EBA agreement and maintain, or grow, market share in the EU.

http://oryza.com/news/rice-news/cambodia-seeks-resolve-eu-allegations-over-rice-origin-authenticity