Economist warns over threat to Cambodian rice exports

[geovalin]

A senior economist from the Asia Development Bank has warned the EU’s ban of Tricyclazole could damage Cambodia's agriculture sector, as farmers rush to eradicate the use of the fungicide by June. The strict new limits on pesticides will mean rice exported to the EU must not contain more than 0.01 milligram of the chemical per kilogram of the grain.

Speaking at the launch of ADB’s annual economic report, ADB country director for Cambodia Samiuela Tukuafu said an EU export ban would harm farmers and the national economy, since agriculture exports equate to about 30 percent of the country’s gross domestic product. “A ban would have a sudden impact on the farming community, because a lot of farmers depend on exports, particularly to the EU,” he said.

 
According to the ADB report, the agriculture sector is projected to grow by 1.8 percent this year, assuming favorable market and climate conditions. The report also says the Cambodian economy will remain strong over the next two years, expanding by about 7.1 percent. This will be driven by solid garment and footwear exports, construction and real estate development, rising government expenditure and a moderate increase in agricultural production.
 

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-- © Copyright Khmer Times 10/04

[Ulic]

Not really sure what point the economist is trying to make. The EU bans the rice with fungicide

residue. Farmers stop using the fungicide. The rice meets EU standards. No issues. Unless of

course the typical "if everyone else stops, I won't have to, so carry on.