European Union (EU) has withdrawn GSP for long grain rice exported from Myanmar and plans to set a tariff in 2019

European Union (EU) has withdrawn Generalised scheme of preferences (GSP) granted for long grain rice (Indica rice) exported from Myanmar and planned to put a tariff next year, according to a report from Reuters news agency.

The EU countries failed to determine whether to impose tariffs on rice coming from Myanmar and Cambodia from the start of next year to curb a surge in imports, leaving the European Commission (EC) to make the final decision.

The EC had proposed the measures to control rice exports from Myanmar and Cambodia for three years and the commission would enact them when there is no decisive vote from the member states.

The Commission’s proposal was to set a duty of 175 Euros per ton of long grain rice in 2019, dropping to 150 Euros in 2020 and 125 Euros in 2021.

Cambodia and Myanmar benefit from the EU’s Everything But Arms (EBA) scheme that allows the least developed countries to export most goods to the European Union free of duties. However the issue is not related with the EBA.

Both countries face losing their special access to the world’s largest trading bloc over their domestic human rights records.

The commission opened an investigation into rice imports from the two countries in March following a complaint by Italy that the rice export from both countries is hurting their local rice production.

It was found that a significant surge in imports had caused economic damage to the rice sector in Europe. Long grain rice grows in eight southern European countries including Portugal and Bulgaria. The commission said the surge of long grain rice export made impact on rice market in Europe. The two countries’ exports to the European Union of long grain Indica rice have increased from about 9,000 tons in 2012 to 360,000 tons in 2017.

The EU granted the GSP right on Myanmar in June 2013.

Myanmar exported about 400,000 tons of rice and broken rice to EU annually. The broken rice export is up to 65 per cent of total rice and broken rice export and the rest is rice export, according to Myanmar Rice Federation (MRF).

Aung Than Oo, Vice Chair of the MRF said the tariffs imposed by the EU will not hurt the entire rice export to EU as the export of long grain rice to EU is only about 10 or 15 per cent of total rice and broken rice export.

(Eleven Media Group: https://elevenmyanmar.com/news/eu-to-put-a-levy-on-long-grain-rice-from-myanmar-next-year )

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