Cambodian Prime Minister Hun Sen ordered commerce minister Pan Sorasak to consider on filing complaint to World Trade Organization regarding EU’s tax imposition on Cambodian rice, speaking at the 18th Royal Government-Private Sector Forum held Friday at the Peace Palace.
The order was made following the request from Cambodian Rice Federation (CRF).
“CRF requested for complaint to WTO […] the tax imposition is a violation against Cambodia,” stated the Premier.
The European Union has begun to impose import taxes on rice of Cambodia and Myanmar, which are exported to 28 EU Member States, for a period of three years from 18 January 2019-2021.
The tax will cost Cambodia 175 euros per ton in the first year, 150 euros the second year, and 125 euros the third year.
In 2018, Cambodia exported nearly 300,000 tons of rice to Europe, an equivalent to 43% of the total export volume of 620,000 ton. Commerce experts claimed that Cambodia is likely to lose $50 million per annum.
The Ministry of Commerce said that the EU’s decision on 17 January 2019 did not fully reflect international trade rules, technical standards, truth, and good relations and cooperation between Cambodia and EU.
EU’s decision will murder Cambodian farmers and families in debt of credit institutions.