The European Union have announced that they will be taking action to limit imports of Indica rice from Cambodia and Myanmar – because the prices have become so much lower than those on the EU market.
In a press release that went out yesterday they explained: “The European Commission has therefore decided today to re-introduce import duties.”
The Commission explained that their investigation “has confirmed a significant increase of imports of Indica rice from Cambodia and Myanmar into the European Union that has caused economic damage to European producers”.
Their issue is that such imports are cheaper that product in the EU. As they explain: “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%.”
As a result, the EU will now slap on a customs duty on the product of €175 per tonne, which will go down to €150 then €125 over the next two years.
This goes massively against the market place: the EU Commission found that imports of rice from Cambodia and Myanmar had increased by 89% over the past five rice-growing seasons, but the EU are going to take action against that now.
The action was requested by the Italian government, backed up by other European governments. The fact that these new measures will now be brought in for three years underlines how the EU is a protectionist bloc that screws the consumer.
Song Saran, CEO of Amru Rice, has said that: “Imposing tariffs on Cambodian rice would impact EU’s effort to alleviate poverty in least developed, and developing countries. In addition, the tariffs would affect EU importers and its own consumers.”
Outside of the European Union, the UK can benefit from cheaper prices and a become a nation that trades globally, rather than being little Europeans. That means leaving properly, including a swift exit from the Customs Union.