According to official Cambodian data released on Monday, July 8, rice exports from Cambodia to the European Union sharply declined after tariffs were introduced in the first half of the year, but losses were offset by increased sales to China.

In January, the EU introduced three-year tariffs on rice from Cambodia and Myanmar in order to protect its producers, after growing imports from these two Asian countries. In the first six months, rice exports to the EU decreased by 32 percent compared to the same period last year - to 93 503 tons.

But rice exports to China grew by 66 percent over the same period - up to 118.401 tons. And the total rice export grew by 3.7 percent - up to 281.538 tons, and Australia appeared among the new buyers of Cambodian rice.

Cann Kunti, vice president of grain exporting to foreign countries at Amru Rice (Cambodia) Co. Ltd, said that the introduction of tariffs by the European Union means that Cambodian long-grain white rice has lost its competitiveness in the European market.

“After taking protective measures, exports to the EU declined, so sales to China, and especially to Australia, are gaining momentum,” Kunti told Reuters.

According to Kunti, Amru has struck a deal with an Australian rice importer and expects annual exports to be around 20,000 tons. In the first half of this year, Cambodian rice sales to Australia reached 8,035 tons.