RESEARCH EXPERIENCE ABOUT

CAMBODIA’ S RICE EXPORT

PROMOTION IN POST-WTO
ACCESSION

Research TeamLeader: Mr. CHAN Bonnivoit

Research TeamMember: Mr. KANN Viseth
Mr. YEM Sophal
Mentor: Mr. Michael YOUNG

TARP Project Supported by AUSAID in 2007

 Details of Research Team
‹ Mr. Michael Young, Mentor, Former TARP
Project’s Manager

‹ Mr. Chan Bonnivoit, Team Leader, Deputy Bureau

Chief of WTO Office, Notification and Legal
Compliance Dept., Ministry of Commerce

‹ Mr. Kann Viseth, Research Team, Deputy Bureau

Chief of Research and Trade Analysis Office,
Multilateral Trade Dept., Ministry of Commerce

‹ Mr. Yem Sophal, Research Team, Deputy Bureau

Chief of Sub-Regional Cooperation Office,
Multilateral Trade Dept., Ministry of Commerce
 Summary of the Research Work
Program
‹ Date - Project approved : Sep 2006
‹ Date - In-Country briefing course : 16-19 Oct 2006
‹ Date - Research program agreed : 31 Oct 2006
‹ Date - Regional Workshop : 13-17 Nov 2006 (Hoi An,
Vietnam)
‹ Date - Research began : Fourth week Nov 2006
‹ Date - Completion of drafts, interactions with Mentors :
‹ Fourth week, Feb 2007
‹ Date - Regional Progress Workshop : 15-18 Jan 2007
(Siem Riep)
‹ Date - Completion of drafts, interactions with Mentors :
Third week, Mar 2007
‹ Date - Final version : Fourth week, Mar 2007
‹ Date - In-Country Policy Advising Workshop : 3-5 Apr 2007
‹ Date - Dissemination Seminar : 24 Apr 2007
Experiences from the Research
‹ The process of the research
– Raised the topic and the objectives at
the Ministry.
– Drafted by the research team the table
of contents accordantly.
– Modified the table of contents and
developed the research work plan with
the mentor and trainers in In-Country
briefing course.
Experiences from the Research
(con’t)
‹ The process of the research (con’t)
– Finalized the research work plan and
table of contents.
– Improved the theories and received
references of the literature at the
regional workshop.
– Formulated the questionnaires and
conducted the interview base on not
only with standard, but with open-ended
questions and added yet new questions.
Experiences from the Research
(con’t)
‹ The process of the research (con’t)
– Analyzed the data, in which the
interviews are transcribed and
“meaning units” are identified.
– Found the key findings from the over-
arching themes of the analysis.
– Synthesized the policy options or
recommendation.
Experiences from the Research
(con’t)
‹ The process of the research (con’t)
– Drafted the report in which the
identified data analysis are used to
construct the structure as well the
themes of the research.
– Improved drafted report at the
Country Workshop, in which the
implications of the data, e.g., for care-
giving or policy-making, are given also
in the report.
Experiences from the Research
(con’t)
‹ The process of the research
(con’t)
– Cross-checked by the mentor and
senior officials the report before
the dissemination workshop.
– Having the presentation of the
key findings and raised the policy
options or recommendation at the
dissemination workshop.
 Experiences from the Research
(con’t)
‹ Advantage from the research
– Strengthening the research’s capacity and quality.

– Improving the writing skill for research report.

– Improving the presentation’s skill.

– Exchanging the research’s experiences between the

researchers.

– Gained the theory, the information and knowledge relating to

the research topic.

– Being significant experiences for us as Officials in charging of

trade issues and perhaps as a discussion paper for our Ministry
leading currently the Cambodian trade policy.
Experiences from the Research
(con’t)
‹ Constraints from the research
– Lacking of the analytical skills by the team.

– The access to the data, including the

conducting of the interview, was also the
problem for the research team.

– Delaying of financial support can bring the

research into non-motivation, inefficiency and
postpone of the research work plan .
 Aim of the Study
To develop policies and instrumental
options to promote Cambodian
rice export
‹ To assess Cambodia competitiveness
for trade in rice
‹ To assess the market accesses of
Cambodian rice
‹ To assess the constraints of Cambodian
trade in rice
‹ To find out political framework to be
implemented
 Key Finding of the Research
A. Cambodia competitiveness for trade in rice
‹ Lack on the land for small proportion of rural household,
although it seems significant progress in addressing the
weaknesses in land allocation procedures.

‹ Cambodia still be one of the lowest levels of rice yields

in the region, despite the improvement of the
productivities in recently year.

‹ Using of non-organic and organic fertilizer and land

preparation account for the highest cost of the
production phase.

‹ Irrigation area is estimated currently to be 44.48

percent of the total cultivated land.
 Key Finding of the Research
(con’t)
A. Cambodia competitiveness for trade in rice
(con’ t)

‹ Lack of credit providers for the rice producers, traders

and millers.
‹ Agricultural extension services fail also to meet the
demands of farmers, especially cash crop producers.
‹ Government exempts the agricultural land tax and
other input tax, and income tax
‹ Government encourages the agricultural and rural
development, and other small scale supports.
‹ More liberal market accesses for all kind of
agricultural imported products, but consistence with
WTO agreements
 Key Finding of the Research
(con’t)
B. Domestic constraints and market linkage

‹ Most farmers’ household seems yet to produce rice

just for sufficient consumption in the family, it seems
yet that they are not prepare to produce for export.

‹ Unpredictable paddy supply for the market.

‹ Limited ability of traders and miller to buy and store

paddy for fulfilling order requirement.

‹ Overall poor infrastructure and transaction cost are

still a significant element to impede the exportation.
 Key Finding of the Research
(con’t)
C. Market Access
‹ The agreement on agriculture provided many benefits
to LDCs regarding to eliminate non-tariff and tariff
barriers and DF&QF.

‹ Tariff rate quota expanded in both developed and

developing countries.

‹ WTO special rule for LDCs in term of domestic

supports, but not distorting to trade.

‹ The world market for rice is highly influenced by

subsidies as such US, Japan and South Korea.

‹ Those tariff of rice products is still high and quotas

are remained.
 Policy Issues arising from the
Research
‹ A. Policy problems: What determines
Cambodian rice export promotions?
– Do current agricultural tax policies and
investment climate impede Cambodian rice
export?

– Do current markets access policies of some

Countries distort Cambodian rice export?

– Does unregulated export of paddy rice impede

milled rice export and lost jobs and value
added?
 Policy Issues arising from the
Research (con’t)
B. Changes required
‹ Continue to undertake an effectively work and
managements involved in land reforms (social and
economic land concessions).

‹ To consider liberalization of using of land and land

ownership for foreign direct investors.

‹ To promote using of organic rice production and

appropriate using of non-organic fertilizer rice
production.

‹ To establish the farm community which is easier to

transfer the modern technology and the information.
 Policy Issues arising from the
Research (con’t)
B. Changes required (con’ t)
‹ To establish regional training and research
institutions.

‹ To attract and convince all kinds of the financial

investments and direct investments into
agricultural sector.

‹ Continue to maintain tax exemption on the

cultivated land, farmer income tax and
agricultural input tax.

‹ To accelerate irrigation system and infrastructure

development.
 Policy Issues arising from the
Research (con’t)
B. Changes required (con’ t)
‹ To promote private suppliers in generating
and making available low cost electricity.

‹ To promote fair competitions and to take

action in implementing the SPS and TBT
regulations.

‹ To stop formal and informal export of paddy.

‹ Continue to negotiate bilateral and

multilateral to open the market and to receive
the GSP.
 Policy Issues arising from the
Research (con’t)
C. More information or more research
required
– Research the ability in attracting the
investments on rice sector.
– Research on economic comparative advantage
between the producing of organic and non-
organic rice.
– Research the effective marketing to promote
the rice export.
– Research the comparison about the economic
benefits of exporting paddy and milled rice.
 Social and economical Impacts in
Implementing the political Options
‹ Positive impacts:
– To acquire effective farmer community easier
to coordinate in term of development
processes and marketing of the rice products.
– To increase the productivities of the rice
production.
– To create the jobs.
– To expand the market accesses and increasing
the volume of rice export.
– To spread out the investments in the sector.
 Social and economical Impacts in
Implementing the political Options (con’t)
‹ Negative impacts:
– Difficulty to adopt the new technology because our
farmers still face limited knowledge.
– To distort the informal and formal paddy rice
exporters.
– Loss of the farmer’s opportunity in price
competition.
– Loss of the state revenue because of tax
exemptions.
– Government spend a lot of budget on the
development of irrigation and infrastructure
systems.
– Poor farmers can lost of land for rice production.
 Social and economical Impacts in
Implementing the political Options (con’t)
‹ How should these impacts be taken into
account in development and implementation
of the policy options?
– The loss of the state revenue can be
compensate with improvement of rice export
volume and expansion of the productivities in
the agricultural sector.

– To provide some social and administrative

incentive for milled rice exporters.

– To enhance supporting to the farmer

Community in the Country.
THANKS YOU