Presentation at the regional worshop in Siem Riep relating to the research of Cambodia Rice Export...

8/9/2019 Presentation at the regional worshop in Siem Riep relating to the research of Cambodia Rice Export Promotion

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RESEARCH EXPERIENCE ABOUTRESEARCH EXPERIENCE ABOUT

CAMBODIACAMBODIA S RICE EXPORTS RICE EXPORT

PROMOTION IN POSTPROMOTION IN POST--WTOWTO

ACCESSIONACCESSION

Research Team Leader: Mr. CHANResearch Team Leader: Mr. CHAN BonnivoitBonnivoit

Research Team Member: Mr. KANNResearch Team Member: Mr. KANN VisethViseth

Mr. YEMMr. YEM SophalSophalMentor: Mr. Michael YOUNGMentor: Mr. Michael YOUNG

TARP Project Supported by AUSAID in 2007TARP Project Supported by AUSAID in 2007


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Details of Research TeamDetails of Research Team

Mr. Michael Young, Mentor, Former TARPMr. Michael Young, Mentor, Former TARPProjectProjects Managers Manager

Mr. ChanMr. Chan BonnivoitBonnivoit, Team Leader, Deputy Bureau, Team Leader, Deputy BureauChief of WTO Office, Notification and LegalChief of WTO Office, Notification and LegalCompliance Dept., Ministry of CommerceCompliance Dept., Ministry of Commerce

Mr.Mr. KannKann VisethViseth, Research Team, Deputy Bureau, Research Team, Deputy BureauChief of Research and Trade Analysis Office,Chief of Research and Trade Analysis Office,

Multilateral Trade Dept., Ministry of CommerceMultilateral Trade Dept., Ministry of Commerce

Mr.Mr. YemYem SophalSophal, Research Team, Deputy Bureau, Research Team, Deputy BureauChief of SubChief of Sub--Regional Cooperation Office,Regional Cooperation Office,

Multilateral Trade Dept., Ministry of CommerceMultilateral Trade Dept., Ministry of Commerce


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Summary of the Research WorkSummary of the Research Work

ProgramProgram DateDate -- Project approved : Sep 2006Project approved : Sep 2006

DateDate -- InIn--Country briefing course : 16Country briefing course : 16--19 Oct 200619 Oct 2006

DateDate -- Research program agreed : 31 Oct 2006Research program agreed : 31 Oct 2006 DateDate -- Regional Workshop : 13Regional Workshop : 13--17 Nov 2006 (Hoi An,17 Nov 2006 (Hoi An,

Vietnam)Vietnam)

DateDate -- Research began : Fourth week Nov 2006Research began : Fourth week Nov 2006

DateDate -- Completion of drafts, interactions with Mentors :Completion of drafts, interactions with Mentors : Fourth week, Feb 2007Fourth week, Feb 2007

DateDate -- Regional Progress Workshop : 15Regional Progress Workshop : 15--18 Jan 200718 Jan 2007

((SiemSiem RiepRiep))

DateDate -- Completion of drafts, interactions with Mentors :Completion of drafts, interactions with Mentors :

Third week, Mar 2007Third week, Mar 2007

DateDate -- Final version : Fourth week, Mar 2007Final version : Fourth week, Mar 2007

DateDate -- InIn--Country Policy Advising Workshop : 3Country Policy Advising Workshop : 3--5 Apr 20075 Apr 2007

DateDate -- Dissemination Seminar : 24 Apr 2007Dissemination Seminar : 24 Apr 2007


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Experiences from the ResearchExperiences from the Research

Th e p r ocess o f t h e r esear ch Th e p r ocess o f t h e r esear ch

Raised the topic and the objectives atRaised the topic and the objectives atthe Ministry.the Ministry.

Drafted by the research team the tableDrafted by the research team the table

of contents accordantly.of contents accordantly.

Modified the table of contents andModified the table of contents and

developed the research work plan withdeveloped the research work plan withthe mentor and trainers in Inthe mentor and trainers in In--CountryCountry

briefing course.briefing course.


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((concontt)) Th e p r ocess o f t h e r esear ch ( Th e p r ocess o f t h e r esear ch ( concontt))

Finalized the research work plan andFinalized the research work plan andtable of contents.table of contents.

Improved the theories and receivedImproved the theories and received

references of the literature at thereferences of the literature at theregional workshop.regional workshop.

Formulated the questionnaires andFormulated the questionnaires and

conducted the interview base on notconducted the interview base on notonly with standard, but with openonly with standard, but with open--endedendedquestions and added yet new questions.questions and added yet new questions.


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Analyzed the data, in which theAnalyzed the data, in which theinterviews are transcribed andinterviews are transcribed and

meaning unitsmeaning unitsare identified.are identified.

Found the key findings from the overFound the key findings from the over--

arching themes of the analysis.arching themes of the analysis.

Synthesized the policy options orSynthesized the policy options orrecommendation.recommendation.


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Drafted the report in which theDrafted the report in which theidentified data analysis are used toidentified data analysis are used toconstruct the structure as well theconstruct the structure as well the

themes of the research.themes of the research. Improved drafted report at theImproved drafted report at the

Country Workshop, in which theCountry Workshop, in which the

implications of the data, e.g., for careimplications of the data, e.g., for care--giving or policygiving or policy--making, are given alsomaking, are given alsoin the report.in the report.


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((concontt))Th e p r ocess o f t h e r esear ch Th e p r ocess o f t h e r esear ch

((concontt))CrossCross--checked by the mentor andchecked by the mentor andsenior officials the report beforesenior officials the report beforethe dissemination workshop.the dissemination workshop.

Having the presentation of theHaving the presentation of the

key findings and raised the policykey findings and raised the policyoptions or recommendation at theoptions or recommendation at thedissemination workshop.dissemination workshop.


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((concontt)) Ad va n ta g e f r o m t h e re se arch

Strengthening the researchs capacity and quality.

Improving the writing skill for research report.

Improving the presentations skill.

Exchanging the researchs experiences between theresearchers.

Gained the theory, the information and knowledge relating tothe research topic.

Being significant experiences for us as Officials in charging oftrade issues and perhaps as a discussion paper for our Ministryleading currently the Cambodian trade policy.


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((concontt)) Cons t r a in t s f r om t he r esear ch Cons t r a in t s f r om t he r esear ch

Lacking of the analytical skills by the team.Lacking of the analytical skills by the team.

The access to the data, including theThe access to the data, including the

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

Delaying of financial support can bring theDelaying of financial support can bring theresearch into nonresearch into non--motivation, inefficiency andmotivation, inefficiency and

postpone of the research work plan .postpone of the research work plan .


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Aim of the StudyAim of the Study

To d eve lop po l i ci es and i nst r u m en t a l To d eve lop po l i ci es and i nst r um en t a l

op t i ons t o p r om o t e Cam bod i an op t i ons t o p r om o t e Cam bod i an r i ce ex po r t r i ce ex po r t

To assess Cambodia competitivenessTo assess Cambodia competitiveness

for trade in ricefor trade in rice To assess the market accesses ofTo assess the market accesses of

Cambodian riceCambodian rice

To assess the constraints of CambodianTo assess the constraints of Cambodiantrade in ricetrade in rice

To find out political framework to beTo find out political framework to be

implementedimplemented


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Key Finding of the ResearchKey Finding of the Research

A. Cam bod ia com pet i t i veness fo r t r ade i n r i ce A . Cam bod ia com pet i t i veness fo r t r ade i n r i ce Lack on the land for small proportion of rural household,Lack on the land for small proportion of rural household,

although it seems significant progress in addressing thealthough it seems significant progress in addressing theweaknesses in land allocation procedures.weaknesses in land allocation procedures.

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

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

Using of nonUsing of non--organic and organic fertilizer and landorganic and organic fertilizer and landpreparation account for the highest cost of thepreparation account for the highest cost of theproduction phase.production phase.

Irrigation area is estimated currently to be 44.48Irrigation area is estimated currently to be 44.48percent of the total cultivated land.percent of the total cultivated land.


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((concontt))A. Cambod ia compet i t i veness fo r t rade i n r i ce A . Cambod ia compet i t i veness fo r t rade i n r i ce

( c o n ( c o n t )t )

Lack of credit providers for the rice producers, tradersLack of credit providers for the rice producers, tradersand millers.and millers.

Agricultural extension services fail also to meet theAgricultural extension services fail also to meet the

demands of farmers, especially cash crop producers.demands of farmers, especially cash crop producers. Government exempts the agricultural land tax andGovernment exempts the agricultural land tax and

other input tax, and income taxother input tax, and income tax

Government encourages the agricultural and ruralGovernment encourages the agricultural and rural

development, and other small scale supports.development, and other small scale supports. More liberal market accesses for all kind ofMore liberal market accesses for all kind of

agricultural imported products, but consistence withagricultural imported products, but consistence withWTO agreementsWTO agreements


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((concontt))B. Dom est i c const r a in t s and m ark e t l i nk age B. Dom est i c const r a in t s and m ark e t l i nk age

Most farmersMost farmershousehold seems yet to produce ricehousehold seems yet to produce ricejust for sufficient consumption in the family, it seemsjust for sufficient consumption in the family, it seemsyet that they are not prepare to produce for export.yet that they are not prepare to produce for export.

Unpredictable paddy supply for the market.Unpredictable paddy supply for the market.

Limited ability of traders and miller to buy and storeLimited ability of traders and miller to buy and store

paddy for fulfilling order requirement.paddy for fulfilling order requirement.

Overall poor infrastructure and transaction cost areOverall poor infrastructure and transaction cost arestill a significant element to impede the exportation.still a significant element to impede the exportation.


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((concontt))C. Mar k et AccessC. Mar k et Access The agreement on agriculture provided many benefitsThe agreement on agriculture provided many benefits

toto LDCsLDCs regarding to eliminate nonregarding to eliminate non--tariff and tarifftariff and tariffbarriers and DF&QF.barriers and DF&QF.

Tariff rate quota expanded in both developed andTariff rate quota expanded in both developed and

developing countries.developing countries.

WTO special rule forWTO special rule for LDCsLDCs in term of domesticin term of domesticsupports, but not distorting to trade.supports, but not distorting to trade.

The world market for rice is highly influenced byThe world market for rice is highly influenced bysubsidies as such US, Japan and South Korea.subsidies as such US, Japan and South Korea.

Those tariff of rice products is still high and quotasThose tariff of rice products is still high and quotasare remained.are remained.


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Policy Issues arising from thePolicy Issues arising from the

ResearchResearch A. Po l icy p r ob lem s: W ha t de te rm ines A. Po l icy p r ob lem s: W ha t de t er m ines

Cam bod ian r i ce ex po r t p r om o t i ons? Cam bod ian r i ce ex po r t p r om o t i ons?

Do current agricultural tax policies andDo current agricultural tax policies andinvestment climate impede Cambodian riceinvestment climate impede Cambodian riceexport?export?

Do current markets access policies of someDo current markets access policies of someCountries distort Cambodian rice export?Countries distort Cambodian rice export?

Does unregulated export of paddy rice impedeDoes unregulated export of paddy rice impedemilled rice export and lost jobs and valuemilled rice export and lost jobs and valueadded?added?


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Research (Research (concontt))B. Ch an ges r equ i r ed B. Ch an ges r equ i r ed Continue to undertake an effectively work andContinue to undertake an effectively work and

managements involved in land reforms (social andmanagements involved in land reforms (social andeconomic land concessions).economic land concessions).

To consider liberalization of using of land and landTo consider liberalization of using of land and land

ownership for foreign direct investors.ownership for foreign direct investors.

To promote using of organic rice production andTo promote using of organic rice production andappropriate using of nonappropriate using of non--organic fertilizer riceorganic fertilizer rice

production.production.

To establish the farm community which is easier toTo establish the farm community which is easier totransfer the modern technology and the information.transfer the modern technology and the information.


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Research (Research (concontt))B. Ch ang es r equ i r ed ( con B. Ch ang es r equ i r ed ( con t )t ) To establish regional training and researchTo establish regional training and research

institutions.institutions.

To attract and convince all kinds of the financialTo attract and convince all kinds of the financial

investments and direct investments intoinvestments and direct investments intoagricultural sector.agricultural sector.

Continue to maintain tax exemption on theContinue to maintain tax exemption on the

cultivated land, farmer income tax andcultivated land, farmer income tax andagricultural input tax.agricultural input tax.

To accelerate irrigation system and infrastructureTo accelerate irrigation system and infrastructuredevelopment.development.


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Research (Research (concontt))B. Ch ang es r equ i r ed ( con B. Ch ang es r equ i r ed ( con t )t )

To promote private suppliers in generatingTo promote private suppliers in generating

and making available low cost electricity.and making available low cost electricity.

To promote fair competitions and to takeTo promote fair competitions and to take

action in implementing the SPS and TBTaction in implementing the SPS and TBTregulations.regulations.

To stop formal and informal export of paddy.To stop formal and informal export of paddy.

Continue to negotiateContinue to negotiate bilateralbilateral andandmultilateral to open the market and to receivemultilateral to open the market and to receivethe GSP.the GSP.


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Research (Research (concontt))C. Mor e in fo r m a t i on o r m or e resea rch C. Mor e in f o r m a t i on o r m or e resea rch

r equ i r ed r equ i r ed Research the ability in attracting theResearch the ability in attracting the

investments on rice sector.investments on rice sector.

Research on economic comparative advantageResearch on economic comparative advantagebetween the producing of organic and nonbetween the producing of organic and non--

organic rice.organic rice.

Research the effective marketing to promoteResearch the effective marketing to promotethe rice export.the rice export.

Research the comparison about the economicResearch the comparison about the economic

benefits of exporting paddy and milled rice.benefits of exporting paddy and milled rice.


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Social and economical Impacts inSocial and economical Impacts in

Implementing the political OptionsImplementing the political Options Posi t i ve im pact s: Posi t i ve im pact s:

To acquire effective farmer community easierTo acquire effective farmer community easierto coordinate in term of developmentto coordinate in term of development

processes and marketing of the rice products.processes and marketing of the rice products.

To increase the productivities of the riceTo increase the productivities of the riceproduction.production.

To create the jobs.To create the jobs.

To expand the market accesses and increasingTo expand the market accesses and increasingthe volume of rice export.the volume of rice export.

To spread out the investments in the sector.To spread out the investments in the sector.


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Implementing the political Options (Implementing the political Options (concontt)) Nega t i ve im pact s: Nega t i ve im pact s:

Difficulty to adopt the new technology because ourDifficulty to adopt the new technology because our

farmers still face limited knowledge.farmers still face limited knowledge. To distort the informal and formal paddy riceTo distort the informal and formal paddy rice

exporters.exporters.

Loss of the farmerLoss of the farmers opportunity in prices opportunity in pricecompetition.competition.

Loss of the state revenue because of taxLoss of the state revenue because of taxexemptions.exemptions.

Government spend a lot of budget on theGovernment spend a lot of budget on thedevelopment of irrigation and infrastructuredevelopment of irrigation and infrastructuresystems.systems.

Poor farmers can lost of land for rice production.Poor farmers can lost of land for rice production.


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Implementing the political Options (Implementing the political Options (concontt)) H ow shou l d t hese i m pact s be t ak en i n t o H ow shou l d t hese i m pact s be t ak en i n t o

accoun t i n dev e lopm en t and im p l em en t at i on accoun t i n dev e lopm en t and im p l em en t at i on

o f t he po l icy op t i ons? o f t he po l i cy op t i ons? The loss of the state revenue can beThe loss of the state revenue can be

compensate with improvement of rice exportcompensate with improvement of rice exportvolume and expansion of the productivities involume and expansion of the productivities in

the agricultural sector.the agricultural sector.

To provide some social and administrativeTo provide some social and administrativeincentive for milled rice exporters.incentive for milled rice exporters.

To enhance supporting to the farmerTo enhance supporting to the farmerCommunity in the Country.Community in the Country.


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THANK S YOUHANK S YOU

Presentation at the regional worshop in Siem Riep relating to the research of Cambodia Rice Export...

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