The EU will withdraw the GSP only for long-grain rice imported from Myanmar, according to a discussion held at Myanmar Rice Federation on November 12.

Min Min, Deputy Director-General of Trade Department said: “Myanmar’s rice exports to the EU amount to about 400,000 tons of rice. The export of broken rice is about 300,000 tons and the rest are long-and short-grain rice. Long rice is similar to that produced by the EU. The EU has the right to levy taxes on the similar products.”

The 16 mm-long rice imported from Myanmar is mainly grown in the EU members countries—Italy and Spain. The EU plans to collect taxes on exports of long-grain rice in order to protect the interests of these countries. The withdrawal of GSP right may have little impacts on the rice export sector.

Aung Than Oo, Vice-President of the MRF said: “Exports of broken rice to the EU account for 65 per cent of the total rice export and other rice exports, for 35 per cent. Exports of long-grain rice account for 10 to 15 per cent. The MRF will release a clear message on November 16.”

The exact facts about the withdrawal of GSP rights by the EU will be released beyond November 19, Min Min added.

Ye Min Aung, General Secretary of the MRF said: “The EU is preparing to temporarily withdraw the GSP rights for three years. After the temporary withdrawal of the GSP rights, the EU will collect Euro 175 per ton on exports of rice and broken rice in the first year, Euro 150 in the second year and Euro 125 in the third year. Agricultural production in some EU countries will revive after three years. The EU will fix tax rates in order to remedy their losses for three years.”

Local rice exporters will not pay these taxes. It will be applied only to importers.

 In 2017-2018 FY, Myanmar exported over 400,000 tons of rice and broken rice to the EU, according to the MRF. The countries which have got the GSP rights can enjoy tax exemption on exports to the EU.

The EU lifted its ban on the GSP rights in June 2013.