The Cambodian Rice Federation (CRF) on Thursday appealed to the European Union to save the livelihoods of half a million families after the latter imposed duties on Cambodian rice earlier this year.

The CRF said in a statement that in the first six months of 2019, Cambodia exported more than 93,000 tons of rice to the EU, down almost half compared to the same period last year.

"As of the first of this year, the EU imposed duties on Cambodian rice in order to protect domestic producers. This has been acutely felt by most of the 500,000 families in Cambodia who eke out a living farming jasmine and fragrant long grain rice, in spite of the fact that these varieties are geographically specific and do not compete directly with products grown in the EU," the statement said.

The EU reinstated in January the normal customs duties of 175 euros (194 U.S. dollars) per ton for Cambodian rice in year one, progressively reducing it to 150 euros (166 U.S. dollars) per ton in year two and 125 euros (138 U.S. dollars) per ton in year three.

As if this weren't painful enough, the EU is now considering the withdrawal of its "Everything But Arms" (EBA) program, the statement said, adding that this trade arrangement allows goods from Cambodia and other developing nations to enter the EU free of duties and tariffs.

"EU legislators are threatening to end the arrangement to press for policy reforms in Cambodia. A political thrashing could lead to a virtual threshing of an industry and a way of life," it said.

Since 2001, not only has the EBA eased the movement of goods for Cambodia, it has provided a secure platform upon which an entire economy has been able to embrace growth and prosperity in an increasingly demanding world market, the statement said.

Cambodian rice is produced in keeping with all international standards and the CRF supports producers with programs that are designed to encourage ethical, responsible and sustainable farming practices, it said, adding that the goal is to encourage a system that is fair and one that results in clear benefits for growers.

"Without the EBA, these efforts will come to naught," the statement said. "The CRF appeals to the EU to save the livelihoods of half a million families and to save the work that we have done to earn your respect, that of consumers and that of those we serve."

The EU started in February the 18-month process that could lead to the temporary suspension of Cambodia's duty-free trading access to the EU market under the EBA scheme due to concerns over labor rights.

Exports from Cambodia to the EU totaled 4.77 billion euros (5.31 billion U.S. dollars) last year, most of the products the kingdom ships to the EU market are garment, footwear, travel goods, and rice.

If the EBA is stripped, tariffs on garment, footwear, and bicycle products will increase 12 percent, 16 percent and 10 percent, respectively, according to a World Bank’s report released in May.

Cambodian Prime Minister Samdech Techo Hun Sen announced in March a number of measures, including cutting production and export costs, to support local manufacturers and exporters in case the EU withdrew the EBA scheme from Cambodia.

He said the measures had helped reduce operating costs for producers and exporters by about 400 million U.S. dollars per year.

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