Page 82 - Regional_rice_report_with_full_bookmarks

PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

Many Least Developed Countries in Southeast Asia have earned the benefits
from EU’s EBA (Everything but Arms) deal, with duty-free and quota-free trades
allowing these countries to access the European markets. The EBA trade deals have
given a major trade boost toward countries under the development line, where
countries that have reached a higher stature will be limited under quota. This gives
many under-developed countries in the Southern East area a major advantage toward
trading with Europe. Other than EBA, countries participated in ASEAN would also
receiving huge trade boost, with developed countries as Japan, Australia, China have
signed regional trade deals with ASEAN. The trade deals have brought major benefits
for rice export toward difficult markets.

4.2.3. Market competition

The traditional competitors in the world rice market for many years are still
the leading rice exporters, including India, Thailand, Pakistan, China, and the United
States. However, in recent times, several emerging countries are threatening Viet
Nam, Cambodia, Lao PDR exporters. For the low and medium-quality rice segment
with low prices, Myanmar is one of potential exporters of traditional products in the
future with competitive export prices at an average of 337 USD/ton in 2019.

Many countries in the region are now focusing on agricultural development, with
the rice sector as part of the development plan. The development of rice production
for Thailand have been halted by the impact of degrading natural resources, due to
the exploit for agricultural and economic development. With the policy for restoring
the natural resources, it is considered that rice export in Thailand will rises back in the
coming period.

Higher quality in exchange for quantity, shift in market demands, and political
impacts changing the competitive power in each country. While countries like
Thailand and Viet Nam maintaining or improving their strength in trading, Lao PDR
and Cambodia still heavily depends on one-sided trade deals (China being one of the
major partners). Expanding the market through international integration, extending
the capacity for FTA will improve the capacity for rice competitive power in both
countries.

4.2.4. Changes in water and land resources

In Cambodia case, paddy land has been focused on developing and deploying
for farming technologies to increase crop production, but without any governance
and supporting service, the quality of land slowly degrading. In future, paddy areas
will be reduced to better focus on high development, as well as transitioning into
other products. Irrigation system in Cambodia is insufficient, with no infrastructure to
develop a stable system of irrigation. Mainly based on rainwater as source of irrigation,
climate change will heavily be affecting the rice production in the area. New policies
and regulations are now in work for improving and upgrading the irrigation system in
all of rice cultivation area in Cambodia.

The case of Lao PDR is affected by the climate change situation, with frequent
droughts and floods. The rivers of the Lao PDR contribute about 35 percent of total
water volume to the lower Mekong River system. Protecting these watersheds is
therefore of regional as well as of national importance, particularly for lowland

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