Research Team Leader: Mr. CHAN Bonnivoit Research Team Member: 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 Date Date Date Date Date Date Date Date Date Date Project approved : Sep 2006 In-Country briefing course : 16-19 Oct 2006 Research program agreed : 31 Oct 2006 Regional Workshop : 13-17 Nov 2006 (Hoi An, Vietnam) - Research began : Fourth week Nov 2006 - Completion of drafts, interactions with Mentors : Fourth week, Feb 2007 - Regional Progress Workshop : 15-18 Jan 2007 (Siem Riep) - Completion of drafts, interactions with Mentors : Third week, Mar 2007 - Final version : Fourth week, Mar 2007 - In-Country Policy Advising Workshop : 3-5 Apr 2007 - 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 overarching 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 caregiving 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 nonorganic 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.


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