EU to lift Cambodia imports

THE European Union is planning to increase its imports of agricultural produce from Cambodia under its "Everything But Arms" trade initiative, an EU official said on Friday.

Cambodia, one of Asia's poorest countries, had "huge potential" to boost its exports and should take advantage of the special concessions offered by the EU, said Rafael Dochao Moreno, Charge d' Affaire of the EU Delegation to Cambodia.

The "Everything But Arms" trade initiative allows tariff-free imports of any product except weapons from poor countries.

"What we want to see is Cambodia increasing exports, especially in the agro business. There is huge potential for Cambodia to export to the EU," he said.

Cambodia's exports to the EU last year totalled US$700 million, while its imports from European countries were worth about US$200 million, Dochao Moreno said.

Cambodia is seeking to modernise and expand its agricultural sector, its biggest currency earner ahead of tourism and garments, with recent moves to boost production of sugar and rice, mainly for export. Cambodia recently revived its sugar industry after a halt of almost 40 years, mainly due to civil war, and plans to produce at least 160,000 tonnes a year by 2013, mostly for export to EU markets.

Reuters