Core Tip: The Italian government has asked the European Commission to employ the safeguard clause on rice imports from Cambodia and Myanmar in order to “protect Italian rice growers”.
The Italian government has asked the European Commission to employ the safeguard clause on rice imports from Cambodia and Myanmar in order to “protect Italian rice growers”.
However, Luca Bertoletti, European Affairs Manager of the Consumer Choice Centre, criticised the request and said that it’s time the European Union stopped pushing forward protectionism.
“The reasoning behind trade barriers is to protect a specific industry – in this case Italian rice growers – from competition,” he said.
“What’s usually overlooked though is that whilst taking the producer side, protectionist policies end up causing a great harm to consumers who get stripped of the opportunity to enjoy the benefits of free trade.
“The Italian government is simply asking to limit the affordability of rice.”
He added: “The Association of South East Asian Nations (ASEAN) is the third largest trading partner of the EU. In 2017, co-operation with the ASEAN resulted in the output of more than € 227,3 billion in goods.
“As part of this economic engagement, the European Union has been actively trading with both Myanmar and Cambodia and therefore using the agricultural imports, in particular rice, to feed up the EU market.
“Before employing another protectionist measure, the European Commission should ask itself whether it wants to ensure European consumers are able to enjoy a great supply of rice and consequently a favourable pricing or whether it is the unwillingness of one group to compete which matters more.”