Rice Policy Reforms of the European Union and its Impact on Rice Exports from Pakistan

Mohammad Aslam

Abstract

The study of the import rice regime of the EU is important as it has implications for Pakistan. The EU is a sizable importer of rice in the world in terms of volume. Its rank as net importer of rice further improves to 4th when considered in value terms as it is importer of high quality long grain rice. Pakistan is a producer of high quality aromatic rice called ‘basmati’ that fetches premium price in the EU (27) and Middle East. The paper attempts an historical review of the Rice Policy of EU and the transition through which it has passed. Then, there is discussion of present status of the rice regime. This is undertaken against the backdrop of the policy reforms introduced first in 1995-2000 and then post-2003 reforms. These reforms are studied with special reference to their impact on rice exports from Pakistan. The WTO related issues of concern such as reducing domestic support in EU, increasing market access and changing of natural export competitiveness through grant of export subsidies are also reviewed. Finally, conclusions of the study are spelled out along with their policy implications. Pakistan in 2008 emerged as the third largest exporter of rice in the world accounting for 13.8% of the total world exports. Its share of the EU market has also been on the increase in the recent past (around 12%). In order to sustain and further increase its share, it requires to register and protect its ‘basmati’ under GI rule, settle the dispute regarding ‘super basmati’, press for ending quota restrictions, build up indigenous capacity for DNA test, develop expertise for dispute resolution and promote culture of multiple crop.