Can Tho to export first batch of rice to EU with zero tariff
Trung An High-tech Farming JSC is completing the packaging of the first batch of rice to the EU, which will enjoy zero per cent tax.
Earlier, the company, based in the Mekong Delta city of Can Tho, signed rice contracts with three German consumers with a total of 3,000 tonnes. Of which, 150 tonnes of ST20 and Jasmine will be included in the first batch.
Trung An's General Director Pham Thai Binh said on Thursday that the company has exported rice to Europe for many years.
However, this is the first batch to be delivered to the region since the EU-Vietnam Free Trade Agreement (EVFTA) took effect on August 1, with zero per cent tariff, compared with 5-45 per cent in the past.
To be accepted in the EU, the rice must have clear origin and meet GlobalGAP or equivalent standards, according to Binh, adding that the company will sign more contracts with French and Italian clients in the future.
Rice quotas for Vietnam under the EVFTA are expected to push the country's rice exports up from the second half of this year, according to the Ministry of Industry and Trade (MoIT).
Under the EVFTA, the EU pledges to provide an annual rice quota of 80,000 tonnes to Vietnam and completely liberalise trade in broken rice.
Meanwhile, the EU also sets a range of conditions for those quotas such as origin certificates on Vietnamese rice. The rice exported to the EU must have authenticity certificates issued by Vietnamese authorities.
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