ST24 and ST25 Rice enjoy Tariff preferences when exported to the EU

DNHN - Nine other Vietnamese rice varieties—Jasmine 85, ST5, ST20, Nang Hoa 9, VD20, RVT, OM 4900, OM 5451, and Tai Nguyen Cho Dao—were given advantageous tax policies when exported to the EU before ST24 and ST25 received these privileges.

When it comes to exporting to the European Union (EU) market, the ST25 rice variety—which The Rice Trader named the "World's Best Rice"—has reportedly been given tariff advantages. When exported to the EU, the ST24 rice variety will also receive tax breaks in addition to ST25. The EU-Vietnam Free Trade Agreement (EVFTA) commitments are what led to these actions.

Nine other Vietnamese rice varieties, including Jasmine 85, ST5, ST20, Nang Hoa 9, VD20, RVT, OM 4900, OM 5451, and Tai Nguyen Cho Dao, were already enjoying preferential tax policies when exported to the EU before ST24 and ST25 being granted these privileges. Vietnamese rice is mostly grown in the Mekong Delta region, sometimes referred to as the country's "rice granary."

Vietnam is entitled to a preferential tariff quota of up to 80,000 tonnes of rice per year from the EU under the terms of the EVFTA. This quota is made up of 30,000 tonnes of milled rice, 20,000 tonnes of unmilled rice, and 30,000 tonnes of fragrant rice. In addition, the agreement guarantees the full liberalisation of broken rice and, after three to five years, lowers tariffs to 0% for processed rice products.

Vietnam exported more than 94,500 tonnes of rice to the EU in total last year. In the first half of 2023, the country continued to grow, exporting more than 58,000 tonnes of rice to the EU market with a turnover of almost US$39 million, or a 16% increase in volume and a 5.7% increase in turnover over the same period in the previous year.

PV