EU turns back on Cambodian sugar exports

By Lauren Crothers

PHNOM PENH

Cambodian exports of sugar to the European Union have plummeted by nearly 95 percent since 2013, as alarm raised by news of gross human rights, labor and land rights abuses bit into the sector.

On Tuesday, the Phnom Penh Post cited figures released by the EU’s Cambodia delegation, which showed that sugar exports fell from 65,500 tonnes in 2013, worth about $42 million today, to 38,000 tonnes in 2014, before hitting just 3,400 tonnes worth about $2 million by the end of 2015.

That represents a total drop of 94.8 percent over the period.

This comes despite Cambodia benefiting from what is known as the Everything But Arms initiative, which has enabled Cambodia to export its sugar to the EU duty free.

But the potential of the trade scheme has been severely mitigated by the emergence of stories of rampant land grabs, the use of child labour and unsafe working environments for the people employed by the sugar companies.

In January 2015, the EU hired two consultants to carry out an investigation into allegations of forced evictions by sugar companies doing business with the bloc, but the results of that probe have yet to be made public.

The delegation in Cambodia sent a statement to the Post, which said it was “clear that the concerns on the risk of possible accusations of complicity with alleged land grabbing and human rights abuses related to sugar cane production in Cambodia is discouraging EU importers to source from Cambodia, and the private sector to further invest in this industry.”

Calls by Anadolu Agency to David Pred, managing director of Inclusive Development International, and Eang Vuthy, executive director of Equitable Cambodia, were unsuccessful on Tuesday.

Both NGOs are part of a coalition that set up what is known as the “Clean Sugar” campaign in 2011, which put pressure on the Thai MitrPhol and Khon Kaen Sugar Industry companies, Cambodia’s Phnom Penh Sugar company and buyers Coca-Cola and Tate and Lyle.

In 2014, Coca-Cola audited its suppliers, causing Mitr Phol to pull out of Cambodia’s Oddar Meanchey province last year.

Tate and Lyle has also been sued by about 200 families affected by the industry in Koh Kong province.