The value of Cambodian exports to the EU is expected to decline between $513-$654 million per annum if the country’s tariff-free access is withdrawn, according to a World Bank report released on Monday.

The World Bank’s assessment – made in a report named Cambodia Economic Update – was based on last year’s data on the value of Cambodia’s three key EU exports – clothing, footwear and milled rice.

A bank official on Monday said the figure would have been even higher if bicycle exports to the EU – which were valued at $331 million last year – had been included in the study.

In January this year, EU tariffs were introduced on Cambodian and Myanmar milled rice imports to the bloc at $200 per tonne in the first year. The measure intends to protect local rice producers following complaints from Italian and Spanish farmers that they were being undercut.

World Bank country manager for Cambodia Inguna Dobraja said improving the Kingdom’s investment climate and reducing the cost of doing business, along with building a skilled labour force, are the key priorities to sustain strong economic growth in the medium-term.

“Growing evidence highlights that investment in people [is] essential to drive economic progress and sustainable development. Investing in people and improving the quality of Cambodia’s human capital should remain at the core of Cambodia’s aspirations to reach upper-middle income economy [status] by 2030,” she said.http://www.phnompenhpost.com/business/world-bank-eu-exports-may-decline-654m