Exports to China through customary borders proposed
Exports to China through customary borders proposed
The governor of Phongsaly province has called for government intervention in order to negotiate a special policy with China to allow the export of Lao farm products to China through customary border checkpoints.
The call was made after learning that Lao exporters have encountered difficulties in exporting agricultural commodities grown in the northernmost province of Phongsaly to the northern neighbour.
Provincial governor, Mr Khamjane Vongphosy highlighted the barriers Lao exporters are facing at the government's four-day open meeting that closed recently in Vientiane, particularly in relation to customary border checkpoints.
“The buyers said that the products were not imported through international checkpoints, and failed to meet quality standards. This was among the reasons given for the barriers imposed on Lao traders and farmers,” he told the meeting.
Mr Khamjane added that the province faces many challenges, meaning it struggles to comply with China's requirements, the foremost being it is a very long way to the sole international border checkpoint in the province.
The governor also admitted that the quality of some Lao farm products still falls short of the standards that China and Asean, of which Laos is a member, have agreed upon.
As a result, the governor called for negotiations to seek a special policy to facilitate exports through customary checkpoints and make it easier for Lao farmers and traders to export their goods independently.
“If done without the cooperation of Chinese investors, the export of certain types of goods encounters difficulties” Mr Khamjane explained, lamenting that Lao exporters have experienced goods seizures or been offered unreasonably low prices for their produce.
Phongsaly is exporting many products to China including tea, sugarcane, rubber, sweet corn, bananas, pumpkins and coal.
Most of the facilitation is being done by Chinese investors who have been engaged in production in the province in the form of contract-farming with local farmers, then exporting the produce back to China.
In addition to this, the governor stated that some investors have failed to follow the contracts they signed with authorities and farmers such as guaranteeing price floors.
M eanwhile some have also employed illegal foreign workers, pressing the need for the provincial authorities to work through the issues to ensure local people ob tain some benefits from the enterprises.
The governor recognised the need to maintain regular contact and exchange visits with the relevant parties in China in order to enhance cooperation and address any trade barriers, aiming to boost investment, alleviate poverty and drive economic growth.
The province pledged to continue creating conditions conducive for businesses on both sides to cooperate and establish joint ventures to promote production on a commercial basis.
Mr Khamjane concluded by noting that the province has gained fruitful results from previous cooperation with China, which has continued to boost economic growth and contributed to improving people's livelihoods.
vientiane times
