The EU market is increasing pepper imports from the Vietnamese market. However, the problem of pesticide residues is a barrier for Vietnamese pepper here.

The situation of pepper exports to the EU increased sharply

According to the General Department of Customs, in 2021, pepper exports to the EU will reach 130.5 million USD, up 47% compared to 2020. Vietnam’s pepper market share accounts for 29.75% of the total import value. of the EU, higher than 25.98% in 2020. According to the European Statistics Agency (Eurostat), in the first quarter of 2022, Vietnam continues to be the largest pepper supplier to the EU. , accounting for 33% of the weight with 8,278 tons, soaring 34.6% over the same period.

Ms. Hoang Thi Lien - President of the Vietnam Pepper Association said that Vietnamese pepper currently accounts for 45% of the total pepper import volume of the EU market, in the opposite direction, the EU market accounts for 23.7% of the total volume of pepper. Vietnam’s exports.

The EVFTA Agreement has opened up many export opportunities for Vietnamese goods, including pepper and spices when 100% of the spice tariff lines in Chapter 9 will enjoy a tax rate of 0% as soon as the Agreement comes into force. effect. This gives Vietnamese pepper a competitive advantage over rivals such as Brazil and Indonesia.

The total value of pepper increased sharply due to high demand in the EU market (Photo: Internet)

On the other hand, the increased demand for pepper in the EU will create favorable conditions for Vietnamese pepper to increase its market share in this market.

According to Dr. Ngo Xuan Nam - Deputy Director of the Office of Notification and National Inquiry Point on Sanitation, Epidemiology and Phytosanitary (SPS Vietnam Office) (Ministry of Agriculture and Rural Development), one of the barriers The biggest obstacle of Vietnamese agricultural products when brought into the EU is the problems related to pesticide residues. With the people’s small and fragmented production mindset, it is difficult to control this problem thoroughly.

Caused by, drug residues may appear when people use the same medicine dispensers; or spread by wind, water or soil from neighboring fields; have not even updated the latest list that the EU issued. Therefore, in order to fundamentally solve it, it is important to raise awareness, starting with the current farmers who directly produce, then the future high-tech farmers.

Need to grasp the information and requirements from the market

According to experts, the current challenge for exporters of spices in general and pepper in particular when implementing the EVFTA Agreement is still in the origin of goods and the application of food hygiene and safety measures. and plant and animal quarantine (SPS).

Notably, information about the universal preferential tariff regime (GPS) under the REX mechanism - will expire from December 31, 2022. After this time, it is mandatory for all Vietnamese enterprises when exporting goods to the EU market to apply the Rules of Origin under the EVFTA if they want to determine the origin of the export shipment.

Currently, there are detailed instructions on the rules of origin and instructions on how to look up the maximum allowable residue levels (MRLs) prescribed by the EU through the Vietnamese version search system and will be updated continuously. continue as soon as there are changes or new regulations in Europe. To support pepper exporters, Ms. Hoang Thi Lien said that it is expected that this system will be deployed by the Association for free for businesses that are members of the Association in the near future.

In order to improve and bring into full play the export potential of Vietnamese enterprises, Indochina Holdings provides trade promotion services to international markets. With a team of experienced consultants, we examine the problem and bring practical value to help businesses easily access to export goods. Specifically, Indochina Holdings has contributed to supporting Ngon Nhat Rice Company to successfully export ST25 rice to the US.

Cao Duy