UK government commits to extending EBA access for LDCs post Brexit

Summary

The UK has committed to extending in the immediate post-Brexit period the non-reciprocal duty free access granted LDCs under the EU’s current EBA initiative. However action was expected given the long standing UK support for duty free-quota free (DFQF) access for LDCs. The issue has always been whether current DFQF access enjoyed by ACP non-LDCs would be extended from 30th March 2019. This issue remains unclear, with the UK government solely making a commitment to explore options for maintaining existing trade arrangements. Read more “UK government commits to extending EBA access for LDCs post Brexit”

ACP banana exporters and Brexit

Summary
Brexit is likely to give rise to 3 distinct challenges for ACP banana exporters: retaining preferential access to the UK market; dealing with the market consequences of a possible abolition of duties on banana imports into the UK; dealing with the increased competition on EU27 markets as a result of the application of banana sector TRQs under bilaterally negotiated EU FTAs. While to date overall ACP banana exporters have expanded their exports to the EU28 despite expanded TRQ access for $ banana suppliers, the situation varies greatly between different ACP exporters. With Caribbean small island banana exporters largely being squeezed out of EU markets since 2007. However, the past strong trade performance of some ACP banana exporters since 2007 is no guarantee of future competitiveness. Market adjustment support may be required to ACP producers and exporters in adjusting to the market consequences of Brexit in the banana sector. The EC will also need to take account of the impact of expanded TRQ access on ACP banana suppliers in its application of the stabilisation mechanism set in place to protect EU banana producers. Read more “ACP banana exporters and Brexit”

Footloose nature of EU poultry meat exports to Africa highlighted by AI restrictions

Summary
While AI outbreaks are expected to reduce EU poultry exports in 2017, there is no evidence of this in the first two months of 2017, with strong growth in EU exports to sub-Saharan African markets north of South Africa. Recent corporate takeovers in the poultry sector could lead to a strengthening of the focus on sub-Saharan African markets. Recent trends highlight the ‘footloose’ nature of EU poultry meat exports, with markets being sought where minimal import controls are applied. Read more “Footloose nature of EU poultry meat exports to Africa highlighted by AI restrictions”

Need to restore differentiation in trade rules in support of structural transformation in Africa

Summary
Trade Minister Davies reflections on South Africa’s experience of trade liberalisation, which, with hindsight it is held, moved too rapidly for the countries capacity to adjust, potentially holds important lessons for ACP countries as they move towards the implementation of the EPAs concluded with the EU. It suggests ACP governments need to work together to ensure EPAs are interpreted and applied in a flexible and differentiated fashion, which places centre stage the structural economic transformation needs of ACP countries. This will need to be a central component of the forthcoming ACP-EU post-Cotonou negotiations, as well as on-going ACP Ministerial discussion on EPA implementation. Read more “Need to restore differentiation in trade rules in support of structural transformation in Africa”

USDA Highlights EU’s Continued Use of Protectionist Tools in the Agro-Food Sector

 

Summary
USDA highlights the EU’s continued use of protectionist trade tools in its agro-food sector. This boosts EU export competitiveness, which can harm ACP agricultural sectors (e.g. dairy and poultry sector development). EU practices contrasts sharply with EU policy prescriptions in an EPA context. This calls for the flexible interpretation and application of EPA commitments given the overriding importance of agriculture to livelihoods in many ACP countries. Read more “USDA Highlights EU’s Continued Use of Protectionist Tools in the Agro-Food Sector”

UK NGOs call for new gold standard UK unilateral preferential trade arrangement

Summary
UK NGOs are critical of proposals to transpose current EU reciprocal trade arrangements into bilateral UK trade deals with ACP countries. UK NGOs favour a new ‘gold standard’ of unilateral non-reciprocal trade preferences which extends beyond current such arrangements. However it is difficult to see how such non-reciprocal trade arrangements can be reconciled with the UK governments’ over-riding preoccupation with maintaining and expanding access for UK exporters to non-EU markets via bilateral UK free trade agreements Read more “UK NGOs call for new gold standard UK unilateral preferential trade arrangement”

Capacity constraints and complexities of ‘grandfathering’  highlighted by Parliament Report

Summary
There is a lack clarity on the legal possibilities for ‘grandfathering’ existing reciprocal preferential trade arrangements into bilateral deals with the UK. There are also serious human resource capacity constraints on the UK governments ability to simultaneously negotiate more than a handful of free trade area agreements. This is likely to require a prioritisation of UK FTA negotiations, with smaller ACP countries potentially being left out in the cold. This suggest a need for a coordinated ACP initiative to establish a joint ACP-DIT working group to explore

a) the establishment of transitional unilateral arrangements to prevent any disruption of current ACP access to the UK market and

b) simplified modalities for refitting existing EPAs into bilateral trade agreements with the UK, including the addition of a range of necessary ‘EPA+’ elements. Read more “Capacity constraints and complexities of ‘grandfathering’  highlighted by Parliament Report”

Britain’s continued commitment to Africa post Brexit asserted in context of global drive for free trade

Summary
The UK government sees clear commercial benefits in avoiding a disruptive cliff edge in trade relations with Africa, particularly South Africa, the UK’s gateway to Africa. There has been a surge of UK Ministerial visits to Africa. The UK appears diplomatic open to refitting EU EPAs into bilateral deals with the UK. The UK’s Africa focus risks leaving Caribbean and Pacific ACP countries out in the cold. The ACP group collectively will need to capitalize on the UK’s commercial interest in Africa to ensure existing preferential access to the UK is extended for all ACP countries from day 1 of the UK’s departure from the EU. Existing reciprocal arrangements can subsequently be refitted, with appropriate adjustments. Read more “Britain’s continued commitment to Africa post Brexit asserted in context of global drive for free trade”

The ACP and the increasing importance of exports to Polish poultry sector growth

Summary
Sub-Saharan African markets are of growing importance to the Polish poultry sector. The granting of a health certificate for exports to South Africa will see this importance increase. While EU governments in ‘new’ member states commonly complain they gain little from the relationship with the ACP, the strong expansion of their agro-food exports to ACP countries belies this compliant. Without ACP markets, Polish poultry sector growth would be slower. Read more “The ACP and the increasing importance of exports to Polish poultry sector growth”

EU Task Force calls for more action to strength the position of farmers in supply chains

Summary
The EU continues to seek ways of improving the functioning of agricultural supply chains, so the agricultural base in the EU is not undermined by unequal power relationships within supply chains. In November 2017 an especially convened Agricultural Markets Task Force called for: new EU rules and enforcement mechanisms to address unfair trading practices; mandatory price reporting to improve market transparency and increased support to EU farmers to improve their position within individual supply chains.

Given the role which powerful multinationals play in global trade and the unequal power relationships this gives rise to across ACP-EU agricultural supply chains, there is a strong case for extending EU policy initiatives to strengthen the position of agricultural producers within individual supply chains to ACP-EU agro-food sector trade relations. Read more “EU Task Force calls for more action to strength the position of farmers in supply chains”