Pre-emptive export restrictions introduced on South African citrus exports to EU

Summary

The Citrus Growers Association has once again introduced voluntary restrictions on citrus exports to the EU in order to avert any threat of formal EU import restrictions. While the South African citrus industry is looking forward to new export opportunities as a result of the Brexit process, these opportunities may well be deferred if a two year transition period is agreed. During this period the UK would need to remain subject to EU rules and regulation. The prospect of such a two year transition period however remains clouded by uncertainty, given the contrasting views of the UK government and EU negotiators on the time it will take to agree a long term EU27-UK trade framework. Read more “Pre-emptive export restrictions introduced on South African citrus exports to EU”

Global Market Context Far From Favourable in the Context of the End of EU Sugar Production Quotas

Summary

Projected global sugar price trends are unlikely to support EU sugar prices in the post quota abolition period. Caribbean and pacific ACP sugar exporters will be potentially the most vulnerable to EU price declines over the 2017/18 season. This situation could then be compounded by the sugar market effects of the UK’s withdrawal from the EU, currently scheduled for 30th March 2019.  These effects however may be deferred following Prime Minister May’s acceptance that during the implementation period (transitional period) UK/EU27 trade would need to take place within ‘the existing structure of EU rules and regulations’.

Nevertheless there remain profound policy uncertainties around UK sugar market developments which make any projections of likely developments hazardous. Against this background over the coming years ACP sugar exporters will need to closely monitor developments in the Brexit negotiations and the evolution of UK’s autonomous trade policies as they impact on the sugar sector, in order to identify and exploit any market opportunities which might emerge. Read more “Global Market Context Far From Favourable in the Context of the End of EU Sugar Production Quotas”

EU poultry meat production rising despite avian flu outbreaks

Summary

Avian flu outbreaks have left overall EU poultry meat production largely unaffected. Although AI related restrictions reduced EU poultry meat export volumes in the first half of 2017, particularly to South Africa the largest single export destination (-63%). Export growth to Gabon, DRC and Ghana while extremely high (+120%;96% and 69% respectively) could not outweigh declines in EU exports to South Africa and Benin. Beyond the current AI crisis in the EU, expanding imports of whole birds from Ukraine, the impact of lower feed costs on EU production and possible Brexit related disruptions of the EU27-UK poultry trade, could all fuel a further expansion of EU exports to Africa. This could continue to inhibit efforts to promote local poultry sector development across Africa. Patterns of Belgium poultry meat exports suggest African governments need to pay closer attention to the origin of poultry meat imports nominally originating in particular EU member states. Read more “EU poultry meat production rising despite avian flu outbreaks”

UK Area Under Sugar Beet Set to Surge

 

Summary

A major expansion of the area under sugar beet in the UK (+ 1/3) is planned in 2017/18, with potentially a further major expansion by 2020 if current investment plans of Al Khaleej International to re-establish sugar beet processing in Yorkshire are approved. While a failure to conclude a UK-EU27 trade agreement could open up new export opportunities for ACP sugar suppliers to the UK, this would be strongly influenced by future UK sugar sector tariff policy. If tariffs remain unchanged the source of ACP sugar imported into the UK could shift from the Caribbean and Pacific suppliers to lower cost Southern African suppliers. UK government policy statements suggest Southern African LDC sugar exporters would enjoy the most secure commitment to continued duty free-quota free access for sugar exports to the UK market post Brexit, providing them with an inside track in pending negotiations over supply agreements for 2019. Read more “UK Area Under Sugar Beet Set to Surge”

Analysts call for greater export focus for South African poultry sector

 

Summary

The South African poultry sector is being advised to promote exports as part of the solution to the challenge arising from the rapid expansion of imports of poultry meat form the EU. However, the EU is also expanding exports of low priced poultry parts to other sub-Saharan African markets, exporting to no less than 38 sub-Saharan African countries, with these markets now taking 47% of total extra-EU poultry meat exports. Neighbouring African governments are also seeking to develop their own poultry industries and are using various non-tariff trade policy tools in order to do so. 

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DIT SACU Discussions to Extend Current Access to the UK Market More than a Technical Exercise

Summary
During the July 2017 visit of UK Secretary of State Lord Price to Southern Africa a commitment was made to replicating current market access arrangements post-Brexit. However it remains unclear how this to be achieved. The transitional extension of existing reciprocal preferences could not only face serious opposition from WTO members but would be far from a simple ‘technical exercise’. New rules of origin which took account of the UK’s departure from the EU agreement would be essential, in order to establish which products qualified for ‘originating status as UK products. The alternative would amount to an absence of rules or origin. Either would be a substantive modification of the existing terms of the UK’s export trade. The future of Tariff rate Quota (TRQ) arrangements under the EU agreement would also need to be resolved in the immediate post Brexit period. Looking to the longer term, there are a multiplicity of non-tariff issues related to post-Brexit UK trade and agricultural policies which give rise to profound uncertainties over the future value of any post Brexit preferential trade arrangement with the UK for certain SACU members. Many of these uncertainties will need to be addressed before the future value of a bilateral trade deal with the UK can be fully assessed. Read more “DIT SACU Discussions to Extend Current Access to the UK Market More than a Technical Exercise”

Role of UK Groceries Code Adjudicator could be extended

Summary

The UK GCA performance has been praised for gradually changing supermarket practices, with a debate now underway on whether the scope of the Groceries Supply Code of Practice (GSCOP) should be extended. Traidcraft has called for such an extension to address abuses which take place elsewhere in grocery supply chains served by developing country suppliers, who currently have no means of seeking redress. Strengthening the code to effectively cover all routes to market used by developing country suppliers is one important dimension of the current GCA review. A further important dimension is the important role which such regulatory initiatives can play in changing supermarket sourcing practices. This is an important issue given the growing role of foreign owned supermarkets across the ACP and the difficulties this poses for local agricultural producers in entering this expanding retail market component. Read more “Role of UK Groceries Code Adjudicator could be extended”

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 citrus exporters and Brexit: Part 1 The Case of South Africa

 

Summary
For South Africa both challenges and opportunities arise in the citrus sector as a result of the Brexit process. The first challenge, in common with other ACP citrus exporters, is to retain existing preferential access to the UK market. South Africa could also benefit from the dismantling of strict CBS controls on exports to the UK. Unlike other ACP citrus exporters, South Africa could also gain some marginal benefits from the immediate removal of current seasonal tariffs on its citrus exports. However, securing these benefits will be dependent on the UK pursuing a ‘hard Brexit, which may now be less likely following the UK June 2017 election result. In addition, if no new trade arrangement is set in place between the UK and EU27 from 30th March 2019 and MFN duties are imposed on mutual trade, South Africa could see new market opportunities emerge in the citrus sector in trade with the UK, given Spain’s current role as the dominant supplier to the UK. These opportunities however will exist only on the fringes of the existing season. Read more “ACP citrus exporters and Brexit: Part 1 The Case of South Africa”

EC rejects SAPA allegations of dumping of poultry parts

Summary
In the face of an ongoing campaign against poultry meat imports from the EU led by SAPA, the EC continues to deny accusations of ‘dumping’, placing a very narrow construction on the concept. While the AI outbreaks have provided some short term relief to the South African poultry sector, this is not seen as providing a long term solution. Calls by the South African authorities for an international initiative to address the structural surplus of ‘brown meat’ on international markets, continue to be ignored by the European Commission. Read more “EC rejects SAPA allegations of dumping of poultry parts”