Summary
Despite earlier fears over the potential impact of the UK’s MFN tariff review the proposed future schedule has largely left unaffected MFN tariffs on agri-food products of export interest to Ghana. The principal issues now faced will arise if the UK leaves the EU customs union on 1st January 2021. These issues relate firstly to the how the Government of Ghana can retain duty free-quota free access to the UK market after this date. Secondly, the prospect a no-deal UK exit from the EU customs union seeing the UK radically revise its’ proposed MFN tariff schedule so as to avert high food price inflation during a severe Covid-19 induced economic recession. Read more “Ghanaian Exports to the UK and the Outcome of the UK’s MFN Tariff Review”
Category: West African EPA
Future UK Only MFN Tariff Schedule Announced
Summary
After much speculation, the MFN tariffs on most agricultural and food products of greatest export intertest to ACP countries have been retained largely unchanged by the UK government. This will bring considerable relief to ACP banana, sugar, canned tuna, and value-added cocoa product exporters, where fears of the adoption of a ‘zero production-zero tariff’ approach had arisen. Across a range of other areas, relatively minor tariff reductions are unlikely to carry serious trade implications for ACP agri-food product exporters. The only area of uncertainty arises from the removal of the EU entry price system currently applied to a range of products and its replacement by simpler ad valorem import duties. It is unclear what the commercial impact of this change will be on individual ACP exporters of specific products. Read more “Future UK Only MFN Tariff Schedule Announced”
Restrictions on Poultry Meat Imports Called for in the Face of Covid-19 Impact on EU Poultry Market
Summary
The European Poultry Producers Association (AVEC) has called for the EC to review the application of its TRQ based import regime for poultry meat to ensure import levels reflect the collapse of demand for out-of-home poultry meat consumption. With the EC being a strong advocate of open markets and with trade disputes pending in the poultry sector to remove barriers to EU exports, it will be worthwhile monitoring the EC’s response to AVEC’s call to limit imports via a review of how the TRQ regime for poultry meat is managed. Read more “Restrictions on Poultry Meat Imports Called for in the Face of Covid-19 Impact on EU Poultry Market”
Growing Calls for an Extension of the EU-UK Transitional Period in the face of COVID-19 Economic Disruptions
Summary
The UK freight industry and British Chambers of Commerce have explicitly called for an extension of the transition period in E/UK relations, while the UK food and drinks industry has called for concerted action to avoid further trade disruptions which would compound the adverse economic effects of the Covids-19 pandemic. UK private sector bodies maintain neither business not the UK border services are prepared to implement customs and other border controls on trade with the EU from the 1st January 2021, given the disruptions to preparations which the Covid-19 pandemic has generated. While these difficulties are recognised and there is a dawning awareness in the UK government of the need to avoid a no-deal exit from the EU customs union, it appears no one in the UK government knows how politically to avoid this outcome. Against this background ACP businesses will need to start making preparation for a no-deal UK departure from the EU customs union and single market on 1st January 2021. Read more “Growing Calls for an Extension of the EU-UK Transitional Period in the face of COVID-19 Economic Disruptions”
Linking Bail Outs to Broader Policy Objectives
Summary
With both European airlines and cross channel ferry companies seeking multi-billion Euro government financed assistance programmes in the face of COVID-19 related disruptions of passenger services, the debate is underway on the need to link such public financing to wider policy objectives (e.g. GHG emission reduction targets). In this context there is also a need to link such public assistance to other broader objectives such as a restoration of freight charges for essential goods to pre-COVID-19 levels and the maintenance of freight handling capacity at pre-COVID-19 levels. This would assist in restoring existing ACP-EU supply chains for fresh fruit and vegetable imports, in the face of the severe disruptions the COVID-19 pandemic has given rise to. This would aid economic recovery in those African and Caribbean countries whose export orientated horticultural sectors have been severely disrupted by the pandemic. It would in addition help secure fresh fruit and vegetable supplies to meet the surging consumer demand for healthy eating options in those European countries with a high import dependence for fresh fruit and vegetable supplies. Read more “Linking Bail Outs to Broader Policy Objectives”
Growing Covid19 Related Concerns Over Fresh Food Supply Chains Could Carry Longer Term Implications
Summary
Covid-19 linked air freight, sea freight, road freight and port disruptions are placing strains on fruit and vegetable supply chains serving the UK and EU markets. Movement restrictions are leading to labour shortages which threaten future domestic European fruit and vegetable production. This is likely to push up prices throughout 2020, with this continuing well into 2021 for the UK, if the UK governments chooses at the end of 2020 to leave the EU customs union without a trade deal being in place. This is seeing a growing focus on shortening supply chains, with this likely to make itself felt first through the revision of supermarket sourcing practices. ACP governments should look to supporting policy responses to the Covid-19 trade disruptions across Europe which also address longer term issues in relations with the UK, including deferring the UK’s departure from the EU customs union to allow trade to recover from the devastation of in the post Covid-19 pandemic. ACP private sector exporters meanwhile should examine how they can cost effectively shorten their supply chains to reduce their vulnerability to future transportation disruptions, in a context where the transport sector knock-on effects of recent developments are likely to be felt for some years to come. Read more “Growing Covid19 Related Concerns Over Fresh Food Supply Chains Could Carry Longer Term Implications”
Variable Application of Citrus Sector Phytosanitary Import Controls Highlights Practical Challenges of Regulatory Alignment in Future UK/EU Relations
Summary
The huge discrepancy in Citrus Black Spot interception rates between Spanish, Dutch and UK border control authorities raises questions as to the commonality of current control measures implemented by EU member states. It also raises questions as to the extent and nature of future regulatory alignment requirements once the UK leaves the EU customs union and single market. This is an important issue for ACP exporters who use triangular supply chains in delivering short shelf life, fruit, vegetables and cut flowers to the UK market. Minimising SPS controls at EU/UK borders will be critical to the future commercial viability of these routes to UK markets. Current Covid-19 flexibilities and innovations in the exercise of official controls could hold some important lessons for future EU/UK SPS border controls, particularly if the policy focus was on the practical outcomes in terms of the phytosanitary protection of domestic agricultural production, rather then the modalities for the application of controls. Read more “Variable Application of Citrus Sector Phytosanitary Import Controls Highlights Practical Challenges of Regulatory Alignment in Future UK/EU Relations”
New EU MRLs Highlight the Difficulties in Securing International Consensus on SPS Issues, Despite EU’s Dominant Role in Setting Regulatory Standards
Summary
The EU continues to set and re-set pesticide and fungicide Maximum Residue Level (MRLs) at far stricter levels than internationally agreed standards. ACP exporters serving EU markets have no option but to comply or exit the EU market. Freshfel’s call for ‘better defined international standards’ to facilitate EU fruit and vegetable exports, since uneasily with the unilateral standard setting practiced by the EU, which regularly presents new compliance challenges for ACP fruit and vegetable exporters. This raises important policy issues regarding the EU’s role in the de facto setting of international standards and the limitations of SPS chapters and institutional mechanisms established under trade ACP-EU FTAs for ensuring EU markets remain open to ACP products which comply with agreed international regulatory standards. Read more “New EU MRLs Highlight the Difficulties in Securing International Consensus on SPS Issues, Despite EU’s Dominant Role in Setting Regulatory Standards”
Covid-19 Related Cancellation of Commercial Flights Beginning to Bite for ACP Horticulture Exports
Summary
The current Covid-19 disruptions of Kenyan exports to Europe, particularly along triangular supply chains to the UK, highlights the importance of shortening supply chains by wherever possible, contracting with the final retailer and shipping products directly. For exporters who can get to grip with current logistical challenges, rising EU demand for fruit and vegetables and rising prices could yield commercial benefits to counter-balance some of the Covid-19 disruptions. This is particularly the case since labour shortages in the fruit and vegetable sector as a result of disruptions to migrant labour flows could depress European fruit and vegetable production throughout 2020. Read more “Covid-19 Related Cancellation of Commercial Flights Beginning to Bite for ACP Horticulture Exports”
Will Dutch Onion Companies Continue to Support West African Onion Sector Development or Push for the Elimination of Import Restrictions on EU Onions?
Summary
West Africa markets for Dutch onion exports have become increasingly important, with the Africa markets overall being seen as having the greatest future growth potential. With some African government using quantitative restriction on onion imports to try and boost domestic production in response to growing demand, the question arises: will the EC seek to use trade agreement commitments to put an end to the application of all forms of quantitative restrictions on imports from the EU? Pressure to do so could increase should a ‘hard Brexit’ occur, which disrupts Dutch onion exports to the UK market. The experience of the August 2014 Russian import embargo suggests any loss of markets for Dutch onion exporters leads to expanded efforts to increase exports to African markets, particularly in West Africa.
The Netherlands onion export trade has become more dependent on West African exp Read more “Will Dutch Onion Companies Continue to Support West African Onion Sector Development or Push for the Elimination of Import Restrictions on EU Onions?”