Category: West African EPA

How Will EU Sustainability and Livelihood Due Diligence Regulations Interface with Private Sector Sustainability Initiatives?

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Summary
In response to growing consumer pressure and pending regulatory initiatives, FMCG companies are updating their policies and seeking out innovative solutions to enhance the effectiveness of efforts to halt deforestation, promote sustainable farming practices, enhance livelihoods opportunities, and improve working conditions.  This is an ambitious agenda which will need to get to grips with the twin questions related to: who bears the costs of the required innovations and how will this affect the distribution of revenues to different actors in the supply chain. To date the necessary search for technical solutions has seen these core questions set to one side. However, as mandatory ‘due diligence’ requirements come ever closer, it is increasingly important that these twin questions are systematically addressed. Read more “How Will EU Sustainability and Livelihood Due Diligence Regulations Interface with Private Sector Sustainability Initiatives?”

Deadline for Transposition of EU UTP Regulation into National Law Passes but Major Questions Related to UTPs Remain

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Summary
The EU UTPS regulation has not been transposed into member states national law, but with uneven results. Ensuring common standards of enforcement to uphold minimum EU requirements for removing UTPS in agri-food supply chins is no essential. Equally there is an urgent need to ensure enforcement mechanisms recognise the realities of ACP-to-EU supply chains and actively prevent the adoption of commercial practices between importers and exporters which de facto circumvent the intention of EU UTP regulations in regard to 3rd country-EU supply chains. Read more “Deadline for Transposition of EU UTP Regulation into National Law Passes but Major Questions Related to UTPs Remain”

ACP Mango Exporters Hoping for a Good 2021 Season in Face of Ongoing Covid-19 Disruptions and New Brexit Complications

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Summary
The poor 2020 West African mango export season had as much to do with the impact of Covid on freight options as it di with demand suppression. Having flexibility in the routes to markets served is therefore of considerable importance in adjusting to the evolving economic effects of the Covid-19 pandemic in the mango sector. In this context Brexit related complications arising for mangoes onward traded across EU/UK borders narrows the freight options open to some ACP mango exporters, with this compounding and already difficult situation. Read more “ACP Mango Exporters Hoping for a Good 2021 Season in Face of Ongoing Covid-19 Disruptions and New Brexit Complications”

The Sea Freight Reefer Constraint on ACP Perishable Exports Compounds Brexit Complications

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Summary
A shortage of refrigerated containers, and an in-balance in their geographical distribution is seeing raising reefer freight costs and a rescheduling of shipping services to seek to address the in-balance. This could potentially carry costs for smaller ACP exporters of perishable product exports to Europe. This situation is complicating efforts to deal with cost increasing effects of the rules of origin/MFN tariff complication and phytosanitary certification requirements for perishable products shipped along triangular supply chains, through re-routing such to direct shipment to either the UK or EU market. Read more “The Sea Freight Reefer Constraint on ACP Perishable Exports Compounds Brexit Complications”

Challenge Thrown Down on Inclusion of Living Income Requirements Under Pending EU Due Diligence Regulations in the Cocoa Sector

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Summary
While the EC is preparing ‘due diligence’ regulations linked to both human rights and deforestation concerns, current market trends and the sourcing decisions of some cocoa grinders is undermining the newly introduced Living Income Differential scheme jointly agreed by the governments of Ghana and Cote d’Ivoire, with the aim of securing a living income for cocoa farmers. Establishing EU ‘due diligence’ requirements which ensure all cocoa products placed for sale on the EU market are sourced from countries where minimum producer income requirements are met (e.g., the LID), would make a major contribution to ongoing efforts to lift cocoa farmers out of poverty across the globe. This is the critical policy challenge faced. Read more “Challenge Thrown Down on Inclusion of Living Income Requirements Under Pending EU Due Diligence Regulations in the Cocoa Sector”

EU/UK Cross Border Trade Picking Up but Impact on ACP Triangular Supply Chains Remains Un-Addressed

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Summary
While recovery in UK exports to the EU is underway after unprecedented declines in January 2021, the recovery in EU exports to the UK is less pronounced, with trade still down significantly compared to 2020. No data is available on the impact this is having on ACP goods shipped along triangular supply chains. However, the need to get to grips at the policy level with the sources of cost increases along triangular supply chains has bene given a new urgency by the UK’s Covid-19 linked ‘red list’ of countries subject to restrictions on entry to the UK. Read more “EU/UK Cross Border Trade Picking Up but Impact on ACP Triangular Supply Chains Remains Un-Addressed”

Implications of the Veterinary Constraint on UK Export Health Certification

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Summary
UK trade related veterinary inspection and certification services are facing serious problems of recruitment and retention as demand sours. There are calls for both a greater government role in the organisation and conduct of trade related veterinary inspection services and the establishment of para-professional veterinary support staff for the conduct of trade related inspection and certification activities. However, unless changes designed to address staffing constraints are introduced in close consultation with trade partners such changes could disrupt trade, creating a dual system of EU and non-EU accepted health certification. While there are also calls for new UK electronic EHC systems which are compatible with EU systems and for the UK to negotiate a veterinarian equivalency agreement with the EU, the current political atmosphere and evolving situation on the ground are not conducive to early progress in these areas.  This could potentially give rise to UK export surges of livestock products to ACP countries and even EU export surges to ACP countries, if the UK enforces equivalent controls on imports from the EU, to avoid undermining the competitive position of UK livestock product producers. Read more “Implications of the Veterinary Constraint on UK Export Health Certification”

Can Evolving EU UK Technical Discussions on Northern Ireland Trade Issues Help Ease Triangular Supply Chain Challenges?

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Summary
EU/UK technical discussions on solutions which could facilitate agri-food sector trade between the mainland UK and Northern Ireland, within the framework of the mutually agreed Northern Ireland protocol, could offer hope for solutions to the wider challenges now faced along ACP triangular supply chains.  However, any progress on these technical issues would leave unaddressed the issue of the MFN tariffs now levied on ACP exports to final markets where the shipment arrangements require these goods to cross and EU/UK border outside of customs supervision.  This issue needs to be addressed unilaterally by the UK through the adoption of practical trade documentation requirements if the commitments to continuity in market access for ACP exports is to be fully upheld. Parallel unilateral action is also required from the EU. Read more “Can Evolving EU UK Technical Discussions on Northern Ireland Trade Issues Help Ease Triangular Supply Chain Challenges?”

The UK Trade and Business Commission Offers Opportunities for Highlighting ACP Triangular Supply Chain Concerns

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Summary
A UK Trade and Business Commission consisting of cross-party Parliamentary and business representation has been launched. The aim is to review the UK’s new trade agreements and offer evidence-based recommendation for improvements which could facilitate frictionless trade. Given the Commission’s focus on food supply chains and the new rules of origin and SPS complications which have arisen since 1 January 2021, this initiative could offer an opportunity to raise the profile of ACP agri-food sector trade concerns linked to the Brexit process and advance practical solutions for the renewal of frictionless trade along ACP triangular supply chains used to serve markets in both the UK and EU. Read more “The UK Trade and Business Commission Offers Opportunities for Highlighting ACP Triangular Supply Chain Concerns”

Post Brexit Problems in UK Meat Exports to the EU and Implications for UK Poultry Meat exports to ACP Countries

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Summary
UK meat exports to the EU are down 50% in the first six weeks of 2021, with the decline in poultry meat being initially most pronounced. In the long term it is expected UK exports will be down between 230% and 50% depending on the product and size of the exporting enterprises. Particularly in the poultry meat sector this could lead to a surge in exports to non-EU markets, with African and Caribbean markets for frozen poultry parts likely to be targeted. This could easily double current levels of UK exports to targeted African and Caribbean markets. The eventual level of UK trade diversion in the poultry sector will be determined by the nature of the controls placed on mainland UK to Northern Ireland poultry trade. Read more “Post Brexit Problems in UK Meat Exports to the EU and Implications for UK Poultry Meat exports to ACP Countries”