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. 

Read more “Analysts call for greater export focus for South African poultry sector”

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”

Dominican Republic and West Africa lead way in growth in ACP Mango exports to the EU

 

Summary
ACP exports of mangoes to the EU have grown strongly, particularly since 2007, with further growth in EU consumer demand likely. While tariffs are not an issue in the mango sector, new trade agreements do appear to have boosted investment and facilitated expanded exports in both ACP and non-ACP countries in response to rising EU demand. Brexit is unlikely to pose any challenges for direct ACP mango exports to the UK, but could lead to problems if the absence of a UK-EU27 agreement, spills over into reduced cooperation on SPS and freight forwarding arrangements.  This is important in the mango sector given the role the Netherlands plays in the re-export trade across the EU, including to the UK. This issue needs to be closely monitored by those ACP exporters which are most likely to be affected. Read more “Dominican Republic and West Africa lead way in growth in ACP Mango exports to the EU”

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”

Agriculture to be a Focus of the Renewed Africa-EU Partnership

Summary
Supporting African agro-food sector development given its employment, food security and rural development effects is nominally a focus of the proposed renewed Africa-EU partnership. However differences of opinion over what constitutes an appropriate ‘regulatory and policy framework’ for African agro-food sector development, alongside unacknowledged tensions between EU agro-food sector export objectives and African agro-food sector development aspirations, could pose serious challenges for a renewed Africa-EU partnership in this area.  Read more “Agriculture to be a Focus of the Renewed Africa-EU Partnership”

EU West Africa Dairy Sector Developments

Summary
European dairy companies continue to expand their operations in West Africa, with the region being seen as one with tremendous market potential.  While some companies are seeking to support local dairy sector development as part of their market expansion strategies, this is by no means universal. Since 2014 low global bulk dairy commodity prices have compounded the existing challenges faced in developing local milk-to-dairy supply chains in West Africa. This suggests a need for a sector wide approach to dairy sector development involving a commitment by all EU dairy companies to responsible patterns of trade and investment, designed to support the gradual growth in local milk-to-dairy supply chains. Read more “EU West Africa Dairy Sector Developments”

Surges in onion exports to Mauritania could close off longer term opportunities for Dutch exports

 

Summary
In a context where West Africa is the major destination for extra-EU Dutch onion exports, surges of Dutch onion exports to Mauritania are severely depressing local onion prices. This is in part linked to the closure of the Russian market. This could provoke trade restrictions in Mauritania in an effort to protect local onion producers. Any moves to restrict onion imports into Mauritania would need to be closely linked to targeted efforts to strengthen the functioning of local onion supply chains. Experience elsewhere in Africa, in a country facing similar environmental conditions, namely Namibia, could hold important lessons for Mauritanian onion sector trade policy. Read more “Surges in onion exports to Mauritania could close off longer term opportunities for Dutch exports”

ACP rice exporters and Brexit

Summary
In terms of trade with the EU the UK is not a major market for ACP rice exporters.  However the impact of the UK’s departure from the EU on ACP rice exporters will not be felt via changes to UK rice import tariffs, but rather as a result of the increased competition on the smaller EU27 market, where the departure of the UK will reduce overall EU rice import demand by around 23% while the EU’s TRQ market access commitments under existing bilateral agreements will remain unchanged. The removal of UK import demand is also likely to exacerbate the competitive challenges which ACP rice exporters face as a result of the DFQF access granted to LDC rice exporters to the EU. This measure saw imports from the main LDC rice exporters to the EU increase from under 7,500 tonnes in 2007 to around 500,000 tonnes in 2015 and 2016. Read more “ACP rice exporters and Brexit”

ACP Citrus Exporters and Brexit: Part 2, The Case of Smaller Scale Exporters

Summary
In the short term smaller ACP citrus exporters could benefit from Brexit in their trade with the UK if they can:

  1. retain existing duty free-quota free access to the UK market from the date of the UK’s departure from the EU;
  2. secure the removal of CBS controls in trade with the UK;
  3. ensure the issue of the disproportionate costs of SPS inspections for small scale ACP exporters under moves to full costs recovery is addressed

However this will still leave the threat posed the dismantling of all tariff protection in the citrus sector, where the UK has no domestic production.  This however may be deferred if it only takes place in the context of UK FTA negotiations with non-ACP exporters of citrus fruit. Read more “ACP Citrus Exporters and Brexit: Part 2, The Case of Smaller Scale Exporters”

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”