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”

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”

Parliamentary report warns of the complexity of Brexit challenges in the agricultural sector

Summary
Important WTO dimensions to future UK agricultural and agricultural trade policies are faced which could prove complicated to resolve. Depending on how UK/EU27 negotiations process works out, new opportunities for exports to the UK could be opened up for ACP agro-food exporters. For example stricter UK immigration controls on agro-food sector workers could make it more attractive for UK businesses to import consumer ready agro-food products, allowing ACP exporters to move up the value chain. The UK Parliamentary report highlights the need for transitional trade arrangements for UK trade relations, given the complexity of the issues involved. This recognition of a need for transitional arrangements is something on which ACP governments could usefully build. Read more “Parliamentary report warns of the complexity of Brexit challenges in the agricultural sector”

Record EU agri food surplus highlights success of EU CAP reforms

Summary
EU agro-food exports continue to grow to new record levels driven by successful agricultural reforms and an increasingly ‘offensive’ trade policy. For certain EU products sub-Saharan African markets have become increasingly important. In the coming years ACP  governments will come under increased pressure to systematically remove all non-tariff barriers to EU agri-food exports. The EU largely imports unprocessed agricultural products from ACP countries, adds value meets domestic demand and re-exports higher value products to global markets. There is a fundamental in fundamental contradiction between the aspirations of ACP governments to structurally transform their agri-food sectors and EU objectives for expanding exports of value added food products.
Read more “Record EU agri food surplus highlights success of EU CAP reforms”

Multiple challenges pending for ACP sugar exporters

Summary
The production and trade consequences of the abolition of EU sugar and isoglucose quotas are just the tip of an iceberg of challenges facing ACP cane sugar exporters. These developments will be compounded by the uncertain prospects for global sugar markets and the UK’s pending departure from the EU. The overall situation is further complicated by sustained regulatory pressure to reduce the sugar content of processed food and drink products, both in Europe and beyond, and the growing availability of alternative sweeteners. This will create a context where only the most efficient ACP sugar cane industries are likely to be able to compete on the EU27 and the UK markets.  Read more “Multiple challenges pending for ACP sugar exporters”

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”

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”