Summary
Analysis of the external effects of the deployment of CAP financial tools from the German Institute for International and Security Affairs (SWP) has argued ‘overall, the production and price effects of the current CAP are negligible’. It maintains if the CAP were completely abolished this would lead to only a small decline in EU production. It argues effects of other policies are often wrongly attributed to the CAP. However the impact of the CAP on developing countries needs to be assessed in the context of the wider policies which are associated with the deployment of CAP financial instruments (e.g. EU trade, food safety policy and SPS control policies) and needs to be assessed at the country and product specific level not the overall level. The SWP analysis says nothing about the price level which would need to prevail to achieve a production neutral outcome to the abolition of the deployment of CAP financial tools. The SWP analysis however rightly stresses the importance of involving developing countries in assessments of the external effects of the CAP, so potentially affected actors themselves can express whether and how the CAP is detrimental to their development. Read more “Analysis of the CAPs’ Poverty and Employment Effects in Developing Countries Needs to be Country and Sector Specific”
Category: PCD
EC Proposes New UTP Regulations Should Cover Sourcing from Developing Country Suppliers
Summary
EC proposals to eliminate unfair trading practices along agricultural supply chains are to apply to both EU and non-EU suppliers. This is a welcome development from an ACP perspective given the regularity of UTPs along ACP-EU supply chains for fruit and vegetable products. However the benefits gained by ACP agricultural producers will be critically affected by how the regulation is implemented in practice. It is now up to ACP governments in the countries most affected by UTPs such as Kenya, Tanzania, Ethiopia and Ghana in Africa and the Dominican Republic, Jamaica, Belize and St Lucia in the Caribbean, to ensure a designated authority is created which is empowered to ‘initiate investigations either on its own initiative or based on a complaint’ into unfair trading practices along ACP-EU supply chains. This issue could usefully be taken up under the trade chapter of the post-Cotonou ACP-EU negotiations which will be launched in August 2018. Read more “EC Proposes New UTP Regulations Should Cover Sourcing from Developing Country Suppliers”
Exports of pineapples from Benin to EU to resume, but functioning of supply chain also needs strengthening
Summary
Improvements in the food safety control system in Benin are reopening the EU market to pineapple exporters. This is seen as having the potential to boost both employment and farm incomes. However Ghanaian exporters have identified UTPs along the pineapple supply chains which undermine the commercial viability of pineapple production for export. Against this background there would appear to be little point in investing in stronger food safety and SPS control systems if the issue of UTPs in Africa-EU agro-food sector supply chains are not addressed, since these can undermine the commercial viability of investments made in both expanding production for export and ensuring effective national food safety and SPS control systems. Read more “Exports of pineapples from Benin to EU to resume, but functioning of supply chain also needs strengthening”
Report highlights vulnerability of EU poultry sector to liberalisation of trade in poultry meat
Summary
A January 2017 report on the relative competitiveness of the EU poultry sector highlights the importance of continued tariff protection and managed trade (using TRQ access) to the future of the EU poultry sector. This EU policy practice contrasts markedly with EU policy advocacy in its dealings with ACP countries. Without trade protection competitive third country poultry producers would gain a strongly competitive position in the EU market, exporting far higher volumes of poultry meat to the EU. However, EU tariff protection cannot be justified on the basis of higher EU standards, which are small relative to the differences in price competitiveness between EU and major third country poultry exporters. Read more “Report highlights vulnerability of EU poultry sector to liberalisation of trade in poultry meat”