Category: SPS / Food safety

Addressing the Needs of ACP Triangular Supply Chains Within the Forthcoming EU/UK Trade Negotiations

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Addressing the Needs of ACP Triangular Supply Chains Within the Forthcoming EU/UK Trade Negotiations

Summary

Given the UK governments commitment to leaving the EU custom union and single market by 1st January 2021 and the time constraint this places on establishing a successor trade agreement, the EU takes the view only a ‘light’ EU/UK trade arrangement can be in place by 1st January 2021. It is essential such a ‘light’ trade arrangement addresses the specific policy and administrative issues which will arise along ACP triangular supply chains as a result of the UK formally leaving the EU customs union and single market on 1st January 2021. For this to occur a specific commitment will need to be included in the EC’s negotiating mandate, to be finalised by February 2020, to addressing triangular supply chains issue. This is a particularly important issue for cut flower, fruit and vegetable exporters in Eastern Africa, whose principal supply routes to UK markets lie through initial ports of landing in the Netherlands and Belgium. A political initiative towards the President of the European Commission will be required from the governments of concerned ACP exporting countries if arrangements to ensure the continued smooth flow of short shelf life cut flowers, fruit and vegetable products to the UK market along triangular supply chains is to be assured. Read more “Addressing the Needs of ACP Triangular Supply Chains Within the Forthcoming EU/UK Trade Negotiations”

Non-Tariff Costs For ACP Exporters Will Need to Be Addressed under a ‘No-Deal’ or ‘Hard’ Brexit

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Summary
According to UNCTAD trade costs linked to NTM are now higher than tariffs, with a need for cooperation and greater use of IT solutions to minimise such cost while meeting key public policy objectives. The non-tariff issues arising for ACP exporters within the process of the UK’s withdrawal from the EU, particularly under a ‘No-Deal’ Brexit scenario need to be fully addressed is substantial new costs are not to be generated for ACP agro-food exporters. Key areas where clear UK and EU policy commitments are needed include:  removing the need for customs checks where DFQF access is enjoyed to the EU and UK markets; allowing continued use of trade facilitating IT systems until alternatives are in place; continuing with phytosanitary checks in the EU for goods destined for the UK; -establishing mechanisms for a review of ‘UK-Only’ phytosanitary controls in Continuity Agreements concluded with the UK. Read more “Non-Tariff Costs For ACP Exporters Will Need to Be Addressed under a ‘No-Deal’ or ‘Hard’ Brexit”

Stricter EU SPS Controls Set Kenyan Exporters in Search of New Markets

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Summary
Kenyan exporters are once again facing stricter MRL controls on exports to the EU with this increasing the costs of market entry for the affected products. In addition new pre-export requirements for EU defined priority quarantine pests are increasing the risk of consignments being rejected at the EU’s borders. This has seen a reported 90% of Kenyan exporters of chillies seeking out new markets in the Middle East. This is indicative of the adjustment strategies a wide range of ACP horticultural and floriculture exporters may need to adopt in the coming years in the face of increasingly strict EU SPS import controls. While market adjustment processes will need to be private sector led, ACP governments will also need to take policy initiatives, for example ensuring that in any future trade agreements with the UK provision is made for reviewing UK-only phytosanitary controls where agro-climatic conditions and patterns of agricultural production in the UK make existing EU phytosanitary import control requirements unnecessary. Read more “Stricter EU SPS Controls Set Kenyan Exporters in Search of New Markets”

EU Exports of Poultry Meat Continue to Increase Dramatically

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Summary
EU poultry meat production and consumption continues to increase, with this generating a 12% growth in exports in the first half of 2019 and the prospect of continued growth in exports up to 2021. EU poultry meat exports are once again taking off to South Africa as the December 2016 AI based import restrictions are progressively removed. The expansion of EU poultry meat exports to sub-Saharan Africa is unlikely to ease in the coming years with this posing policy dilemmas for governments where local poultry industries exist.  Given current trends in EU policy, African government are likely to come under increased pressure to remove all existing non-tariff measures which inhibit EU poultry meat exports, where these are in technical violation of EPA commitments. These pressures would be intensified by a ‘No-Deal’ of ‘Hard’ Brexit from 1st January 2021. Read more “EU Exports of Poultry Meat Continue to Increase Dramatically”

Uganda Could Face a New Import Ban if Sub-Standard Producers Not Eliminated From EU Export Supply Chains

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Summary
Uganda has once again be warned by the EC over the export of chemical residue contaminated horticulture products, with the report of an October inspection visit by the EU FVO to determine the adequacy of national control systems now awaited. In the longer term a more serious threat arises from increasingly strict EU phytosanitary controls which will require the completion and submission to the EC of risk assessments (including detailed action plans) before goods will be allowed on the EU market.  This could lead to the closure of the EU market until such risk assessments have been completed and approved. The UK’s departure from the EU could however lead to phytosanitary controls being introduced in trade with the UK based solely on UK only risk assessments determined by the agro-climatic conditions and patterns of production in the UK (rather than the EU as a whole). As a consequence for some products future UK phytosanitary controls could be far less stringent than EU requirements. However a ‘No-Deal’ Brexit would also see the UK introduce its own autonomous MFN tariff schedule which will see the complete removal of existing high EU MFN duties on virtually all existing Ugandan exports to the UK. Read more “Uganda Could Face a New Import Ban if Sub-Standard Producers Not Eliminated From EU Export Supply Chains”

Spanish Citrus Producers Intensify Pressure for More Controls on Citrus Imports from South Africa

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Summary

New arrangements have been set in place for phytosanitary clearing of South African citrus through the port of Vigo.  This is causing consternation in the financially stressed Spanish citrus sector, with calls being made for a ‘political solution’ to ease their plight. A variety of trade restrictive measures are being advanced including: the designation of a single EU port of entry to maximize the effectiveness of phytosanitary controls; EU in country inspections in South Africa; mandatory cold treatment for all imports; precautionary border closures when a maximum permitted level of interceptions occurs; and the invocation of the safeguard provisions of the EU-SADC EPA. However the commercial implications of many of these measures would lead generate fierce resistance from northern European commercial interests (traders, port authorities, supermarkets). Any pro-active use of pre-export risk assessment requirements against the South African citrus sector meanwhile would send shock waves across all ACP fruit and vegetable exporting countries are of which have weaker compliance enforcement capacities than the highly organized South African citrus sector. Read more “Spanish Citrus Producers Intensify Pressure for More Controls on Citrus Imports from South Africa”

Tremendous Short Term Scope for African Avocado Exports Identified Although Long Term Market Saturation in the EU Likely

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Summary
While ACP exporters have seen considerable growth in avocado exports to the EU since 2008, their market share has been undermined since the entry into force of the EU-Andean Pact Trade Agreement in 2013, with this being particularly acute on the UK market. In addition while consumer demand for avocadoes continues to grow in the EU, the rate of growth is slowing down. Nevertheless African ACP countries have considerable unexploited production and export potential, with a considerable growth in the area under avocadoes being underway. The UK governments’ decision to remove MFN tariffs and import levies on avocadoes post Brexit, will further undermine the position of all but the most competitive ACP avocado exporters on the UK market. This is likely to be compounded by the potential of Brexit to disrupt the functioning of triangular supply chains for the export of avocadoes to the UK market via EU27 member states. Policy dialogues between the governments of ACP avocado exporting countries and the EU27 and UK authorities on the administrative arrangements required to minimise customs and border clearance delays for products which enjoy duty free access to both the EU27 and UK market are needed, with this dialogue being extended to arrangements for SPS inspections along triangular supply chains. Read more “Tremendous Short Term Scope for African Avocado Exports Identified Although Long Term Market Saturation in the EU Likely”

Exploring New Cross Channel Ferry Routes for ACP Exporters Serving UK Market via EU27 Countries

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Summary
ACP exporters of short shelf life products serving the UK market via initial ports of landing in an EU27 member state will face significant challenges under a no-deal Brexit, despite the reconsolidation of duty free-quota free access to the UK market having been secured by all LDC and EPA signatory ACP countries. These ACP exporters will not only need to address the inevitable administrative challenges arising from the UK becoming a separate customs jurisdiction, but will also need to get to grips with the severe transportation disruptions a no-deal Brexit will give rise to along existing EU27/UK transportation corridors. ACP exporters using triangular trade routes will need to:

  • ensure they are ready for inevitable administrative changes a no-deal Brexit will bring about (with new EORIs BOIs and BTIs being obtained where necessary);
  • ensure valid certification and authorisations are in place and their exports remain compliant with labelling and marking requirement ;
  • clarify the location and basis of SPS inspections of products traded along triangular supply chains (ACP/EU/UK) into the UK market;
  • review and revise contractual arrangements for delivery of products to clients in the UK;
  • take unilateral action to review and revise their current shipping arrangements for serving the UK market ;
  • intensify dialogue with trade partners on how best to address specific Brexit related trade disruptions;
  • explore the use of the new ferry services being set in place to address Brexit related transportation disruption focussed on the RORO cross channel routes centred on Kent;
  • in some case seek out new direct routes to UK markets abandoning their existing triangular trade partnerships.

Read more “Exploring New Cross Channel Ferry Routes for ACP Exporters Serving UK Market via EU27 Countries”

EU Needs to Tackle Toxic Pesticide Residues at Source by Banning Their Production in the EU

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Summary
Press reports in Kenya have highlighted the continued export by EU companies of pesticide products banned for use in the EU. This gives rise to pesticide residues which lead to Kenyan products being prevented from entering the EU market. This is seen as incoherent, with calls being made for the EU to halt the production and export of pesticides which are no longer approved for use in the EU on hazardous to health ground. Currently commercial considerations play a significant role in whether re-approval is sought for specific products. Re-approvals for products which are out-of-patent are not generally sought, particularly when newer patented products are being placed on the market. Thus the absence of re-approvals does not necessarily point to a risk to human health. Clearly better dialogue processes are needed to resolve this incoherency, with, where appropriate for the protection of human health, this being extended to addressing the problems at source by banning production and export of pesticides harmful to human health. Read more “EU Needs to Tackle Toxic Pesticide Residues at Source by Banning Their Production in the EU”

EU’s Use of Pesticide Regulations Attacked in WTO as Trade Inhibiting

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Summary
The EU has been challenged in the WTO on the use of its hazard-based approach to regulating pesticides, which it is claimed can constitute a non-tariff barrier to trade. The ACP Group has endorsed the US led challenge, which includes a request for the EU to review its current approach. The EU meanwhile has asserted its unwillingness to compromise the protection of human health. However the real issue relates to the design and application of EU pesticide residue controls and other import control requirement on agricultural products. It is in regard to design and application of EU import controls where more effective dialogues are required to ensure that while protecting human health no unnecessary barriers are created. While there is general agreement on this in principle the key area of contention is how to operationalise this approach in practice. At the ACP level there would appear to be a need for: greater pan-ACP cooperation in such policy dialogues with the EU; closer coordination between producer organisation, competent authorities and diplomatic representatives in Brussels; and enhanced coordination between ACP representatives in Brussels and Geneva in international fora and bilateral discussions with the EU. Read more “EU’s Use of Pesticide Regulations Attacked in WTO as Trade Inhibiting”