Summary
Trade diversion to ACP poultry markets, as a result of Brexit related disruptions to the EU/UK poultry trade appears to be underway. This situation of trade diversion is likely to get worse before it gets better, given full UK border controls on imports from the EU are only scheduled to be introduced in 2022. For those ACP countries seeking to develop their domestic poultry production on national food security grounds, this gives added importance to poultry sector trade policy. Here lessons can be drawn from South Africa’s current poultry sector trade policy review, which seeks to draw inspiration from EU policy practice in the poultry sector as opposed to EU policy prescriptions. EU trade protections in the poultry sector serves not only to protect the domestic EU market, but also support EU poultry meat exports. These low-priced EU exports of poultry parts are in turn serving to undermine efforts aimed at developing both domestic African poultry production (in response to heightened food security concerns) and intra-African trade in poultry meat. Read more “EU Poultry Meat Exports to Sub-Saharan African Markets Surge at Beginning of 2021 Suggesting Trade Diversion is Underway”
Category: Caribbean
How Will EU Sustainability and Livelihood Due Diligence Regulations Interface with Private Sector Sustainability Initiatives?
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
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”
The Sea Freight Reefer Constraint on ACP Perishable Exports Compounds Brexit Complications
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
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”
Demand for Cane Sugar Likely to Come Under Further Pressure Now Based on Climate Concerns
Summary
Environmental and sustainability concerns over sugar production alongside growing health concerns over levels of sugar consumption are likely to reduce overall demand for ACP cane sugar in both the UK and EU in the coming years. This will come on top of the new rules of origin/MFN tariff complications facing ACP cane sugar exporters, as a result of the Brexit process and the radical changes in EU sugar market conditions which have been underway since 2005. ACP sugar producers will need to factor these trends into their global sugar marketing strategies if existing patterns of production are to be sustained. Read more “Demand for Cane Sugar Likely to Come Under Further Pressure Now Based on Climate Concerns”
UK Relaxation of Citrus Sector Phytosanitary Requirement Comes as Relief in Face of Mounting Spanish Citrus Producer Pressures, but Not Without its Complications
Summary
Spanish citrus producers continue to push for stricter phytosanitary controls on imports from Southern Africa. It is unclear whether this is driven by genuine phytosanitary concerns or commercial concerns. The increased commercial threat facing Spanish producers comes from Egyptian exporters, rather than Southern African suppliers, while the principal phytosanitary threat comes from Turkey. Despite this situation, Spanish citrus industry concerns may be taken up forcefully under the EU-SADC EPA review, given the other agri-food sector dispute the EU has with the SADC EPA region (e.g., in regard to safeguard restrictions on poultry meat imports from the EU). While Southern African citrus exporters see Brexit as an opportunity, given more relaxed UK phytosanitary import requirements, this will be at the cost of increased rules of origin and phytosanitary control complications along triangular supply chains (both EU to UK and UK to Ireland). These complications may require a restructuring of some routes to market used by Southern African citrus exporters serving UK and Irish markets. Read more “UK Relaxation of Citrus Sector Phytosanitary Requirement Comes as Relief in Face of Mounting Spanish Citrus Producer Pressures, but Not Without its Complications”
EU/UK Cross Border Trade Picking Up but Impact on ACP Triangular Supply Chains Remains Un-Addressed
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
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?
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?”