Summary
While EPA negotiations commenced with all ACP countries in 2002 by the end of 2017 only 28 of 79 ACP governments had signed and ratified EPAs in place. Negotiations to complete regional EPAs in the EAC and West Africa remain stalled by the reluctance of key governments to accede to a regional EPA, with this generating tension within regional integration initiatives. While tariff reduction and elimination commitments vary across agreements in terms of scope and the timetables for implementation, provisions restricting the utilisation of non-tariff trade policy tools are common to all agreement and are likely to have the same effects if rigorously interpreted and applied, despite variations in wording. EU agro-food exporters see the application of non-tariff measures as more important than tariffs in holding back further expansion of EU exports. This is likely to become a growing area of contention in EU-ACP trade relations, since to date the EC has ‘soft peddled’ on this issue in an efforts to complete regional EPA negotiation processes in Africa. Meanwhile the value of ACP preferential access for agro-food exports is being undermined by new EU trade FTA agreement. These effects are likely to further compounded by the Brexit process. ACP efforts to place their structural economic development objectives at the heart of the future ACP-EU Partnership Agreement are being resisted by the EC, with this reflecting and underlying tension between EU agro-food sector export interests and ACP structural development objective sin the agro-food sector. Read more “Implementation of EU-ACP Economic Partnership Agreements: The State of Play in 2017 in Perspective”
Category: Central African EPA
UK Dependence on the EU for ‘Dark’ Meat Exports Potential Source of Concern
Summary
The UK poultry sector is dependent on exports of ‘dark meat’ to maximise its revenues. Currently 70% of these exports go to EU27 markets. This trade will become increasingly difficult under a ‘no-deal’ Brexit scenario if the EU applies both standard MFN tariffs and its rigorous 3rd country import controls on UK poultry meat. The application of such rigorous controls is made more likely by the probable shortage of veterinarians in the UK post Brexit to carry out the inspections and certification required for imports into the EU to take place. Attaining compliance with standard EU poultry meat import requirements or finding internal markets UK markets for poultry ‘dark meat’ if likely to take some time. This could leave UK exporters seeking alternative overseas markets for their ‘dark meat’ exports from 30th March 2019, in a context where ACP markets already take 42.2% of overall UK extra-EU poultry meat exports. Both African and Caribbean governments who wish to support local poultry sector development will need to consider carefully how they are to manage this likely development. Read more “UK Dependence on the EU for ‘Dark’ Meat Exports Potential Source of Concern”
Questionable Increase in Future EU Development Financing
Summary
An EC information note suggests the future multi-annual financial framework for EU external action programmes will see a 30% increase in the budget. However factoring in proposals to incorporate the EDF into the future multi-annual financial framework for EU external action programmes, suggests an almost 16% reduction in the real value of total EU external action programme expenditures in the coming period and even a small decline in planned expenditures in nominal terms. However it remains unclear where the burden of the reduced level of the EU’s planned expenditures in real terms will fall. Caribbean and Pacific ACP countries seem most likely to see a decline in grant financed development cooperation expenditures, while certain sub-Saharan African regions could see traditional development assistance activities down-sized as EU external action expenditures are more closely aligned with EU policy priorities along the West Africa-North Africa axis which plays a central role in migration flows. Read more “Questionable Increase in Future EU Development Financing”
Polish Poultry Sector Expansion Suggests Increased Exports to Africa Can be Expected
Summary
Investments in Polish poultry meat production continue, consolidating Poland’s position as the EU’s leading poultry producer (23% of the total). This is fuelling the growth in extra-EU poultry meat exports, with the rapid growth in Polish exports to sub-Saharan Africa in part being masked by the opening up of new export opportunities in neighbouring Ukraine. Given the lower production costs in Poland, this export growth is set to continue, with the prospect of a ‘hard’ Brexit likely to fuel the Polish quest for new markets beyond the EU’s borders. Read more “Polish Poultry Sector Expansion Suggests Increased Exports to Africa Can be Expected”
Problems of Re-consolidating UK Access under EU 3rd Country FTA Could Threaten UK Agriculture
Summary
A cross party group of UK MEPs representing agricultural constituencies have requested a detailed explanation from the UK International Trade Secretary Liam Fox on how the UK government will secure continued preferential access to 3rd country markets covered by EU trade agreements, once the UK is no longer part of the EU (from 30th March 2019). The current text of the EU27/UK Withdrawal Agreement is ambiguous on this issue, with serious WTO complications arising for 3rd country signatories of EU FTAs if they were to simply ‘roll-over’ UK preferential access once the UK was no longer part of the EU. Read more “Problems of Re-consolidating UK Access under EU 3rd Country FTA Could Threaten UK Agriculture”
French Exporters Lead The Charge for African Sugar Markets
French Exporters Lead The Charge for African Sugar Markets
Summary
The dominant role which French companies play in the expanding EU export trade in sugar to ACP countries is potentially a matter of major concern to efforts to develop intra-African trade in sugar. French companies are highly exposed to sugar exports to the UK, with any loss of the UK market arising from a ‘hard’ Brexit, requiring a 77% increase in French extra-EU sugar exports, if domestic EU27 markets are not to be disrupted by a ‘hard’ Brexit. Such a sudden expansion of EU27 sugar exports to African markets could severely disrupt sugar markets in Africa and the efforts of competitive sub-Saharan Africa sugar producers to expand intra-African trade in sugars. It could also see an intensification of EC pressure on EPA signatories to live up to their trade agreement commitments in regard to the prohibition of the use of quantitative restrictions on imports from the EU. Read more “French Exporters Lead The Charge for African Sugar Markets”
March 2018 AU Position on Future Negotiations with EU Sparks Controversy
Summary
The recently adopted African Union (AU) Executive Council decision to recommend the new agreement with the EU ‘should be separated from the ACP context’ is in contradictions to established common ACP positions, which in line with the recent CARIFORUM statement had emphasises the importance of building on the acquis by negotiating with the EU at the all-ACP level. By abandoning substantive negotiations at the pan-ACP level (the only level at which the EC is obliged to conclude an agreement by March 2020) the AU position risks weakening the position of regional negotiators on issues where there are tensions in the ACP-EU relationship. This includes a range of agro-food sector trade issue which in the context of evolving trends could come to take on growing significance fort African, Caribbean and Pacific countries, most notably in regard to the wider policy framework within which the EU seeks the implementation of EPA commitments. This could carry particularly important implications for African structural economic transformation objectives in the agro-food sector. Read more “March 2018 AU Position on Future Negotiations with EU Sparks Controversy”
EU Poultry Meat Exports to Sub-Saharan Africa Down Only Marginally in 2017 Despite South African AI Based Import Restrictions
Summary
EU exporters have been remarkably successful in finding alternative African destinations for exports of poultry parts impacted by South African AI related import restrictions. In the context of the potential for ‘hard’ Brexit related disruptions of the EU27/UK mutual trade in poultry meat the mobility of EU28 poultry meat exporters would appear to raise concerns. This mutual EU27/UK trade currently amounts to around 830,000 tonnes per annum, with analysts suggesting fully 90% of this trade could be halted under a ‘hard’ Brexit scenario. This could lead to a sudden surge in both UK and EU27 poultry meat exports targeting African ACP markets as early as 2021. Concerns also arise over the possible inclusion of Ukrainian derived poultry meat in exports of ‘EU’ poultry meat to African destinations, in violation of the rules or origin requirements of EU trade agreements. Read more “EU Poultry Meat Exports to Sub-Saharan Africa Down Only Marginally in 2017 Despite South African AI Based Import Restrictions”
State of Play in EU EPA Implementation Update January 2018
On 22 February 2018 ACT Alliance convened Seminar on the Implications of Brexit in the agro-food sector for ACP countries and for the forthcoming ACP-EU Post-Cotonou negotiations. A series of twelve 2 page summary notes were produced for the seminar covering both substantive issues arising within the Brexit process and the current state of play in the Brexit process. Note 4 provides a summary overview of the state of play in regard to the negotiation and implementation of ACP-EU economic partnership agreements based on the EC’s posted summaries and additional information. Read more “State of Play in EU EPA Implementation Update January 2018”
South Africa and Ghanaian Poultry Industries to Join Forces Against EU Dumping of Poultry Parts
Summary
Poultry producers and trade unions in South Africa and Ghana have joined the FairPlay anti-dumping movement in opposing dumping of EU poultry parts on African markets. In West Africa, the EU poultry trade is seen as fuelling migration pressures. Given the scale of EU exports to 38 sub-Saharan African countries, this is a pan-African issue. Pressures on EU exporters to find new markets beyond the EU’s borders will increase in the coming years driven by expanding EU production, accelerating export growth and possible Brexit related trade disruptions. The experience under the EU-South Africa trade agreement suggests action by African governments will need to reach beyond tariff measures, although the use of non-tariff measures will increasingly be constrained by the obligations entered into by African governments under the EPAs concluded with the EU.
More broadly EU trade practices (e.g. the import of live chickens from Ukraine for slaughtering in the EU) suggests a need for stricter traceability requirements and the enforcement of rules or origin requirements under trade agreements with the EU. Read more “South Africa and Ghanaian Poultry Industries to Join Forces Against EU Dumping of Poultry Parts”