Category: Eastern African

March 2018 AU Position on Future Negotiations with EU Sparks Controversy

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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”

European Civil Society Organisations call for EC Action on UTPs Along All Agricultural Supply Chains

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Summary

In a letter to EC President Juncker European civil society bodies have come out publicly in favour of extending proposed EU regulations on UTPs to supply chains including those sourcing from beyond the EU’s borders. The ACP Group and individual ACP governments with an interest in those supply chains which are most seriously affected could usefully support this initiative, so as to have an EU regulatory framework in place which can be developed in the context of the post-Cotonou negotiations to operationalise the application of these principles along ACP-EU supply chains – from farm to fork. Read more “European Civil Society Organisations call for EC Action on UTPs Along All Agricultural Supply Chains”

EU Poultry Meat Exports to Sub-Saharan Africa Down Only Marginally in 2017 Despite South African AI Based Import Restrictions

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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”

The Potential Differential Effects of Stricter EU False Coddling Moth Controls on African Exports

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Summary
Controlling false coddling moth infestations in the face of stricter EU controls will be a major challenge for African fruit and vegetable exporters, with different countries having very different systems in place for controlling infestations in exported product. South Africa’s sophisticated ‘electronic compliance database’ Phytclean could potentially hold important lessons as national SPS authorities across the Africa seek to get to grips with stricter EU controls. This is potentially an important area for pan-African technical cooperation which would supplement existing EU support programmes to strengthen SPS control capacities implemented through such programmes as COLEACP. Read more “The Potential Differential Effects of Stricter EU False Coddling Moth Controls on African Exports”

Brexit and the Disruption of Triangular Supply Chains

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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 7 explores the potential of the Brexit process to disrupt the functioning of triangular supply chains which serve the UK market via an initial port of landing in an EU27 member state or EU27 markets via a port of landing in the UK. Read more “Brexit and the Disruption of Triangular Supply Chains”

State of Play in EU EPA Implementation Update January 2018

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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”

Current High Volume of EU Skimmed Milk Powder (SMP) Exports to be Sustained and Expanded

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Summary
The recent expansion of EU SMP exports is set to continue, initially at current elevated level but subsequently at substantially expanded levels. By 2030 EU SMP exports are projected to be 65% above those witnessed in 2016. Throughout this period EU SMP prices are projected to be between 13% (beginning of the period) and 3% (end of the period) below world market SMP prices. This is likely to act as a drag on world market SMP price recovery.  These price trends cannot be delinked from the high levels of EU public sector support to both public and private storage schemes for SMP. These public policy interventions schemes give rise to supply responses to low prices by EU diary companies which simply do not correspond with the normal functioning of markets. These high EU SMP export volumes and low prices overshadow national efforts in ACP countries to develop local milk-to-dairy supply chains. This is being compounded by the rapid growth in EU exports of fat filled milk powders (FFMP). These trade trends appear to be undermining efforts to expand local milk production in African countries in response to growing local demand for dairy products. Read more “Current High Volume of EU Skimmed Milk Powder (SMP) Exports to be Sustained and Expanded”

Tourist Sectors Vital Role in Horticulture Exports to EU

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Summary
A large well established tourism sector can provide significant opportunities for the export of high value low volume horticulture products to the EU.  This is particular where tourist flights service horticulture product distribution hubs. A ‘hard’ Brexit however could bring into question the use of these hubs in serving the UK market. A Freshfel report has outlined the disruption ‘hard’ Brexit could give rise to. Some of these adverse impacts could be ameliorated by administrative cooperation between ACP, EU27 and UK authorities. The ACP Secretariat could usefully launch initiatives in these areas. Read more “Tourist Sectors Vital Role in Horticulture Exports to EU”

State of play in the Brexit negotiations implications for the ACP: November 30th 2017

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Summary
This article reviews the state of play in the 1st phase of Brexit negotiations on the eve of the deadline for the circulation of draft conclusions for the EU Council meeting scheduled for the 14/15 December 2017.  It then seeks to review the possible implications for ACP agro-food sectors of the current state of play. Read more “State of play in the Brexit negotiations implications for the ACP: November 30th 2017”

USDA projects lower EU sugar price post production quota abolition

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Summary

While USDA maintains EU sugar prices will need to fall if EU projections for growth in sugar exports in the post-quota period are to be met, this neglects the long experience EU sugar companies have of operating within a dual price system. It is possible substantial price premiums could be maintained on the EU sugar market, with this raising the issue of what regulatory initiatives are required to ensure traditional ACP suppliers share in any EU sugar market prices premiums. This would appear to require an extension of the EC’s current regulatory initiative on UTPs to ACP-EU sugar supply chains. This could potentially include regulatory requirements mirroring those which govern relations between domestic EU sugar beet growers and EU sugar beet millers. Read more “USDA projects lower EU sugar price post production quota abolition”