Summary
The huge discrepancy in Citrus Black Spot interception rates between Spanish, Dutch and UK border control authorities raises questions as to the commonality of current control measures implemented by EU member states. It also raises questions as to the extent and nature of future regulatory alignment requirements once the UK leaves the EU customs union and single market. This is an important issue for ACP exporters who use triangular supply chains in delivering short shelf life, fruit, vegetables and cut flowers to the UK market. Minimising SPS controls at EU/UK borders will be critical to the future commercial viability of these routes to UK markets. Current Covid-19 flexibilities and innovations in the exercise of official controls could hold some important lessons for future EU/UK SPS border controls, particularly if the policy focus was on the practical outcomes in terms of the phytosanitary protection of domestic agricultural production, rather then the modalities for the application of controls. Read more “Variable Application of Citrus Sector Phytosanitary Import Controls Highlights Practical Challenges of Regulatory Alignment in Future UK/EU Relations”
Category: Regions
EC Rejects Accusations South African Imports Behind Spanish Citrus Sector Difficulties
Summary
An EC analysis has found that contrary to Spanish citrus industry claims, imports from South Africa are not the cause of the current difficulties in the Spanish citrus sector. The lack of well organised producer organisations is seen as the root cause of many of the sectors problems. This view is supported by the latest data posted on the EU’s Citrus Market Observatory website. The Citrus Growers Association of South Africa has welcomed the EC’s findings and has called for joint action with Spanish producers to boost global citrus consumption in the face of competition from other fruits. The heightened consumer health consciousness linked to the Covid-19 pandemic could provide a springboard for such a longer-term citrus promotional campaign. Read more “EC Rejects Accusations South African Imports Behind Spanish Citrus Sector Difficulties”
More Evidence Sugar Levies Work in Stimulating Product Reformulation
Summary
Daily per capita sugar consumption in soft drinks in the UK has declined by 30% between 2015 and 2018, in part in response to the Soft Drinks Industry Levy. This decline could see similar such measures introduced for other high sugar content food products. Some 73% of the decline was driven by industry reformulation efforts and 27% by changing consumer purchasing patterns. An important underlying driving force however is the trend towards healthier eating, which is largely immune to short term price falls (as induced by the economic effects of the Covid-19 pandemic). This will accelerate the trends towards reduced Eu sugar consumption which is already underway. If ACP sugar exporters remain focussed on the EU market, they will need to target increasingly differentiated member states sugar markets, since considerable price premiums exist on in certain national EU sugar markets (region 3 countries). Read more “More Evidence Sugar Levies Work in Stimulating Product Reformulation”
New EU MRLs Highlight the Difficulties in Securing International Consensus on SPS Issues, Despite EU’s Dominant Role in Setting Regulatory Standards
Summary
The EU continues to set and re-set pesticide and fungicide Maximum Residue Level (MRLs) at far stricter levels than internationally agreed standards. ACP exporters serving EU markets have no option but to comply or exit the EU market. Freshfel’s call for ‘better defined international standards’ to facilitate EU fruit and vegetable exports, since uneasily with the unilateral standard setting practiced by the EU, which regularly presents new compliance challenges for ACP fruit and vegetable exporters. This raises important policy issues regarding the EU’s role in the de facto setting of international standards and the limitations of SPS chapters and institutional mechanisms established under trade ACP-EU FTAs for ensuring EU markets remain open to ACP products which comply with agreed international regulatory standards. Read more “New EU MRLs Highlight the Difficulties in Securing International Consensus on SPS Issues, Despite EU’s Dominant Role in Setting Regulatory Standards”
Covid-19 Related Cancellation of Commercial Flights Beginning to Bite for ACP Horticulture Exports
Summary
The current Covid-19 disruptions of Kenyan exports to Europe, particularly along triangular supply chains to the UK, highlights the importance of shortening supply chains by wherever possible, contracting with the final retailer and shipping products directly. For exporters who can get to grip with current logistical challenges, rising EU demand for fruit and vegetables and rising prices could yield commercial benefits to counter-balance some of the Covid-19 disruptions. This is particularly the case since labour shortages in the fruit and vegetable sector as a result of disruptions to migrant labour flows could depress European fruit and vegetable production throughout 2020. Read more “Covid-19 Related Cancellation of Commercial Flights Beginning to Bite for ACP Horticulture Exports”
Will Dutch Onion Companies Continue to Support West African Onion Sector Development or Push for the Elimination of Import Restrictions on EU Onions?
Summary
West Africa markets for Dutch onion exports have become increasingly important, with the Africa markets overall being seen as having the greatest future growth potential. With some African government using quantitative restriction on onion imports to try and boost domestic production in response to growing demand, the question arises: will the EC seek to use trade agreement commitments to put an end to the application of all forms of quantitative restrictions on imports from the EU? Pressure to do so could increase should a ‘hard Brexit’ occur, which disrupts Dutch onion exports to the UK market. The experience of the August 2014 Russian import embargo suggests any loss of markets for Dutch onion exporters leads to expanded efforts to increase exports to African markets, particularly in West Africa.
The Netherlands onion export trade has become more dependent on West African exp Read more “Will Dutch Onion Companies Continue to Support West African Onion Sector Development or Push for the Elimination of Import Restrictions on EU Onions?”
Covid-19 Pandemic Raises Questions Over the Brexit Effect on ACP Triangular Supply Chains
Summary
The Covid-19 pandemic is highlighting the supply chain problems which can arise when border clearance arrangements come under stress from increased demands and reduced capacities. This is bringing into question the future commercial viability of existing ACP triangular supply chains for short shelf life products in serving the UK market. This needs to be seen in the light of the border clearance challenges and associated transportation disruptions which are likely to arise as a result of the UK governments’ current approach to future trade relations once it leaves the EU customs union and single market. Current policy responses to transportation disruptions associated with border clearance problems linked to the Covid-19 pandemic, could provide a basis for longer term arrangements to facilitate the continued smooth functioning of triangular supply chains. In the absence of such initiatives ACP exporters will need to explore opportunities for direct exports to the UK or diversification away from the UK market. Read more “Covid-19 Pandemic Raises Questions Over the Brexit Effect on ACP Triangular Supply Chains”
Size and Market Experience Affect the Impact of Corvid-19 Pandemic Disruptions on African Horticulture Exporters
Summary
Smaller scale ACP fruit and vegetable exporters are being more severely impacted by the economic effects of the Covid-19 pandemic than larger ACP fruit and vegetable exporters. This suggests smaller ACP exporters may well need financial assistance in surviving and bouncing back from the trade and economic consequences of the pandemic. There could potentially be a role for the EIB in providing bridging financing for smaller ACP fruit and vegetable exporters, provided mechanisms can be found for the early delivery of such support and reliable repayment. The EIB could usefully review its existing programmes to see which of these could provide a vehicle for the swift extension of support to the worst affected ACP fruit and vegetable exporting enterprises, which would otherwise be driven out of business by the export market disruptions they currently face. Read more “Size and Market Experience Affect the Impact of Corvid-19 Pandemic Disruptions on African Horticulture Exporters”
Dairy Price Recovery Likely to be Reversed by Covid-19 Pandemic
Summary
Covid-19 pandemic related disruptions to EU and global dairy markets has led the European Milk Board (EMB) to call for the implementation of a production restricting Market Responsibility Programme, which it is argued should become a permanent feature of the EU diary sector policy tool kit. While the EC is likely to resist such call, favouring traditional intervention buying, ACP milk producers could usefully support the EMB proposal in order to avert future ‘dumping’ of low priced EU milk powder on ACP markets, to the detriment of local milk producers and national efforts to boost local milk production. Read more “Dairy Price Recovery Likely to be Reversed by Covid-19 Pandemic”
Collapse of European Cut Flower Demand Threatens Immediate Future of Kenyan Cut Flower Sector
Summary
The Corvid-19 pandemic has caused economic disruptions which have crippled the Kenyan cut flower industry, which directly employs 200,000 people. Tens of thousands of workers are being sent home, with farms closing. Given the uncertainty over Kenya’s future duty free access to the UK market, many of these farms may not re-open, unless current uncertainties are urgently addressed. With all East African Community meetings cancelled, this will require unilateral action from the UK government to reinstate the proposed Transitional Protection Mechanism put forward in October 2019 or the adoption of a similar such mechanism. Read more “Collapse of European Cut Flower Demand Threatens Immediate Future of Kenyan Cut Flower Sector”