Summary
COLEACP is offering support to ACP producers of chillies and pepper in getting to grips with new EU documentation requirements related to effective treatment against False Codling Moth infestations. While such initiatives are welcome the increasing commercial costs of compliance is likely to progressively squeeze smaller scale producers out of EU market supply chains. This is likely to be compounded by the ongoing EU review of the acceptable minimum residue levels for pesticides applied to a range of fruit and vegetable imports. Read more “COLEACP Warning Highlights New EU Requirements for Retaining Access to EU Market for Chilli and Pepper Exports”
Category: Regions
South Africa-EU CBS Dispute Takes a New Twist
Summary
The discovery of the Citrus Black Spot (CBS) fungal infection in citrus imports from Tunisia could prove a game changer in terms of South African efforts to secure a reduction of the EU’s commercially costly CBS control requirements. This is likely to give added important to discussions with the UK on its’ future SPS control arrangements to be applied under ‘no-deal’ Brexit Continuity Agreements. Removing controls on a citrus specific infection in a context where the UK has no commercial citrus production, alongside a lifting of TRQ restrictions on South African duty free access to the UK market, could help unlock the currently stalled UK-SADC EPA Continuity Agreement negotiations. This would be particularly the case if such a move signalled the UK governments’ willingness to respond more broadly to the changed trade realities which a ‘no-deal’ Brexit will give rise to. Read more “South Africa-EU CBS Dispute Takes a New Twist”
EU Formally Challenges Application of SACU Safeguard Duties in the Poultry Sector
Summary
The EC has initiated a process leading to the establishment of an arbitration panel to rule on the validity of safeguard measures taken against EU poultry meat imports under the EU-SADC Group EPA. While many of the EC’s objections are technically correct they ignore the wider context of the evolution of EU poultry meat exports, to which tariff reduction and ‘tariff standstill’ commitments contained in the pre-existing EU-South Africa TDCA made a unique contribution prior to the introduction of SPS related import restrictions in December 2016. With the progressive lifting of these restrictions, the longer term structural trend towards increasing EU exports of poultry meat to South Africa is beginning to re-assert itself. This needs to be seen against the background of concerns a ‘no deal’ Brexit could lead to a huge surge in EU27 poultry meat exports to extra-EU markets. In this context the current EC action can be seen as part of EU ‘no-deal’ Brexit preparations. As such this raises the spectre of the aggressive pursuit by the EC of the full implementation of nominal EPA commitments, so as to open up new market possibilities for EU27 export sectors facing the prospect of severe trade and market disruptions under a ‘no-deal’ outcome to the ongoing Brexit process. Read more “EU Formally Challenges Application of SACU Safeguard Duties in the Poultry Sector”
Low EU sugar prices lead to calls for greater market transparency
Summary
EU sugar production estimates have been revised down, with the prospect of a greater market balance and some price recovery emerging. However a ‘no-deal’ Brexit could push 550,000 tonnes of EU27 white sugar back onto the EU27 market, exerting a downward pressure on EU27 sugar prices. In contrast shortages of sugar would be likely to emerge on the UK market which would increase demand for imports of both raw cane sugar and refined sugar from preferred suppliers as well as an increase in UK sugar prices. With spot market prices currently above contracted sugar prices ACP exporters may need to re-evaluate their marketing strategies. However not only is their uncertainty over the basis of the UK’s departure from the EU but also over which existing trade agreements the UK will succeed in ‘rolling over’ by November 2019. The EC is busy preparing for a ‘no-deal’ Brexit in the sugar sector. The ACP Ambassadorial Working Group on Sugar should initiate a dialogue with the EC on the nature of these preparations and the likely implications for ACP sugar producers, given the profound effects EU policy measures can have on the functioning of the EU sugar market. Read more “Low EU sugar prices lead to calls for greater market transparency”
EU Poultry Exports to Sub-Saharan Africa Once Again on the Rise
Summary
EU poultry meat exports to sub-Saharan Africa are once again on the rise after the shock of the SPS based partial closure of the South African market from December 2016. While growth is likely to continue it is unclear if the very strong growth in the first months of 2019 will be sustained. This is likely to be critically influences by the outcome of the Brexit process, with a no-deal Brexit creating enormous pressures on both EU27 and UK poultry meat exporters to find alternative markets or over 1 million tonnes of mutual trade in poultry meat. Read more “EU Poultry Exports to Sub-Saharan Africa Once Again on the Rise”
UNCTAD Reviews Impact of Future UK MFN Policy on Low Income Developing Countries
Summary
The UNCTAD analysis highlights the central importance of future UK MFN tariffs to the value of any ‘rolled over’ ACP preferential access to the UK market. This is an important issue under both a ‘no-deal Brexit and a ‘hard Brexit’. This will require effective ACP lobbying of the UK government to retain in place existing MFN tariffs in areas of greatest interest to ACP exporters. In the country and product analysis undertaken by UNCTAD the importance of triangular trade flows to the UK via the Netherlands is neglected, with this trade also being adversely impacted by any changes in EU MFN tariffs. Read more “UNCTAD Reviews Impact of Future UK MFN Policy on Low Income Developing Countries”
Spanish Pressure for Application of Safeguards Against Imports of South Africa Citrus Fruit Increase Despite Evidence of National Nature of the Current Citrus Market Crisis
Summary
While Spanish citrus producers continue to press for safeguard measures against imports of citrus fruit from South Africa, EU data suggests the growth of imports from morocco and Egypt has been more significant than the growth in imports from South Africa. Furthermore EU data suggests declines in both EU citrus consumption and EU exports have had a far greater market effect than any increase in import volumes. EU data also suggests the current citrus market difficulties are specific to Spain, the only EU country where citrus prices are below the 5 year average. This strongly suggests that rather than restrictions on imports from South Africa, national action is required to strengthen the functioning of the citrus supply chains and eliminate unfair trading practices along citrus supply chains. Read more “Spanish Pressure for Application of Safeguards Against Imports of South Africa Citrus Fruit Increase Despite Evidence of National Nature of the Current Citrus Market Crisis”
CBS Control Challenge Yields Benefits for False Codling Moth Controls
Summary
The development of a systems based approach to pest and disease control for CBS is yielding benefits in terms of South African controls of False Codling Moth (FCM). EU FCM interceptions on imports from South Africa were down in 2018, with a far lower level of interceptions than other ACP exporters despite South Africa’s far higher volume of exports to the EU of potentially infected products. Calls for a ‘white list’ approach to FCM related import controls if adopted by the EU could free up scarce pest control resources for deployment in the most vulnerable areas. However development assistance support will be required to ensure small scale producers are not commercially disadvantaged by any moves over to a ‘white list’ approach. Given South Africa’s successful experience there would appear to be scope for the sharing of best pest-control practices across ACP exporters of vulnerable products. Read more “CBS Control Challenge Yields Benefits for False Codling Moth Controls”
EU Sugar Exports to ACP Markets Are Falling After Record Levels of EU Exports in 2018
Summary
While after the exceptional level of EU sugar exports in 2018, export volumes are projected to be substantially reduced in 2019 (with export levels down 50% so far), these are still projected to be above EU export volumes in 2016/17 (+73% so far). What is more on average ACP markets in 2018 took 1 in every 5 tonnes of extra-EU sugar exports, up from 1 in every 14 tonnes in 2014. West Africa is the main ACP region for EU sugar exports, with Ghana and Senegal the two most important markets. Central Africa is the second most important ACP region with Cameroon leading the way as a destination for EU sugar exports. There have been surprisingly high levels of EU sugar exports to the eastern and Southern Africa region, given this is a sugar surplus region. EU sugar exports to the Caribbean have varied with exports to Haiti dominating the trend in overall EU sugar exports. While weather events and national trade policies play a role in patterns of EU sugar exports, there are concerns that ‘no-deal’ Brexit related trade disruption could lead to a growing EU corporate focus on sub-Saharan African markets. This could well give rise to pressure form the EC on ACP governments to abandon policies which restrict EU sugar exports. Read more “EU Sugar Exports to ACP Markets Are Falling After Record Levels of EU Exports in 2018”
MHP Looking to Africa as Part of its On-Going Expansion Outside of Ukraine
Summary
Following its expansion into the EU the Ukrainian poultry producer MHP is looking to expand in Africa and the Middle East. This needs to be seen in the context of a projected 15% expansion of MHPs exports in 2019 and a further planned production expansion of 15% in 2019. This expanded production will need to be exported. Current Ukrainian exports are facing growing criticism from EU poultry producers because of their market effects in the EU. These criticisms are only likely to intensify in the event of a ‘no-deal’ Brexit. This could leave MHP seeking markets elsewhere, including in African countries where acquisitions are being targeted. This could then replicate the MHP practice of using locally acquired poultry processors to channel Ukrainian poultry meat on to the local market. African poultry producers and concerned African governments will need to carefully monitor the evolution of MHPs’ African investment policy. Read more “MHP Looking to Africa as Part of its On-Going Expansion Outside of Ukraine”