Category: Regions

Rising EBA rice exports to EU could squeeze ACP rice exports out of EU market

epamonitoring

 

Summary
While EU rice producers fear the impact of increased imports from LDCs, to date it is other third country suppliers which have been worst affected. Competition amongst third country suppliers will intensify in the coming period, with the effects on ACP countries potentially being compounded by the UK’s departure from the EU. This will depend on the trade regime set in place by the UK from day 1 of BREXIT. Read more “Rising EBA rice exports to EU could squeeze ACP rice exports out of EU market”

South Africa looking for predictable EPA based trade arrangement to boost trade with UK

epamonitoring

Summary
In discussions between the South African Minister of Trade and UK International Trade Secretary the possibility of building on the existing EPAs in developing future bilateral trade relations with the UK was raised. This is seen by the South African Minister as providing a simple mechanisms for avoiding any unintended adverse fallout from the Brexit process. A key question to be determined is the ‘when and how’ related to the launching of such a re-fitting process.  This would appear to be an important issue for clarification at the forthcoming inaugural meeting of Commonwealth Trade Ministers. Read more “South Africa looking for predictable EPA based trade arrangement to boost trade with UK”

Growth in EU dairy exports overhangs ACP dairy sector development

epamonitoring

Summary
The expansion of EU milk production has fuelled increased dairy exports. Except for fat-filled milk powders and to a lesser degree skimmed milk powder, ACP countries are not major markets for EU dairy exports. However the small size of national ACP dairy markets means even relatively small volumes of EU exports can disrupt efforts to expand local milk-to dairy supply chains. What is more the strongest growth in EU dairy exports has been in fat filled milk powders and skimmed milk powder, where ACP markets are more significant and where the dangers of displacement of local milk supplies are highest.

With EU milk production projected to increase 14.6 million tonnes in the next decade and with 50% of this expanded production needing to be exported, concerns are increasing over the impact this could have on efforts to develop milk-to-dairy supply chains in ACP countries. Read more “Growth in EU dairy exports overhangs ACP dairy sector development”

Decision time on EAC-EU EPA process

epamonitoring

Summary

With the deadline for completion of the EAC EPA ratification once again upon the region, there are growing tensions within the EAC. The government of Tanzania maintains its reluctance to sign the EPA, while the government of Burundi is refusing to sign while EU aid programmes are suspended. The government of Uganda meanwhile seeks to play a mediating role aimed at reducing frictions within the EAC. The Kenyan and Rwandan governments  for their part have completed the ratification and notification process. However under EAC rules the trade agreement can’t enter into effect until all members have ratified the agreement.

It remains to be seen what the EC will now do, with Kenya potentially facing  a re-imposition of import duties on around ¾ of its exports to the EU, if the EC decides to play tough. Other options are available. Including the option of an EU Ministerial statement committing the EC to the flexible and responsible implementation of EPA commitments in the case of LDCs such as Tanzania, where concerns arises as to their compatibility with national development aspirations. Read more “Decision time on EAC-EU EPA process”

European Parliament ratifies 2007 Ghana IEPA

epamonitoring

Summary
The ratification of the 2007 EU-Ghana IEPA means this agreement can now be provisionally applied. This will start the clock on the 5 year grace period on preferential tariff reductions for EU suppliers. It could also lead to demands for the Ghanaian government to remove all prohibitions and restrictions on imports from the EU. This latter dimension could have direct and immediate effects on the Ghanaian agro-food sector and could carry important implications for other West African EPA process countries, depending on how the Ghanaian IEPA is interpreted and applied in practice. This will require careful monitoring. Read more “European Parliament ratifies 2007 Ghana IEPA”

Brexit, the Commonwealth and Opportunities for Addressing ACP Countries Trade Concerns

epamonitoring

Summary
The scheduled inaugural meeting of Commonwealth Trade Ministers from 9-10 March 2017 would appear to provide an ideal opportunity for a coordinated push by Commonwealth ACP governments for an early and concrete commitment from the UK government to ensuring no disruption of pre-existing access to the UK market, as a result of the UK’s formal departure from the EU. This is particularly important for those Commonwealth ACP countries which have a higher than average dependence on the UK market in their trade with the EU, either overall or at the sector specific level.

Ignoring this opportunity and allowing existing arrangements for ACP access to the UK market to be interrupted, would provide a far from ideal basis for the UK to seek ‘more favourable asymmetric liberalisation on the ACP side’. Read more “Brexit, the Commonwealth and Opportunities for Addressing ACP Countries Trade Concerns”

ACP need to stay alert to possible delays in UK-EU trade deal

epamonitoring

Summary
Relying on the UK becoming an associated member of existing EPA arrangements would appear unwise, since extended delays in formulating a new post BREXIT UK-EU27 trade framework would make this option very difficult. While a range of options are being advanced for how the interests of developing countries can be accommodated in the BREXIT process, this will require active political engagement by ACP governments with UK opinion leaders and policy makers if arrangements favourable to the interests of ACP countries are to be set in place. Read more “ACP need to stay alert to possible delays in UK-EU trade deal”

Implications of the EC orientation for Post Cotonou negotiations for ACP agro-food sectors

epamonitoring

 

Summary
The EC consensus on development document recognizes the role of agricultures in eradicating poverty and the importance of smallholder farmers within agriculture in developing countries. It commits the EU to developing value chains which benefit the poor. The EC staff working document in contrast clearly articulates EU security, migration and economic preoccupations in redefining the EU’s relationship with ACP countries. The EC communication on a renewed EU-ACP partnership for its part recognizes the need for responsible investment in agro-food sector development in Africa. Read more “Implications of the EC orientation for Post Cotonou negotiations for ACP agro-food sectors”

Planned  hard  BREXIT raises stakes for ACP

epamonitoring

Summary

While somewhat contradictory, the UK’s 12 point ‘Plan for Britain’ appears to suggest the UK intends to leave the single market and the EU customs union, so as to be able to pursue its own bilateral trade agreements with faster growing economies outside the EU. Within this approach little consideration is being given to the consequences of UK policy choices for developing countries within the ACP Group and beyond. The UK’s departure approach will make it more difficult for the UK to become an associate signatory to the existing EPA agreements and increases the urgency of ACP governments establishing with the UK authorities a mechanisms to avoid ‘a disruptive cliff edge’ in ACP access to the UK market. It would also appear to increase the urgency of ACP governments establishing dialogues with the UK and EU authorities on how to address the adjustment challenges which will arise from the erosion of the value of ACP preferences as a result of Brexit. Read more “Planned  hard  BREXIT raises stakes for ACP”

Senegal remains major market for Dutch onion exports despite growth in domestic production

epamonitoring

Summary
Senegal remains a growing market for Dutch onion exports, despite a major expansion of commercial onion production in Senegal. Dutch onion exporters are beginning to invest in local onion production for the local market, in part linked to the growing importance of wider West African markets for Dutch onion exporters Read more “Senegal remains major market for Dutch onion exports despite growth in domestic production”