Summary
The EC proposal for a mandate to negotiate the apportionment of WTO agreed TRQs has been approved by the EU Council. The EC’s approach is based on the October 2017 joint UK/EU letter to WTO members. This approach has already been rejected as unacceptable by leading WTO members. The annex to the EC proposal provides TRQ by TRQ details of how much access to the EU27 market would be reduced post Brexit. This nominally includes a reduction in ACP TRQ access for sugar exports: an arrangement which has been superseded by the granting of full duty free-quota free access under the EU’s EBA scheme and various EPAs. This suggests there may be some shortcomings in the EC’s preparatory work for the launch of these TRQ negotiations with WTO members. This could lead to a lengthy process of negotiations. However the EU Council has reserved the right to unilaterally apportion existing TRQs if no specific agreements can be reached with WTO members by the date of the UK’s full departure from the EU. Read more “EU Council authorises launch of Negotiations on apportionment of WTO TRQs”
Category: Cereals
Pressure Mounts for Ending of Nigerian Wheat Import Tax
Summary
Pressure is mounting on the Nigerian government to abandon its supplementary levies on wheat imports given the failure of the Cassava Bread Development Fund to train and promote investment in the use of blended cassava/wheat flour in bread and other bakery products. Despite the levies Nigerian wheat imports have grown 30% since the 2012/13 season. The experience in the Nigerian, cassava/wheat sector highlights the need for a fully integrated approach to the development of supply chains, which encompasses multi-stakeholder buy-in prior to the launch of specific trade policy measures. The isolated and injudicious use of trade policy interventions can be counter-productive. Read more “Pressure Mounts for Ending of Nigerian Wheat Import Tax”
ACP rice exporters and Brexit
Summary
In terms of trade with the EU the UK is not a major market for ACP rice exporters. However the impact of the UK’s departure from the EU on ACP rice exporters will not be felt via changes to UK rice import tariffs, but rather as a result of the increased competition on the smaller EU27 market, where the departure of the UK will reduce overall EU rice import demand by around 23% while the EU’s TRQ market access commitments under existing bilateral agreements will remain unchanged. The removal of UK import demand is also likely to exacerbate the competitive challenges which ACP rice exporters face as a result of the DFQF access granted to LDC rice exporters to the EU. This measure saw imports from the main LDC rice exporters to the EU increase from under 7,500 tonnes in 2007 to around 500,000 tonnes in 2015 and 2016. Read more “ACP rice exporters and Brexit”
Reconciling Ghana’s agricultural development plans with EPA commitments
Summary
The government of Ghana is looking to create 1.5 million new jobs in agriculture in the next 2 years. Calls have been made to direct bank financing into agricultural investments. Yet systemic weaknesses beyond the agricultural sector need to be addressed if sourcing of local agricultural products is to increase. Policy interventions may also be needed to strengthen the functioning of local agricultural supply chains, with policy experiences elsewhere in Africa potentially holding important lessons. Read more “Reconciling Ghana’s agricultural development plans with EPA commitments”
EU rice producers seek safeguard protection from imports
Summary
EU rice producers’ representatives are calling for safeguard measures to be used against rice imports from Cambodia and Myanmar under the EBA. Yet EC analysis shows lower rice imports in 2016 from EBA countries than in 2015, while EU production was up 8.2% in the 2015/16 season. The discussion highlights again the availability within the EU of the use of quantitative controls in sensitive agricultural sectors, where EU producers interests could be threatened. Read more “EU rice producers seek safeguard protection from imports”
Rising EBA rice exports to EU could squeeze ACP rice exports out of EU market
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”