Summary
The comprehensive nature of COLEACP’s Brexit assessment makes it a useful starting point for all ACP agri-food exporters in their efforts to get to grips with the new trade challenges thrown up by the culmination of the Brexit process. Its analysis of the short-term transitional and long-term structural challenges faced, also raises policy issues which now need to be addressed if disruptions to ACP supply chains which cross the new EU/UK customs and regulatory border are to be minimised. This sets an agenda for concerted ACP action, drawing in stakeholders from the multiplicity of sectors adversely affected by the new trade realities faced. While in the horticulture sector these issues primarily affect ACP exporters using triangular supply chains, in other sectors ACP exporters directly serving EU and UK markets could also be affected. This is particularly the case where imports are used in manufactured food and drink products and where the use of domestically produced alternatives (of either EU or UK origin) could avert any rules of origin complications (e.g., in the use of imported sugar in food and drink products destined for export). Read more “COLEACP Updated Brexit Impact Assessment Posted”
Category: Sectors
Will ACP Producers Currently Exporting to Irish Markets Via the UK or Using the UK ‘Land Bridge’ Take Advantage of Expanded Mainland EU to Republic of Ireland Ferry Services
Summary
There has been a 3-fold expansion of direct ferry services from the Republic of Ireland to France in 2021, as well as an expansion of direct services to Dutch and Belgian ports. Using these routes to serve Irish markets could enable ACP exporters traditionally using the UK ‘land bridge’ or serving Irish markets via the UK to sidestep export pre-notification requirements further phytosanitary certification requirements, further phytosanitary inspections, and major rules of origin complications, which result in a loss of duty-free access for onward traded goods, while allowing a continuation of low-cost ‘Groupage’ cargo haulage practices. The imbalance in Irish truck-based exports compared to imports could open up opportunities for securing low-cost freight services, which balance the more expensive ferry costs along these routes. However, this will require a process of ‘match making’ between ACP exporters and Irish hauliers, where potentially Irish government support could play a role. Read more “Will ACP Producers Currently Exporting to Irish Markets Via the UK or Using the UK ‘Land Bridge’ Take Advantage of Expanded Mainland EU to Republic of Ireland Ferry Services”
Brexit Bureaucracy Places Brake on Commercial Flexibility for ACP Horticultural Exports
Summary
Pre-export notification requirements, the need to re-issue phytosanitary certificates, problems in delivering ‘groupage’ cargoes, port clearance delays and rising road haulage charges are all undermining the commercial flexibility required for ACP exporters to exploit emerging market opportunities, where this involves the movement of goods across EU/UK borders. This is depressing export earnings, with this being a particular problem for smaller scale ACP exporters. In addition, new rules of origin complication which lead to standard MFN import tariffs being applied if goods delivered along triangular supply chains are not shipped under customs supervision, is requiring a fundamental rethink of the routes to market being used. A policy response, involving modification of the ‘Direct Transport’ provisions of the rules of origin applied under ACP-UK trade agreements and ACP-EU trade agreements is urgently needed, if smaller scale exporters shipping along triangular supply chains are not to be driven of UK and Irish markets. Read more “Brexit Bureaucracy Places Brake on Commercial Flexibility for ACP Horticultural Exports”
UK Deferment of Implementation of Phase 2 and Phase 3 UK/EU Border Controls Leave Problems Faced By ACP Triangular Supply Chain Exporters Unaddressed
Summary
On 11 March 2021, the UK government announced the deferment until 2022 of its planned phase 2 and phase 3 controls on goods crossing an EU/UK border. This has reduced concerns over potential disruptions of UK imports of fresh produce in the coming months and provides a 9-month breathing space for the UK authorities to set in place border control infrastructure and services which are ‘fit for purpose’. This deferment benefits EU producers, but largely leaves ACP exporters serving UK markets along triangular supply chains unaffected. ACP exporters will still face the dilemma of choosing between entering the EU customs union so as to benefit from the light UK import controls applied to EU products and losing ‘originating status and facing MFN tariffs, which is the consequence of leaving customs supervised transit arrangements. Clearly there is an urgent need to address specific ACP triangular supply chain issues if the functioning of many of these ACP triangular supply chains are not to be fundamentally undermined. Read more “UK Deferment of Implementation of Phase 2 and Phase 3 UK/EU Border Controls Leave Problems Faced By ACP Triangular Supply Chain Exporters Unaddressed”
An Alternative View on EU-West Africa Poultry Sector Trade: A Review of the European Commission’s West Africa-EU Poultry Sector Briefing
Summary
This article has a different structure to the normal epamonitoring.net articles, with it being structured as commentary on recent EU information materials supplied in the context of discussions over the coherence of EU poultry sector trade policy in West Africa. This paper was released as background to planned discussions on the EU’s poultry sector trade relationship with West African countries, the European Commission circulated an information note setting put the EC perspective on this trade. It sought to:
- Assert how EU poultry production growth was demand driven, but largely neglected the impact which the EU’s tightly regulated poultry meat import regime on investment and production decisions in the EU poultry sector.
- Set out the phenomenal increase in effective consumer demand for low-cost protein which was underway prior to the Covid-19 pandemic, a development which is incontestable.
- Explore the structure of poultry meat production and demand in West Africa and the constraints on competitive production faced, which undoubtedly exist.
- Sought to explore the issue of the right balance required between domestic production and imports, given evolving West African demand.
- Argue the EU provides no subsidies to EU poultry production and trade.
- Outline the scale of EU development assistance to agricultural development in West Africa.
- Briefly explore the impact of the Covid-19 pandemic and the EU’s health focussed ‘farm to fork’ strategy.
The following paper seeks to critically reflect on the arguments set out by the European Commission in this paper, with a particular focus on the impact of the EU’s trade policy in regard to EU imports of poultry meat and the sharp contrast this provides with the EU’s evolving approach to the use of trade policy tools by African governments in the poultry sector. Read more “An Alternative View on EU-West Africa Poultry Sector Trade: A Review of the European Commission’s West Africa-EU Poultry Sector Briefing”
South Africa Poultry Producers Seek Further Anti-Dumping Duties
Summary
The South African Poultry Association has applied for anti-dumping duties on imported chicken from five countries, Brazil, Denmark, Ireland, Poland, and Spain. The four EU member states accounted for around 95% of total EU frozen chicken and offal exports to South Africa in 2019-20. The hard reality facing South African poultry producers is that since 2012 the average price paid for imports of these products from the EU has fallen 24%, while prior to the introduction of Avian Influenza based phytosanitary restrictions in December 2016, import volumes more than doubled. Given the challenges posed by the under-reporting of the value of imports, false classification of imports and fraudulent declarations other policy measures such as minimum import price requirements may need to be considered. Additional measures may also be required on public health ground to improve handling practices and traceability in cases of food poisoning outbreaks. Read more “South Africa Poultry Producers Seek Further Anti-Dumping Duties”
Ghana’s Duty-Free Access to UK Market Restored
Summary
Following the signing of the Ghana-UK trade agreement in London on 2 March 2021 and the tabling of a statutory instrument on 4 March, duty free access will be restored for Ghanaian exports to the UK on 5 March 2021. This will avert the further imposition of UK import tariffs, which in the past 2 months have cost Fairtrade banana exporters over £177,000. It is unclear what long-term implications the recent hiatus in Ghana’s duty-free access will carry for the sourcing decisions of UK importers, a number of which in the past two months have looked elsewhere for supplies. Read more “Ghana’s Duty-Free Access to UK Market Restored”
EU Poultry Meat Exports to Sub Saharan Africa Prove Resilient Despite Overall Decline in EU Poultry Meat Exports and South Africa Trade Policy Initiatives
Summary
Despite a decline in overall EU poultry meat exports in 2020, exports to Ghana and the DRC two major export destinations increased. While exports to sub-Saharan Africa as a whole fell, due to the application of import control measures by the South African government, excluding trade with South Africa, EU poultry meat exports to sub-Saharan Africa grew overall. Looking at longer term trends to non-South African sub-Saharan African markets EU export volumes increased 70% between 2012 and 2020 while the average price of such imports fell 26.4%. In the sub-category of frozen chicken meat, the average price of imports from the EU fell 29% while volumes almost doubled. While the EC consistently argues the EU does not ‘dump’ poultry meat on sub-Saharan African market, the undeniable reality is that since 2012 average unit prices of EU poultry meat exports have fallen. Despite this reality, the EC continues to pursue a nominal policy which restricts the ability of governments, in African countries which are major recipients of EU poultry meat exports, to make use of the kind of quantitative controls on imports routinely used by the EU in its trade with major poultry meat exporters. Read more “EU Poultry Meat Exports to Sub Saharan Africa Prove Resilient Despite Overall Decline in EU Poultry Meat Exports and South Africa Trade Policy Initiatives”
Continued Disruption of African Dairy Markets Likely as Continued EU Export Growth Projected Amid Changing Pattern of Milk Powder Exports
Source
The EU is projected to continue to dominate the global trade in dairy products, with EU milk production growth slowing down but continuing. There is a growing trend towards increased EU exports of low priced ‘fat filled milk powders’, in the face of growing competition on milk powder markets from Latin American exporters. This is increasing the importance of negotiated EU tariff and non-tariff preferences on sub-Saharan African markets. There is growing concern over the devastating impact of increased ‘fat filled milk powder’ imports on local milk supply chains in West Africa. Maintaining the policy space for managed trade in milk powders would appear to be an essential part of sustainable strategies to promote the development of local milk production in the face of surging demand for dairy products in sub-Saharan Africa. Read more “Continued Disruption of African Dairy Markets Likely as Continued EU Export Growth Projected Amid Changing Pattern of Milk Powder Exports”
Future Caribbean Trade Relations with the UK: Summary of Areas of Concern
Summary
The new EU/UK rules of origin requirements for the cross-border movement of goods could prove disruptive of certain Caribbean rum, horticulture, sugar and potentially rice supply chains. At the business level this will require a rethinking of routes to markets. At the policy level it will require a sustained engagement to secure a right of automatic cumulation for all Caribbean products enjoying duty-free/quota-free access to both the EU and UK markets, when traded across an EU/UK border. Only such a policy innovation would remove the rules of origin complications which threatened to make commercially non-viable the current Caribbean exports which are routed via the EU to the UK market or via the UK to EU markets. Read more “Future Caribbean Trade Relations with the UK: Summary of Areas of Concern”