Summary
While sustainability considerations are not yet a major concern in sugar sourcing, developments in the cocoa and palm oil sectors suggest it will be only a matter of time before sustainability certification is increasingly demanded by food and beverage manufacturers in the EU. the Bonsucro initiative is an attempt to get ahead of the curve on sustainability certification in the sugar sector. To date however there has been little engagement by ACP sugar exporters in the Bonsucro initiative. Given smallholder sugar producers struggle to obtain sustainability certification there appears to be a case for EU supported ‘aid for sustainability’ programmes to ensure smallholder sugar producers are not systematically discriminated against. Read more “Sustainability: Choosing between beet sugar and cane sugar”
Category: Topics
USDA foresees greater price instability as EU sugar production quotas end
Summary
USDA confirms a projected 2.1 million tonnes expansion in EU sugar production, which will transform the EU’s sugar trade position. While this is likely to create far from promising prospects for ACP sugar exporters, capacity utilisation maximisation considerations of individual beet processors could create new opportunities for ACP raw cane sugar exporters. USDA also see’s potential opportunities for raw cane sugar exports to the Southern and eastern periphery of the EU. This will require ACP sugar exporters to get much closer to individual dedicated EU raw cane sugar refiners in the Southern and Eastern periphery of the EU and individual sugar beet co-refiners in core EU sugar beet producing regions. Read more “USDA foresees greater price instability as EU sugar production quotas end”
Gambia Withdraws Import Ban on Onions and Potatoes
Summary
The government of Gambia has lifted a ban on imports of onions and potatoes, with female onion producers criticising the move and calling for seasonal restrictions and greater support for local producers. Experience in Senegal suggests there may be a role for seasonal restrictions in stimulating investment in local production. Experience in Namibia meanwhile highlights how successful the use of trade policy measures can be in stimulating local production, if the necessary infrastructure, organisational and administrative capacities are already in place. Read more “Gambia Withdraws Import Ban on Onions and Potatoes”
WTO quotas pose thorny problems for agriculture sector in Brexit negotiations
Summary
Dividing up WTO TRQ obligations between the UK and EU27 could provoke discontent amongst WTO members over how this impacts on their existing rights and market opportunities. Such discontent could reduce the prospects of securing the acceptance by WTO members of any unilateral transitional arrangements which may be required to ensure continuity of current ACP access to the UK from day 1 of the UK’s formal departure from the EU. Read more “WTO quotas pose thorny problems for agriculture sector in Brexit negotiations”
South Africa satisfied with current progress on Brexit related discussions with the UK
Summary
Despite the ‘in principle’ understanding that existing EPA commitments should be the basis of a future bilateral South Africa-UK agreement, any attempt at ‘grandfathering-in’ on a bilateral basis of existing EU negotiated reciprocal trade preferences, outside of a formal WTO compatible FTA, could face strong opposition from other WTO members.
Any efforts to ensure a re-fitted reciprocal trade agreement is in place from day 1 of Brexit could face difficulties around the question of the dividing up of existing quota restricted access for EU28 exports and the need to address the concerns of other SACU members in their future trade relations with the UK (notably those arising from the erosion of the value of traditional preferential access linked to changes in UK agricultural and agricultural trade policies post-Brexit).
Finally any early South Africa-UK bilateral trade deal could reduce the incentive for the UK government to address the concerns of the broader ACP Group in terms of their future access to the UK market. Read more “South Africa satisfied with current progress on Brexit related discussions with the UK”
EU dairy companies commit to help building milk-to dairy supply chains in Nigeria
Summary
There is a need for greater coordination between EU dairy cooperatives in their efforts to promote the development of milk-to-dairy supply chains in Nigeria. This includes in regard to the establishment of code of conduct on responsible trade and investment engagement in the Nigerian dairy sector. However the Nigerian government will also need to make sustained efforts to address infrastructural and logistical constraints on the development of competitive milk supply chains. Arla continues to grapple with the challenge of reconciling its commitment to not undermining the position of local farmers and its commercial interests linked to its core profit maximisation obligations to its farmer owners. Read more “EU dairy companies commit to help building milk-to dairy supply chains in Nigeria”
Record EU agri food surplus highlights success of EU CAP reforms
Summary
EU agro-food exports continue to grow to new record levels driven by successful agricultural reforms and an increasingly ‘offensive’ trade policy. For certain EU products sub-Saharan African markets have become increasingly important. In the coming years ACP governments will come under increased pressure to systematically remove all non-tariff barriers to EU agri-food exports. The EU largely imports unprocessed agricultural products from ACP countries, adds value meets domestic demand and re-exports higher value products to global markets. There is a fundamental in fundamental contradiction between the aspirations of ACP governments to structurally transform their agri-food sectors and EU objectives for expanding exports of value added food products. Read more “Record EU agri food surplus highlights success of EU CAP reforms”
Multiple challenges pending for ACP sugar exporters
Summary
The production and trade consequences of the abolition of EU sugar and isoglucose quotas are just the tip of an iceberg of challenges facing ACP cane sugar exporters. These developments will be compounded by the uncertain prospects for global sugar markets and the UK’s pending departure from the EU. The overall situation is further complicated by sustained regulatory pressure to reduce the sugar content of processed food and drink products, both in Europe and beyond, and the growing availability of alternative sweeteners. This will create a context where only the most efficient ACP sugar cane industries are likely to be able to compete on the EU27 and the UK markets. Read more “Multiple challenges pending for ACP sugar exporters”
Need to restore differentiation in trade rules in support of structural transformation in Africa
Summary
Trade Minister Davies reflections on South Africa’s experience of trade liberalisation, which, with hindsight it is held, moved too rapidly for the countries capacity to adjust, potentially holds important lessons for ACP countries as they move towards the implementation of the EPAs concluded with the EU. It suggests ACP governments need to work together to ensure EPAs are interpreted and applied in a flexible and differentiated fashion, which places centre stage the structural economic transformation needs of ACP countries. This will need to be a central component of the forthcoming ACP-EU post-Cotonou negotiations, as well as on-going ACP Ministerial discussion on EPA implementation. Read more “Need to restore differentiation in trade rules in support of structural transformation in Africa”
USDA Highlights EU’s Continued Use of Protectionist Tools in the Agro-Food Sector
Summary
USDA highlights the EU’s continued use of protectionist trade tools in its agro-food sector. This boosts EU export competitiveness, which can harm ACP agricultural sectors (e.g. dairy and poultry sector development). EU practices contrasts sharply with EU policy prescriptions in an EPA context. This calls for the flexible interpretation and application of EPA commitments given the overriding importance of agriculture to livelihoods in many ACP countries. Read more “USDA Highlights EU’s Continued Use of Protectionist Tools in the Agro-Food Sector”