Category: Topics

Challenge Thrown Down on Inclusion of Living Income Requirements Under Pending EU Due Diligence Regulations in the Cocoa Sector

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Summary
While the EC is preparing ‘due diligence’ regulations linked to both human rights and deforestation concerns, current market trends and the sourcing decisions of some cocoa grinders is undermining the newly introduced Living Income Differential scheme jointly agreed by the governments of Ghana and Cote d’Ivoire, with the aim of securing a living income for cocoa farmers. Establishing EU ‘due diligence’ requirements which ensure all cocoa products placed for sale on the EU market are sourced from countries where minimum producer income requirements are met (e.g., the LID), would make a major contribution to ongoing efforts to lift cocoa farmers out of poverty across the globe. This is the critical policy challenge faced. Read more “Challenge Thrown Down on Inclusion of Living Income Requirements Under Pending EU Due Diligence Regulations in the Cocoa Sector”

South Africa to Undertake Comprehensive Poultry Sector Tariff Review

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Summary
The South African International Trade Administration Commission is undertaking a comprehensive review of South Africa’s poultry sector trade policy in light of the objectives of the South African Poultry Sector Master Plan. This review could usefully draw on the EU’s experience of designing and applying trade policy tools in support of wider public policy objectives while respecting international trade policy obligations. Read more “South Africa to Undertake Comprehensive Poultry Sector Tariff Review”

Demand for Cane Sugar Likely to Come Under Further Pressure Now Based on Climate Concerns

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Summary
Environmental and sustainability concerns over sugar production alongside growing health concerns over levels of sugar consumption are likely to reduce overall demand for ACP cane sugar in both the UK and EU in the coming years. This will come on top of the new rules of origin/MFN tariff complications facing ACP cane sugar exporters, as a result of the Brexit process and the radical changes in EU sugar market conditions which have been underway since 2005. ACP sugar producers will need to factor these trends into their global sugar marketing strategies if existing patterns of production are to be sustained. Read more “Demand for Cane Sugar Likely to Come Under Further Pressure Now Based on Climate Concerns”

UK Relaxation of Citrus Sector Phytosanitary Requirement Comes as Relief in Face of Mounting Spanish Citrus Producer Pressures, but Not Without its Complications

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Summary
Spanish citrus producers continue to push for stricter phytosanitary controls on imports from Southern Africa. It is unclear whether this is driven by genuine phytosanitary concerns or commercial concerns. The increased commercial threat facing Spanish producers comes from Egyptian exporters, rather than Southern African suppliers, while the principal phytosanitary threat comes from Turkey. Despite this situation, Spanish citrus industry concerns may be taken up forcefully under the EU-SADC EPA review, given the other agri-food sector dispute the EU has with the SADC EPA region (e.g., in regard to safeguard restrictions on poultry meat imports from the EU). While Southern African citrus exporters see Brexit as an opportunity, given more relaxed UK phytosanitary import requirements, this will be at the cost of increased rules of origin and phytosanitary control complications along triangular supply chains (both EU to UK and UK to Ireland). These complications may require a restructuring of some routes to market used by Southern African citrus exporters serving UK and Irish markets.   Read more “UK Relaxation of Citrus Sector Phytosanitary Requirement Comes as Relief in Face of Mounting Spanish Citrus Producer Pressures, but Not Without its Complications”

EU/UK Cross Border Trade Picking Up but Impact on ACP Triangular Supply Chains Remains Un-Addressed

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Summary
While recovery in UK exports to the EU is underway after unprecedented declines in January 2021, the recovery in EU exports to the UK is less pronounced, with trade still down significantly compared to 2020. No data is available on the impact this is having on ACP goods shipped along triangular supply chains. However, the need to get to grips at the policy level with the sources of cost increases along triangular supply chains has bene given a new urgency by the UK’s Covid-19 linked ‘red list’ of countries subject to restrictions on entry to the UK. Read more “EU/UK Cross Border Trade Picking Up but Impact on ACP Triangular Supply Chains Remains Un-Addressed”

Implications of the Veterinary Constraint on UK Export Health Certification

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Summary
UK trade related veterinary inspection and certification services are facing serious problems of recruitment and retention as demand sours. There are calls for both a greater government role in the organisation and conduct of trade related veterinary inspection services and the establishment of para-professional veterinary support staff for the conduct of trade related inspection and certification activities. However, unless changes designed to address staffing constraints are introduced in close consultation with trade partners such changes could disrupt trade, creating a dual system of EU and non-EU accepted health certification. While there are also calls for new UK electronic EHC systems which are compatible with EU systems and for the UK to negotiate a veterinarian equivalency agreement with the EU, the current political atmosphere and evolving situation on the ground are not conducive to early progress in these areas.  This could potentially give rise to UK export surges of livestock products to ACP countries and even EU export surges to ACP countries, if the UK enforces equivalent controls on imports from the EU, to avoid undermining the competitive position of UK livestock product producers. Read more “Implications of the Veterinary Constraint on UK Export Health Certification”

Can Evolving EU UK Technical Discussions on Northern Ireland Trade Issues Help Ease Triangular Supply Chain Challenges?

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Summary
EU/UK technical discussions on solutions which could facilitate agri-food sector trade between the mainland UK and Northern Ireland, within the framework of the mutually agreed Northern Ireland protocol, could offer hope for solutions to the wider challenges now faced along ACP triangular supply chains.  However, any progress on these technical issues would leave unaddressed the issue of the MFN tariffs now levied on ACP exports to final markets where the shipment arrangements require these goods to cross and EU/UK border outside of customs supervision.  This issue needs to be addressed unilaterally by the UK through the adoption of practical trade documentation requirements if the commitments to continuity in market access for ACP exports is to be fully upheld. Parallel unilateral action is also required from the EU. Read more “Can Evolving EU UK Technical Discussions on Northern Ireland Trade Issues Help Ease Triangular Supply Chain Challenges?”

The UK Trade and Business Commission Offers Opportunities for Highlighting ACP Triangular Supply Chain Concerns

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Summary
A UK Trade and Business Commission consisting of cross-party Parliamentary and business representation has been launched. The aim is to review the UK’s new trade agreements and offer evidence-based recommendation for improvements which could facilitate frictionless trade. Given the Commission’s focus on food supply chains and the new rules of origin and SPS complications which have arisen since 1 January 2021, this initiative could offer an opportunity to raise the profile of ACP agri-food sector trade concerns linked to the Brexit process and advance practical solutions for the renewal of frictionless trade along ACP triangular supply chains used to serve markets in both the UK and EU. Read more “The UK Trade and Business Commission Offers Opportunities for Highlighting ACP Triangular Supply Chain Concerns”

Post Brexit Problems in UK Meat Exports to the EU and Implications for UK Poultry Meat exports to ACP Countries

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Summary
UK meat exports to the EU are down 50% in the first six weeks of 2021, with the decline in poultry meat being initially most pronounced. In the long term it is expected UK exports will be down between 230% and 50% depending on the product and size of the exporting enterprises. Particularly in the poultry meat sector this could lead to a surge in exports to non-EU markets, with African and Caribbean markets for frozen poultry parts likely to be targeted. This could easily double current levels of UK exports to targeted African and Caribbean markets. The eventual level of UK trade diversion in the poultry sector will be determined by the nature of the controls placed on mainland UK to Northern Ireland poultry trade. Read more “Post Brexit Problems in UK Meat Exports to the EU and Implications for UK Poultry Meat exports to ACP Countries”

The Implications of the EUs More Assertive Trade Policy: The EU Trade Policy Review Part 2

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Summary
The EC is proposing a ‘more assertive’ trade policy, emphasising the need for partner countries to fully live up to commitments entered into under trade agreements their governments have signed on to. There are concerns the more assertive promotion of EU trade and economic interests will dominate other EU trade policy objectives. The EC’s ‘Open Strategic Autonomy’ concept seeks to reconcile the EU’s ‘managed trade’ import regime applied in sensitive agri-food sector, with the need for more open markets for EU exporters. There is a contradiction at the heart of EU agri-food sector trade policy, with the EC seeking to deny ACP EPA signatories the right to use trade policy tools to regulate imports in trade with the EU which the EC itself routinely uses to manage imports from other major agri-food sector competitors. This contradiction is likely to come to the fore in the coming years as the EC seeks to operationalise its ‘more assertive’ trade policy. This will be especially the case if the application of full UK border controls on goods crossing from the EU, generate the kinds of agri-food sector disruptions which have affected UK exporters since 1 January 2021. This could then see surges in EU exports to ACP markets for livestock products such as poultry meat and milk powders. Read more “The Implications of the EUs More Assertive Trade Policy: The EU Trade Policy Review Part 2”