Summary
The EU UTPS regulation has not been transposed into member states national law, but with uneven results. Ensuring common standards of enforcement to uphold minimum EU requirements for removing UTPS in agri-food supply chins is no essential. Equally there is an urgent need to ensure enforcement mechanisms recognise the realities of ACP-to-EU supply chains and actively prevent the adoption of commercial practices between importers and exporters which de facto circumvent the intention of EU UTP regulations in regard to 3rd country-EU supply chains. Read more “Deadline for Transposition of EU UTP Regulation into National Law Passes but Major Questions Related to UTPs Remain”
Category: PCD
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”
Banana Link Makes the Case for the Extension of Spanish Fair Producer Price Legislation to Pan-EU Banana Imports
Summary
Debates on proposed amendments to the Spanish 2013 Food Chain Law have highlighted how ‘fair pricing’ regulations need to be applied equally to domestic EU producers and 3rd country producers if competition between domestically produced and imported products is not to be distorted. Applying ‘fair price’ regulations to imported as well as domestically produced agricultural products would not only avoid distorting competition but would also provide scope for integrating ‘Green Deal’ sustainability objectives into both domestic and 3rd country supply chains serving the EU market. Read more “Banana Link Makes the Case for the Extension of Spanish Fair Producer Price Legislation to Pan-EU Banana Imports”
The Case of Cocoa What Does the New EU UK Trade Agreement Mean for ACP Triangular Supply Chains?
Summary
The simple change of tariff heading rules of origin requirements for simple value-added cocoa products (1803, 1804 and 1805) included in the EU/UK trade agreement means the existing ACP cocoa supply chains within which the processing of ACP cocoa beans takes place in the EU prior to onward shipment to the UK will face no disruption as a result of the new EU/UK trade arrangements. However, more complicated rules of origin are faced for cocoa products containing sugar which fall under tariff heading 1806. In addition, the absence of ‘diagonal cumulation’ provisions in the EU/UK trade agreement, means ACP value added cocoa products shipped to the UK via the EU will in future need to remain under customs supervision prior to landing in the UK; with extensive use being made of the Common Transit Convention (CTC) in the handling of such cargoes. However, currently there are serious infrastructure and human capacity constraints on the UK’s efficient operation of CTC procedures. This will complicate the immediate use of such arrangements. Scope for moving over to direct shipments to the UK would also appear to face some transitional challenges given current UK port congestion. More serious problems would appear to be faced in regard to onward trade from the EU to the UK in high sugar content value added cocoa product supply chains (e.g., chocolate bars) where these have traditionally used ACP sourced sugar. The absence of ‘diagonal cumulation’ provisions means manufacturers will need to shift over to the use of ‘wholly obtained’ EU or UK sugar, if eligibility for duty free access for high sugar content value added cocoa products is to be retained. Read more “The Case of Cocoa What Does the New EU UK Trade Agreement Mean for ACP Triangular Supply Chains?”
Growth in EU27 Poultry Meat Exports Projected on the Basis of Continued EU/UK Duty Free Trade
Summary
While the rate of growth in EU poultry meat exports is slowing down, the EC projects a continued expansion of EU exports up to 2030 on the back of a continued expansion of EU poultry production. While the December 2020 EU/UK trade deal will avert the imposition of standard MFN tariffs on EU/UK mutual trade in poultry products, the introduction of standard 3rd country import control requirements will generate some trade disruption. This will largely affect UK poultry meat exports to the EU27. The trade in value added food products containing poultry meat is also likely to be complicated by new rules of origin requirements for EU/UK trade, given no agreement has been reached on ‘diagonal cumulation’ arrangements. These issues are likely to lead to some level of trade displacement of mutual EU/UK trade in poultry products to 3rd country markets. This is most likely to result in increased UK exports of poultry parts to non-EU27 markets. Read more “Growth in EU27 Poultry Meat Exports Projected on the Basis of Continued EU/UK Duty Free Trade”
Appointment of Chief Trade Enforcement Officer Could Signal a Push More Rigorous Enforcement of EPA Commitments Made by ACP Governments
Summary
The appointment of an EU Chief Trade Enforcement Officer is likely to see the EU more rigorously enforce the commitments entered onto by ACP governments under EPAs. Particular concerns arise in regard to the interpretation and application of provision dealing with trade defence mechanisms established under the EPAs (safeguard and anti-dumping provisions), the ‘Prohibition of quantitative restrictions’, and ‘National treatment’. The rigorous interpretation and enforcement of these commitments could undermine national agri-food sector development strategies across a wide range of ACP countries. There are concerns disputes with ACP countries constitute areas for ‘early wins’ for the CTEO, given the limited legal capacity of ACP governments to engage in dispute settlement processes and the limited scope for ACP retaliatory action. Particular concerns arise in product areas where a no-deal Brexit could generate severe EU/UK trade disruptions (e.g. the poultry meat sector) and ACP markets are major outlets for EU exports. Read more “Appointment of Chief Trade Enforcement Officer Could Signal a Push More Rigorous Enforcement of EPA Commitments Made by ACP Governments”
South Africa’s Poultry Sector on the Road to Recovery as Stricter Trade Regime Applied
Summary
According to analysis from the United States Department of Agriculture, Foreign Agricultural Service, the South African poultry meat sector is recovering following a post drought recovery of maize crops which has lowered feed costs, agreement on a Poultry Sector Master Plan and the application of new trade policy measures designed to provide relief from low cost poultry imports. However, there is a hole in South Africa’s poultry sector trade policy arising from the de facto effect of EU-South Africa trade agreements. These exclude EU exporters form general tariff changes and profoundly undermine the effectiveness of the anti-dumping and safeguard measures nominally allowed under these agreements. This situation is compounded by legal loop-hole challenges from the EC of South African safeguard measures, which if upheld would seriously undermine the development dimension of EU trade agreements with sub-Saharan African trade partners. Read more “South Africa’s Poultry Sector on the Road to Recovery as Stricter Trade Regime Applied”
EU27 Poultry Sector Surprisingly Resilient in Face of Covid-19 Challenges, But Brexit Challenges Could See Expanded Export Drive to ACP Markets
Summary
The EU poultry meat sector has proved surprisingly resilient to Covid-19 trade and market disruptions. While both EU imports and exports have fallen, exports of poultry meat to the main sub-Saharan African markets have risen dramatically. This role of sub-Saharan African markets as “markets of last resort” raises concerns about the impact of a ‘no-deal’ or ‘Thin FTA’ outcome to the Brexit process on international trade in poultry meat given the scale of current mutual EU/UK trade (1.2 million tonnes per annum). There are fears ACP markets could be targeted should this EU/UK trade be disrupted. This could then disrupt established or emerging African poultry sectors. ACP governments will need to prepare for these likely export surges, in a context where the EU’s new Chief Trade Enforcement Officer will be increasingly seeking to remove current trade restrictions on EU poultry meat exports, where these violate trade agreement commitments. Greater transparency in trade statistics on EU poultry exports to developing country markets could facilitate operationalising EU policy coherence for development commitments, particularly if a ‘window’ were opened through which the concerns of local ACP poultry producers could be made known. Read more “EU27 Poultry Sector Surprisingly Resilient in Face of Covid-19 Challenges, But Brexit Challenges Could See Expanded Export Drive to ACP Markets”
Uncertainties Arising from Unresolved Future EU/UK Trade Issues Generate Contract Negotiation Challenges for ACP Exporters
Summary
There area host of Brexit related uncertainties overhanging the negotiation of ACP-UK supply contracts for 2021, which threaten to increase costs to such an extent as to erode the profitability of a range of ACP exports to the UK market. ACP short shelf life product exports along triangular supply chains are likely to be most severely affected. The currency issue will also affect direct ACP exports. How these short-term issues are dealt with, could carry long term implications, especially for small scale ACP exporters. Public policy interventions to support Codes of Conduct for dealing with the distribution of additional costs, based on the principles enshrined in the EU UTP directive, could usefully be launched. In the EU, traders in short shelf life products would appear to have a long term vested interest in short term burden sharing initiatives; otherwise ACP exporters will be compelled to seek out new direct routes in serving UK markets. Read more “Uncertainties Arising from Unresolved Future EU/UK Trade Issues Generate Contract Negotiation Challenges for ACP Exporters”