Brexit and Non-Tariff Trade Issues: The Pros and Cons

On 22 February 2018 ACT Alliance convened Seminar on the Implications of Brexit in the agro-food sector for ACP countries and for the forthcoming ACP-EU Post-Cotonou negotiations. A series of twelve 2 page summary notes were produced for the seminar covering both substantive issues arising within the Brexit process and the current state of play in the Brexit process. Note 3 provided an exploration of the vulnerability of ACP Members to the process of transitioning the UK out of the EU in terms of the application of non-tariff measure sin the agro-food sector. Read more “Brexit and Non-Tariff Trade Issues: The Pros and Cons”

Implications of Improving Phytosanitary Control Systems for the Attainment of SDGs

Summary

Investments in strengthening SPS control systems in ACP countries can only be effective in contributing to the SDG objectives of poverty eradication and ending hunger if complemented by additional initiatives. Firstly initiatives to end unfair trading practices (UTPs) along ACP-EU agro-food sector supply chains through the extension of scheduled EU regulatory initiatives to combat UTPs to ACP-EU supply chains. Secondly initiatives to improve the design and implementation of EU SPS control requirements in ways which take into account the mode of production used by smallholder producers, while ensuring the integrity of arrangement for attaining underlying SPS policy objectives. Read more “Implications of Improving Phytosanitary Control Systems for the Attainment of SDGs”

Growing Role of Ukraine in EU Poultry Meat Imports Raises Rules of Origin and SPS issues in EU Poultry Meat Export Trade

Summary
The processing in EU member states of poultry birds raised and slaughtered in the Ukraine raises both important rules of origin issues in the EU poultry meat export trade with ACP countries (particularly South Africa) and important SPS control concerns (given the initial origin of the birds is being disguised through the cutting and packaging operations carried out in EU member states). This expanding trade suggests a need for stricter proof of origin documentation requirements on poultry meat imports from the EU both on SPS and rules of origin grounds. The rules of origin dimension is particularly important where reciprocal preferential trade agreements covering poultry meat are under implementation (e.g. under the SADC-EU EPA). Read more “Growing Role of Ukraine in EU Poultry Meat Imports Raises Rules of Origin and SPS issues in EU Poultry Meat Export Trade”

South Africa and Ghanaian Poultry Industries to Join Forces Against EU Dumping of Poultry Parts

Summary
Poultry producers and trade unions in South Africa and Ghana have joined the FairPlay anti-dumping movement in opposing dumping of EU poultry parts on African markets. In West Africa, the EU poultry trade is seen as fuelling migration pressures. Given the scale of EU exports to 38 sub-Saharan African countries, this is a pan-African issue. Pressures on EU exporters to find new markets beyond the EU’s borders will increase in the coming years driven by expanding EU production, accelerating export growth and possible Brexit related trade disruptions. The experience under the EU-South Africa trade agreement suggests action by African governments will need to reach beyond tariff measures, although the use of non-tariff measures will increasingly be constrained by the obligations entered into by African governments under the EPAs concluded with the EU.

More broadly EU trade practices (e.g. the import of live chickens from Ukraine for slaughtering in the EU) suggests a need for stricter traceability requirements and the enforcement of rules or origin requirements under trade agreements with the EU. Read more “South Africa and Ghanaian Poultry Industries to Join Forces Against EU Dumping of Poultry Parts”

More Proactive Role Emerging for EC in Promoting Common Application of EU SPS Measures?

Summary
Spanish pressure for the harmonised implementation of SPS controls across appears to be bearing some fruit, with an EC audit underway of SPS control systems at the main EU port of entry for South Africa citrus, Rotterdam. The Spanish industry is seeking to use new stricter EU FCM controls to ensure commercially damaging cold store treatment protocols are set in place, despite sustained South African efforts to combat both CBS and FCM. The ACP collectively needs to seek assurances form the EU Council that:

  1. SPS measures will not be used as a new form of protectionism;
  2. The EU remains committed to ensuring SPS measures are minimally trade distorting;
  3. The design and implementation of EU SPS measures will take account of the need of smallholder producers for low cost systems of compliance attainment and verification.

Read more “More Proactive Role Emerging for EC in Promoting Common Application of EU SPS Measures?”

Exports of pineapples from Benin to EU to resume, but functioning of supply chain also needs strengthening

 

Summary
Improvements in the food safety control system in Benin are reopening the EU market to pineapple exporters.  This is seen as having the potential to boost both employment and farm incomes. However Ghanaian exporters have identified UTPs along the pineapple supply chains which undermine the commercial viability of pineapple production for export.  Against this background there would appear to be little point in investing in stronger food safety and SPS control systems if the issue of UTPs in Africa-EU agro-food sector supply chains are not addressed, since these can undermine the commercial viability of investments made in both expanding production for export and ensuring effective national food safety and SPS control systems. Read more “Exports of pineapples from Benin to EU to resume, but functioning of supply chain also needs strengthening”

Lifting of EU Ban May Provide Little Relief for Ghanaian Vegetable Exporters

Summary

While the EU Delegation in Ghana has heralded the scheduled lifting of the EU ban on imports of specified vegetable from Ghana on 1st January 2018, the trade benefits of this measure could be undermined by the stricter SPS control requirements on False Coddling Moth scheduled to be introduced by the EU from 1st January 2018. This could potentially place a significant additional administrative burden on the competent authority to verify compliance with EU requirements, with any failure to satisfy stricter EU requirements leading to market closure. This is an issue not only for Ghana but 20 other ACP countries engaged in exporting capsicum and pimento to the EU.  How the situation evolves in regard to ACP exports of capsicum and pimento in 2018 will provide a concrete example of the kind of impact which stricter EU Plant Health Regulation requirements are likely to have on a range of ACP fresh plant exports to the EU. Read more “Lifting of EU Ban May Provide Little Relief for Ghanaian Vegetable Exporters”

Pre-emptive export restrictions introduced on South African citrus exports to EU

Summary

The Citrus Growers Association has once again introduced voluntary restrictions on citrus exports to the EU in order to avert any threat of formal EU import restrictions. While the South African citrus industry is looking forward to new export opportunities as a result of the Brexit process, these opportunities may well be deferred if a two year transition period is agreed. During this period the UK would need to remain subject to EU rules and regulation. The prospect of such a two year transition period however remains clouded by uncertainty, given the contrasting views of the UK government and EU negotiators on the time it will take to agree a long term EU27-UK trade framework. Read more “Pre-emptive export restrictions introduced on South African citrus exports to EU”

New EU Plant Health Regulation Could Carry Important Implications for Smaller Scale ACP Exporters

Summary

The EU’s new Plant Health Regulation adopts a far more comprehensive and proactive precautionary approach than at present. It will lead to far stricter SPS controls on ‘priority pests’ in ‘high risk commodities’. For these products from 13 December 2019 trade will be prohibited without a favourable pest risk assessment.  In this context the regulation makes provision for temporary EU restrictions and import bans where the pest risk is unknown.

Given the timetable for secondary legislation, in calendar year 2019 ACP competent authorities in countries exporting high risk commodities could face substantial additional demands on their human and financial resources in terms of pest mapping and  monitoring and operationalisation of effective pest control programmes. Smaller scale ACP exporters of high risk commodities could be particularly vulnerable, given the whole process will also impose substantial additional burdens on the EU SPS inspection service and these smaller exporting  countries may not be a priority for pest risk assessment, even if requests for assessments are submitted in a timely manner by the national competent authority . Read more “New EU Plant Health Regulation Could Carry Important Implications for Smaller Scale ACP Exporters”

EU Farmers Continue Campaign for Stricter EU Citrus Black Spot Controls

Summary

EU farmers organizations continue to push for stricter SPS controls on citrus imports including the mandatory use of cold treatment. The South African citrus industry believes such a requirement would be an economic disaster for the industry. In the context of the Spanish citrus industry’s pressure for stricter EU SPS controls, the UK’s departure from the EU could offer a life line for the South African citrus industry. If SPS controls not relevant to UK agricultural production were lifted and duty free-quota free access to the UK market could be secured in line with the South African government’s current aspirations for post-Brexit trade relations with the UK, then less restrictive market access requirements would apply potentially opening up additional export opportunities to the UK market. Read more “EU Farmers Continue Campaign for Stricter EU Citrus Black Spot Controls”