Summary
Freshfel Europe has called for the EC and member states to develop ‘a concrete EU SPS strategy’ to improve access for EU fruit and vegetable exporters to 3rd country markets. ACP governments will need to take a nuanced approach to such overtures, paying careful attention to the practical operational policy implications of any commitments entered into, especially in regard to the possible impact on their relations with other major third country trading partners and regional trade integration initiatives.
Freshfel Europe, the fruit and vegetable industry advocacy body in a reflection paper (1) has highlighted the lack of reciprocity in SPS import and export protocol arrangements with third countries. It is highlighted how currently, EU fruit and vegetable exporters need to ‘negotiate individual SPS export protocols to start business with many trade partners, whereas similar specific protocols are not required for the majority of imports of fresh produce into the Union.’ The absence of reciprocity in SPS access arrangements is therefore a source of concern to EU fruit and vegetable exporters (2).
While Freshfel acknowledges this is in part due to capacity constraints in the EC and competition between national EU exporters, the view is taken that a more coordinated EU-wide approach to securing SPS market access agreements could be beneficial to EU fruit and vegetable exporters as a whole (1). Freshfel has therefore called on the EC to ‘define with Member States a concrete EU SPS strategy to secure market diversification by easing market access conditions based on safe trade guaranteed by the EU regulatory environment’ (2).
Currently, EU fruit and vegetable exporters need to negotiate their own SPS arrangements for access to third country markets on a product-by-product basis. This is seen as a ‘lengthy, costly and non-transparent process.’ This is contrasted with the EC’s approach to imports which is described as ‘transparent and immediately applicable to all suppliers concerned.’ This imbalance in SPS protocol arrangements was left largely unaddressed in the EC’s recent trade policy review (2).
Against this background Freshfel calls on the EU to ‘secure proportional, scientifically justified SPS conditions and obtain additional SPS simplifications through Free Trade Agreements’, with ‘proper enforcement of partner’s commitments.’ According to Freshfel ‘this should be among the top priorities for the EU’s trade agenda for the competitiveness and livelihood of EU growers and for the development of mutually beneficial trade relationships’ (2).
| Comment and Analysis It is unclear how the EC will respond to the Freshfel appeal. On the one hand the EC generally likes to expand the scope of its mandate, particularly in areas which are increasingly central to EU agri-food sector exports. However, the EC will be keenly aware of its capacity constraints and the dangers of policy overreach, when institutional capacities are not in place to effectively follow through on new areas of policy initiative (e.g., the recent Covid vaccines supply crisis in the EU). However, if the EC does take up Freshfel’s call for a common SPS strategy, it could carry implications for ACP governments and the future development of ACP agri-food sectors. While the Freshfel reflection paper explicitly makes reference to relations with Japan, Mexico, Vietnam, China and the USA, the EU has trade agreements in place with only 3 of the 5 countries explicitly referred to. What is more, it includes Vietnam, a least developed country. While not explicitly referred to, ACP countries which have FTAs in place with the EU, could well come under pressure to conclude all-embracing SPS accords which the EC would then be called upon to ensure compliance with. ACP governments will need to take a nuanced approach to such overtures, since enforceable all-embracing SPS accords could carry implications which the ACP governments concerned had given little thought to. For example, in some sectors for some issues (e.g., Avian Influenza related import controls on EU poultry meat exports) the EC favours EU member states being treated separately and even for any third country import restrictions to be defined in relation to individual provinces of particular EU member states. It would be somewhat ironic if in other sectors the EU were advocating for pan-EU arrangements in regard to phytosanitary market access arrangements. The important thing is for ACP government policy makers to fully think through the implications of EU wide phytosanitary agreements, in light of the diverse realities faced by different products and for any such arrangements to be clearly and carefully defined. The second aspect which ACP governments will need to bear in mind, is that SPS standards alignment is an important sphere in which the EC is trying to gain commercial advantages for EU exporters on the markets to be served vis a vis competing third country suppliers. The post Brexit EU/UK alignment discussions are indicative in this regard. Against this background, ACP governments will need to be alert to the dangers of any comprehensive SPS agreements with the EU drawing them into conflicts with other trade partners. This would appear to be a particular issue of concern in the Caribbean, given the regions close trade and economic ties with the USA and Mercosur. Finally, ACP governments would also need to be alert to the possible implications for regional trade integration initiatives of any comprehensive SPS market access agreements (e.g., the pan-Africa continental free trade area). |
Sources
(1) Freshfel, ‘SPS export protocols: Towards greater reciprocity in fresh produce trade; Reflection paper from the fresh fruit and vegetable sector’
https://freshfel.org/wp-content/uploads/2021/03/01032021-SPS-export-protocols-towards-greater-reciprocity-in-fresh-produce-trade-Freshfel-Europe-Reflection-Paper.pdf
(2) Hortidaily.com, ‘Freshfel Europe publishes reflection paper urging EU to have a fully fledged SPS Strategy’, 8 March 2021
https://www.hortidaily.com/article/9299144/freshfel-europe-publishes-reflection-paper-urging-eu-to-have-a-fullyfledged-sps-strategy/