UK International Trade Secretary Raises Concerns Over UK Border Control on Imports From EU

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Summary
The UK Trade Secretary has expressed concerns over plans for a phased implementation of UK border controls on imports from the EU27 regarding their WTO compatibility, the impact on smuggling operations and the credibility of UK trade policy. Concerns have also been raised over the practicality of implementing ‘light touch’ border control systems between the mainland UK and Northern Ireland. Problems in designing and implementing ‘light touch’ border control systems and concerns over smuggling could see more rigorous controls applied to ACP goods entering the UK market via EU27 member states.  Unless special arrangements are set in place to facilitate the continued smooth functioning of ACP triangular supply chains, the functioning of important ACP export sectors could be seriously undermined (e.g. short shelf life horticulture products and cut flowers, value added cocoa products and even fisheries products). Read more “UK International Trade Secretary Raises Concerns Over UK Border Control on Imports From EU”

What Options for Strengthened EU Regulatory Requirements Would Best Serve the Interests of African Cocoa Farmers?

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Summary
Some form of EU regulatory initiative to promote more sustainable and child labour free cocoa production in the course of 2021 now looks inevitable. The question arises: what form should such regulatory action take, if it is to support the attainment of a decent living wage for cocoa producers? This is a critical question since poor prices and heightened poverty levels have an important bearing on the use of child labour and the pursuit of environmentally damaging cocoa farming practices.  A combination of initiatives founded on bilateral cocoa supply chain agreements between the EU and cocoa exporting countries, linked to the subsequent formulation of due diligence requirements and appropriate modifications to EU competition law, all aimed at addressing the low prices paid to farmers and ensuring net gains to the financial position of farmers as a result of the implementation of environmental and forest protection measures as well as the ending of the use of child labour, would appear to offer the greatest scope for effective action in addressing shared concerns. Read more “What Options for Strengthened EU Regulatory Requirements Would Best Serve the Interests of African Cocoa Farmers?”

Could Leaked Requirements for Movement of Goods to Northern Ireland Provide Basis for Special Arrangements for ACP Triangular Supply Chains

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Summary
Proposals for consolidated electronic document requirements for the movement of goods from the mainland UK to Northern Ireland could provide a basis for special arrangements to facilitate the continued smooth functioning of ACP triangular supply chains. Additional arrangements to remove the need for phytosanitary checks on ACP goods entering the UK market via EU27 countries would however be required. While there is seen as being no political objection in the UK to averting disruption of trade with developing countries which enters the UK market via EU27 member states, there is not currently the ‘band width’ in UK government services to deal with this issue, given Covid-19 related demands and the fraught state of UK/EU negotiations. There is therefore a need for the most directly affected ACP governments to launch a political initiative for the establishment of special arrangements to ensure the continued smooth functioning of ACP triangular supply chains. Such an initiative would need to reach out to both the UK and EU authorities to make sure suitable arrangements are in place along the whole of the supply chain. Read more “Could Leaked Requirements for Movement of Goods to Northern Ireland Provide Basis for Special Arrangements for ACP Triangular Supply Chains”

Emerging UK/EU Dispute Over ‘Green Box’ Payments Highlights Long-Standing ACP Concerns

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Summary
The UK is objecting to the inclusion of a ‘peace clause’ in any future EU/UK trade agreement which would prevent the UK from challenging the trade distorting effects of EU ‘green box’ agricultural support payments. The trade distorting effects of EU ‘green box’ support payments, has long been a focus of discontent for ACP producers, who see the trade effects of these measures as grossly unfair. While the EU is unlikely to abandon its robust defence of the non-trade distorting nature of existing ‘green box’ payments, the accommodation reached with the UK on this issue could potentially hold important lessons for ACP governments seeking to defend domestic producers against unfair ‘green box’ support driven trade distortions. It would therefore be appropriate for ACP governments to closely monitor these UK/EU discussions. Read more “Emerging UK/EU Dispute Over ‘Green Box’ Payments Highlights Long-Standing ACP Concerns”

EU Figure Highlights Importance of UK Market to EU27 Poultry Sector

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Summary
The UK is a major export market for EU27 poultry meat producers, in recent years taking 1/3 of extra-EU27 exports. In the absence of a UK/EU trade agreement which preserves duty free access on mutual trade in poultry meat, EU exporters would face standard MFN duties in exporting to the UK, while UK exporters would face standard MFN duties in exporting to the EU. If EU exporters faced the same tariffs as Brazilian exporters, then EU exporters of chilled and frozen chicken meat would rapidly be displaced from the UK market in most product areas. This would be likely to generate a substantial surplus of poultry meat on the EU market, for which markets would need to be found across the globe. This needs to be seen in the context of the current importance of African markets in total extra-EU poultry meat exports. Read more “EU Figure Highlights Importance of UK Market to EU27 Poultry Sector”

Deferment AfCFTA Implementation Leads to Sequencing Issues in Kenya US Trade Negotiations

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Summary
The Kenyan President has announced trade negotiations with the USA will be delayed given the deferment of the implementation of the AfCFTA in the face of Covid-19 disruptions. This raises issues related to the UK governments approach to trade agreements with African countries such as Kenya. While substantive ‘face to face’ negotiations to resolve outstanding technical issues and regional concerns have not been possible since February the UK government continues to insist Continuity Agreements can be concluded by the end of 2020.  While this is perfectly possible for an agreement which solely addresses UK concerns and interests, it is not possible for an agreement which addresses African regional complications and issues and concerns arising from the UK’s departure from the EU customs union. Comprehensively addressing these latter concerns is vital to ensuring continuity in African exports to the UK from 1st January 2021. Against this background the UK government should conclude qualified Continuity Agreements by the end of the year to preserve existing duty-free access for exporters from the concerned African countries, but with the implementation of reciprocal obligations being deferred until outstanding technical issues and regional concerns have been addressed. Read more “Deferment AfCFTA Implementation Leads to Sequencing Issues in Kenya US Trade Negotiations”

Commitment to Phasing in of UK Controls on Goods Entering from the EU Provides a Framework for Addressing ACP Triangular Supply Chains Issues

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Summary
On 12th June 2020, the UK has announced there will be no extension of the transition period in UK/EU trade relations. At the same time, the UK announced plans for phasing in of border controls on imports from the EU. This phased approach is aimed at providing time for UK businesses to prepare for changes in border arrangements given the setbacks to preparatory activities generated by the Covid-19 pandemic. However, the underlying border controls challenges facing the UK government pre-dated the Covid-19 pandemic and remain substantial. Against this background ACP exporters using triangular supply chains need to intensify preparation for the implementation of new UK/EU border arrangements, while ACP governments will need to ensure their Continuity Agreements with the UK, fully address the need to ensure ‘continuity’ in the smooth functioning of triangular supply chains. The governments of least developed countries will also need to ensure a mechanism is found to make similar arrangements for the smooth functioning of triangular supply chains used by LDC based exporters. Read more “Commitment to Phasing in of UK Controls on Goods Entering from the EU Provides a Framework for Addressing ACP Triangular Supply Chains Issues”

What Lessons Can the ACP Draw from the EU’s Post Covid 19 EU Recovery Plan

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Summary
The EU has launched a huge €1.98 trillion EU Recovery Plan in response to the Covid-19 crisis. The focus of the long-term recovery dimension of this plan and the basis for its financing, raise a number of issues in an ACP context. The most important of these are: the need to identify ways in which ‘easier and quicker access to finance’ can be provided to ACP companies which would otherwise be viable in the absence of the crisis; the options for using  the EC’s good credit rating to mobilise funds in support of economic recovery in ACP countries; the scope for adopting the ‘strategic autonomy’ approach in sectors whose critical importance and vulnerability has been highlighted by the crisis; opening a dialogue with the EU on how future development assistance financing can be used to reimburse the budgets of agreed programmes from which funds have been redirected to address current emergency needs. Read more “What Lessons Can the ACP Draw from the EU’s Post Covid 19 EU Recovery Plan”

EU Moves Swiftly to Redeploy Existing Funds to Meet Immediate Crisis and Long-Term Structural Needs

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Summary
The EU has moved swiftly to unlock Covid-19 blocked development expenditures for redeployment to meeting immediate health crisis and longer term structural economic needs. To date the EU framework for effectively supporting a recovery in trade and production in ACP countries is still under development, with ACP farmers organisations and agri-food sector associations urgently needing to initiate a dialogue with the local EU delegate to assist in defining the approach to be adopted  by the EU locally in supporting the restoration of production and trade in the face of the ongoing Covid-19 pandemic.  There is a need to ensure EU action in support of economic recovery focuses on the specific needs of farmers and agri-food sector enterprises, given the potentially serious food and livelihood security issues raised by the ongoing pandemic. Read more “EU Moves Swiftly to Redeploy Existing Funds to Meet Immediate Crisis and Long-Term Structural Needs”

Growing Cold Store Shortage Generating Further Additional Costs in Serving European Markets

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Summary
The Covid-19 surge in demand for cold storage space is generating significant increases in cold storage charges and an absolute shortage of space in Europe.  In the case of the UK this situation is being compounded by the growing prospect of a no-deal UK departure from the EU customs union. This will generate yet another cost increase for ACP agri-food exporters of fresh products which require cold storage before delivery to final customers. This suggests ACP exporters of products requiring cold storage need to shorten their supply chains through the establishment of arrangements for direct delivery of goods to final buyers. This would allow these ACP exporters to side-step the commercial costs of the worsening cold storage availability situation in not only the UK but elsewhere in Europe. Smaller ACP exporters may need to explore their options for accessing the ‘Airbnb’ model of cold store provision. Read more “Growing Cold Store Shortage Generating Further Additional Costs in Serving European Markets”