Covid-19 Related Cancellation of Commercial Flights Beginning to Bite for ACP Horticulture Exports

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Summary
The current Covid-19 disruptions of Kenyan exports to Europe, particularly along triangular supply chains to the UK, highlights the importance of shortening supply chains by wherever possible, contracting with the final retailer and shipping products directly. For exporters who can get to grip with current logistical challenges, rising EU demand for fruit and vegetables and rising prices could yield commercial benefits to counter-balance some of the Covid-19 disruptions. This is particularly the case since labour shortages in the fruit and vegetable sector as a result of disruptions to migrant labour flows could depress European fruit and vegetable production throughout 2020. Read more “Covid-19 Related Cancellation of Commercial Flights Beginning to Bite for ACP Horticulture Exports”

Will Dutch Onion Companies Continue to Support West African Onion Sector Development or Push for the Elimination of Import Restrictions on EU Onions?

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Summary
West Africa markets for Dutch onion exports have become increasingly important, with the Africa markets overall being seen as having the greatest future growth potential. With some African government using quantitative restriction on onion imports to try and boost domestic production in response to growing demand, the question arises: will the EC seek to use trade agreement commitments to put an end to the application of all forms of quantitative restrictions on imports from the EU? Pressure to do so could increase should a ‘hard Brexit’ occur, which disrupts Dutch onion exports to the UK market. The experience of the August 2014 Russian import embargo suggests any loss of markets for Dutch onion exporters leads to expanded efforts to increase exports to African markets, particularly in West Africa.

The Netherlands onion export trade has become more dependent on West African exp Read more “Will Dutch Onion Companies Continue to Support West African Onion Sector Development or Push for the Elimination of Import Restrictions on EU Onions?”

Covid-19 Pandemic Raises Questions Over the Brexit Effect on ACP Triangular Supply Chains

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Summary
The Covid-19 pandemic is highlighting the supply chain problems which can arise when border clearance arrangements come under stress from increased demands and reduced capacities. This is bringing into question the future commercial viability of existing ACP triangular supply chains for short shelf life products in serving the UK market. This needs to be seen in the light of the border clearance challenges and associated transportation disruptions which are likely to arise as a result of the UK governments’ current approach to future trade relations once it leaves the EU customs union and single market. Current policy responses to transportation disruptions associated with border clearance problems linked to the Covid-19 pandemic, could provide a basis for longer term arrangements to facilitate the continued smooth functioning of triangular supply chains. In the absence of such initiatives ACP exporters will need to explore opportunities for direct exports to the UK or diversification away from the UK market. Read more “Covid-19 Pandemic Raises Questions Over the Brexit Effect on ACP Triangular Supply Chains”

Size and Market Experience Affect the Impact of Corvid-19 Pandemic Disruptions on African Horticulture Exporters

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Summary
Smaller scale ACP fruit and vegetable exporters are being more severely impacted by the economic effects of the Covid-19 pandemic than larger ACP fruit and vegetable exporters. This suggests smaller ACP exporters may well need financial assistance in surviving and bouncing back from the trade and economic consequences of the pandemic. There could potentially be a role for the EIB in providing bridging financing for smaller ACP fruit and vegetable exporters, provided mechanisms can be found for the early delivery of such support and reliable repayment. The EIB could usefully review its existing programmes to see which of these could provide a vehicle for the swift extension of support to the worst affected ACP fruit and vegetable exporting enterprises, which would otherwise be driven out of business by the export market disruptions they currently face. Read more “Size and Market Experience Affect the Impact of Corvid-19 Pandemic Disruptions on African Horticulture Exporters”

Dairy Price Recovery Likely to be Reversed by Covid-19 Pandemic

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Summary
Covid-19 pandemic related disruptions to EU and global dairy markets has led the European Milk Board (EMB) to call for the implementation of a production restricting Market Responsibility Programme, which it is argued should become a permanent feature of the EU diary sector policy tool kit. While the EC is likely to resist such call, favouring traditional intervention buying, ACP milk producers could usefully support the EMB proposal in order to avert future ‘dumping’ of low priced EU milk powder on ACP markets, to the detriment of local milk producers and national efforts to boost local milk production. Read more “Dairy Price Recovery Likely to be Reversed by Covid-19 Pandemic”

Collapse of European Cut Flower Demand Threatens Immediate Future of Kenyan Cut Flower Sector

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Summary
The Corvid-19 pandemic has caused economic disruptions which have crippled the Kenyan cut flower industry, which directly employs 200,000 people. Tens of thousands of workers are being sent home, with farms closing. Given the uncertainty over Kenya’s future duty free access to the UK market, many of these farms may not re-open, unless current uncertainties are urgently addressed.  With all East African Community meetings cancelled, this will require unilateral action from the UK government to reinstate the proposed Transitional Protection Mechanism put forward in October 2019 or the adoption of a similar such mechanism. Read more “Collapse of European Cut Flower Demand Threatens Immediate Future of Kenyan Cut Flower Sector”

What Challenges Does Kenya Face in Ensuring Continuity in its Current Access to the UK Market?

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Summary
With nearly 40% of Kenya’s direct exports to the UK currently benefitting from significant margins of tariff preferences, concerns have arisen around the UK’s current MFN tariff review and the future basis for Kenya’s continued duty-free access to the UK market after 1st January 2021. In addition, there are growing concerns about the future commercial viability of the use of triangular supply chains for the delivery of Kenyan short shelf life products to the UK market if no comprehensive EU/UK trade agreement is in place by 1st January 2021. Any future EU/UK trade agreement would need, as far as possible, to replicate the current frictionless trade, on which the operation of these triangular supply chains depends. This is looking increasingly unlikely. The Government of Kenya thus faces a triple challenge in ensuring a continuation of current patterns of exports to the UK market into 2021. Read more “What Challenges Does Kenya Face in Ensuring Continuity in its Current Access to the UK Market?”

Absence of Clear Region of Origin Labelling of Poultry Suggests a Need for Pre-emptive Import Restrictions as Spread of Highly Contagious AI Spreads Across Europe

epamonitoring

Summary
The spread of highly contagious avian influenza (AI) across Europe in the absence of clear place of origin labelling of the birds from which poultry meat exports are derived, would suggest a  need for the pre-emptive introduction of import restrictions where domestic ACP poultry production could be vulnerable to infection. If the EU wants to keep export markets open in the face of periodic outbreaks of high contagious AI within Europe, then mandatory labelling of the place of origin of the birds from which poultry meat exports are derived would appear to be essential. Read more “Absence of Clear Region of Origin Labelling of Poultry Suggests a Need for Pre-emptive Import Restrictions as Spread of Highly Contagious AI Spreads Across Europe”

Is the EC Preparing for Greater Enforcement of ACP Trade Agreement Commitments?

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Summary
The commencement of operation of the EC’s new chief-trade-enforcement officer from 1st May 2020, places the EC’s revised negotiating directives on EPAs with ACP countries in a new light. While the emphasis on the removal of both tariff and non-tariff barriers to EU exports to ACP markets has been a long-standing feature of EU trade agreements (since 2008). Many of the provisions on the elimination of non-tariff barriers have not been effectively enforced to date. The fear is this could change from the second half of 2020, with this carrying important implications for the policy space African governments retain for the promotion of integrated national agri-food sector development. This needs to be seen in a context where growth in demand for agri-food products is increasingly concentrated in African not EU markets. Read more “Is the EC Preparing for Greater Enforcement of ACP Trade Agreement Commitments?”

The Link Between EU Agri Food Sector Protectionism and the Value of ACP Trade Preferences Highlighted

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Summary
The WTO has once again highlighted the EU’s extensive use of tariffs and non-tariff measures to manage EU agri-food markets. Preferred ACP exporters benefit from these protectionist EU trade policies, with any movement away from these policies potentially see mainly ACP/LDC exporters losing out to the tune of €1.6 billion.  The prospects of such losses are very real with regard to the UK market, where there is strong pressure under the current MFN tariff review to abandon MFN tariffs where the UK has no or only limited production interests to protect. Looking forward, within the EU, a long standing insistence on abolishing quantitative restrictions on imports from the EU under economic partnership agreements concluded with ACP countries, is being given new impetus with the creation a Chief Trade Enforcement Office, dedicated to making sure existing trade agreement commitments by 3rd countries are fully implemented. Such a course of action however sits uneasily with the EU’s own extensive use of quantitative restrictions in sensitive agri-food sectors. Read more “The Link Between EU Agri Food Sector Protectionism and the Value of ACP Trade Preferences Highlighted”