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 1 provided a summary of the main areas of impact of Brexit on ACP agro-food sectors. Read more “Summary of the Main Areas of Impact of Brexit on ACP Agro-food Sectors”
ACP Members Vulnerability to the Loss of Preferential Access to the UK Market
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 2 provided an exploration of the vulnerability of ACP Members to a loss of preferential access to the UK market. Read more “ACP Members Vulnerability to the Loss of Preferential Access to the UK Market”
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”
Arla Plans Expanded Investment in Production of Milk Powder for Export to Africa
Summary
Arla’s investment plans have a strong focus on serving growing markets for dairy products beyond the EU’s borders. One element of this is through the expansion of EU based milk powder production. This is closely linked to investments made in Ivory Coast, Nigeria, Senegal and Ghana in repackaging facilities which use imported milk powders to produce individual consumer ready portions of milk powder which can be reconstituted at home. These investments involve local partners with well-developed distribution networks. However none of these local partners are involved in local milk production. This sits uneasily with Arla’s commitment to avoiding unintended consequences for local farmers in a context where serious structural and economic constraints are faced in developing local milk-to-dairy supply chains. In the long term given the projected shortage of global milk supplies by the mid- 2030s in the face of rising global demand for dairy product and the production constraints impending in major milk exporting countries this is an important structural development issue. Read more “Arla Plans Expanded Investment in Production of Milk Powder for Export to Africa”
Planned Northern Sugar Project in Yorkshire to ‘Die a Death’
Summary
The virtual cancellation of the Northern Sugar Project in Yorkshire, alongside processing difficulties at British Sugar, means the initially projected large scale expansion of UK beet based sugar production post-Brexit is now unlikely to occur. This could provide relief to the financial difficulties of Tate & Lyle Sugar, but only if it is accompanied by a firm commitment by the UK government to the abolition of the CXL duty once the UK is freed from EU rules and regulations. ASR is likely to intensify pressure for a firm UK government commitment in this regard. However this will carry different implications for different ACP sugar suppliers, depending on how the situation develops. However it should be noted Caribbean and Pacific suppliers will remain the most vulnerable to future policy developments. Read more “Planned Northern Sugar Project in Yorkshire to ‘Die a Death’”
Logistical Challenges of Brexit of Major Concern to UK Food Trade
Summary
Concerns are growing over the lack of progress on the practical steps required to maintain a smooth flow of mutual EU27/UK trade if no transitional agreement is set in place. These include:
- the need to address the physical constraints on the development of import control infrastructure in Dover harbour;
- the inadequate computerised trade data management systems;
- the absence of clear recruitment and training programmes in government agencies concerned with cross border trade inspection services;
- the absence of alternative licensing and permit arrangements for freight operators involved in UK/EU27 trading operations.
In this context a two year transition period is seen as essential. While a two year transition would defer the worst consequences of a ‘hard’ Brexit, these constraints will still need to be addressed. If they are not effectively addressed these systemic shortcomings could potentially have knock-on effects on the smooth functioning of the direct ACP-UK export trade. Read more “Logistical Challenges of Brexit of Major Concern to UK Food Trade”
The EC’s Recommendations for the Post-Cotonou Negotiations: Some Implications for ACP Agro-food Sectors
Summary
The EC communication on the Post Cotonou ACP-EU negotiations has bene described as ‘a confusing mixture of liberalisation and positive policy recommendations’. There are some areas which could be built on for the benefit of ACP agricultural producers and exporters, but there are also areas which could narrow the options which ACP governments have for supporting integrated agro-food sector development. The growing EU member states focus on ensuring EU interests are more effectively promoted through the future ACP-EU partnership, alongside a growing focus on migration and security areas as well as the promoting the economic interests of EU companies in ACP markets is unlikely to lead to any substantive changes which enhance the contribution of the EU-ACP partnership to the integrated development of ACP agro-food sectors. However this remains a terrain of political struggle with a key question being: how effectively prepared are ACP structures and institutions for engaging in the political struggle which lies ahead in the post-Cotonou ACP-EU partnership negotiations. Read more “The EC’s Recommendations for the Post-Cotonou Negotiations: Some Implications for ACP Agro-food Sectors”
UNCTAD Analysis Highlights High Rate of Utilisation of Tariff Preferences Under EU Trade Agreements
Summary
The UNCTAD report highlights how the EU is ‘one of the most active negotiators of FTAs at the global level’. These EU trade agreements grant ‘EU companies more favourable trade conditions – including through reduced tariffs’, with these preferences providing a competitive advantage to EU exporters compared to companies in countries not benefitting from such FTA arrangements. While the report reviews the utilisation of tariff preferences under EU trade agreements with non-ACP countries it does provide insights into the commercial value of EU reciprocal preferential trade agreements. It also provides important background to the debate on future implementation of the concluded EU-ACP economic partnership agreements. Read more “UNCTAD Analysis Highlights High Rate of Utilisation of Tariff Preferences Under EU Trade Agreements”
Current High Volume of EU Skimmed Milk Powder (SMP) Exports to be Sustained and Expanded
Summary
The recent expansion of EU SMP exports is set to continue, initially at current elevated level but subsequently at substantially expanded levels. By 2030 EU SMP exports are projected to be 65% above those witnessed in 2016. Throughout this period EU SMP prices are projected to be between 13% (beginning of the period) and 3% (end of the period) below world market SMP prices. This is likely to act as a drag on world market SMP price recovery. These price trends cannot be delinked from the high levels of EU public sector support to both public and private storage schemes for SMP. These public policy interventions schemes give rise to supply responses to low prices by EU diary companies which simply do not correspond with the normal functioning of markets. These high EU SMP export volumes and low prices overshadow national efforts in ACP countries to develop local milk-to-dairy supply chains. This is being compounded by the rapid growth in EU exports of fat filled milk powders (FFMP). These trade trends appear to be undermining efforts to expand local milk production in African countries in response to growing local demand for dairy products. Read more “Current High Volume of EU Skimmed Milk Powder (SMP) Exports to be Sustained and Expanded”
Announcement of ACT Alliance.eu seminar on Implications of Brexit for ACP countries and Post-Cotonou negotiation
The ACT Alliance which supports the epamonitoring.net website is proposing to hold a 1 day seminar on 22nd February 2018 dealing with the implications of Brexit for ACP countries (morning) and the implications of the Brexit process for the Post-Cotonou negotiations (afternoon). The presentations made on the substantive issues faced will be based on articles posted on the epamonitoring.net and additional research undertaken by GDC-Partners for its Brexit and the ACP agro-food sector subscription only service.
For those of you who may wish to attend, please find below the draft programme.
There is only limited space available in the seminar room (30-40 people), so if you are interested in attending kindly email the seminar organiser Karin Ulmer (Karin.Ulmer@actalliance.eu) so we can keep track of the level of participation. Read more “Announcement of ACT Alliance.eu seminar on Implications of Brexit for ACP countries and Post-Cotonou negotiation”