Summary
Supporting African agro-food sector development given its employment, food security and rural development effects is nominally a focus of the proposed renewed Africa-EU partnership. However differences of opinion over what constitutes an appropriate ‘regulatory and policy framework’ for African agro-food sector development, alongside unacknowledged tensions between EU agro-food sector export objectives and African agro-food sector development aspirations, could pose serious challenges for a renewed Africa-EU partnership in this area. Read more “Agriculture to be a Focus of the Renewed Africa-EU Partnership”
EU West Africa Dairy Sector Developments
Summary
European dairy companies continue to expand their operations in West Africa, with the region being seen as one with tremendous market potential. While some companies are seeking to support local dairy sector development as part of their market expansion strategies, this is by no means universal. Since 2014 low global bulk dairy commodity prices have compounded the existing challenges faced in developing local milk-to-dairy supply chains in West Africa. This suggests a need for a sector wide approach to dairy sector development involving a commitment by all EU dairy companies to responsible patterns of trade and investment, designed to support the gradual growth in local milk-to-dairy supply chains. Read more “EU West Africa Dairy Sector Developments”
Surges in onion exports to Mauritania could close off longer term opportunities for Dutch exports
Summary
In a context where West Africa is the major destination for extra-EU Dutch onion exports, surges of Dutch onion exports to Mauritania are severely depressing local onion prices. This is in part linked to the closure of the Russian market. This could provoke trade restrictions in Mauritania in an effort to protect local onion producers. Any moves to restrict onion imports into Mauritania would need to be closely linked to targeted efforts to strengthen the functioning of local onion supply chains. Experience elsewhere in Africa, in a country facing similar environmental conditions, namely Namibia, could hold important lessons for Mauritanian onion sector trade policy. Read more “Surges in onion exports to Mauritania could close off longer term opportunities for Dutch exports”
UK WTO representative seeks to clarify future UK trade treatment of developing countries
Addendum to Article
‘UK government commits to extending EBA access for LDCs post Brexit’
Following on from the 24th June 2017 UK government statement entitled ‘Government pledges improved post-Brexit access to UK markets for world’s poorest countries’(1), the UK representative to the UN and Other International Organisations in Geneva sought to clarify UK policy towards non-LDC developing countries. In a letter to fellow representatives to the UN, which was copied to WTO Director General Roberto Azevedo, Julian Braithwaite declared the UK government’s commitment to ‘avoiding disruption for our trading partners as we leave the European Union’. It was stated ‘the UK has decided to replicate its existing trade regime in the WTO in new UK-only schedules’. This was announced on response to questions from WTO members as to ‘what will happen to the nearly £20 billion of exports to the UK from developing countries who benefit from special tariff preferences’. Read more “UK WTO representative seeks to clarify future UK trade treatment of developing countries”
UK government commits to extending EBA access for LDCs post Brexit
Summary
The UK has committed to extending in the immediate post-Brexit period the non-reciprocal duty free access granted LDCs under the EU’s current EBA initiative. However action was expected given the long standing UK support for duty free-quota free (DFQF) access for LDCs. The issue has always been whether current DFQF access enjoyed by ACP non-LDCs would be extended from 30th March 2019. This issue remains unclear, with the UK government solely making a commitment to explore options for maintaining existing trade arrangements. Read more “UK government commits to extending EBA access for LDCs post Brexit”
ACP rice exporters and Brexit
Summary
In terms of trade with the EU the UK is not a major market for ACP rice exporters. However the impact of the UK’s departure from the EU on ACP rice exporters will not be felt via changes to UK rice import tariffs, but rather as a result of the increased competition on the smaller EU27 market, where the departure of the UK will reduce overall EU rice import demand by around 23% while the EU’s TRQ market access commitments under existing bilateral agreements will remain unchanged. The removal of UK import demand is also likely to exacerbate the competitive challenges which ACP rice exporters face as a result of the DFQF access granted to LDC rice exporters to the EU. This measure saw imports from the main LDC rice exporters to the EU increase from under 7,500 tonnes in 2007 to around 500,000 tonnes in 2015 and 2016. Read more “ACP rice exporters and Brexit”
ACP Citrus Exporters and Brexit: Part 2, The Case of Smaller Scale Exporters
Summary
In the short term smaller ACP citrus exporters could benefit from Brexit in their trade with the UK if they can:
- retain existing duty free-quota free access to the UK market from the date of the UK’s departure from the EU;
- secure the removal of CBS controls in trade with the UK;
- ensure the issue of the disproportionate costs of SPS inspections for small scale ACP exporters under moves to full costs recovery is addressed
However this will still leave the threat posed the dismantling of all tariff protection in the citrus sector, where the UK has no domestic production. This however may be deferred if it only takes place in the context of UK FTA negotiations with non-ACP exporters of citrus fruit. Read more “ACP Citrus Exporters and Brexit: Part 2, The Case of Smaller Scale Exporters”
ACP citrus exporters and Brexit: Part 1 The Case of South Africa
Summary
For South Africa both challenges and opportunities arise in the citrus sector as a result of the Brexit process. The first challenge, in common with other ACP citrus exporters, is to retain existing preferential access to the UK market. South Africa could also benefit from the dismantling of strict CBS controls on exports to the UK. Unlike other ACP citrus exporters, South Africa could also gain some marginal benefits from the immediate removal of current seasonal tariffs on its citrus exports. However, securing these benefits will be dependent on the UK pursuing a ‘hard Brexit, which may now be less likely following the UK June 2017 election result. In addition, if no new trade arrangement is set in place between the UK and EU27 from 30th March 2019 and MFN duties are imposed on mutual trade, South Africa could see new market opportunities emerge in the citrus sector in trade with the UK, given Spain’s current role as the dominant supplier to the UK. These opportunities however will exist only on the fringes of the existing season. Read more “ACP citrus exporters and Brexit: Part 1 The Case of South Africa”
ACP banana exporters and Brexit
Summary
Brexit is likely to give rise to 3 distinct challenges for ACP banana exporters: retaining preferential access to the UK market; dealing with the market consequences of a possible abolition of duties on banana imports into the UK; dealing with the increased competition on EU27 markets as a result of the application of banana sector TRQs under bilaterally negotiated EU FTAs. While to date overall ACP banana exporters have expanded their exports to the EU28 despite expanded TRQ access for $ banana suppliers, the situation varies greatly between different ACP exporters. With Caribbean small island banana exporters largely being squeezed out of EU markets since 2007. However, the past strong trade performance of some ACP banana exporters since 2007 is no guarantee of future competitiveness. Market adjustment support may be required to ACP producers and exporters in adjusting to the market consequences of Brexit in the banana sector. The EC will also need to take account of the impact of expanded TRQ access on ACP banana suppliers in its application of the stabilisation mechanism set in place to protect EU banana producers. Read more “ACP banana exporters and Brexit”
Parliamentary report warns of the complexity of Brexit challenges in the agricultural sector
Summary
Important WTO dimensions to future UK agricultural and agricultural trade policies are faced which could prove complicated to resolve. Depending on how UK/EU27 negotiations process works out, new opportunities for exports to the UK could be opened up for ACP agro-food exporters. For example stricter UK immigration controls on agro-food sector workers could make it more attractive for UK businesses to import consumer ready agro-food products, allowing ACP exporters to move up the value chain. The UK Parliamentary report highlights the need for transitional trade arrangements for UK trade relations, given the complexity of the issues involved. This recognition of a need for transitional arrangements is something on which ACP governments could usefully build. Read more “Parliamentary report warns of the complexity of Brexit challenges in the agricultural sector”