Sugar market uncertainties for ACP suppliers will be heightened by BREXIT

Summary
The EU sugar market is likely to face increased volatility in the coming years. ACP sugar exporters need strategies to manage this volatility. This situation will be compounded by BREXIT, with 3 ACP exporters (Guyana, Belize and Fiji) facing particularly severe adjustment challenges. Strengthening the functioning of ACP-EU sugar supply chains to prevent abuse of dominant commercial positions within individual supply chains will be essential if ACP sugar farmers are to be protected.
Read more “Sugar market uncertainties for ACP suppliers will be heightened by BREXIT”

Planned  hard  BREXIT raises stakes for ACP

Summary

While somewhat contradictory, the UK’s 12 point ‘Plan for Britain’ appears to suggest the UK intends to leave the single market and the EU customs union, so as to be able to pursue its own bilateral trade agreements with faster growing economies outside the EU. Within this approach little consideration is being given to the consequences of UK policy choices for developing countries within the ACP Group and beyond. The UK’s departure approach will make it more difficult for the UK to become an associate signatory to the existing EPA agreements and increases the urgency of ACP governments establishing with the UK authorities a mechanisms to avoid ‘a disruptive cliff edge’ in ACP access to the UK market. It would also appear to increase the urgency of ACP governments establishing dialogues with the UK and EU authorities on how to address the adjustment challenges which will arise from the erosion of the value of ACP preferences as a result of Brexit. Read more “Planned  hard  BREXIT raises stakes for ACP”

Senegal remains major market for Dutch onion exports despite growth in domestic production

Summary
Senegal remains a growing market for Dutch onion exports, despite a major expansion of commercial onion production in Senegal. Dutch onion exporters are beginning to invest in local onion production for the local market, in part linked to the growing importance of wider West African markets for Dutch onion exporters Read more “Senegal remains major market for Dutch onion exports despite growth in domestic production”

BREXIT and the ACP What Can Be Done?

Summary

The UK needs to recognise its ‘inherited’ trade obligations to ACP/LDC countries and take regulatory measures to extend unilaterally current market access arrangements from day 1 of BREXIT. This should be seen as ‘transitional’, with the re-fitting of existing EPAs into bilateral trade arrangements taking place once the UK administration is in a position to undertake such an exercise. This agreement should both improve access for ACP countries to the UK market and address preference erosion concerns. Read more “BREXIT and the ACP What Can Be Done?”

Arla’s Senegalese milk powder repackaging plant begins operations

Summary

The opening of Arla’s repackaging plant in Senegal is expanding the companies milk powder exports to West Africa.  Arla already enjoys expanding sales of UHT milk and is planning to export branded butter and cheese to Senegal. There are concerns this could undermine the development of local milk supply chains, in contrast to Arla’s commitments to avoiding harm to local farmers. Arla’s commitment to developing milk supplies in Nigeria needs to be extended to Senegal, in the context of an initiative to launch a locally applicable Code of Conduct for Responsible Corporate Trade and Investment in African Dairy Sector Development. Read more “Arla’s Senegalese milk powder repackaging plant begins operations”

EU poultry meat exports to Africa continue to grow

Summary

EU poultry exports to sub-Saharan Africa continue to grow, despite setbacks on trade into West Africa linked to the oil price collapse. Given the continuous growth in EU poultry meat exports to sub-Saharan Africa in recent years, it is apparent that the scope for local poultry sector development will be strongly linked to the future use of non-tariff trade policy measures.  The use of these, which could well be brought into question under the newly concluded economic partnership agreements. Read more “EU poultry meat exports to Africa continue to grow”

EU frozen poultry meat exports to South Africa begin to bite

Summary

The continued growth in EU poultry meat imports into South Africa in 2016 will exceed projected increases in imports from the US. This is accelerating job losses in the poultry sector. Commitments entered into under the trade agreement with the EU have prevented the South African government from reigning in imports form the EU.  This highlights the potential threat EPAs pose to African efforts to promoted integrated poultry sector development. Read more “EU frozen poultry meat exports to South Africa begin to bite”

The Impact of Trade Agreements on EU Agro-Food Exports to South Africa: Beyond Modelling

 

Summary

An EC modelling analysis show SADC EPA signatories benefit from the EPA only in comparison with a worst case scenario of the loss of all pre-existing trade preferences. A review of the evolution of EU-South Africa agro-food trade since 2002, shows the value of EU exports tripling while the value of South African exports grew only 38%. The highest rates of growth in EU exports occurred where tariff preferences over 3rd country suppliers were most significant. Read more “The Impact of Trade Agreements on EU Agro-Food Exports to South Africa: Beyond Modelling”

UK Private Sector Concerned Over Trade Disruption under BREXIT

Summary

The UK Fresh Produce Consortium and British Retail Consortium have both independently highlighted the importance to UK consumers of ensuring continuity in access to the UK market for third country supplier post-BREXIT.  These UK bodies are potentially value able allies for the ACP in protecting their export interests. Meanwhile countries like Peru are actively seeking new bilateral trade arrangements with the UK. Read more “UK Private Sector Concerned Over Trade Disruption under BREXIT”

Ecuador agreement highlights trade tools used by EU in sensitive sectors

Summary:

The debate on the ‘stabilisation mechanism’ in trade with Ecuador, is illustrative of the EU’s use of special trade mechanism to defend EU agricultural interests (e.g. EU banana producers). This type of mechanism could be useful for ACP governments under EPAs in sectors where EU agricultural and trade policies distort competition to the benefit of EU exporters (e.g. in the dairy and poultry sectors). Read more “Ecuador agreement highlights trade tools used by EU in sensitive sectors”