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FIT FOR MARKET SPS PROGRAMME IN NIGERIA
As part of the Fit For Market SPS programme in Nigeria, a strategic meeting between Coleacp and the National Agency for Food and Drug Administration and Control (NAFDAC) discussed the challenges and opportunities, and how best to target potential COLEACP support.
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COLEACP SUPPORT TO HPW FRESH AND DRY LIMITED
Ghanaian dried fruit producer and exporter HPW Fresh And Dry ltd has been working to improve its waste management, supported by Coleacp’s Fit For Market programme. Better composting methods reduce waste and improve the soil’s nutrient balance – a win-win result.
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BREXIT: Impact of December 2019 UK parliamentary election result on ACP horticultural exports to the UK
GREATER CERTAINTY UNTIL 1ST JANUARY 2021After a period of uncertainty, there is now greater clarity regarding the completion of the UK’s withdrawal from the European Union (EU). With an 80-seat majority in the House of Commons, Prime Minister Johnson now has an unassailable majority for the passage of the revised EU27/UK Withdrawal Agreement through the UK Parliament, with this process now well under way. So the UK is now firmly on track to leave the EU on 31st January 2020. Nevertheless, the provisions of the revised Withdrawal Agreement mean that the UK will remain part of the EU customs union and single market until at least 1st January 2021. During this time, existing EU trade agreements and arrangements will continue to govern ACP exports of fruit, vegetables and cut flowers into the UK, both those directly exported to the UK and those using triangular supply chains. This means there will be no changes in the terms and conditions of access for ACP exports to the UK until 1st January 2021. POTENTIAL UNCERTAINTIES FOR EXPORTERS IN CAMEROON, CÔTE D’IVOIRE, GHANA AND KENYAHowever, for exporters in a number of ACP countries, notably Cameroon, Côte d’Ivoire, Ghana and Kenya, significant uncertainties remain over the terms and conditions of access to the UK market after 1st January 2021. This relates to the interpretation of the start date for the Transitional Protection Mechanism (TPM) that the UK proposed (in October 2019) to set up for these countries, and which, once implemented, is to last for 18 months with no possibility of extension. Will the start date of this 18-month transition period be deemed to have commenced from the date of notification to these ACP governments of the planned TPM (i.e. from October 2019), or will the 18-month period be deemed to start as from the date the UK officially leaves the EU customs union and single market (currently scheduled for 1st January 2021)?Depending on the interpretation placed on the start date of the TPM, this could have implications for supply contract negotiations in the second half of 2020 for delivery of products in 2021. Securing a long-term bilateral trade agreement with the UK will be essential to securing long-term duty-free/quota-free access to the UK market for exporters from Cameroon, Côte d’Ivoire, Ghana and Kenya. This needs to be given appropriate priority by the governments of these countries. WHAT WILL HAPPEN AFTER 1ST JANUARY 2021?What happens after 1st January 2021 is still uncertain. While the EU is willing to allow an extension of the transition period specified in the Withdrawal Agreement for a further 2 years (i.e. until 1st January 2023), the UK Government is firmly committed to negotiating a comprehensive free trade area with the EU effective as from 1st January 2021, thereby allowing the UK to leave the EU customs union and single market without any trade disruption. But there is considerable scepticism in the EU over the prospect of concluding such comprehensive trade negotiations within the short period of time to meet this deadline. While the UK will leave the EU on the 31st January 2020, the European Commission (EC) will only table a mandate for the conduct of negotiations on 1st February 2020, with the EU Council expected to agree the mandate – at best – by 28th February 2020.Trade negotiations with the UK will then begin – at best – in early March 2020. Against this background, the EC believes that over this limited period it will only be possible to negotiate a ‘light’ free trade area agreement between the EU and the UK, with the extent of the agreement depending heavily on the UK’s willingness to remain aligned with EU standards and regulations.Whether this ‘light’ EU27/UK free trade area agreement will cover the policy choices, trade administration and logistical arrangements required to keep ACP triangular supply chains functioning smoothly is by no means clear. Hopefully, the negotiation mandate will include an explicit commitment in the EC proposed negotiating mandate to address the policy, administrative and logistical issues likely to arise along triangular supply chains (i.e. primarily affecting short shelf-life fruit, vegetables and cut flowers). If such an explicit commitment is not included in the EC negotiating mandate, there is a risk that negotiators may lose sight of these specific ACP concerns in the wider, more urgent concerns the EC needs to address in the interests of EU producers and traders.Note that the EC has established a deadline of 1st July 2020 for any formal UK notification of a desire to extend the transition period for a further 2 years while trade negotiations are competed. The UK’s new Conservative Government is, however, seeking to legislate to prevent any further extension of the transition period. FUTURE UK MOST FAVOURED NATION TARIFFS AND THE VALUE OF ACP HORTICULTURAL SECTOR TARIFF PREFERENCESA critical issue for ACP fruit, vegetable and cut flower exports to the UK market, whether exported directly or via EU27 countries (i.e. triangular supply chains), will be the future Most Favoured Nation (MFN) tariffs to be applied by the UK once it has officially left the EU customs union and single market and can apply its own autonomous MFN tariff schedule. While the UK will not be able to apply its own autonomous MFN tariff schedule until 1st January 2021 at the earliest, there have already been extensive discussions on what the post-Brexit UK MFN tariff schedule should be, with strong pressures being exerted for the UK to pursue a ‘zero domestic production–zero MFN tariff approach”.In March 2019, the UK published the first edition of its proposed temporary post-Brexit MFN tariff schedule, followed by a revision in October 2019. In the fruit and vegetable sectors, with the exception of bananas and fresh beans, this October 2019 temporary UK tariff schedule included:setting at zero all UK MFN tariffs on cut flowers, fruit and vegetable products;abandoning all EU minimum import price requirements and associated supplementary levies imposed on EU fruit and vegetable imports.This raises a vitally important question for all ACP horticultural exporters serving the UK market – what will be the impact on the competitive position of ACP fruit, vegetable and cut flower export products resulting from the removal of current EU MFN tariffs and minimum import price requirements on imports from all third countries? This is an issue which each individual ACP horticultural exporter will need to address, based on the current UK market components served and the functioning of their specific supply chains.This is solely an overview of the temporary proposed autonomous UK MFN tariff schedule. The UK Government’s review of its long-term MFN tariff schedule in the first half of 2020 will involve:a public consultation on the structure of the UK’s future long-term MFN tariff schedule in the early months of 2020;a process of Parliamentary consultations on the UK Government’s proposed MFN tariff schedule;completion of the MFN tariff review by mid-2020 so that the UK’s trade partners can acknowledge the MFN tariffs to be applied once the UK leaves the EU customs union.There is uncertainty around this review process regarding the starting point for this review. Will it be based on the proposed schedule dated October 2019? Or will the basis be the applied MFN tariffs set out in the EU’s MFN tariff schedule? Again, this is a critically important issue for ACP horticultural exporters. If current EU MFN tariffs are the starting point, then there is potentially scope for ACP governments and exporters to engage the UK Government around the tariffs and minimum import price regime. However, if the starting point for the review is the UK’s proposal dated October 2019, then the room for engagement might be restricted to bananas and fresh beans, since in all other areas UK MFN tariffs will already have been set at zero
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Implementation of EU Organic Regulations for organic exports
On 14th January the EU published Commission Implementing Regulation (EU) 2020/25, amending and correcting detailed rules for Council regulation (EC) No. 834/2007. This has very important implications for exports of organic produce to the European Union (EU), and action needs to be taken immediately.The rule requires that the Certificate of Origin (COI) for organic goods must be issued prior to the shipping of the goods from the country of origin. Any COI issued after the date of the Bill of Lading (B/L) will mean that the consignment is downgraded and classified as conventional goods, and treated as such at customs. This rule will be applied from 2nd February 2020.This is not a new rule; instead it is the strengthening of an existing rule that DG Agri considered as not being applied sufficiently rigorously. Since it is not new legislation, according to internal European Commission (EC) procedures, it was voted through by EU Member States (in October 2019) without any stakeholder consultation. The first information was received by the sector (via Freshfel) shortly before Christmas.In December Freshfel raised concerns with the EC about this ruling, explaining that it will have a major impact on the export of perishable goods. Unfortunately the Regulation has been published, and there is now no option but to take action to ensure that all operators comply with the new conditions, and adapt to the trading procedures, by 2nd February.COLEACP will join with Freshfel and others to engage with the EC, in particular to try and obtain a 5-6 days grace period for the issuance of the COI after the vessel has left the harbour. To support our lobbying activities, COLEACP needs evidence, and we ask members to please send us details about any impact this ruling has on your future export trade.In the meantime, it is critically important for this message to be shared with all stakeholders who need to take action. COLEACP would appreciate your help in distributing this information to all those in your country involved in the export of organic fresh produce to the EU.If you require further information, or can provide us with evidence of impact, please contact COLEACP at network@coleacp.org (link sends e-mail).
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IMPORTANT INFORMATION REGARDING USE OF CHLORPYRIFOS AND CHLORPYRIFOS-METHYL
This flash info provides updates on regulatory changes regarding active substances approval and associated MRL changes in the European Union and urgent actions to be taken.Chlorpyrifos and chlorpyrifos-methyl are broad spectrum organophosphorus insecticides and acaricides used to control soil and foliage pests. Examples of pests controlled and applications are provided bellow.
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Impacts of Covid-19 on Cameroon’s horticultural sector
RHORTICAM, in collaboration with COLEACP, carried out a survey of companies and cooperatives in the horticultural sector in Cameroon during May to help assess the impact of the current health and economic crisis and to identify support needs. The ten companies that participated in the survey are mainly active in several production sectors simultaneously, with pineapple being the most frequently mentioned sector. The majority of respondents export to the European market (70%), the remaining 30% being active on the local market. All participating companies, on both local and European markets, stated that they are being impacted by the current crisis. The main impacts are at the level of customer demand (90% of companies are experiencing a drop in demand); and impacts on supply chain logistics, from the supply of products (50% of companies mentioned blocked supplies) to exports (50% lack freight capacity for their products). The companies on average are losing 12.5 tonnes of product per week as a result of these problems, and only one-third of them have found alternative markets (generally local markets). The identification of alternative markets would be a key benefit to the companies at this time. From an operational point of view, all participating companies reported that they are experiencing liquidity problems and are unable to pay suppliers (100% of respondents) or employees (80%). The main obstacles to operations are related to supply (80% of respondents), transport (80%) and to a lesser extent the absence of employees (40%). Companies did not feel well informed about the government aid available to them, and would welcome information and support in applying for and obtaining financial aid. The majority of World Health Organization (WHO) recommendations (barrier actions) are known and understood by companies and their workers (73% of respondents said that WHO recommendations for all measures combined were known and understood by the company and workers). However, some measures are not applied in day-to-day activities: 65% of respondents said that measures are applied in the stations; 60% said measures are applied at harvest time; and less than 50% said they are transmitting WHO recommended measures to subcontractors (producers, etc.). The survey results suggest the following priorities for support. COLEACP support: Market access: identify alternative markets for companies to sell their products. Commercial negotiation: once alternative markets have been identified, enhance managers’ skills to promote their products and defend the interests of their company. Crisis management support: inform companies about ways to manage their cashflow and secure their supply chain. Support for raising awareness on barrier gestures: offer training in good hygiene practices and dissemination of key messages (e.g. via COLEACP’s courses and online training platform). Access to finance: identify financing structures that may be able to respond favourably to requests for financing from companies, and assist with required investment plannig. RHORTICAM support: Market access: identify alternative markets for companies to sell their products. Information and communication: provide information on barrier gestures and public health; and also on the aid measures put in place by government (and, where possible, assist companies to apply for government aid). Lobbying: approach the government to defend horticultural companies and promote their need for subsidies and/or tax relief in this time of crisis.
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COLDIRON PBC FIELD TRAINING
Coldiron Pbc also benefited from the Field Training Workshops coaching. During practical sessions the company has realised it should change to crop monitoring.
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NYANGA PAPRIKA EXPORTS FIELD TRAINING
Maxwell is training lead farmers in Field Training Workshops at Nyanga Paprika Exports. Seven lead farmers will train farmer groups under them. The lead farmers have realised that they need to renovate their warehouses and separate agrochemicals from produce.
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FACHS FIELD TRAINING
Fachs Field Training Workshop coaching with two outgrowers and two employees – the Director has converted her garage into a training room, and they have already completed two sessions.
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EAC REGIONAL FRUITS & VEGETABLES FORUM IN NAIROBI
From 18–19 December 2019, various partner states will discuss the topic “transforming the fruit and vegetables value chain in the EAC”. The East African Community (EAC) is a regional intergovernmental organisation based in Tanzania and composed of six partner states: Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda. The two days are punctuated by discussions, presentations, activities and field visits to discuss together how to transform and improve the fruit and vegetable value chain in East Africa. Agriculture is the lead sector for growth and development in the EAC, but it faces low productivity due to degradation of natural resources and climate change. So it’s important to innovate to transform the East African fruit and vegetables value chain.M. Apollo Owuor, one of Coleacp’s Board of Directors, made a presentation on the Fit For Market and Fit For Market SPS programmes.
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EAC REGIONAL FRUITS & VEGETABLES FORUM IN NAIROBI
From 18–19 December 2019, various partner states will discuss the topic “transforming the fruit and vegetables value chain in the EAC”. The East African Community (EAC) is a regional intergovernmental organisation based in Tanzania and composed of six partner states: Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda. The two days are punctuated by discussions, presentations, activities and field visits to discuss together how to transform and improve the fruit and vegetable value chain in East Africa. Agriculture is the lead sector for growth and development in the EAC, but it faces low productivity due to degradation of natural resources and climate change. So it’s important to innovate to transform the East African fruit and vegetables value chain.M. Apollo Owuor, one of Coleacp’s Board of Directors, made a presentation on the Fit For Market and Fit For Market SPS programmes.
News
EAC REGIONAL FRUITS AND VEGETABLES FORUM IN NAIROBI
From 18–19 December 2019, various partner states will discuss the topic “transforming the fruit and vegetables value chain in the EAC”. The East African Community (EAC) is a regional intergovernmental organisation based in Tanzania and composed of six partner states: Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.The two days are punctuated by discussions, presentations, activities and field visits to discuss together how to transform and improve the fruit and vegetable value chain in East Africa. Agriculture is the lead sector for growth and development in the EAC, but it faces low productivity due to degradation of natural resources and climate change. So it’s important to innovate to transform the East African fruit and vegetables value chain.M. Apollo Owuor, one of Coleacp’s Board of Directors, made a presentation on the Fit For Market and Fit For Market SPS programmes.