EU-ACP trade negotiations
The European Journalism Center (EJC) and the European Commission’s DG Trade co-organized a two-day seminar recently to discuss the trade between the European Union and ACP countries.
The seminar also provided an overview of the current EU-ACP trade policy and an analysis of trade limitations. EJC journalists Mr. John Hammond, Cristina Romero, and the seminar moderator Juliane Von Reppert-Bismarck of Mlex Market Intelligence actively interacted with the ACP journalists from both English and French-speaking countries.
As a matter of fact, trade relations between the European Union and countries of the African, Caribbean, and Pacific (ACP) regions have been entangled by many arguments.
In the wake of the global economic and financial crisis, ongoing negotiations over Economic Partnership Agreements (EPAs) have led to often-heated debates over agreements today, from Lomé to Cotonou to EPAs, as well as key issues such as accountability in trade and relevant case studies involving the implementation of EPAs until now.
The seminar brought many speakers, including Mr. Peter Thompson, the director of Trade and Development; Mr. Julius Sen, senior program advisor; Mr. Ralph Kamphoene, senior advisor of international trade/GSP; and Euro Commerce, among others, to discusvarious topics ranging from the overview of EU-ACP trade policy, from Lome to Cotonou to EPSs, defining accountability in trade, and reworking trade and development tools: relevant case studies.
Many traders from the Caribbean and Pacific countries trading with the European Union believe that the new trade agreement between the EU and ACP, though compatible with the World Trade Organization rules, was planned for the benefit of the EU. As a result, they fear that it could affect the economy of the ACP countries.
One argument is, for example, that the prices of goods offered by the EU are very poor compared to what they demand for their products. Another point that was presented is that developing countries cannot compete with their more advanced European counterparts.
The speakers lecturing on different trade subjects made many points clear to the ACP journalists. For example, it was explained that EPAs were not forced onto the ACP countries, but rather they were designed to meet the WTO rules.
A visit to the Port of Antwerp revealed how goods from Europe are handled and shipped to the various destinations, including ACP countries. The port combines a long tradition of break-bulk cargo with a state-of-the-art infrastructure. Handling around 15 million tonnes of steel, forest products, fruit, food, and project cargoes every year.
The Port of Antwerp boasts the capacity, productivity, and full range of services you would expect from one of the world’s largest ports. Offering the most convenient inland connections by road, rail, or barge, it isn’t surprising that the Port of Antwerp leads as Europe’s number one break-bulk port.
At the end of the seminar and the trip to the Port of Antwerp, the ACP journalists were delighted and requested a similar seminar in the future. In fact, it is important that many ACP countries take this advantage to come and visit these international ports and learn how to manage the high volume of workload in the future.
Africa's textile export to Europe and the US
Are you a successful farmer, manufacturer, or trader aiming to export your product to Europe? There are trade preferences that the European Union is offering to the developing world.
To export any product to Europe, there are many issues that the exporter has to take into consideration.
First of all, find out if your product will sell and if yes, which countries you need to export your products to, and the standard of the labeling requirements for the products within the European Union.
Diverse and confusing labeling rules remain a trade barrier between Africa and Europe, and probably with other smaller economies around the world.
Opportunities exist for unique labeling standards and to make sure that national and international rules are clear and that the process that develops them is predictable.
Diversifying exports and switching to higher-value goods is identified by many, not least Africa need to trade if it is to make money for the development of other infrastructure on the continent.
Until recently, agricultural trade for Africa has generally meant exporting readily available, little-processed commodities such as coffee, tea, or cocoa.
Many of these agricultural products are of low value. In addition, they are frequently vulnerable to swings in the world market price, which can leave a country's economic base in a very precarious position.
Therefore, exporters from countries like Tanzania and Ghana have been riding the rollercoaster of fluctuating world prices for coffee and cocoa for decades now, and the IMF and World Bank, as economic partners, but Africans can gain more from export trade to Europe.
What are the rules that organic products need to comply with to be exported to Europe? On 1 January 2009, new EU regulations went into effect for the production, control, and labeling of organic products; however, some of the new provisions on labeling did not take effect until 1 July 2010.
In June 2007, the European Council of Agricultural Ministers agreed to a new Council Regulation on organic production and labeling of organic products. This new Council regulation contains clearly defined goals, principles, and general rules for organic production.
Export documentation, ensuring a smooth passage; organizing the right paperwork can make the export process much simpler and smoother. This applies if you are exporting tonnes of goods for sale or just taking a few samples to a trade show in Europe.
More importantly than ease of movement, not having the right paperwork can result in an importer not being able to accept the goods and the exporter not being paid. Certified export documentation is required by many countries.
It is important to understand some of the most commonly used documents and when they are required, to export successfully.
Certificates of origin verify the place of growth, production, or manufacture of goods that contain a certification by an empowered authority.
A Certificate of Origin is a document, required by foreign governments, declaring that goods in a particular international shipment are of a certain origin.
Even though the commercial invoice usually includes a statement of origin, some countries require that a separate certificate be completed.
Custom offices will use this document to determine whether a preferential duty rate applies to the products being imported. Certificates of origin are also important because of trade agreements and regulations that might apply to goods coming from the United States.
The data required for a certificate of origin is generally the same as for a commercial invoice. Basic information includes a description of the goods, the gross and net weight of goods, the number of packages, mode of transportation, date, and origin of the shipment, and an address for the seller and buyer.
The certificate will also include a brief statement as to the origin of the goods. A few countries require specialized, unique certificates of origin that might include more detailed information and/or require a specific wording for their origin declaration.
While some countries require certificates of origin for all products, others may only require them for certain types of products. Almost all Middle Eastern countries require that certificates of origin accompany all shipments.
Most Latin American and European countries, however, only require the certificate for certain products, such as textiles. Certificates of origin are generally unnecessary in Asia unless requested by the importer. African nations run the gamut of requirements.
WHAT ARE THE IMPORT TARIFFS FOR MY PRODUCTS?
Importers are expected to pay an import tax on virtually every item they import, but few know how much they owe until their shipments arrive in Europe.
Many importers are overcharged by European Customs at the border because they did not purchase a copy of the European Harmonized Tariff Schedule and properly classify their imports. Import taxes are based on the type of item you are importing and where it’s coming from.
Getting started? And you need assistance in determining if a certificate of origin is required for a particular country, please contact the Export Helpdesk website: http://exporthelp.europe.eu/
Having enough information before you start will do you a lot of good and save you costs, too.
