Impact of the EU-UK Trade Agreement on Caribbean Exporters

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The Impact of the EU-UK Trade andCo-operation Agreement on Caribbean Exporters

Table 4. Value of EU/UK trade in bananas (0803) by main trade partners (€1 million+), 2019

UK Bananas Exports to the EU

EU Bananas Exports to the UK

Tonnes

Value (€)

Tonnes

Value (€)

Total

60,099

51,346,807

40,649

30,891,137

Country

Country

France Ireland

36,606

26,606,330 5,710,582 5,165,823 3,021,538 2,371,464 2,337,913 1,383,855 1,380,811 3,368,491

France Ireland

3,798

2,787,989 10,258,370

5,800 1,545 4,592 2,978 3,054 1,769 1,103 2,652

11,413

Germany

Germany

125

103,016

Netherlands

Netherlands

15,540

11,072,178

Slovakia Poland Belgium

Slovakia Poland Belgium

–

9

10,851

7,572

4,828,261

Spain

Spain

214

148,347

Other EU

1,978

1,682,125

Source: European Commission, Market Access Database available at: https://trade.ec.europa.eu/access-to- markets/en/statistics?includeUK=true

However, for mango and citrus fruit, while phytosanitary certificates are no longer required for entry to theGBmarket, they are still required for entry to the EU market. This creates serious problems for re-exports fromGB-to-EUmango and citrus supply chains, since, if no phytosani- tary certificate accompanies the initial exports to GB, there is no basis for issuing the phytos- anitary re-export certificate required for entry to the EU market and hence entry to the EU market will be denied. However, Caribbean exports in these two product categories to GB are relatively small, amounting to only around €7.5 million. In terms of EU-to-GB re-export supply chains for Caribbean mango and citrus fruit, no phytosanitary re-export certificates are required for entry to the GB market, although such phytosanitary re-export certificates would be required for re-exports of Caribbean avo- cado (with an export value for avocado to the EU27 of €20.6 million in 2019). 3.2.3 Border and logistical challenges in fruit and vegetables For all Caribbean exports of vegetables to GB that are re-exported, the phytosanitary re- export certificate requirement will increase costs and potentially generate delivery delays unless the system for issuing phytosanitary re- export certificates is improved. Similarly, phy- tosanitary re-export certificates for re-exports

from the EU27 to GB will see new costs and sources of delay arise from July 2022. These delays could serve to exacerbate the existing reluctance of EU hauliers to carry re- exports across EU–GB regulatory borders and could even see European and GB business part- ners being reluctant to engage in the re-export trade. This is especially likely if issues related to the future use of ‘groupage’ road haulage prac- tices are not addressed. Previously, ‘groupage’ practices allowed the low-cost onward shipment of mixed cargo loads to final wholesalers and retailers. However, post-Brexit, the border clearance of groupage loads is dependent on the clearance of each individual consignment within the ‘groupage’ load, with the whole load being delayed if any individual consignment is not border clearance ready. Fresh and chilled fruit and vegetables are particularly vulnerable to these delays. This is seeing the virtual abandonment of low-cost ‘groupage’ road haulage practices for mixed consignments of fruit and vegetables across EU–GB customs and regulatory borders. This is having serious implications for the costs of shipping fruit and vegetables to final markets along triangular supply chains. However, it is unclear what value of Caribbean fruit and vegetable exports is being adversely affected by these developments. It is likely that smaller volume fruit and vegetable export- ers will be more severely affected than larger