The European Commission has started a public consultation concerning the free trade agreement between the EU and Colombia, Peru, Ecuador

Recurrent banner - 1200 contacts

Why are trade deals useful?

Trade deals create numerous benefits for both exporters and importers. International trade results in a wider choice for the consumers, higher quality goods and lower prices. International trade also helps to strengthen business competitiveness and promote sustainable development. Furthermore, trade deals play an important role in job creation, business growth and investment (European Commission, 2021b).

The Andean Community and the EU

The Andean Community was founded in 1969, aiming at interregional integration. It currently includes four countries: Bolivia, Colombia, Ecuador, and Peru (European Union External Action Service, 2016). Until 2012 the countries of the Andean Community had benefited from a unilateral preferential EU market access (Dongo, 2021). In today’s article we will focus on the agreements between the EU and Colombia, Peru and Ecuador. The EU has had, in fact, a comprehensive Trade Agreement with Peru and Colombia since 2013 and with Ecuador since 2017 (European Commission, 2021a).

What’s new

The World Bank reform of the preferential system would not have allowed Colombia, Peru and Ecuador to maintain their preferential market access, so negotiations were started to find a new deal – reached in 2010 after 9 negotiation cycles – with the European Union. The agreement between the EU and Colombia, Peru and Ecuador is one of the first new-generation Free Trade Agreements, as it aims at facilitating access to the markets of the concerned countries by promoting a sustainable development which may increase the stability and predictability of the investment and of the financial and commercial contexts (Dongo, 2021).
Unlike traditional Free Trade Agreements, the new treaty concerns not only the trade liberalisation of goods and services, but also investment, public contracts, competition, intellectual property rights, commerce and sustainable development (Dongo, 2021).

Trade and Sustainability

The new UE strategy regarding Trade and Sustainable Development (TSD) is concerned with workers’ rights, environment preservation and civil society. It aims at promoting the rules which protect the workers, focusing on the elimination of forced labour, child labour and discrimination. Moreover, its purpose is to strengthen the reciprocal support of trade and environment (Dongo, 2021). The problem is that violations of these rules do not result in the suspension of the trading benefits of the part responsible, as these violations are only exposed to a moderate alternative procedure to find a solution to litigation (Dongo, 2021).

Problems in the Andean Community

Colombia’s export rates of palm oil have been increasing – 52% of Colombian palm oil is imported by the EU. But the palm oil plantations are a debated question, as local farmers and indigenous people are forced to abandon their crops for this type of activity. This phenomenon, known as land grabbing, concerns both Colombia and Peru and has attracted the attention of international observers (Dongo, 2021).
As far as the working conditions are concerned, the basic rights mentioned in the international agreements are often violated. Notably, in Colombia violence in the working sector is sadly common, and in Peru child labour and black-market labour are frequent events, while freedom of association and collective bargaining are almost unknown (Dongo, 2021).

Concluding remarks

The Free Trade Agreement between the EU and Colombia, Peru, Ecuador has to consider an examination of the respect for fundamental human rights and for the environment. These elements, in fact, represent a pre-requisite and fundamental condition for the agreement.
The European Parliament, with its resolution 22.10.20 concerning deforestation and biodiversity, has encouraged the European Commission to ban the importation of commodities and goods coming from industries which do not respect the environment. While waiting for this environmental justice act it is demanded that importation of palm oil from Colombia be interrupted (Dongo, 2021).

Bibliography

Dongo, D. (2021). Accordo di libero scambio tra UE e Colombia, Perù, Ecuador. Consultazione pubblica a Bruxelles. Retrieved March 8, 2021, from GIFT – Great Italian Food Trade website: https://www.greatitalianfoodtrade.it/mercati/accordo-di-libero-scambio-tra-ue-e-colombia-perù-ecuador-consultazione-pubblica-a-bruxelles

European Commission. (2021a). Andean Community. Retrieved March 8, 2021, from Countries and Regions website: https://ec.europa.eu/trade/policy/countries-and-regions/regions/andean-community/

European Commission. (2021b). Exporters’ Stories. Retrieved March 8, 2021, from In Focus: Exporters’ Stories website: https://ec.europa.eu/trade/trade-policy-and-you/in-focus/exporters-stories/#p=#filter-partners-Colombia&c=*#p=#filter-partners-Colombia&c=*

European Union External Action Service. (2016). Andean Community. Retrieved March 8, 2021, from https://eeas.europa.eu/diplomatic-network/andean-community/2049/andean-community_en

After the disappointing cancellation of World Coffee Championships and MICE2020 due to the pandemic, the coffee industry will re-launch live events, hoping to go back to normality as soon as possible

Recurrent banner - 1200 contacts

Mice: once upon a time…

MICE, launched in 2012 as the first coffee-dedicated event in Australia, aims at connecting buyers and sellers and brings together members of the coffee industry. It is an annual event – apart from the sad parenthesis represented by 2020, such a challenging year for whole world – which offers the opportunity of finding new clients, starting partnerships and collaborations, developing businesses and connecting with other actors of the coffee sector. MICE has become the largest dedicated coffee show in the Southern Hemisphere.
MICE also secured the right to host the World Barista and Brewers Cup Championship for 2020: Australia was to become the first country outside of the U.S. to host the Championships on more than one occasion. Unfortunately, COVID-19 put those plans on stand-by (Mice, n.d.-a).

 Mice: What’s on

MICE features several attractions such as : Roasters Alley, presenting over 25 local and international roasters; Origin Alley, featuring producers from all over the world; Product Innovation Award, showcasing the newest innovations from exhibitors; and St. Ali Food Kiosks, where visitors can buy food from a legendary Melbourne icon (Mice, n.d.-b).

 

Melbourne Coffee Week

This is a week-long celebration of all things connected to coffee. Melbourne Coffee Week has the purpose of reinvesting in the coffee community and helping organisations and industries grow. Moreover, it gives local business owners a chance to increase brand recognition and trade. Of course, this occurs while celebrating the coffee culture in the widest perspective! Furthermore, all registration proceeds are donated to Charity Partner StreetSmart, which helps Australia’s homeless people (Melbourne Coffee Week, n.d.).

ASCA. I am. We are. Coffee

ASCA (Australian Specialty Coffee Association) began as a vehicle for like-minded people in Australia with an interest in specialty coffee, when the specialty coffee industry was not as widespread as it is today. The association has adopted international quality standards through benchmarking with international specialty coffee associations. ASCA, which is governed and run completely by volunteers, aims at promoting specialty coffee and providing professional training for the development of specialty coffee all over the country (ASCA, n.d.).

Source: Winterbottom, 2017

Sources

ASCA. (n.d.). ASCA. About us. Retrieved March 5, 2021, from https://australianspecialtycoffee.com.au/about/

Melbourne Coffee Week. (n.d.). Melbourne Coffee Week. Retrieved March 4, 2021, from https://melbournecoffeeweek.com.au/

Mice. (n.d.-a). Our story. Retrieved March 4, 2021, from https://internationalcoffeeexpo.com/history/

Mice. (n.d.-b). What’s on. Retrieved March 4, 2021, from https://internationalcoffeeexpo.com/about/

Winterbottom, L. (2017). Notice of ASCA Annual General Meeting. Retrieved March 7, 2021, from ASCA website: https://australianspecialtycoffee.com.au/notice-asca-annual-general-meeting/

We at ArtOn Café are glad that our friend Mr. Martin Senabulya, Executive Director at Quality and Container Inspection Limited, has shared with us this article about the main activities and objectives of his company

Recurrent banner - 1200 contacts

Q.C.I- Ltd, a short introduction

Quality and Container Inspection Limited (Q.C.I- Ltd) is is one of the few companies in Uganda offering services such as the ones listed below:

  • Pre-shipment Inspection
  • Warehousing
  • Coffee quality analysis
  • Coffee sourcing.

It is located on Plot 684 Mutesasira zone/Kansanga, its address details are:

  • P.O.Box 70251, Kampala, Uganda
  • Email addresses : Senabulya.martin@yahoo.com; quality.containerinspection@gmail.com
  • Contact number/Whatsapp: +256758976850

Q.C.I-Ltd is the brainchild of Senabulya Martin. Martin is a hardworking and innovative man who was trained by the Uganda Coffee Development Authority in 2009. He has six years’ experience in specialty and Commercial coffees in Uganda and the U.A.E.

The company has contracts with companies such as:

  • Cenos Sp Zo.o.-Poland
  • Wintergreen-Russia
  • Kaiyantang Limited-China/Uganda
  • Hatsuia Estate-Brazil

History and current situation

A great deal of enthusiasm, experience, and passion for coffee has gone into the 3 years of the company’s existence. It offers third party services which many of our clients have embraced, and they keep using our services owing to their efficiency and openness – we provide them with what they want.

We are also in partnership with TIVE, a German-based company for the market supplying of coffee real-time trackers. With this tool we can track the shipment in real time, record moisture levels inside the containers and the general state of the shipment. In this way we can report to our clients exactly where the shipment has reached in its progress towards the port of destination. A lot of research has been done to make sure this business is as perfect as it can get, and with our valuable experience in the agriculture industry I believe we will be able to acquire considerable returns in each of the below- mentioned services we offer (cf. paragraph “Services provided by Quality and Container Inspection Limited-Uganda”).

Goal and Objectives

As a Company we are also looking for partners to financially boost our activities. These include:

  • Setting up a modern laboratory which can help us offer coffee-roasting courses
  • Creating a roastery department under it where the fully trained students will acquire jobs roasting coffee that will be distributed all around this country and its neighbours
  • Acquiring more contracts in the fields of pre-shipment inspections and quality analysis
  • Setting up coffee shops to generate income and thereby offer more employment to Ugandans
  • Locating specialty coffees all around the world, as well as making coffee a big source of income to the local people in Uganda through our Company developing into a bigger entity in Uganda with the construction of various roasteries and coffee shops throughout the country

The goal will be to create the best third party service provider company in the fields of pre-shipment inspections, warehousing and quality analysis, coffee roasting skills, roasting bestselling specialty coffees as well as offering the best service in our unique coffee shops. Mission. Q.C.I-Limited is to be the best third party service provider as regards quality analysis in coffee to be exported abroad, together with warehousing and pre-shipment inspections in and around the country.

Assumptions

The principal assumption is that coffee is loved all around the world, so with our coffee laboratory we will be able to compete favourably in the coffee market. We will be able to acquire contracts owing to the fact we have been doing all these analyses using a government laboratory. Thus acquiring our own laboratory will give us leverage to gain more market share and thus increase our profit margins. Employment of the natives will increase with the acquisition of more contracts, thereby improving living conditions.

Services provided by Quality and Container Inspection Limited-Uganda

The Company provides services such as:

  • Coffee quality analysis
  • Roasting courses in commercial and specialty coffee (Q and R grading courses)
  • Pre-shipment inspections
  • Warehousing
  • Produce sourcing

Other services include supplying all the coffee produced by the roasting department not only throughout Uganda itself, but also to other countries like Kenya, Rwanda, Tanzania and those in the U.A.E.

Summary of services provided by Q.C.I-Limited are as follows:

  • Specialty coffee roasting courses
  • Warehousing
  • Pre-shipment inspections
  • Product quality analyses
  • Produce sourcing (Coffee, grains, cocoa, sesame, beans etcetera)
  • Sensitizing Ugandans to the greatness of coffee through seminars, festivals and coffee days designated by the Uganda Coffee Development Authority and other Coffee academies

The Market and Competitor analysis

Our market is the Ugandans who are sensitized to Coffee, both specialty and commercial, and the distributing companies throughout the country and the traders across the country, together with our international clients such as Poland, Germany and the USA.

As for competitors, it is well known that in Uganda there is neither a coffee school nor a roastery specializing in specialty coffee, therefore our company has a monopoly on this business and thus stands to make an abnormal profit.

Marketing and sales Strategies

The idea is to focus Ugandans’ attention on our innovation of specialty coffee attainable all around the world and roasted to international market standards, as well as on our promotions to make people love specialty coffee in Uganda. The sales of the end product will be country-wide through our coffee shops and the packaging of our coffee to be exported to U.A.E and neighbouring countries.

As for the services of pre-shipment inspection, warehousing, quality analysis and coffee sourcing, we already have partners from companies like NUCAFE, AFRICOT Uganda, IDEL Commodities Limited, for whom we source coffee from Uganda and provide the quality analysis and pre-shipment services. And just as we do for Ugacof, kyagalanyi Coffee Factory and Louis Dreyfus Company (LDC) we also offer warehousing services.

This has been possible due to our unique methods of working efficiently, to the experience and skills in all these fields acquired during 10 years of employment and thorough research, and to our perfectly trained team.

Key strong points

Q.C.I Ltd-Uganda is going to be the first company in Uganda to start a roaster school in Uganda.

  • The first roaster school to offer specialty coffee courses
  • It is also going to be the first coffee company to use the Tive trackers from our partners from Germany and the USA (Tive and Weal laboratory) to help track customers’ coffee during shipment to its final destination, as well as to monitor the humidity in it during shipment
  • The tracker will also monitor the humidity in the coffee stacked in warehouses to help in the LIFO procedures

Sources

This article was sent to us at ArtOn Café directly by our friend Mr. Martin Senabulya, Executive Director at Quality and Container Inspection Limited