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Main policy areas
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Remarks
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Tariff escalation
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- Tariffs on processed coffee are generally low for the EU, the US,
and Japan. The EU, for instance, applies an average duty of 9 percent
for higher levels of processed coffee. Other markets such as, India,
and Ghana have a duty on instant coffee of 35 percent and 20 percent
respectively;
- Developing countries export mainly non-processed coffee. The largest
amount of coffee is imported in its raw state, in the form of unroasted
green coffee beans.
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Tariffs
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- Generally low for developed countries, but high for developing nations.
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Amber box
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- Coffee exporting countries have liberalized their coffee industry
through the dismantling of national marketing boards. Prices are now
determined by market forces.
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Export subsidies
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Export credits
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State Trading Enterprises
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- Most state trading enterprises have made room for private exporting
entities. The state has taken the role of a regulatory power, setting
rules and regulations. For example, the government of in Côte
d'Ivoire established in 2000 the ARCC (Coffee and Cocoa Regulatory Authority)
to regulate the activities of the coffee sector.
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Export restrictions and prohibitions
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Food security
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- During recent years, coffee prices have been the subject of severe
fluctuations. In 1997, prices of Arabic coffee went up substantially
then latter collapsed. More than any other cash crops from developing
countries coffee prices exhibit high variability.
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Food safety
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- Quite significant for the sector: contamination, toxic residues,
quality of exported beans, use of molecular biology to improve coffee
production, regulatory procedures at the processing level in developing
countries, shipping and storage of coffee beans.
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Rural development
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- Very critical as most of rural coffee beans producers rely on export
earnings for their livelihood. For example, coffee is main source of
income for farmers in Uganda. Three-quarters of the population earn
money from coffee production export. Coffee earnings contribute to infrastructure
development, roads, storage facilities, schools, hospitals, first-stage
processing firms.
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Geographical indications
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- Specialized coffee from Colombia (Milds), and Jamaica (Blue Mountain),
do fetch premiums.
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