EU’s coffee tariff punishes producers
The most prominent offender in this regard is of course the most powerful trading bloc in the world: the European Union (EU). There are too many examples to list, but one of the most egregious that illustrates the issue is coffee.
The EU slaps Africa with punishing tariff charges on processed, roasted coffee, but not unroasted, raw green beans. Naturally, this deters our coffee producers from investing in the technology to process the commodity while bullying them into exporting it raw.
To add insult to injury European countries can then process and re-export for great profit – and at great expense to poor African farmers. In 2019 Uganda earned just $470m from over 250,000 tonnes of coffee exports; Switzerland earned some $2.2bn from processing and re-exporting just 80,000 tonnes. Indeed, all Africa earned just $1.5bn from the crop in 2014. Yet Germany, a leading processor, earned nearly double that from re-exports.