Egyptian citrus suppliers to the UK may need to adapt to maintain export growth following a new trade agreement between the EU and the UK, says Osama Saleh of HoudElNile
The recent EU-UK trade agreement has potential consequences for non-EU suppliers of products to the UK, which have enjoyed a competitive advantage since the UK’s departure from the EU.
Since Brexit, Egyptian citrus exports to the UK have surged significantly, according to Osama Saleh, commercial manager at HoudElNile for Investment and Agricultural Development.
“Between 2018 and 2022, exports of Egyptian produce to the UK, including citrus, increased by 150 per cent,” he told Fruitnet. “This growth was largely due to the UK’s shift towards non-EU suppliers, as imports from EU countries faced more complex import protocols and increased costs.”
With the new trade deal between the EU and the UK aiming to streamline trade relations and reduce barriers, a resurgence of EU citrus exports to the UK could increase competition for Egyptian exporters.
If EU suppliers can offer competitive pricing and reliable supply chains, UK importers might revert to traditional European sources for citrus fruits,” said Saleh.
He also expects to see an impact from the reduction in export subsidies by the Egyptian government as of November 2024, including for citrus, from 8-10 per cent to 2.4-3 per cent.
“This policy change may lead to higher export prices and reduced volumes,” he said, “potentially affecting competitiveness on the UK market. In addition, in response to EU concerns over pesticide residues, Egyptian authorities implemented stricter inspection protocols for citrus exports. While this enhances product quality, it may also increase operational costs and affect export timelines.”
While the EU-UK trade deal may introduce new competition for Egyptian citrus exporters, the extent of its impact will depend on various factors, according to Saleh, including pricing, supply chain reliability and quality standards.
“Although the EU–UK deal may reduce Egypt’s current advantage, there are still opportunities to stay competitive by adapting and improving continuously,” he said. “Egyptian exporters may need to adapt to these changes by focusing on quality improvements, as well as by exploring new markets to maintain their export growth.”
