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Non-Traditional Exports, Traditional Constraints: the Adoption and Diffusion of Cash Crops among Smallholders in Guatemala

ESA Working Paper No. 07-03








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    The last decade has witnessed a steady decline in the dollar values of many of the traditional agricultural export crops (TAEs) from developing countries and has highlighted the risks of depending upon a very narrow export base for foreign exchange earnings. Breaking the dependence upon the traditional primary commodities and diversifying into higher value or added value exports is not easy. This report provides an overview of the market for non-traditional agricultural exports (NTAEs). In parti cular, the report focuses upon the trends in international trade in these products, the trade and import policies of the major destination buyers, the extent of the “adding-up” problem for selected NTAEs, the lessons learned, and the prospects for developing niche markets for organic and fair trade NTAEs. The report provides detailed statistical data on trends in the export of NTAEs during the ten-year period 1992 to 2001, both in volume and value terms, analyses the contribution of develop ing countries and least-developed countries (LDCs) to trade in NTAEs and identifies the leading developing country exporters. Trade and import policies of the key destination countries for NTAEs: the European Union, the United States and Japan are examined. Trade barriers such as tariffs and other import measures, including the complex area of phytosanitary controls, are examined and the impact of tariff liberalization, tariff escalation and the extent of tariff preferences for developing countr y exporters of NTAEs are discussed.
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    Can smallholder farmers in Honduras and Guatemala export deforestation-free coffee to the European Union? 2024
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    The new EU Regulation for Deforestation-Free Imports (EUDR) stipulates that by 2025, certain commodities may only be imported to the European Union if it can be proven that they have been produced on land that has not been subjected to deforestation or forest degradation. One of these commodities – coffee – is a source of income for farmers in Guatemala and Honduras, representing 14 percent and 52 percent of these countries’ agrifood exports respectively. In 2023, one fifth of all Guatemalan coffee and half of the coffee exported from Honduras was destined to the European Union, and the majority was produced by smallholders whose livelihoods face significant threats from climate change and rising production costs. In this context, the public and private actors who manage and govern the coffee supply chains in these countries must develop cost-effective traceability systems that can help farmers verify the deforestation-free origin of their coffee without worsening the economic pressures that they currently face. This report examines the economic and political structures of the coffee supply chains in Guatemala and Honduras with respect to potential traceability systems that could satisfy the requirements of the EUDR. This publication is part of the Country Investment Highlights series under the FAO Investment Centre's Knowledge for Investment (K4I) programme.

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