The E.U. proposes and regulates vegetable fats' use in acting as a replacement for cocoa in making chocolate products. The E.U. has voted in support of allowing chocolate manufacturers to use cheap fats from vegetables as a replacement for cocoa butter. As a result of this law, Britain and Ireland have faced unexpected challenges in their ambition to sell their chocolates worldwide. Cocoa and Chocolate are the main ingredients that I will use for analysis in this paper. Cocoa is the main ingredient for chocolate production. However, new proposals suggest replacing cocoa butter with vegetable fats, which have brought about legal yet controversial issues. Thus, cocoa used in chocolate production and the entire chocolate trade is facing significant impact from various legislations proposed by Brexit and the European Union (E.U.)
The paper explores the Brexit impact on Britain whereby she will no longer have a voice in major decisions relating to E.U. customs. The nation will also attract additional VAT and excise or custom duties. The importing rules will also mean subjection to health and safety controls and other regulator public policy checks. Despite these challenges, there is a well-proposed plan to ensure frictionless trade between E.U. members proposed by Ireland and the U.K.
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E.U. Regulations impact on British chocolate sell
Britain's exit from the E.U. community marked the beginning of a new dispensation in terms of the U.K. position as per the E.U.'s customs being a single market. As far as chocolate making is concerned, things were simple since the European Union's establishment in 1952 up to 1973 1 . Chocolate making involves a simple process of adding cocoa butter to chocolate liquor, sugar, and milk. The method had been there since the mid-1800s. The technique has been in use in much of the countries in continental Europe. However, the United Kingdom and Ireland use a different recipe, which also had been in existence for more than a hundred years. For example, Cadbury's chocolate bar is creamier and lighter than other typical chocolates within the continent. In the U.K. and Ireland, the chocolate manufacturers use minimal cocoa solids and substitute vegetable oils for cocoa butter.
The challenge started in 1973 when U.K. and Ireland decided to join the European Union (E.U.) 2 . That despite the primary purpose of the E.U. being the promotion of free trade amongst the various European countries, it has not been the case. With the hope of economic integration in preventing other significant wars, other new debates began in terms of the recipes in the manufacture of commodities- cocoa and chocolates.
Britain continues to face the same rules of trade and free movement of services and goods. It shall not have a voice in custom union presented in the European Parliament. The British ministers will not be eligible to attend any E.U. meetings were major trade decision making. The implication is that British and Irish chocolate makers like Cadbury's case will continue facing restrictions in the sale of their candy bars across Europe. France and Belgium's' chocolate purists have continued to deny the distribution of U.K. and Ireland's products through their nations, denying their free trade position in central Europe.
Tony Bilsborough, an export representative of Cadbury, argues that" if they consider our chocolates unfavorable, then they do not need to purchase them 3 ." Thus, fighting for equality in terms of chocolate exportation is vital for Ireland's and U.K. trade.' The BBC News U.K. posits out the point of view of a traditionalist who has described U.K. and Ireland's chocolates in derogatory terms such as "vegetate" or "household chocolates "have the intention to hurt the sale of these products 4 . Restrictions have found their way to the E.U. community trade laws that continue to hurt Ireland and Britain's economy. Additionally, these nations have a lower rate in the stimulation of jobs in their productions. Belgium, the main export of the U.K. and Ireland, enjoys trading with these two countries but cannot export their goods to Belgium. Thus it inhibits their economy. Therefore, both Britain and Ireland are not eligible to sell their unique, tasty chocolates to the rest of the E.U with the current regulations.
The E.U.'s "chocolate directive," according to Niccolo Sarno (2021), will result in an $800 million loss among the nations engaging in the processing of cocoa. 5 . The E.U is facing division from such trade laws on cocoa, chocolates, and other commodities. RTE report indicates that for transparency, the European Parliament has advocated on the no use of ingredients that are not easily legible and conspicuous and easily legible. This statement refers to the non –cocoa fats that have to be on packages. 6 The directive requires the Chocolate manufacturers to do away with cocoa butter instead of using cheaper and readily available vegetable fats. Therefore, the West African nations mostly feel an impact since there will be a low demand for cocoa. Consequently, over 11 million people's livelihood in West Africa who relies on cocoa production will face a significant blow 7 .
Tariffs imposition
Once the trade deal between the U.K and E.U. has come to pass, the U.K. will no longer be part of the Single Market or the Customs Unions. All goods moving to the U.K. since January 1, 2021, are being considered as imports and not the Previous Intra-EU acquisition. Custom duties and value-added tax on imports will be payable, and there will also be a need to make customs and payable declarations. The deal would have helped to alter the duty expected rate on some eligible goods but would not negate the need for export and import declarations. Free Trade Agreement (FTA) trading involves applying rules to the importing parties subjected to regulatory controls and checks for health, safety, and other public policy requirements. The E.U. court will still have jurisdictions in matters of free movement of citizens.
Free trade hindrances in non-E.U. member state
The non-E.U nations have their unique regulations. For example, in Malaysia, rules call for the need not to have more than five percent of cocoa 8 . Such differences in legislation have contributed to more controversies among the E.U. and other non-E.U countries against those legislations. The BBC article Britain Wins E.U Chocolate Battle shows how Italy and Spain were resistant to British chocolates for having over 5% vegetable fat despite being a real cocoa butter product. However, the European judges did not support the ban of these products and gave U.K chocolates the freedom to sell their products all through the E.U. countries.
Furthermore, in the battle to keep off U.K.'s and Ireland's Chocolate from being sold in the E.U. nations, exaggerated reports have come up to tint the cocoa production. On August 20, 2002, the BBC News report clarified that Africa's cocoa slavery is a high exaggeration topic 9 . Such statements had dominated the media claiming that children were being traded as cocoa laves in various West Africa's plantations. According to the reporter Mark Coyle (2002), Western lobbyists have consequentially used these false reports to criticize multinational chocolate companies for using cocoa that has been cultivated by child slaves 10 .
Other markets and future of the industry
Ireland and U.K. have an opportunity to export their chocolate products among other foods and drink products. In 2016, the U.K. exported up to 6.2% in the first half due to the weak pound to the non- E.U. nations. It has since then been growing beyond expectations. Since the Brexit vote, the falling pound gives the U.K. a chance to increase exports further. Malaysia has been the top destination for U.K.'s exports with a value growth worth €54.9m. China comes second with exports worth € 28.2m 11 . Thus, U.K. and Ireland have a great opportunity of expanding their chocolate companies as demand continues to rise in non-E.U. Countries. Furthermore, the court ruling passed in 2003, as pointed out by Campion (2019) , enabled Britain to make Chocolate available in all the E.U. markets marked a huge stepping stone in the fight for equality within the E.U. community 12 .
Conclusion
With the restrictive measures that Ireland and the U.K. face in terms of the need to change their chocolate recipe as a condition to export to E.U. member nations, I firmly believe that they should not bow down to such conditions. Instead, these two nations specializing in milk chocolate have to maximize their competitive edge over the traditionalists by exploring other new markets outside the E.U. With the formation of an alliance between Denmark and the United Kingdom, they can form a robust non-traditionalist community that would attract other nations such as Sweden, Portugal, Austria, and Finland. With such a strong community, they will influence lawmakers in passing a law that will enable the European Union to continue with the establishment of a free market, as was the case in the past. With the already existing support from other multinational chocolate companies such as Cadbury Ltd., Nestle of Switzerland, Hershey and Mars of the United States, the Italian based Ferraro, and Germany's Jacobs-Suchard, we will see the passing of fair laws on cocoa and chocolate products.
Bibliography
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Kohnert, Dirk. "The impact of Brexit on francophone Africa." Review of African Political Economy 46, no. 162 (2019): 673-685 DOI: 10.1080/03056244.2019.1696292
Sarno, Niccolo. "E.U. Chocolate Vote Threatens Cocoa Producers." IPS www. inside. org. sg/title/vote. (2000).
"TED Case Studies." CHOCOLATE CASE STUDY . n.d. https://edspace.american.edu/jlee/ted/ January 26. 2021.
1 "TED Case Studies."
2 BBC News.
3 Andrews, (2018).
4 Campion (2019).
5 Niccolo Sarno (2021)
6 RTE report
7 Ibid
8 Halim et al., 2019.
9 BBC News report, 2019
10 Mark Coyle (2002)
11 Campion (2019) ,
12 Ibid
