Tag: coffee policy

ICO, IACO Sign MoU on Coffee Cooperation

Posted on by Qahwa World

Agreement at World of Coffee San Diego focuses on data, regulation, and support for Africa’s coffee sector

San Diego — Qahwa World

The first day of World of Coffee San Diego saw the International Coffee Organization (ICO) and the Inter-African Coffee Organisation (IACO) formalise their cooperation through the signing of a Memorandum of Understanding (MoU).The agreement builds on an existing relationship between the two institutions and outlines areas for closer coordination across data, research, and policy support for African coffee-producing countries.

Structured Cooperation Across Key Areas

The MoU establishes a framework for collaboration in several technical and strategic areas relevant to the evolving coffee landscape.

These include improving data collection and analysis, supporting compliance with regulatory developments such as the European Union Deforestation Regulation (EUDR), advancing research into climate resilience, and strengthening capacity along the coffee value chain.

While the agreement does not introduce binding commitments, it provides a basis for coordinated initiatives and information exchange between the two organisations.

Africa’s Position in Focus

The partnership also reflects a continued effort to better integrate African perspectives into global coffee discussions.

African producing countries play a significant role in global coffee supply, yet continue to face structural challenges, including exposure to climate risks, limited access to finance, and evolving market requirements.

Through closer institutional coordination, the ICO and IACO aim to support member countries in navigating these challenges and engaging more effectively with international frameworks.

Institutional Context

The International Coffee Organization, established in 1963, serves as an intergovernmental platform for cooperation between coffee-exporting and importing countries, with a focus on market transparency, sustainability, and sector development.

The Inter-African Coffee Organisation represents African coffee-producing nations and works to promote production, improve quality, and enhance the competitiveness of the region’s coffee sector.

The MoU reflects a continuation of engagement between the two bodies rather than a new institutional direction.

World of Coffee as a Meeting Point

World of Coffee, organised by the Specialty Coffee Association, provides a platform for industry stakeholders ranging from producers and exporters to roasters, researchers, and policymakers.

The San Diego edition highlights ongoing conversations around sustainability, regulation, and market dynamics, with a growing emphasis on coordination between producing and consuming regions.

Participants

  • Vanusia Nogueira, Executive Director of the International Coffee Organization
  • H.E. Ambassador Solomon Rutega, Secretary General of the Inter-African Coffee Organisation
  • Claude Bizimana, Executive Chairman of the Inter-African Coffee Organisation
  • Celestine Gataraiha, Director of Research and Development at the Inter-African Coffee Organisation

Analysis

Memoranda of understanding are a common instrument in international cooperation, often used to formalise intent and provide a structure for future collaboration rather than immediate operational change.

In this context, the ICO–IACO agreement can be seen as part of a broader pattern of institutional alignment within the coffee sector, particularly as regulatory and environmental pressures increase.

Its practical significance will depend on how the outlined areas of cooperation translate into concrete programmes and measurable outcomes over time.

Reporting by Qahwa World from San Diego

U.S. Senate Bid to Fast-Track “No Coffee Tax Act” Denied

Posted on by Qahwa World

Dubai – Qahwa World

As U.S. coffee prices continue to climb, an effort in the U.S. Senate to fast-track the bipartisan “No Coffee Tax Act” stalled on Wednesday after a single Republican senator objected.

On the Senate floor, Sen. Catherine Cortez Masto (D-Nev.) requested unanimous consent—a procedure allowing noncontroversial bills to pass without a roll-call vote—to advance the bill she co-authored with Sen. Rand Paul (R-Ky.).

Video footage of the session shows Sen. Mike Crapo (R-Idaho), chair of the Senate Finance Committee, raising an objection. His move sends the measure back to the committee for further review.

The proposed legislation is part of a broader effort by lawmakers and coffee industry groups to exempt coffee from President Donald Trump’s “reciprocal tariffs”—import fees applied to a wide range of goods. Current tariffs on imports from nearly all coffee-producing nations range from 10% to 50%, with the 50% tariff on Brazil having a particularly strong impact on U.S. coffee prices.

Meanwhile, the cost of coffee for consumers continues to surge. In September, the average grocery price for a pound of roasted, ground coffee reached $9.14, an increase of 41% from a year earlier. According to the Bureau of Labor Statistics, the coffee index rose 18.9% year-over-year, far outpacing overall food and beverage inflation.

The No Coffee Tax Act seeks to exempt coffee from such tariffs, emphasizing that the United States cannot produce coffee at a scale sufficient to meet domestic demand. Combined coffee production from Hawaii and Puerto Rico accounts for less than 1% of total U.S. green coffee consumption.

“I know that responsible, targeted tariffs on our adversaries can be good for American workers and our national security,” said Cortez Masto. “There’s a smart way to do this—but taxing our coffee and raising prices for Americans isn’t it.”

In response, Crapo argued that the Senate should not make “one-off exceptions” for individual goods “in isolation of a larger negotiating strategy and broader stakeholder concerns.”

He also noted that coffee already benefits from tariff exemptions through recent trade agreements with Cambodia and Malaysia—though those two nations together account for less than 0.1% of global coffee production, according to USDA data.