Import Rejections of Agricultural and Food products from ... · borders of four markets (Australia, EU, Japan, and US). The reasons for these rejections are because the products are

Institute of Developing Economies, JETRO

Import Rejections of Agricultural and Food Products from East Asia

Lei Lei IDE-JETRO

10/01/2015

1


The Role of the Agricultural Sector East Asia (14 countries) - Brunei, Cambodia, Indonesia,

Malaysia, Lao, Myanmar, Philippines, Singapore, Thailand, Viet Nam, China (SARs included), Japan, North and South Korea;

In the low- and middle-income countries, agriculture still plays essential role in economic growth or poverty reduction with structural transformation.

They have been (especially the transforming ones) actively exporting agricultural and food products on account of their technological capacity and traditional comparative advantage in agricultural sector.

2


3


4

0

5000

10000

15000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ion

US$

Agricultural and Food Exports from East Asia

2000-2012 (FAO data)

Food Agro

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Billi

on in

US$

Africa

Northern America

South America

Eastern Asia

Southern Asia

Europe

0

50

100

150

200

250

300

350

400

450

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Agricultural and Food Exports by Region 2000-2012 (FAO data)


Challenges of Import Rejections In 2013, an estimated US$9328 million worth of agriculture

and food products (all food and feeds) were rejected at the borders of four markets (Australia, EU, Japan, and US).

The reasons for these rejections are because the products are not complied with the food safety regulations in these markets. In particular, residual traces of agricultural chemicals and veterinary

drugs

The border rejections are just a tip of an iceberg. A larger amount of potentially exportable goods are rejected within

the supply chain

5


Reasons for Rejections

In the Australian market Labeling is most often cited

In the EU market Bacterial contamination and

Additives

In the Japanese market Additives and Bacterial

contamination

In the US market Labeling, Adulteration/ missing

documents, and Hygienic control/conditions

6

0% 20% 40% 60% 80% 100%

US

JPN

EU

AUS


7

0

2000

4000

6000

8000

10000

12000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Agri-food Products Import Rejections in 4 Markets

Japan EU AU USA

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

East Asia Percentage

Japan EU AU USA

AU: 2003-2013 EU: 2002-2013 JP: 2006-2013 US: 2002-2013


AU EU Japan USA

Rank Import share

Import share

Import share

Import share

1 China 6.4 China 4.6 China 14.3 Mexico 13.8 2 India 1.7 Turkey 3.4 US 24.3 India 2.3 3 Japan 0.7 Iran 0.4 Vietnam 1.7 China 5.7 4 US 10.8 India 2.3 Thailand 5.8 UK 2.3

5 Italy 4.4 US 8.1 Ghana 0.2 Canada 17.5 6 Thailand 6.6 Brazil 12.2 Italy 1.3 Vietnam 1.8 7 Korea, S 0.7 Thailand 2.4 Korea, S 2.7 Dominic 0.4 8 Philippines 0.5 Vietnam 1.8 India 1.5 Thailand 3.8 9 Vietnam 2.8 Argentina 6.6 Indonesia 1.8 Indonesia 2.2

10 Malaysia 3.7 Egypt 0.6 Ecuador 0.2 Japan 0.8 11 Indonesia 1.8 Morocco 2.1 Canada 6.5 Korea, S 0.5 12 France 3.1 Indonesia 2.9 France 2.8 Italy 3.9 13 UK 3.7 Ukraine 2.0 Philippines 2.0 France 4.2 14 South Africa 0.8 Bangladesh 0.3 Brazil 4.1 Philippines 1.3 15 Sri Lanka 0.4 Ghana 1.2 Spain 0.8 Pakistan 0.1

8


Average Number of Detentions in 4 Markets (Myanmar & Malaysia)

9

0

10

20

30

40

50

60

AU EU Japan USA

Myanmar Maylaysia

AU: 2003-2013 EU: 2002-2013 JP: 2006-2013 US: 2002-2013


Malaysia and Myanmar’s relative performance in Australia

10

TH

CN

SG

MYVNID

JPKR

PH

HK

MM

-5

-4

-3

-2

-1

1

2

3

4

5

-

-

-

-

-

-

-

-

-

-

-5 -4 -3 -2 -1 1 2 3 4 5+ + + + + + + + + +

Ln S

hare

of D

eten

tions

Ln Share of Imports

Large exportersmall exporter

Good Performer

Bad Performer


Malaysia and Myanmar’s relative performance in EU

11

CN

ID

THVN

MYPHJPSGKR

HK

KH

LA

MM

-5

-4

-3

-2

-1

1

2

3

4

5

-

-

-

-

-

-

-

-

-

-

-5 -4 -3 -2 -1 1 2 3 4 5+ + + + + + + + + +

Ln S

hare

of D

eten

tions

Ln Share of Imports


Good Performer

Bad Performer


Malaysia and Myanmar’s relative performance in Japan

12

CN

TH

KRPH

ID

VN

MY

SGHK

MM

LA

KH

-5

-4

-3

-2

-1

1

2

3

4

5

-

-

-

-

-

-

-

-

-

-

-5 -4 -3 -2 -1 1 2 3 4 5+ + + + + + + + + +

Ln S

hare

of D

eten

tions

Ln Share of Imports


Good Performer

Bad Performer


Malaysia and Myanmar’s relative performance in USA

13

CN

THIDVN

MY

PHJPKR

SG

HK

KH

MM

-5

-4

-3

-2

-1

1

2

3

4

5

-

-

-

-

-

-

-

-

-

-

-5 -4 -3 -2 -1 1 2 3 4 5+ + + + + + + + + +

Ln S

hare

of D

eten

tions

Ln Share of Imports


Good Performer

Bad Performer


Non-compliance along the Global Supply Chain

14


Let Trade Work Better -- for developing countries in East Asia

Promoting agri-food exports to access to the global value chain is important for their economic development. Meeting standards, winning markets Strengthening their compliance capacities

along the value chain is a critical issue for their development.

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Thank you! Port rejection data - UNIDO dataset and analysis based on EU

RASFF, US OASIS, AQIS, and Japanese MHLW data Trade data – FAO Trade Standards Compliance Report 2015

http://www.unido.org/tradestandardscompliance.html

Regional Trade Standards Compliance Report (TSCR) – East Asia 2013 http://www.ide.go.jp/Japanese/Publish/Download/Collabo/UNIDO_20

13.html

Regional Trade Standards Compliance Report (TSCR) – East Asia 2015- coming soon~

16

http://www.ide.go.jp/Japanese/Publish/Download/Collabo/UNIDO_2013.html

http://www.ide.go.jp/Japanese/Publish/Download/Collabo/UNIDO_2013.html

Documents

Import Rejections of Agricultural and Food products from ... · borders of four markets (Australia, EU, Japan, and US). The reasons for these rejections are because the products are