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Standards and Trade:Background/results of the
projectVeena Jha
Geneva, 2-4 October 2002
UNCTAD
Sectors
South Asia Fishery productsPeanuts, rice, spices, teaOrganic products
Central America
Fishery products PoultryOrganic products
Africa Fishery products Horticulture Organic products
Environmental requirements/SPS measures
Key questions
• Effects, both positive and negative, on exports from developing countries
• Constraints, costs of compliance• Perceptions (protection/protectionism)• Responses at national/regional levels• Recommendations to mitigate adverse
trade effects and strengthen capacities to respond to these standards
(a) national/regional (b) bilateral/multilateral (c) multilateral trading system
Lessons learned
• Importance of the standards examined in the market place?
• Compliance costs and trade effects• Protection versus protectionism
• Regional strategies
Potential problems
• Lack of transparency • Complexity of SPS standards • Threshold limits • Standard takers instead of Standard
Setters • Relevance of the standard to the
production conditions of the exporting countries
• Domestic Regulatory Problems
Economic/developmental effects of SPS measures and
environmental standards
• Compliance costs• Trade impacts• Impacts on industry
Economic/developmental effects of SPS measures and
environmental standards
• Legislation• Training• Infrastructure• Engagement in international
negotiations
Can SPS measures and environmental standards be
protectionist?
Motivation:• Protecting national producers against
import competition?• Creating a market for conformity
assessment?• Lowering prices?
Perceptions:• Insufficient scientific evidence• Lack of coherence in standards
Africa
Pesticide residues
Standards for maximum residue levels for pesticides
Packaging requirements
Has created some concern
Eco-labelling May become more important in the cut flowers and fisheries sectors
Timber Exports may be affected by consumer boycotts and/or timber certification.
CITES Ivory trade
Montreal Protocol
Methyl bromide, used in agriculture
Sectors/casesMarine products
Bangladesh, India, Pakistan
HACCPEU import bans
Peanuts India Responding to aflatoxin standards
Mango pulp
India Quality issues
Rice India, Pakistan
Standards for pesticides residues
Spices India, Sri Lanka
Dealing with aflatoxin standards / other SPS measures
Tea India Meeting standards on pesticides residues
Perceptions on Implementation of HACCP Standards for fish
• Certain standards are not strictly relevant for product quality
• Certain standards are too stringent given Indian fishing conditions
• The legitimate objectives of standards could be met through less cumbersome and less costly procedures
• Indian plants face more stringent standards than European plants (e.g. Indian plants have to undertake 62 tests to check water quality)
Peanuts
• Different testing procedures and conformity assessments required in different markets
• New sampling plan (3 test Dutch code methodology) would result in higher rejection rate
• Experts believe that 75% of the rejected lots would actually fall within the established tolerance limits
Tea (1)
• It is alleged that in 1995, German limits of 0.01 mg of tetradifon and 2 mg of ethion per kg of tea were imposed somewhat arbitrarily because of lack of data from India
• The Teekanne Darjeeling Gold brand of tea was rejected because it contained 0.24 mg of tetrafidon per kg
• No rejections in United Kingdom; most Indian tea firms follow UK principles
Tea (2)
• Cost of testing required by Germany: US$ 234 per analysis
• Indian standards are more stringent than ISO 3720 standardans other countries’ standards, except Japan
Costa Rica and the TED case
• Lack of enforcement capacity and reluctance of fishermen lead to non-compliance. Imported from the US at a cost of $300 each, 4 inch (10 cms.) TEDs were constantly obstructed by organic waste.
• After the crisis, Costa Rica initiated
formal procedures to seek a modification of the TEDs’ proportions. Two important studies were initiated in order to support this petition.
• Mid-2000: an increase in the escape holes of 2 inches, for a maximum distance between deflection bars of 6 inches (15.2 cms).
COURSE OF ACTION TAKEN BY COSTA RICA
• Engagement in international agreements and certifications programs;
• Enactment of national legislation; • Seeking approval by showing commitment
to internationally accepted norms • Seeking recognition of differing national
circumstances that render US regulations inapplicable by issuing scientific reports on the issues concerned (substantial equivalence).
• The same pattern has been shown in the Turtle-Dolphin Dispute, the new US regulation on shark fins and swordfish.
THE HANDLING OF THE HACCP
MEASURE • During 1999 and 2000, the tuna
processing companies invested US$15 million in refurbishing, expansion and of course sanitary controls.
• National legislation requiring the HACCP. • The HACCP team (INCOPESCA and ZED)• Boats: INCOPESCA and CANNEP are
drafting a project to address this problem. They are identifying which ships are feeding processing plants that export to the EU.
Strenghtening capacities: national level
• Awareness raising• National and regional standard
setting• Technology, innovation and
enterprise development• Small and medium sized enterprises• Branding and umbrella certification• Institutional changes
Actions at multilateral level
• Transparent and participatory preparation of standards
• Trade rules