Organisation for Economic Co-operation and Development (OECD) Paris, 21st November 2014
Dr. Teresa Babuscio
COCERAL
Trade facilitating effects of regulatory cooperation in
Regional Trade Agreements (RTAs)
Outline
• COCERAL facts and figures
• Global grain today: buyers and sellers – EU position in the global market;
• RTAs and trade challenges: where does the EU stand?
• EU Case studies: Chile, Serbia, Canada, United States
• Conclusions. RTAs and regulatory cooperation: what is needed
TEXT HERE
EU association representing the trade with cereals, oilseeds, rice, feedstuffs, olive oil and agrosupply
Grain merchants, storers and/or international traders
30 Member Associations 19 EU countries 2 Associated members
Switzerland Serbia
2700 companies
Bulk grains handling system Global grain trade today: buyers and sellers
North America
Caribbean
Central America
South America
North Africa
Sub- Saharan
Africa
Europe
Russia Ukraine
East Asia
Southeast Asia
Oceania
Middle East
Imported
Exported
South Asia
• Traditional trade barriers: Tariffs – Trend towards trade liberalisation tariff reduction or elimination - predictability
– Preferential and tariff cuts/quotas the main tangible benefit of RTAs
• Non tariffs trade barriers – Technical and Sanitary-Phytosanitary constraints
– Policies often based on zero tolerance or reduced limits
– Emerging environmental and sustainability requirements to meet societal expectations
– Our own ability to create our barriers for Europe and within Europe
• Increased financial risks – Commodity price increases / size of shipments
– Threat of market disruptions
• Grain production – Increased weather variability caused by climate change
– Limited new land area
– Limited access to new technology
– Capacity building and post harvest loss
RTAs and trade challenges Where does the EU stand?
EU Case studies Chile, Serbia, Canada, United States
• Cooperation in the standards and technical regulations; conformity assessment procedures;
• Exchange of scientific/technical information
• SPS: capacity building, infrastructure and technological transfer;
• Customs: simplification of custom procedures; sharing best practices
EU- Chile Association Agreement in force since February 2003
EU-28 trade with CHILE
IMPORTS (t) EXPORTS (t)
2012 2013 2012 2013 CEREALS 59 73 1 0
OILSEEDS 3.643 3.391 42 20 OILS 6 133 743 1.013 MEALS 0 0 6 0
• Regulatory cooperation briefly tackled;
• Agriculture/SPS/Customs: cooperation aiming at supporting the gradual approximation of Serbian legislation and procedures to the EU rules and standards;
EU- Serbia Stabilization and Cooperation Agreement
in force since September 2013
EU-28 trade with SERBIA
IMPORTS (t) EXPORTS (t)
2012 2013 2012 2013
CEREALS 892.651 451.325 21.554 24.523
OILSEEDS 19.850 93.300 79.346 20.498
OILS 94.372 100.113 17.784 5.888
MEALS 112.826 58.716 15.881 37.021
• Extensive regulatory cooperation foreseen;
• Regulatory compatibility, transparency and efficiency;
• Building trust and understanding regulatory governance;
• Regulatory Cooperation Forum – established – Possible exchange of officials working in regulatory fields
EU- Canada Comprehensive Trade and Economic Agreement (CETA)
End negotiations September 2014, not yet in force
EU-28 trade with CANADA
IMPORTS (t) EXPORTS (t)
2012 2013 2012 2013
CEREALS 1.283.178 1.635.624 3.621 23.237
OILSEEDS 1.130.172 1.409.266 5.319 975
OILS 35.724 6.955 614 591
MEALS 67.235 62.112 95 1.041
• Regulatory cooperation: unique opportunity to reduce differences between EU and US having negative effects on trade;
• Negotiations on regulatory chapters very slow: supremacy of the 2 parties respective standards;
• Technical progress on regulatory chapters achieved during the 7th negotiation round
Transatlantic Trade and Investment Partnership (TTIP) 7th negotiations round September 2014 – November 3
EU-28 trade with the USA
IMPORTS (t) EXPORTS (t)
2012 2013 2012 2013 CEREALS 1.095.278 1.195.238 208.141 257.426
OILSEEDS 2.136.313 3.270.427 5.446 7.828 OILS 43.106 29.206 15.038 17.784 MEALS 736.249 1.518.403 4.076 3.880
Don'ts • Produce less / stop trading
• Delay Free Trade negotiations
Do’s • Embrace forward-looking policies in FTAs to minimize non tariff barriers
– Science based regulatory systems / regulatory cooperation is the key area
– Acknowledge “zero” risk does not exist
– Commercially acceptable solutions
– Risk mitigation methods: maximize the value of grain products and minimize cost inefficiencies along the supply chain
• Embrace innovative approaches to addressing market access issues – International initiatives
– Standardisation, adoption of internationally-recognised standards
• Assess and work on the business climate in place with the counterpart signing the Agreement with the EU
• Multi-stakeholders platforms at European and international level
RTAs and regulatory cooperation: what is needed
COCERAL
Working together to make trade work
Thank you for your attention Website: http://www.coceral.com
E-mail: [email protected]