Introduction to Trade Facilitation for Agriculture and Food ... 1...Agriculture and Food Products Dr...
Transcript of Introduction to Trade Facilitation for Agriculture and Food ... 1...Agriculture and Food Products Dr...
Introduction to Trade Facilitation for Agriculture and Food Products
Dr Heiner Lehr [email protected]
Agriculture in the Asia-Pacific Region
• Agriculture accounts for a quarter of the gross domestic product (GDP) of Asia‐Pacific’s developing countries and employs about 60% of the region’s working population (ESCAP 2008).
• Improving agricultural productivity could pull 218 million people out of poverty in this region (ESCAP 2008).
• It can bring investment opportunities for the private sector, and be a driver for boosting agriculture related industries.
• The World Bank estimates that GDP growth originating in agriculture is at least twice as effective in reducing poverty as GDP growth originating outside agriculture.
Taken from Khan Salehin, Agricultural Trade Facilitation : An Overview and Business Process Analysis (BPA)
Agriculture in the Asia-Pacific Region
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Source: FAO 2009
Source: FAO 2009
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50
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Agricultural Population as Share of Total Population in Selected Asia-Pacific Countries
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20
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Contribution of Agriculture to GDP in Selected Asia-Pacific Countries
34%
Take
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Benchmarking
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Export
country and
product
Destination No. of
days
No. of
actors
involved
No. of
processes
Type of
documents
required
Cost ($)
Cambodia –
Maize
China 20 15 13 22 1250-
1360
Lao PDR -
Maize
Thailand 16 11 8 21 735
Myanmar –
Rice
West Africa 19-23 20 10 >25 425
Bangladesh-
Jute bag
India 10 15 12 24 -
Nepal -
Cardamom
India 15 11 9 14 1213
Greece Russia 4-5 3-4 7 Around
350
Source: ESCAP BPA Study Reports 2013-14, available at: http://unnext.unescap.org/tools/business_process.asp
Key Findings: Business Process Analysis Studies (South and Southeast Asia)
Benefits of Trade Facilitation
GDP gains from 25% reduction in time to export/Import, GMS and China
Source: Strutt, Stone, and Minor (2008) simulations
Taken from Khan Salehin, Agricultural Trade Facilitation : An Overview and Business Process Analysis (BPA)
Improving the competitiveness of agrifood chains
Information Management in Agrifood Chains
– refers to the distributed collection, storage and usage of information
items, connected by traceability1, that can be accessed via electronic
systems
1 For a definition of traceability, please refer to section Error! Reference source not found..
Information is not equal information
Paper-based systems • Easy to implement
• Time resilient
• Not scalable; limited by capacity of personnel and physical transportation
• Cannot be re-used
• Usually not accessible; filed in physical location
• Information chains impossible to construct
• Library of Congress
Paperless systems • Require technical capacity
• Subject to data format compatibility issues
• More scalable; can be (semi)automated
• Easy to copy and exchange; no transportation time
• Easily accessible
• An information chain can be established
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Chain food information management systems
• National single window systems and ePermit systems
Customs management
• Food safety oriented systems
• Animal and carcass tracking
e-traceability systems
• Fair trade
• Religious
• No child labour
Ethical compliance
• Sustainability tracking
• Compliance to specific food standards
Standard compliance
• IUU fishing
• Export/import licenses
• Shipment registration
Legal compliance
• Transparency systems
Marketing-oriented systems
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The layer model
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Primary production
Processing Distribution/
Export Consumers
Import/ Retail
Food Safety Agencies EXPORTING NATION
Layer 2: Private sector
Layer 1: Public sector
Export control
Food Safety Agencies IMPORTING NATION
Import control
red light: non-conformance green light: conformance
Private or public certification agencies or bodies
Layer 3: Verification
Practical recommendations
1. Development of a Single Window for Agrifood Trade (SWAT)
Implementation of the SWAT should generally be based on the following:
– A national vision and master plan for the improvement of agrifood supply chains, developed in collaboration with national and international stakeholders involved in the agrifood supply chain;
– Analysis of business processes, documents and information flows of the national agrifood supply chains and their simplification and automation in a stepwise process, as described in the previous UNNExT guides for single window implementation.
– Application of international standards whenever possible
– Use of electronic data and information along the supply chain where possible, with electronic information submitted only once and then reused.
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Practical recommendations
2. Establishment of a roundtable for agrifood chain information management
– to develop a national vision for information exchange on its agrifood production.
– Vision should be supplemented by a master plan for its implementation.
– Participation of the private sector should be made a priority.
3. Identification and implementation of missing paperless systems for agrifood trade
– Efficient information management in agrifood chains is not possible based on paper documents
– Adoption of agrifood chain information management systems should be made a priority and early adopters incentivised – be that public or private entities
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Practical recommendations
4. Establishment of normative databases for locations, products and land use
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Database of food production locations
• Draws on existing farm and food premises registration schemes
• Integrated with existing geospatial information
Product type database
• Based on UN Central Product Classification (CPC)
• Introduction of product classification in all relevant government processes
Land use database
• The link between premises and product types, supporting geo-traceability
• Integrates with existing data sources
Practical recommendations
5. Establishment of standard framework for identification and information exchange
– Globally unique identification is essential for successful agrifood chain information management
– Governing standard ISO15459 should be employed
– Governments should have a facilitating role in establishing a framework which
• Names uniquely all relevant parameters for a food stuff
• Defines a set of exchange protocols how to exchange data
• Allows interconnectivity with variety of information systems
• Implements effective safeguards against unauthorised governmental data access
• Maximises efficiencies with other information needs (B2B, Certifiers, B2C etc.)
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Practical recommendations
6. Establishment of authorized economic operators (AEO)
– Authorised economic operators (AEOs) are those exporters that have proven to be highly qualified and reliable entities with a low risk profile.
– AEOs are of the main building blocks within the WCO SAFE Framework of Standards (SAFE).
– SAFE sets out a range of standards to guide international Customs Administrations towards a harmonised approach based on Customs to Customs cooperation and Customs to Business partnership
– It is a reasonable strategy to implement Single Window operations with AEOs before extending it to all operators.
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Practical recommendations
7. Establishment of risk-based inspection system for issuance of licences and certificates
Risk-based trade authorisation
– Is management by priorities
– Optimises scarce resources in the avoidance of food-borne illnesses
– Is the consequent application of Hazard Analysis and Critical Control Points (HACCP) to trade processes
The purpose is to provide adequate evaluation of food-borne risks:
– Detect and categorize risk factors
– Measure/estimate risk for society
Risk-based trade authorisation recognises the different risks that different foods, different origins and different processes represent and matches them with differentiated attention such as inspections.
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Practical recommendations
8. Addressing legal implications of information management systems for agrifood chains
SWAT requires clear regulation on what data is required from food business operators
– Governmental agencies must refrain from attempting to capture more data than absolutely necessary.
– Provisions should be made in the regulatory framework that data may be delivered via trusted third party to remove any barrier to implementation of the regulation; see unnext.unescap.org/tools/default.asp for more information
– It is recommended that relevant laws on data ownership and confidentiality exist and that a governance policy is put into place and regularly assessed by an external party
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Practical recommendations
Food safety • More trust
• Avoidance of animal diseases
Improved market access
• Access to high-value markets
• Differentiation in the marketplace
Increased supply chain
efficiency
• Better sourcing
Better marketability
• Consumer interaction
• Direct marketing
Fraud avoidance • Greater total market
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PUBLIC PRIVATE PARTNERSHIPS
Taxes
Levies
9. Funding development of core components
Kickstart actions
Kickstarting the SWAT through 3 priority actions
• Kickstart action 1: Implement electronic agrifood license/ permit/ certificate and audit system
• Kickstart action 2: Establish international cooperation on SWAT and inter-agency information systems
• Kickstart action 3: Implementation of an automated risk-based inspection system using cross border electronic information exchange of agrifood permits and certificates
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The smarter food vision
smarter food
inclusive safe
traceable 70% of food globally is produced by smallholders, most of which are excluded from the global food chain. Information technology is used to integrate small-holders in international supply chains.
Consumers want to make informed choice of the food they buy for religious, environmental
or health reasons or simply for preference. Traceable food is food of which information is
recorded along its elaboration process. Consumers can access
such information and eat in accordance to their needs.
Food has to be safe to produce and safe to consume. Safe food uses information technology to improve controls over environ-mental and social impact of its
production as well as its safety to be consumed.
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Thank you for your attention!
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