Steffen KaeserTrade Capacity-Building Branch

tcb@unido.org

11th May 2009 – European Commission

Session No 11Session No 11Meeting Food Safety Standards – Meeting Food Safety Standards –

Implications for ACP agricultural exportsImplications for ACP agricultural exports

                                                                                  

Challenges with the Development of Compliance Infrastructure

Brussels Rural Development Briefings

No.2No.2

Global Trade Challenges: Present Inadequacies

TECHNICAL ASSISTANCE:US$ 1.75 bn. exports from developing countries have been disrupted in 2004, due to SPS (food

safety) non-compliance. While only US$ 53 mn. spent by donors on SPS support. Steven Jaffee & Spencer Henson, Standards and Agro-Food Exports from Developing Countries – Rebalancing the Debate,

World Bank 2004

SUPPLY SIDE:“LDCs have neither the surplus of capacity of exportable products nor the production capacity to

take immediate advantage of new trade opportunities”Kofi Annan - UN SG, Financial Times, 5 Mar. 2001

CONFORMITY:Countries that can not meet standards and regulations in developed country markets are

effectively barred from trading with those markets. International Development Research Centre (IDRC), Canada

TRADE FACILITATION/INFRASTRUCTURE: For the majority of Sub-Saharan African countries, tariffs amounted to less than 2%, while

transport cost incidence often exceeded 10%. Since the introduction of AGOA, transport costs have risen relative to tariffs.

World Bank Trade Note 15; May 10, 2004

No.3No.3

“Countries must have marketable products for exportation” COMPETITIVITY of productive capacities

“Products must conform to requirements of clients and markets” CONFORMITY with standards

“Rules for trade must be equitable and customs procedures harmonized” CONNECTIVITY to markets

PRODUCTIVITY (enterprise) COST OF EXPORTING (support services)

Compete Conform Connect

Challenges for Trade participation: The 3 Cs

No.4No.4

Forming Strategic Partnerships for Trade Capacity-Building

No.5No.5

Developing countries’ potential in Agro-Food areabut have to comply with market requirements

WTO TBT & SPS agreements compliance

– Products sourced from areas free of pests & diseases

– Fruits/vegetables - minimum pesticide residue standard

– Meats/fish meet minimum antibiotic residue requirement

– Standards of hygiene applied in manufacturing (HACCP/ISO 22000)

Developing countries lack of implementation capacity

Meeting Pre-conditions for Exports

Regulatory Environment for Compliance WTO TBT /SPS Agreements (Jan 1995)

No.6No.6

“Fair Trade for All”: Priority Areas to meet Product Standards Requirements• “Developing countries lack the ability to assist their producers to meet

product standards,

which often act as a barrier to developing country exports

• Significant assistance from developed countries is required to build up their capabilities to conform to product standard requirements”

“UNIDO recommends the following priority areas for assistance

1. A national/regional standards/standardization body2. A national/regional metrology system3. A certification/conformity assessment system4. An accreditation system”

Source: J. Stiglitz & A. Charlton, Fair Trade for All – How Trade can promote Development, Oxford University Press, 2005

No.7No.7

UNIDO – DG SANCO CooperationUNIDO – DG SANCO Cooperation

- High-level dialogue between UNIDO DG and EC DG SANCO since 2008

Main targeted areas for cooperation:         

- Establishment of a Manual on Competent Authorities for horticulture products

- Systematic use of Food and Veterinary Office (FVO) Inspection Reports and of RASFF data on rejections for design of TA programmes 

- Participation in the Better Training for Safer Food (BTSF) Initiative

- Development of a Rapid Inspection Response Facility (for short-term immediate TA after deficiencies are identified by Inspections - avoiding bans) 

Plan:  UNIDO support project for DG SANCO cooperation, includ. RIRF

No.8No.8

UNIDO TCB - LDCs Coverage (2007: 36 countries)

Regional Programmes

SAARC

Afghanistan

Bangladesh

Cambodia

Ethiopia

Mozambique

Nepal

Senegal

Tanzania

UEMOA/ECOWAS

MEKONG

Country Programmes

EAC

Madagascar

Mauritania

Source: OECD DAC List

EACUganda

Tanzania

Burundi (2007)

Rwanda (2007)

SAARCBangladesh

Bhutan

Maldives

Nepal

MEKONG Delta CountriesCambodia

Lao PDR

CARICOMHaiti

CARICOM

Haiti

SADC

UEMOA/ECOWAS

Benin

Burkina Faso

Cape Verde

Gambia

Guinea

Guinea Bissau

Liberia

Mali

Niger

Senegal

Sierra Leone

Togo

SADCAngola

Congo

Lesotho

Madagascar

Malawi

Mozambique

Tanzania

Zambia

CEMACCentral African Rep.

Chad

Congo

Equatorial Guinea

CEMAC

On-going and planned

No.9No.9

Support to the National Prevention Programme of Ochratoxin in Coffee and Cocoa in Côte d’Ivoire

Objective: help the supply-chain actors to secure their incomes and exportations

Outputs:- studies in coffee and cocoa supply-chains (determination of contamination levels, identification of critical contamination points, and determination of adequate sampling methods); - national OTA analytical laboratory upgrading for ISO/IEC 17025 accreditation- promotion of good practices during production and post-harvest stages- Lobbying activities to draw the attention of the EC on adequate OTA maximum levels.

* The OTA is a mycotoxin considered as a genotoxic human carcinogen and the European Commission (EC) is examining the opportunity to raise new maximum contamination levels for green and roasted coffee, cocoa and cocoa based products

Budget: € 1.7 million Donor: EC

UNIDO UNIDO Aid-for-TradeAid-for-Trade type Programmes type Programmes (Supply-side & Conformity)(Supply-side & Conformity)

No.10No.10

Barrier to Trade SurveyStudy on SPS Compliance for Exports

Standards (PSQCA) Standards development• Certification Body (Systems)• Consumer affairs• Product certification

Metrology (NPSL)• Lab upgrading, international accreditation

Product Testing (MFD, PCSIR, etc): Fisheries, Food, Leather, Textile• Lab upgrading, PT participation• International accreditation

Accreditation (PNAC)• Organizational strengthening, international recognition• National accreditation scheme• Training of auditors• Setting-up of PT schemes

Quality/Hygiene (Private sector, FPCCI, etc.) Fish/food• Management systems• Good practices• Compliance with market requirements• Pilot certifications HACCP, ISO 9001, 14001, SA 8000)• Pilot traceability systems

Boat hygiene

Icing

Landing Sites

Inspection

Auction Hall

Processors

Traceability

Budget: € 5.0 million Donor: EU

Pakistan TRADE RELATED TECHNICAL ASSISTANCE PROGRAMME

UNIDO UNIDO Aid-for-TradeAid-for-Trade type Programmes type Programmes (Supply-side & Conformity)(Supply-side & Conformity)

No.12No.12

Productive Capacities and Quality Promotion• Food safety, productivity and quality promotion• 68 pilot enterprises prepared for ISO 9001• National and regional Quality awards• Training of journalists in consumerism and product quality

Standards and Conformity Assessment• Harmonization of standards for export products• Harmonization of testing procedures, reg. database on labs• Upgrading of 50 laboratories, 24 for international accreditation

Regional accreditation scheme• Training of 16 Lab. auditors• Training of 40 ISO 9001 auditors

UEMOA Phase 2: (€ 6.0 million)UEMOA Upgrading: funding received (€ 11.0 million)

Regional TradeRegional Trade:: UNIDO/EU - UEMOA Programme

Budget: € 14.0 million Donor: EU

In cooperation with:

Microbiology Laboratory in Côte

d’Ivoire recently received COFRAC

ISO/IEC 17025 accreditation for food testing (Sept. 2007)

UNIDO TCB UNIDO TCB Programmes Programmes (TA combining Supply-side & Conformity)(TA combining Supply-side & Conformity)

No.13No.13

West Africa Quality Programme (€ 14.5 million – EU funding)

No.14No.14

Trade Analysis

Standardization

Accreditation

Product Testing/Metrology

Inspection

Traceability

Quality Promotion

COLEACP/PIPEnhanced Integrated

Framework (EIF)

West Africa Quality Programme

No.15No.15

Component 1: Product TestingTotal of 120 labs interested in the programme

Total of 40 laboratories assessed for international accreditation (ISO/IEC 17025)

Micro-biological TestingChemical TestingPesticides Testing

International accreditation potential:2 – 3 laboratories per country

Critical Issues:- Decision on lab selection (done through NSCs and UEMOA Commissions)- Identification of country priority products (done by NSCs)- Regional division of labour- Civil works as pre-requisite, limited programme funds for equipment upgrades- Institutional set-up and salary/incentive schemes

No.16No.16

Component 2: Product TestingTotal of 39 laboratories assessed for international accreditation (ISO/IEC 17025)

Micro-biological laboratories:Cape Verde (3), Ghana (3), Guinea (2), The Gambia (2), Liberia (2), Mauritania (3), Nigeria (2),

Sierra Leone (1)

Chemical laboratories:Cape Verde (1), Ghana (3), Guinea (2), The Gambia (2), Liberia (1), Mauritania (2), Nigeria (2),

Sierra Leone (1)

Pesticides laboratories:Cape Verde (1), Ghana (1), Guinea (1), The Gambia (1), Liberia (1), Mauritania (1), Nigeria (1),

Sierra Leone (1)

International accreditation potential:Micro-biological laboratories: 8-10Chemical laboratories: 5Pesticide laboratories: 3

Critical Issues:- Decision on lab selection, reference laboratories, and regional division of labour- Civil works as pre-requisite, limited programme funds for equipment upgrades- Institutional set-up (Business Plan) and salary/incentive schemes

No.17No.17

Programme Design

- Available financial resources

- Programme duration 3 years with no inception and closing phase

- Regional Support Unit (2 staff only)

- Increase in expert pro forma cost, equipment cost, regional travel fares

Regional Dimension

- 2 RECs- 15+1 countries- Regional travel- 3 languages, Translation/interpretation- Diverse country/development profiles- Countries and RECs divergences

Implementation Challenges

No.18No.18

Managerial Challenges

- Techn. counterpart at RECs level (SMTQ)

- RECs familiarity with TA (FAFA, etc.)

- Responsabilities of programme partners, division of labour

- UNIDO HQ management

- Size and Location of Regional Support Team

- Donor Coordination

- Communication by programme with RECs, EC (regional and national), countries, etc.

Politico- technical Challenges

- Regional decisions on lab upgrading, division of labour

- Regional activities: Harmonization of standards, etc.

- Regional schemes are new territory

Implementation Challenges

No.19No.19

CONCLUSIONS

Developing Compliance Infrastructure is complex – tailor programmes

Regional programmes are needed but difficult – develop REC Capacity

REC development is an extra outcome – allocate resources and time

Programme management is intensive and needs a lot of communication

Regional outcomes are difficult but measurable – need regional convergence

Compliance Infrastructure is only one part of trade development:3 pronged: Competitive supply – Compliance services - Connectivity

No.20No.20

Questions ?

Questions ?

Questions ?

Questions ?Thank You !Thank You !

Trade Capacity

Building

Merci !Merci !