tamanna chaturvedi consultant indian institute of foreign trade
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Tamanna Chaturvedi Consultant Indian Institute of Foreign Trade. SPS Issues for Indian Agricultural Exports. NTBs. %. tariffs. ?. 1947. 2009. Two Way Dilemma. WTO Agreement on Sanitary and Phyto Sanitary Measures. WTO Agreement on Sanitary and Phyto Sanitary Measures. - PowerPoint PPT PresentationTRANSCRIPT
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Tamanna ChaturvediConsultant
Indian Institute of Foreign Trade
Tamanna ChaturvediConsultant
Indian Institute of Foreign Trade
SPS Issues for Indian Agricultural Exports SPS Issues for Indian Agricultural Exports
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%
20091947
?NTBstariffs
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Two Way Dilemma
How do you ensure that the country’s consumers are being supplied food safe to eat?
How can you ensure strict health & safety regulations are not being used as an excuse for protecting domestic producers?
WTO Agreement on Sanitary and Phyto Sanitary MeasuresWTO Agreement on Sanitary and Phyto Sanitary Measures
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The right to protecthuman, animal or plant life or health
Avoiding unnecessary barriers to trade
SPS stands for Sanitary & Phytosanitary Measures
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SPS or TBT ?
human or animal health
from food-borne risks
human health from
animal- or plant-carried
diseases
animals and plants from
pests or diseases
examples:
pesticide residues
food additives
human disease control
(unless it’s food safety)
nutritional claims
food packaging and
quality examples:
labelling (unless
related to food safety)
pesticide handling
seat belts
SPS Measures TBT Measures
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Standard-setting organizations
food safetyCODEX
plant healthIPPC
animal healthOIE
Codex = Joint FAO/WHO Codex Alimentarius CommissionOIE = World Organization for Animal HealthIPPC = International Plant Protection Convention (FAO)
HarmonizationArticle 3
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Member Countries are encouraged to use International standards.
It allows countries to set their own standards
Scientific JustificationShould be applied only to the extent necessary to protect
Non Discrimination
On what basis??
To what extent???
Equal Treatment??
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Key Provisions of SPS Agreement
Key Provisions of SPS Agreement
1. Non-discrimination2. Scientific justification
• harmonization• risk assessment• consistency• least trade-restrictiveness
3. Equivalence4. Regionalization5. Transparency6. Technical assistance/special treatment7. Control, inspection and approval procedures
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Members shall ensure
that any SPS
measure is:
Scientific justification Article 2.2
applied only to the extent necessary to protect human, animal or plant life or health (least trade restrictive)
based on scientific principles
not maintained without sufficient scientific evidence
except as provided for in Article 5.7
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Scientific Justification Articles 3 & 5
Scientific Justification Articles 3 & 5
OR
Measures must be based on
International StandardsInternational Standards
Risk assessment
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How is risk assessment done?How is risk assessment done?
• SPS measures to be based on assessment of risks to human, animal or plant life or health,
taking into account risk assessment techniques developed by international organizations.
available scientific evidences; process and production methods; inspection & sampling methods; prevalence of specified disease or pests; existence of pests/disease-free areas,etc
relevant economic factors & cost effectiveness of alternate approaches
• Avoid arbitrary/unjustifiable distinctions in the levels in different situations if these result in disguised restrictions
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Members may provisionally adopt SPS measureswhen relevant scientific information is
insufficienton the basis of available information
In such circumstances, Members shallseeks to obtain additional information to
assess riskreview the measure within a reasonable
period of time
Exception: Provisional measuresArticle 5.7
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No unjustifiable discrimination– between Members with similar conditions– between own territory and other
Members
Non-discriminationArticle 2.3
SPS permits Members to impose different sanitary and phytosanitary requirements on food, animal or plant products sources from different countries, provided that they "do not arbitrarily or unjustifiably discriminate between countries where identical or similar conditions prevail".
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EquivalenceEquivalence
Members shallAccept SPS measures of other Members as equivalent
If the exporting country objectively demonstrates that its measures achieve the
same ALOP as the importing country
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Equivalence of Phytosanitary Measures
Equivalence of Phytosanitary Measures
Examples of Phytosanitary Equivalence
• Alternative treatments of wood packaging material (ISPM Nº 15)
• Phytosanitary measures to mitigate risks of fruit flies (pest free areas, area of low pest prevalence, pest free places of production, treatments, risk mitigation systems, inspection)
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Disease free areas Article 6 Disease free areas Article 6
• Adaptation of SPS measures to regional conditions, including pest- or disease- free areas, differing climatic conditions & different pest or diseases or food safety conditions so as to lead to the development/imposition of different SPS requirements
• Exporter to demonstrate (reasonable access to be given for inspection/testing)
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TransparencyArticle 7 & Annex BTransparencyArticle 7 & Annex B
Members shallestablish an Enquiry Point
ANDdesignate a Notification Authority
notify other Members of new or changed SPS regulations when
no international standard exists OR
the new regulation is different than the international standard
regulation may have significant effect on trade
AND
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When to notify?When to notify?
Emergency measures IMMEDIATELY!!
Regular measures
Allow 60 day comment period!!Allow 60 day comment period!!
When modifications are still possible(draft text)
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Transparency timelineTransparency timeline
1. Drafting of the regulation
2. Publication of a notice
3. Notification to other Members
4. Draft text upon request (or website)
5. Receive & discuss comments
7. Adoption of the regulation
8. Publication of the regulation...
Tim
e...
9. Entry into force of the regulationMin. 6 months
Min. 60 days
6. End of comment period
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Special & Differential Treatment and Technical Assistance
Articles 9 & 10
Members...
• ...shall take account of the special needs of developing countries
• ...should accord longer time frames for compliance
• ...agree to facilitate provision of Technical Assistance
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India’s ConcernIndia’s Concern
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MFN range NTM% NTM Description
Switzerland 0-0 50% Labelling requirement
Japan 0-10 8.60%Product ch.requirement to protect human health
USA 0-6 60%Authorization to protect plant health
Tariff and Non Tariff barriers For Herbal exports
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Code Description Major Export Destinations
030613
Frozen Shrimps & Prawn
United States, Japan, United Kingdom,Belgium
030614 Frozen Crabs Japan, USA, UK, Spain
030619 Frozen others USA, Japan, China, Singapore
030379 Fish with bones frozen China, Hongkong,South Korea, Singapore
080132 Shelled Cashewnuts USA, Netherlands,UK, UAE
080121 Brazilnuts in shelled Spain, UK, Italy
080450 Gauava & Mango UAE
080300 Banana UAE, Nepal, Saudi Arabia
160520 Shrimps & Prawn Japan, USA
160540 Other crustaceans China, UAE
200110 Cucumber & gherkins USA, Spain
200190
Vegetable pp by Vinegar UAE, Saudi Arabia
200310 Mushrooms USA, Netherlands
200830 Citrus fruit UK
Our target destinations
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Markets with 100% SPS/TBT
Markets with less than 50%
SPS/TBT
Markets with more than 1
SPS/TBT
1.Fish & Fish Preparations
USA, Hong Kong, Singapore, Thailand, Australia, Canada, Switzerland, Japan
Thailand, Malaysia, Japan
USA, Japan
2.Fruits & Vegetables
Australia, Japan, USA, Saudi Arabia, Mexico, Bangladesh, Singapore, Canada, Egypt
- Australia, Japan, Mexico, USA, Singapore
NTM Coverage and Number of NTMs on Indian Exports
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Analysis…Analysis…
• Widespread use of SPS/TBT both by developed & developing country markets.
• In major importing countries of Fruits and marine products, NTM coverage is 100%.
• Single product faces number of SPS standards in the same market.e.g. USA& Japan for fish and Australia, Japan, USA, Mexico & Singapore for fruits.
• Single product faces different import standards in different markets.
• Countries have different health standards for imports as against domestic production.
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Tariffs and NTMs on Indian ExportsTariffs and NTMs on Indian Exports
(i) Tariffs and NTMs together imposed on Oilseeds in Taiwan Cane Sugar in Bangladesh Bovine meat in Egypt Crustaceans in Thailand Malt extract in USA Bangladesh
(ii) Only NTMs Pepper in Canada Rice in Nigeria Oilseeds in USA, Taiwan Cane sugar in Malaysia, Indonesia Fish products in USA Tea in USA
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Understanding Technical regulations
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Incidence of product withdrawals
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Rapid Alert Notifications from EU FOR Indian Products
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Plant Conditions
Any plant of the following genera:
Every such plant shall be grown in Quarantine until the Director isSatisfied that it is free from plant pests and may be released or that it Is diseased and must be destroyed.
Ananas
Citrus
Ipomoea
Musa
Groundnut and any other plant of the genus Arachis
May only be imported as Decorticated seeds.
Rice and any other plant of the genus Oryza intended for propagation
Every consignment shall on importation be immediately handed to the Director who shall cause the plant to be grown in quarantine
For one generation.
Complete ban from India
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Complexities of buyer’s requirement
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Maximum levels for Aflatoxins in spices in various developed countries
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GRAPES CODEX U.S.A. EU JAPAN CANADA AUSTRALIA NEW ZEALAND
AZINPHOS-METHYL 1.0 5.0 1.0 5.0 2.0 2.0
ALPHA-CYPERMETHRIN 0.5 0.5 2.0 0.5 0.05
BENALAXYL 0.2 0.2 0.1 0.5 0.5
CARBARYL 5.0 10.0 3.0 1.0 5.0 5.0 3.0
CHLOROTHALONIL 0.5 3.0 0.5 0.1 10.0 5.0
CHLORPYRIFOS 0.5 0.5 1.0 0.1 1.0 1.0
DIMETHOATE 1.0 1.0 0.02 0.1 5.0 2.0
DITHIANON 3.0 0.1 2.0 2.0
ENDOSULFAN 1.0 2.0 0.5 1.0 2.0 2.0
FENARIMOL 0.3 0.2 0.3 1.0 0.1 0.1 0.1
IPRODIONE 10.0 60.0 10.0 25.0 5.0 20.0 10.0
MALDISON 8.0 8.0 0.5 8.0 8.0 8.0 8.0
METALAXYL 1.0 2.0 1.0 1.0 1.0 2.0
MYCLOBUTANIL 1.0 1.0 1.0 1.0 1.0 1.0 0.2
PERMETHRIN 2.0 0.05 5.0 2.0 0.5
PROCYMIDONE 5.0 5.0 5.0 5.0 1.0 2.0 5.0
TRIADIMENOL 2.0 1.0 2.0 0.5 0.1 0.5
Comparison of CODEX level with Country standards for Fruits
Better off than CODEX
More stringent than CODEX
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Countries varies in their SPS standards-case of Salmonella
Countries varies in their SPS standards-case of Salmonella
Importing Country
Regulations regarding Salmonella
Hong Kong Products may be subjected to lab examination or microbiological contamination & positive testing shipment refused entry
Japan Japanese Min of health reserves the right to test shipments
China No separate Salmonella specific requirements
Canada No separate Salmonella specific requirements for raw products
Korea No separate Salmonella specific requirements
Estonia Mechanically deboned meat is tested for salmonella at port of entry Positive testing denied entry
Salmonella widely present in domestic supply chains in USA however country claims to have has zero tolerance for the pathogen
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Importing Country
Regulations regarding Fruits
Australia Strict attention to plant health(fumigation only using methyl bromide)
USA Strong official attention to product cleanliness, labeling for allergens & fumigation banned out.
EU In contrast Fumigation is already banned in EU
v Spain Importance to testing on pesticide residue
v Germany
Hardly any consignment tested
v UK Most pesticide residue testing is undertaken for products at retail level
Customers of South Europe prefer large sizes of tropical fruits (pineapples, papayas & mango) whereas customers in North Europe prefer small fruits.
Different Operative Procedures for Conformity Requirements for Fruits
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Traceability Requirements
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Different Marketing Standards between countries
• Health control: food law, hygiene, microbiological criteria, contaminants, pesticides
• Plant Health: phytosanitary control• Marketing Standards: generic or specific• Other: food additives, food contact material, food
irradiation, novel foods, GMOs, labeling & organic products
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Imports prohibited on the basis of Risk Assessment
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Incompatible SPS Standards: case of Milk Production in IndiaIncompatible SPS Standards: case of Milk Production in India
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Strict Packaging requirementStrict Packaging requirement
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Strict Certification & Import Procedures: example of ChinaStrict Certification & Import Procedures: example of China
• Many regulations and requirements are updated frequently and often without prior notice.
• Possibility of variation in the documentation required for various products in various Chinese ports.
• A new and original phytosanitary certificate must accompany each consignment of fresh fruits, vegetables, or tree nuts.
• A tamper-resistant, bilingual label should be on the outside of each carton.
• The establishment number should be printed on the inner poly liner, poly bag, or vacuum bag.
• Although pre-approval is not mandatory, China’s General Administration of Customs (GAC) can require pre-import analysis if warranted.
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Strict Labeling Requirements Strict Labeling Requirements
• A large amount of information has to be provided on the label in both English & Chinese.
• The establishment number should be printed on the inner poly liner, poly bag, or vacuum bag.
• In the case of Alcohol & Pre-packaged food– Labeling should be in Chinese.– Specific font sizes have to be maintained.
• In the case of milk & milk products– Labeling should be in Chinese.– Specific background colors have also been mentioned.
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Few examples….
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Let’s see what Pakistan has to ask for?
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Produce Packing stationExporter
Point of departure
TransportPoint of entry
Importer Retailer
Code of practice EUREP-GAP
quality control by packing
Temperature and humidity
check
Control of compliance with code of
practices
Control of compliance with BRC
Quality control
selection packaging HACCP
Governmental SPS /
Vet control quality control temp check
Governmental SPS /
Vet control quality control
MRL control
Private specifications
/ protocols
Private specifications
/ protocols
Food quality and safety control
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Micro costs of EurepGap compliance
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Main Products Affected
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31 (+ 2) disputes have invoked 31 (+ 2) disputes have invoked the SPS Agreementthe SPS Agreement
Report(s)
Adopted (9)
27% Panel
Established (4)
12%
Consultations - Pending (13)
40%
Agreed Solution (7)
21%
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Equivalence Agreements status of IndiaEquivalence Agreements status of India
India is seeking equivalence agreements with the health authorities of major trading partners.
• The EIC has already been designated a competent authority by the European Commission (EC) for marine products and basmati rice and by the U.S. for black pepper.
• Similar recognition awaited from the EC for egg, milk, and poultry products.
• Equivalence agreements with Australia for marine products
• SriLanka for 86 items.
• It is negotiating an agreement in various sectors with Singapore and will soon have an agreement with Italy.
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http://www.fao.org/es/esn/food/foodandfood_fruits_en.stmhttp://www.fao.org/es/esn/food/foodandfood_fruits_en.stm
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www.ipfsaph.org
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1. General
Policies which have no or minimal production or trade distortion effects Should not involve transfers from consumers or provide price support to producers.
2. Government service programmes
research pest and disease control training services extension and advisory servicesinspection services
3. Environmental programmes
Related to fulfillment of specific conditions including production methods or inputs under government programmes. Payment limited to increased costs or income loss due to compliance with the programme
4. Regional assistance
Producers must be in disadvantaged regions Compensate for loss of income or extra costs in undertaking production
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Contract Farming examples:
• Tomato cultivation in Punjab, Haryana and Rajasthan,
Mushrooms in Haryana,
Sunflower in Andhra Pradesh and Karnataka,
Gherkins in Karnataka
Fruits and vegetables in Tamil Nadu, Maharashtra and
Andhra Pradesh.
Other efforts
• Amul & NDDB for milk procurement• Sugarcane cooperatives in Maharashtra, • Green leaf satellite out growers to the South Indian tea
manufacturing industry, • Prawn aqua culture farmers of AP &• Poultry projects in West Bengal, Tamilnadu,
Maharashtra, Andhra Pradesh & Punjab.