Transcript TRADE CAPACITY BUILDING

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THE ARAB QUALITY AND FOOD SAFETY
CONFERENCE
15-16 June 2006, Beirut
“QUALITY AND GLOBAL TRADE”
UNIDO Perspective
Gerardo Patacconi
IDO, UNIDO Focal Point for UNIDO/WTO MoU and ISO/DEVCO
Trade Capacity Building Branch
[email protected]
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Emerging Quality and Safety issues
 Food scares and other security issues
 Global, regional, national TBT/SPS
regulations
 Standards and Conformity Assessment
infrastructure
 Supply-capacity (quality, quantity, price) and
competitiveness
 global/regional value chains
 UNIDO Global Approach
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Food scares and other security issues
I’ve got MAD……….
and the World become CRAZY
about improving food quality and safety systems
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EMERGING ISSUES
Focus on supply-chain and border
security:
SECURITY: Risk of deliberate
contamination, frauds and misuse
of shipment
• Bioterrorism Act) to protect the US from the
threat of bioterrorism using the food
chain.(Registration, US Agent, Prior Notice and
Establishment and Maintenance of Records)
• Custom Trade Partnership Against Terrorism
(C-TPAT)
• The Container Security initiative (CSI)
• The 24-Hour Rule
HIGH COST
SAFETY: Distribution of
unsafe/adulterated Food products
(to be withdrawn from the supply
chain and timely and accurate
information given to consumers)
Focus on supply-chain and food safety:
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EU Food Law – Regulation (EC) 178/2002
Residual of pesticides
Labeling,
Standards/Technical Regulations
Conformity Assessment procedures
………….
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Standards and Conformity Assessment
infrastructure
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Poor physical facilities/infrastructure
Limited academic and research capabilities and
technical/scientific know-how/skills
Inefficient institutional set up (Standards and conformity
assessment functions, when exist, are scatters among too
many institutions)
Early focus on mandatory standards and inspection
Revenues generated could not be retained due to the public
law status
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Standards and Conformity Assessment
infrastructure
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Labs established even with donor support not sustainable
Donation of equipment with poor planning, training, and
lacking adequate local physical infrastructure/staff,
absorbion capacity
Political instability and conflicts,
Lack of funding
Lack of demand
Low-level of manufacturing due to focus on commodities
Exposed to barriers to trade especially SPS measures
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Standards and Conformity Assessment
infrastructure
• Poor and uneven quality of local products
• National quality infrastructure lacks credibility and tests
and certificates by local laboratories not recognized in
export countries.
• Inability of DCs to utilize preferential treatment/ market
access concessions.
High Risk of rejection of products in export markets due
to lack of conformity (TBS and SPS).
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Supply-capacity (quality, quantity, price) and
competitiveness and integration in
regional/global value chains
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Global Trade Growth & Marginalisation
World exports, 1980-2004 (US$ billion)
10,000
9,000
8,000
World
7,000
Developed
economies
billion US$
6,000
5,000
4,000
Developing
economies
3,000
2,000
1,000
LDCs
0
1980
Source: UNCTAD, 2005
1985
1990
1995
2000
2001
2002
2003
2004
 Share of developing countries in global trade only 26%
 Every 1% growth in Trade, LEADS TO one-half % Income increase
 Over
75% of global trade is in manufactures (Industry the key)
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Immediate Opportunities: Agro Food Exports
World and Developing country exports of fish,processed fruits & vegetables now exceed the combined
value of exports of tropical crops: Cotton, Coffee, Sugar, Tobacco. (source: UN COMTRADE)
+19%
+11%
- 9%
- 20%
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Immediate Opportunities: Agro Food Exports
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Global Trade Challenges
Tariffs reduced – Other Barriers remain
“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
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.
World Bank 2004, Steven Jaffee & Spencer Henson, Standards and Agro-Food Exports from Developing Countries – Rebalancing the Debate
COST OF COMPLIANCE TO FOOD SAFETY RULES - UNIDO Estimates
Shrimp exports to the EU - Testing and Compliance cost adds 2.8%
Enterprise Quality/safety set up cost – adds 5% to product cost
National Quality & Testing infrastructure – US$ 5.0 mn. to US$ 25.0 mn.
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Stages of the food industry
AFITA/WCCA 2004
Quality systems in the Agri-Food-Industry
retail
processing
direct
supplier to
the retail
ISO
22000
farmer
Feed industry
GMP
EurepGAP
BQM
Agri
Confiance
QM-Milch
IKM
KKM
DQG
Quality and safety and Beyond
Q+S
Certus
IKB
Label Rouge
IFS
EFSIS
BRC
Quality systems
Integration Needs
BRC
HACCP
Different
Product Lines
ABM
Enterprise/Chain
ISO9000
Management
Q+S
System
Traceability
ISO 22000
GHP
ISO14001
EurepGAP
IFS
GMP 1...X SQF
etc.
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AFITA/WCCA 2004
Quality
Price
safety
The “big”dilemma
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g
UNIDO GLOBAL APPROACH: The UNIDO 3 Cs
“Countries must have marketable products for export”
 COMPETITIVITY
of productive capacities
“Products must conform to requirements of clients and
 CONFORMITY
markets”
with standards
“Rules for trade applied and simplified cross border transactions”
 CONNECTIVITY
Compete
to markets
Conform
Connect
Forming Strategic Partnerships for Trade Capacity Building
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Total UNIDO TRTA Portfolio: OECD/WTO TCB Data Base
39.8
40
29.9
23.2
26.9
25.4
15.9 16.4
19.4
US$ million
30
21.3
20
10
11.6
9.5
11.7
15.3
8.8
7.6
9.4
11
0.6
0
UNIDO
2004
2003
2002
FAO
ITC
UNCTAD
UNDP
UNIDO TCB projects 2005: US$ 64.6 Mn.
Additional US$ 90.4 Mn. under negotiations
Source: UNIDO elaboration
WTO
Case of Egypt
Traceability of agro-industrial products for the European Market
Situation Before
• Exporters not aware of impact of new Directive EC 178/2002 that
could become a TBT as of 1st January 2005:
• Insufficient national capability to assess the problem, its impact and
implement cost-effective solutions
• Lack of funding (institutions/enterprises)
• Risk of loosing foreign markets by local suppliers and
complementary industries
• Key priority exported products to be effected with high negative
impact not known
Case of Egypt
Traceability of agro-industrial products for the European Market
Situation Today
• TRTA/CB Project elaborated jointly by UNIDO and the Ministry of
Foreign Trade (MOFT) with support of Italian authorities
• TRTA/CB funded utilising a debt swap agreed between Italy and
Egypt and linked to an Italian Initiative for trade facilitation
called the “green corridor”
• Egyptian producers assisted and traceability scheme
implemented and linkages with Italian/European Importers
established
Funded in the framework of the “Debt-for-Development Swap” agreement
(19.02.2001) by the Government of the Italian Republic and the Government of
the Arab Republic of Egypt
Case of Egypt
Traceability of agro-industrial products for the European Market
Situation Today
• Assistance to Pack Houses (~100) and through them to over
5000 producers
• Available software assessed and 5 best options selected
• UNIDO Traceability manual developed and adopted
• Over 600 Egyptian trained in traceability and related issues
• Physical traceability assessed (farm to fork)
• Value chain analysis of selected products
• Mapping of pack Houses and production pattern
Case of Egypt
Traceability of agro-industrial products for the European Market
Situation Today
• Financial scheme designed
• Applicants to traceability fund assessed (ICT infrastructure,
traceability system SWAT, assistance in selection of
technology, support in implementation)
• Physical traceability assessed (farm to fork)
• Assess sector technology upgrading needs
• Assistance planned for Plant Quarantine system
• Preparatory work for assistance to food manufacturers (also
internal traceability)