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Strengthening Developing Countries’ Capacities to respond to Health, Sanitary and Environmental Requirements Regional Perspectives Presentation of the Scoping Paper for Central America: The Experience of Costa Rica by Eduardo Gitli Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Background: Central American Component Studies Commissioned Sectors Health, sanitary & env. related requirements 1. Central America and the International Trade of Poultry Products Eduardo Gitli, Randall Arce & Eliana Villalobos, CINPE Poultry Application of SPS regulations against specific avian diseases and HACCP requirements (exports US & intra- CA) 2. Sanitary and Environmental Barriers to Trade in Fisheries: The Case of Costa Rica Max Valverde, Ambio Foundation Fish & Fishery products Environmental measures as well as HACCP, & stringent testing requirements 3. Barriers to Organic Agriculture: Organic Products The Case of Costa Rica Roxana Salazar, Ambio Foundation IDRC/UNCTAD Project INT/99/A64 Standards, TBT & SPS (Labeling and Certification issues) Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Scope & Objectives Scope: Implications of health, sanitary & environmental requirements in international markets for exports of Central America. Trading conditions for organic agricultural products. Objectives: Designing strategies at the national & international levels to strengthen capacities to respond to health & environment related requirements & opportunities. Recommendations for future trade negotiations & improve DCs insertion into the MTS. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Main Findings: Poultry Poultry exports by Central American countries are very small and confined to trade within this region. Different degrees of tariff protection and sanitary measures exist throughout Central American countries. Costa Rica, the main poultry exporter is the only one that has made efforts to be declared “Newcastle V free” to be able to enter the US market. Despite these efforts Costa Rica cannot export poultry to the US because HACCP has not yet been widely implemented. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Main Findings: (Continued) Difference between the price per pound of chicken breast which almost doubles the price per pound of drumsticks. Chicken Breast (Price per Pound) Chicken Drumsticks (Price per Pound) U.S. $ 2.60 $ 1.44 Costa Rica $ 1.15 $ 1.30 Source: Gitli 2001, Supermarket Prices for Chicken and Chicken Parts, 1999 and 2000 Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Lessons learned: Poultry In Central American countries compliance with SPS measures is considered the reasonable “way of doing business”. In particular, CR attempts to engage proactively in standard setting processes & to anticipate standards if/when possible. However, other Countries, i.e., Guatemala, prefer to focus on the regional market rather than on developed country markets in the case of poultry exports. Compliance with standards = market access Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Main Findings: Organic Products Organic markets are very demanding, i.e., quality, packaging & costs of certification are very high. Organic farms are small & dispersed throughout Costa Rica, difficult to achieve economies of scale. Trade in organic food and the growth in OA production are hampered by lack of harmonized regulations among potential trading partners. Recently the Government of CR through the National Program of Organic Agriculture (1995, within MAG) & other stakeholders are actively involved in promoting organic production and exports. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Main Findings: Organic Products National Organic Standards & Regulations Organic Certification Cost of Certification Effort to become included in the EU equivalent “third country” list Harmonization of organic food regulations Commercialization Institutional Support Commercialization Identification of Priorities/ Recommendations Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Lessons Learned: Organic Products The NPOA has identified the following priorities at the national level: Strengthening alliances with media & consumers consumption. Providing training for extension workers. Developing incentives. Building a national strategy through a participatory process. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Main Findings: Fishery Products Chart 3. Export destinies 12% 6% 9% US Ctral. Am. 73% EU Others Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Main Findings & Lessons Learned: Fishery Products Environmental barriers are here to stay. (WTO litigation, Shrimp-Turtle and Asbestos Case, effectiveness). Equivalency is interpreted as “sameness” as the TED and HACCP experience shows. Technical aid seldom crystallizes (e. g. HACCP labs). Often, negotiation leads to better results than litigation. National legislation is a prima facie token of good faith. Notification mechanisms do not work as soundly as expected. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI Main Findings & Lessons Learned: (Continued) The extension of HACCP to the whole supply chain (fishing boats, offshore storage facilities, processing plants) is the main threat for Costa Rican fisheries. It makes sense from an innocuousness point of view. But technical assistance and a longer phasein period are required if we want to prevent a social catastrophe. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI The Way Forward At the National Level At the Multilateral Level Pro-active/Preventive Actions Harmonisation Equivalency & mutual recognition of standards Capacity-building Transparency Public-private coordination Technical Assistance Standard setting Drafting/Implementing national legislation Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI All the papers are available on the UNCTAD Trade and Environment website: http://www.unctad.org/trade_env/index.htm Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI