Transcript ECE Working Party on Regulatory Cooperation and Standardization Policies Geneva, 3-4 November 2008 Presented by: Ulrich HOFFMANN UNCTAD secretariat.

ECE Working Party on Regulatory
Cooperation and Standardization
Policies
Geneva, 3-4 November 2008
Presented by: Ulrich HOFFMANN
UNCTAD secretariat
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Market Importance of VSS
•
VSS are of key importance for Market ENTRY and sustainable developmt
•
Unless pro-actively addressed SS can become a serious market entry
hurdle.
•
Real developmental opportunities exist in the light of strong dynamics in
markets for sustainably produced products, which generally expand much
faster than conventional agricultural markets.
Average Annual Rate of Growth of Key SS Markets (2004-2006)
Conventional Food Markets
2-3 %
3-4 %
Three Key Paradoxes
1. SMEs and small farmers whom governments and donors most want
to help are those who may be the least able to manage the changes
required to meet the requirements of voluntary sustainability
standards (VSS)
2. VSS are seen by most key policy makers as a technicality, not a
strategic policy issue of:
- cost internalization
- promotion of sustainable production and consumption
- sustainable competitiveness in lucrative markets
3. Fear that sustainable governance related to VSS might undermine
the hard-won improvements in market access through the TBT & SPS
Agreements (e.g. food-miles)
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Some Key Concerns
•
Quite often, several VSS are required for effective market entry (e.g. organic,
fairtrade, GlobalGAP) -- disproportionate costs, marginalization of SMEs
•
Lack of interoperability of VSS; harmonization/equivalence are concepts rather
than practically applied tools (exceptional example – ITF equivalence tools)
•
The higher the level of harmonization/equivalence, the higher the incentive to break
away, creating new standards or using “standards +…..” approaches
•
Private VSS often used as part of market differentiation and competitiveness
instrument – may have implications on standard governance and market domination
•
Governments might support the objectives and even the application of VSS, but
often there is policy incoherence (e.g. perverse subsidies, land tenure/ownership
system, fiscal measures, extension services etc.)
•
Due recognition of the fact: Many producers do not lack the will but the capacity to
use and comply with VSS
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Regional Issues
•
In East and South-East Asia, ¾ of horticultural export is intra-regional
trade
•
Regional cooperation on harmonization and equivalence of SS is thus
very important
•
Another Example: East African Organic Products Standard (EAOS) Kenya, Tanzania and Uganda, later joined by Burundi and Rwanda or
the Pacific Organic Standard.
•
Sub-regional cooperation in building infrastructure for accreditation and
certification, testing (e.g. laboratories)
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Importance of Direction of Trade and VSS
Share of FFV exports
from / to
EU-15
Asia
US &
Latin
Africa
Canada America
Asia (Malaysia,
Thailand, Vietnam)
Latin America (Brazil,
Argentina, Costa Rica)
10
70
10
48
30
Africa
69
2
20
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• For Asia, intra-Asian trade is the most important export market.
• In Latin America, exports to the EU and North America are important.
Intra-LA trade is only important for Argentina (almost 50% of total
exports).
• Export dependency is highest in Argentina and Costa Rica. Domesticmarket concerns play a more important role in the other countries.
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Role of Governments on Private Voluntary Sustainability
Standards
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Surveillance, Supportive and Facilitating Role
Govern. /
St-setting
Facilitating
Investment
Devising
flanking/support
policies
Assuring
policy
coherence
Facilitating
stakeholder
dialogue
Capacity Weaknesses
-Transparency,
Inclusiveness,
legitimacy, trade
restrictiveness
- Anti-trust
- Assuring
coherence
between mand &
PVS
- Facilitating
interoperability
between PVS
- in physical
infrastructure
- in SMTQ
systems &
institutions
- directing
donor
funding
accordingly
- awareness
raising/
training
- financial
support
- Info
instruments/
independent
evalt of PVS
- SME supprt
-among gov
agencies
dealing with
PVS
- between
public & priv
requirements
(e.g. perverse
incentives)
- towards
donors
- facilitating
and engaging
in stakeholder
dialogue on
development
& impl of PVS
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For more detail on governmental role:
Conclusions and Recommendations of the Workshop on Making
Sustainability Standards Work for Small-scale Farmers
www.unctad.org/trade%5Fenv/meeting.asp?MeetingID=249
UNCTAD Consultative Task Force on Environmental Requirements and
Market Access for Developing Countries (CTF): Analysis of trade and
developmental impact of VSS
www.unctad.org/trade_env