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STRENGTHENING FOOD SAFETY CONTROLS IN PAKISTAN Dr. Ali Abbas Qazilbash OiC TRTA II/Programme Officer SPS & Accreditation Trade: A Route to Prosperity Trade.

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Presentation on theme: "STRENGTHENING FOOD SAFETY CONTROLS IN PAKISTAN Dr. Ali Abbas Qazilbash OiC TRTA II/Programme Officer SPS & Accreditation Trade: A Route to Prosperity Trade."— Presentation transcript:

1 STRENGTHENING FOOD SAFETY CONTROLS IN PAKISTAN Dr. Ali Abbas Qazilbash OiC TRTA II/Programme Officer SPS & Accreditation Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme 19 March 2013 Lahore

2 The TRTA II Programme is funded by the European Union TRTA II Programme in a Nutshell Objectives Poverty reduction & sustainable economic development Increased labor intensive exports & integration of Pakistan into the global economy 1) Trade policy & capacity building Strengthening skills & tools for policy making Promotion of effective, result- based PPDs 2) Improving quality infrastructure for export enhancement Strengthening the SPS Management System Increasing value addition & productivity in key commodity sectors Improving conformity assessment infrastructure 3) Capacity building to strengthen the IP Rights system Capacity building of judges, police, customs, FIA & private sector on IP Digitization of IP records, Better trade mark registry capacity Branding options for Kinnow &mangoes using GI tools The objectives are to be met with the following 3 components Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme

3 Baseline Conditions CHALLENGES Policy Level Ineffective framework for public-private policy dialogue Weak design, implementation & evaluation arrangements Non-conducive investment environment due to violation of IP Rights Institutional Level Fragmented & dysfunctional SPS Management System Weak Service Delivery Lack of coordination & capacity in institutions working on firm level competitiveness Inadequate compliance & quality infrastructure Farm & Enterprise Level Unorganized and ineffective farming/manufacturing practices Poorly articulated product value chains and weak labor skills Unreliable availability of inputs/raw material Limited market access opportunities due to quality & compliance issues Trade Related Technical Assistance (TRTA II) Programme Trade: A Route to Prosperity

4 Interventions TRTA II Responses to Challenges Policy Level Coherent Trade policy & regulatory reform for export competitiveness Institutional capacity building for training & research for participation in policy cycles Institutional Level Improved Compliance of its Export Product with market requirement Improved conformity assessment infrastructure Farm & Enterprise Level Improved Quality value addition and compliance in Fishery, Horticulture and Industrial sector Promote public- private dialogue for participation in policy development & dissemination of knowledge Trade Related Technical Assistance (TRTA II) Programme Trade: A Route to Prosperity

5 Trade Related Technical Assistance (TRTA II) Programme SPS: Current Situation in Pakistan No/Scanty data on incidences & aetiology of food poisoning cases Fragmented data for epidemiological incidences of human food borne & zoonotic diseases What we know Food poisoning is widespread (anecdotal evidence from press reports) 11,489 cases of cholera reported in 2011 Poor food safety conditions contribute to health indicators which are significantly worse than developed country averages: - life expectancy 66 years cf. 81 years in Germany - infant mortality 69.3/1000 births cf. 3 in Germany National Nutrition Survey of 2011; very poor child nutrition (more susceptible to infections and intoxication) Data source: WHO

6 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Features of the Pakistani Food Safety Control System Technical Gaps in Current Control System Ineffective controls on bacterial and viral hazards in high risk foods (ready to eat, foods of animal origin) Lack of controls on agro-chemicals (veterinary medicines & pesticides) concerning approvals, use on farm, residues in foods Lack of food safety controls in animal feed Lack of controls in fungal hazards in grains, nuts, dried fruits (aflatoxin hazards) No mechanisms defined for removing unsafe food from the market (recall and withdrawal) Lack of transparent monitoring of food safety conditions All states seek to improve food safety conditions using a system of official control, applying regulatory means to restrict non-compliant foods from sale and punish offenders

7 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Reasons for the ineffective control system resulting in failure to meet WTO SPS requirements and Codex Alimentarius Commission No clear policy priority for food safety in Federal or Provincial Government Border controls (Customs service of FBR) not integrated with national control systems – porous borders Lack of awareness of modern control methods No legal requirement for transparency and accountability to stakeholders (consumers and agro-food industry) Outdated regulatory framework: 1. reliance on sampling and certification of foods as primary model of control 2. commodity based rather than hazard based regulations 3. responsibility of food business operator not defined 4. lack of risk assessment or risk profiling 5. no requirements for farm to fork controls 6. lack of traceability& recall measures 7. links between food safety, to animal health and plant health controls not defined

8 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Economic impacts of non- compliance with international requirements Direct Impacts Social Impacts (Death/illness) Loss of days at work/education and a burden on the health care system Indirect Impacts Limited access to international markets (e.g. EU restrictions on fish exports 2008 to 2013) Reduced value added for agricultural production (prices discounted) Higher costs/reduced competitiveness for national food business operators due to direct charges/rent seeking (product testing and certification) Disincentives and reduced capital for investment in food safety (non- compliant operators not excluded)

9 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Measures taken in Pakistan supported by EU funded TRTA ( ) Establishment of NAPHIS (Min of National Food security and Research); aim to address integration of sanitary and phytosanitary measures in line with WTO Bill to Establish National Food Safety, Animal and Plant Health Regulatory Authority Punjab Food Authority established Development of food safety inspection training capacity at 3 Universities Strengthening federal food safety functions (export certification of fishery products – the only function covered at present)

10 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Future measures to be taken to strengthen SPS mechanism in Pakistan (with continued support from TRTA II in its extension phase [2014 to 2015]) Prepare new, modern technical regulations in line with Codex Alimentarius Rationalise mandate of PSQCA to avoid overlapping federal functions (Voluntary Restructure provincial government food safety functions (for example food safety authorities) and budgets; develop inspection and control capacity Align provincial government support measures (subsidies) for agro-food enterprises with compliance with SPS measures, to avoid undue regulatory impacts on sector Establish functions of National Food Safety, Animal and Plant Health Regulatory Authority, to: 1. apply sanitary and phytosanitary controls to import/export agro- food products 2. coordinate sanitary and phytosanitary controls activities of Provincial Governments

11 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Opportunity cost of on- going food safety failures Study by TRTA II in 2008 indicated that improved food safety in fishery and horticulture sectors would, over 10 years: Cost EUR 308 million in compliance costs (sustained by Government and enterprises) Deliver additional exports each year of 431,000 tonnes/year, worth EUR 589 million Secure an additional 1.1 million jobs in agriculture and fisheries

12 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Economic Case for investment in Food Safety Compliance by GOP: Cost Benefit Analysis Every dollar invested in the project will earn $4.4. Economic Case for investment in Food Safety Compliance by GOP: Cost Benefit Analysis Every dollar invested in the project will earn $4.4.

13 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Average Cost Effectiveness Ratio: Every unit increase in exports (resulting from the project) costs 34.7 Euros. Average Cost Effectiveness Ratio: Every unit increase in exports (resulting from the project) costs 34.7 Euros.

14 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme Acknowledgements I would like to take this opportunity to acknowledge the following: 1.Steffen Kaeser, Unit Chief, Trade Capacity Building Branch, UNIDO Headquarters (Vienna) 2.Bruno Valanzuolo, Chief Technical Advisor, EU-TRTA II/UNIDO Programme 3.Dr. Ian Goulding, International Expert in SPS/Food Safety Management System 4.Kit Chan, International Expert in Development of CoPs in the Horticulture Sector 5.Badar-ul-Islam, SME & Export Promotion Development Specialist, TRTA II/UNIDO-Pakistan 6.Aurangzaib Khan, Sector Expert Horticulture, TRTA II/UNIDO-Pakistan 7.Dr. Nasim Akhtar, Sector Expert Fisheries, TRTA II/UNIDO-Pakistan 8.Laura Weber, Associate Industrial Development Expert, TCB, UNIDO Headquarters (Vienna) 9.The European Union Delegation in Pakistan for funding the Trade Related Technical Assistance Programmes in Pakistan. 10.UVAS for organizing such an event to bring to the forefront key SPS/Food Safety compliance issues for both imports, exports from Pakistan and the domestic market and allowing other agencies/donors working in these areas to share their experiences and activities in order to create synergies and complementarities.

15 Trade: A Route to Prosperity Trade Related Technical Assistance (TRTA II) Programme THANK YOU


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