AN INTRODUCTION TO RISK MANAGEMENT GRAEME EVANS

RISK ANALYSIS –Initiating the process –RISK ASSESSMENT –RISK MANAGEMENT –Risk communication

COVERAGE OF THIS PRESENTATION Definition of risk management Definition of risk management Risk management and the SPS Agreement Risk management and the SPS Agreement Principles of risk management Principles of risk management Risk management options Risk management options

RISK MANAGEMENT Pest risk management is the process of identifying ways to react to a perceived risk, evaluating the efficacy of these actions and identifying the most appropriate options (ISPM 11) Pest risk management is the process of identifying ways to react to a perceived risk, evaluating the efficacy of these actions and identifying the most appropriate options (ISPM 11) A well-established concept A well-established concept Has been refined over time in response to new knowledge about pests and pathogens Has been refined over time in response to new knowledge about pests and pathogens More transparent than before in response to obligations imposed by the SPS Agreement More transparent than before in response to obligations imposed by the SPS Agreement

THE SPS AGREEMENT AND RISK MANAGEMENT Members (of the WTO) have the right to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life, provided that such measures are not inconsistent with this Agreement Members (of the WTO) have the right to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life, provided that such measures are not inconsistent with this Agreement (Paragraph 1, Article 2, SPS Agreement)

SCIENTIFICALLY-BASED The SPS Agreement states that: The SPS Agreement states that: Members shall ensure that any sanitary or phytosanitary measure is applied only to the extent necessary to protect human, animal or plant life or health, is based on scientific principles and is not maintained without sufficient scientific evidence, except as provided for in paragraph 7 of Article 5 Members shall ensure that any sanitary or phytosanitary measure is applied only to the extent necessary to protect human, animal or plant life or health, is based on scientific principles and is not maintained without sufficient scientific evidence, except as provided for in paragraph 7 of Article 5 (Article 2)

LEVEL OF RISK The SPS Agreement introduces the concept of Appropriate Level of Protection (ALOP) The SPS Agreement introduces the concept of Appropriate Level of Protection (ALOP) – An ill-defined concept defined as ….the level of protection deemed appropriate …to protect human, animal or plant health… (SPS Agreement Annex A) Allows each member country to set its own ALOP Allows each member country to set its own ALOPBut, –Must be applied consistently

MINIMAL IMPACT ISPM 1 states that: ISPM 1 states that: Phytosanitary measures shall be consistent with the risk involved and shall represent the least trade restrictive measures which result in the minimum impediment to the international movement of people, commodities and conveyances. Phytosanitary measures shall be consistent with the risk involved and shall represent the least trade restrictive measures which result in the minimum impediment to the international movement of people, commodities and conveyances.

EQUIVALENCE The concept of equivalence means that member countries cannot discriminate between different risk management measures that achieve the same level of protection required by an importer The concept of equivalence means that member countries cannot discriminate between different risk management measures that achieve the same level of protection required by an importer (See Article 4, SPS Agreement)

REGIONALISATION The principle of regionalisation recognises that the distribution of pests within countries is not uniform and some areas may be free from particular pests. Others may be areas of low pest prevalence The principle of regionalisation recognises that the distribution of pests within countries is not uniform and some areas may be free from particular pests. Others may be areas of low pest prevalence –The SPS Agreement requires members to recognise the concepts of pest free areas and areas of low pest prevalence when devising risk management measures –And –The SPS Agreement imposes obligations on exporters to provide evidence of such claims and it requires exporters to give reasonable access to importers to verify the pest status of an area (Article 6, SPS Agreement) (Article 6, SPS Agreement)

CONSISTENCY The SPS Agreement requires members of the WTO to be consistent in the application of risk management measures The SPS Agreement requires members of the WTO to be consistent in the application of risk management measures –Countries should not apply a higher level of protection to commodities that may compete with domestic industries and a lower level of protection to other commodities, such as new genetic material or commodities not produced domestically

NON-DISCRIMINATION Prospective importers must not discriminate between countries of the same phytosanitary status Prospective importers must not discriminate between countries of the same phytosanitary status When targeting an endemic quarantine pest,… measures shall be applied without discrimination between domestic and imported consignments. When targeting an endemic quarantine pest,… measures shall be applied without discrimination between domestic and imported consignments. (see ISPM 1)

RISK MANAGEMENT OPTIONS Prohibition on proposed trade Prohibition on proposed trade Post-entry quarantine, with testing for pathogens Post-entry quarantine, with testing for pathogens Quarantine in a third country, eg. rubber into SE Asia Quarantine in a third country, eg. rubber into SE Asia Physical treatments Physical treatments –Heat, cold, gamma irradiation Chemical treatments Chemical treatments –Fumigation, pesticides, including herbicides Process commodity pre-export or post-arrival Process commodity pre-export or post-arrival Source commodities from pest-free areas and areas of low pest prevalence Source commodities from pest-free areas and areas of low pest prevalence –Crop sanitation and in-crop pest management, surveillance / monitoring Source commodities from protected environments Source commodities from protected environments –Glasshouses, isolated environments, bagged fruit

RISK MANAGEMENT OPTIONS (CONTD) Prohibition of parts of the host Prohibition of parts of the host Source commodities from certified crops, especially for seed Source commodities from certified crops, especially for seed Harvest crops at an age when commodities are not susceptible Harvest crops at an age when commodities are not susceptible Trade commodities at a specified time of year when risk is low Trade commodities at a specified time of year when risk is low Control destination of commodities Control destination of commodities Systems approach – involves a combination of measures eg, areas of low pest prevalence, in-crop treatment, inspection and certification Systems approach – involves a combination of measures eg, areas of low pest prevalence, in-crop treatment, inspection and certification Pre-export and post arrival inspection, certification Pre-export and post arrival inspection, certification

SELECTING RISK MANAGEMENT OPTIONS The process of identifying and selecting risk management measures may involve consideration of the following: The process of identifying and selecting risk management measures may involve consideration of the following: What options are available to manage the risk? What options are available to manage the risk? How effective are the options? How effective are the options? How feasible are the options? How feasible are the options? What impacts do the options have? What impacts do the options have? What is the best option, taking into account obligations under SPS and the IPPC, and the need to ensure an appropriate level of protection? What is the best option, taking into account obligations under SPS and the IPPC, and the need to ensure an appropriate level of protection?

PRINCIPLES and CONCEPTS OF RISK MANAGEMENT Scientifically based Scientifically based Level of risk Level of risk Minimal impact Minimal impact Equivalence Equivalence Regionalisation Regionalisation Consistency Consistency Non-discrimination Non-discrimination