1. Challenges with the Development of Compliance Infrastructure
Brussels Rural Development Briefings
                                                                                  
Session No 11
Meeting Food Safety Standards –
Implications for ACP agricultural exports
11th May 2009 – European Commission
Challenges with the Development of Compliance Infrastructure
Steffen Kaeser
Trade Capacity-Building Branch

2. TRADE FACILITATION/INFRASTRUCTURE: TECHNICAL ASSISTANCE:
Global Trade Challenges: Present Inadequacies
SUPPLY SIDE:
“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
CONFORMITY:
Countries that can not meet standards and regulations in developed country markets are effectively barred from trading with those markets.
International Development Research Centre (IDRC), Canada
TRADE FACILITATION/INFRASTRUCTURE:
For the majority of Sub-Saharan African countries, tariffs amounted to less than 2%, while transport cost incidence often exceeded 10%. Since the introduction of AGOA, transport costs have risen relative to tariffs.
World Bank Trade Note 15; May 10, 2004
TECHNICAL ASSISTANCE:
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.
Steven Jaffee & Spencer Henson, Standards and Agro-Food Exports from Developing Countries – Rebalancing the Debate, World Bank 2004

3. Compete Conform Connect
Challenges for Trade participation: The 3 Cs
“Countries must have marketable products for exportation”
 COMPETITIVITY of productive capacities
“Products must conform to requirements of clients and markets”
 CONFORMITY with standards
“Rules for trade must be equitable and customs procedures harmonized”
 CONNECTIVITY to markets
 PRODUCTIVITY (enterprise)
 COST OF EXPORTING (support services)
Compete
Conform
Connect

4. Forming Strategic Partnerships for Trade Capacity-Building

5. Meeting Pre-conditions for Exports
Developing countries’ potential in Agro-Food area but have to comply with market requirements
Meeting Pre-conditions for Exports
Regulatory Environment for Compliance
WTO TBT /SPS Agreements (Jan 1995)
WTO TBT & SPS agreements compliance
Products sourced from areas free of pests & diseases
Fruits/vegetables - minimum pesticide residue standard
Meats/fish meet minimum antibiotic residue requirement
Standards of hygiene applied in manufacturing (HACCP/ISO 22000)
The establishment of the WTO came with two agreements, that have standards and conformity implications.
The TBT and SPS agreements. Established in January 1995
WTO members have signed it.
The agreement recognises every country has a right to use standards and conformity measures, to safeguard citizens, safety, health, product quality etc. and also the environment and plant and animal welfare.
The SPS/TBT agreement in effect legalised the use of standards/conformity procedures in Trade.
When the agreement was drafted, everyone knew developing countries do not have the capacity to comply with this.
The agreements clearly acknowledges this deficiency and has clauses to assist developing countries .
However, very little such technical assistance has been delivered.
Developing countries lack of implementation capacity

6. “Fair Trade for All”: Priority Areas to meet Product Standards Requirements
“Developing countries lack the ability to assist their producers to meet product standards,
which often act as a barrier to developing country exports
Significant assistance from developed countries is required to build up their capabilities to conform to product standard requirements”
“UNIDO recommends the following priority areas for assistance
1. A national/regional standards/standardization body
2. A national/regional metrology system
3. A certification/conformity assessment system
4. An accreditation system”
Source: J. Stiglitz & A. Charlton, Fair Trade for All – How Trade can promote
Development, Oxford University Press, 2005

7. UNIDO – DG SANCO Cooperation
- High-level dialogue between UNIDO DG and EC DG SANCO since 2008
Main targeted areas for cooperation:         
Establishment of a Manual on Competent Authorities for horticulture products
Systematic use of Food and Veterinary Office (FVO) Inspection Reports and of RASFF data on rejections for design of TA programmes 
Participation in the Better Training for Safer Food (BTSF) Initiative
- Development of a Rapid Inspection Response Facility (for short-term immediate TA after deficiencies are identified by Inspections - avoiding bans) 
Plan: 
UNIDO support project for DG SANCO cooperation, includ. RIRF

8. UNIDO TCB - LDCs Coverage (2007: 36 countries)
On-going and planned
Regional Programmes
SAARC
Afghanistan
Bangladesh
Cambodia
Ethiopia
Mozambique
Nepal
Senegal
Tanzania
UEMOA/
ECOWAS
MEKONG
Country Programmes
EAC
Madagascar
Mauritania
Source: OECD DAC List
Uganda
Burundi (2007)
Rwanda (2007)
Bhutan
Maldives
MEKONG Delta Countries
Lao PDR
CARICOM
Haiti
SADC
UEMOA/ECOWAS
Benin
Burkina Faso
Cape Verde
Gambia
Guinea
Guinea Bissau
Liberia
Mali
Niger
Sierra Leone
Togo
Angola
Congo
Lesotho
Malawi
Zambia
CEMAC
Central African Rep.
Chad
Equatorial Guinea

9. UNIDO Aid-for-Trade type Programmes (Supply-side & Conformity)
Support to the National Prevention Programme of Ochratoxin in Coffee and Cocoa in Côte d’Ivoire
Budget: € 1.7 million Donor: EC
Objective: help the supply-chain actors to secure their incomes and exportations
Outputs:
studies in coffee and cocoa supply-chains (determination of contamination levels,
identification of critical contamination points, and determination of adequate sampling
methods);
national OTA analytical laboratory upgrading for ISO/IEC accreditation
promotion of good practices during production and post-harvest stages
Lobbying activities to draw the attention of the EC on adequate OTA maximum levels.
* The OTA is a mycotoxin considered as a genotoxic human carcinogen and the European Commission (EC) is examining the opportunity to raise new maximum contamination levels for green and roasted coffee, cocoa and cocoa based products

10. Budget: € 5.0 million Donor: EU
UNIDO Aid-for-Trade type Programmes (Supply-side & Conformity)
Pakistan TRADE RELATED TECHNICAL ASSISTANCE PROGRAMME
Budget: € 5.0 million Donor: EU
Barrier to Trade Survey
Study on SPS Compliance for Exports
Standards (PSQCA)
Standards development
Certification Body (Systems)
Consumer affairs
Product certification
Metrology (NPSL)
Lab upgrading, international accreditation
Product Testing (MFD, PCSIR, etc): Fisheries, Food, Leather, Textile
Lab upgrading, PT participation
International accreditation
Accreditation (PNAC)
Organizational strengthening, international recognition
National accreditation scheme
Training of auditors
Setting-up of PT schemes
Quality/Hygiene (Private sector, FPCCI, etc.) Fish/food
Management systems
Good practices
Compliance with market requirements
Pilot certifications HACCP, ISO 9001, 14001, SA 8000)
Pilot traceability systems
Boat hygiene
Icing
Landing Sites
Inspection
Auction Hall
Processors
Traceability

11. UNIDO Aid-for-Trade type Programmes (Supply-side & Conformity)
Supply and Conformity:
Bangladesh QUALITY SUPPORT PROGRAMME
Budget: € 7.5 million Donor: EU (co-funded by Norway)
Quality Infrastructure
standard setting, laboratories infrastructure, certification, accreditation,
metrology/calibration
Textile competitiveness
- industrial upgrading, product development, technical and marketing training
Fish Inspection
product testing and inspection services, laboratory accreditation, waste treatment,
staff training
Export Diversification (ITC component)
access to regulatory market information, EUREPGAP,
sectoral strategies, packaging

12. UNIDO TCB Programmes (TA combining Supply-side & Conformity)
Regional Trade: UNIDO/EU - UEMOA Programme
Budget: € 14.0 million Donor: EU
Productive Capacities and Quality Promotion
Food safety, productivity and quality promotion
68 pilot enterprises prepared for ISO 9001
National and regional Quality awards
Training of journalists in consumerism and product quality
Standards and Conformity Assessment
Harmonization of standards for export products
Harmonization of testing procedures, reg. database on labs
Upgrading of 50 laboratories, 24 for international accreditation
Regional accreditation scheme
Training of 16 Lab. auditors
Training of 40 ISO 9001 auditors
UEMOA Phase 2: (€ 6.0 million)
UEMOA Upgrading: funding received (€ 11.0 million)
In cooperation with:
Microbiology Laboratory in Côte d’Ivoire recently received COFRAC ISO/IEC accreditation for food testing (Sept. 2007)

13. West Africa Quality Programme (€ 14.5 million – EU funding)13

14. West Africa Quality Programme Enhanced Integrated Framework (EIF)
Trade Analysis
Standardization
Accreditation
Product Testing/Metrology
Inspection
Traceability
Quality Promotion
COLEACP/PIP
Enhanced Integrated Framework (EIF)

15. Component 1: Product Testing
Total of 120 labs interested in the programme
Total of 40 laboratories assessed for international accreditation (ISO/IEC 17025)
Micro-biological Testing
Chemical Testing
Pesticides Testing
International accreditation potential:
2 – 3 laboratories per country
Critical Issues:
Decision on lab selection (done through NSCs and UEMOA Commissions)
Identification of country priority products (done by NSCs)
Regional division of labour
Civil works as pre-requisite, limited programme funds for equipment upgrades
Institutional set-up and salary/incentive schemes 15

16. Component 2: Product Testing
Total of 39 laboratories assessed for international accreditation (ISO/IEC 17025)
Micro-biological laboratories:
Cape Verde (3), Ghana (3), Guinea (2), The Gambia (2), Liberia (2), Mauritania (3), Nigeria (2), Sierra Leone (1)
Chemical laboratories:
Cape Verde (1), Ghana (3), Guinea (2), The Gambia (2), Liberia (1), Mauritania (2), Nigeria (2), Sierra Leone (1)
Pesticides laboratories:
Cape Verde (1), Ghana (1), Guinea (1), The Gambia (1), Liberia (1), Mauritania (1), Nigeria (1), Sierra Leone (1)
International accreditation potential:
Micro-biological laboratories: 8-10
Chemical laboratories: 5
Pesticide laboratories: 3
Critical Issues:
Decision on lab selection, reference laboratories, and regional division of labour
Civil works as pre-requisite, limited programme funds for equipment upgrades
Institutional set-up (Business Plan) and salary/incentive schemes 16

17. Implementation Challenges
Programme Design
Available financial resources
Programme duration 3 years with no inception and closing phase
Regional Support Unit (2 staff only)
Increase in expert pro forma cost, equipment cost, regional travel fares
Regional Dimension
2 RECs
15+1 countries
Regional travel
3 languages, Translation/interpretation
Diverse country/development profiles
Countries and RECs divergences

18. Implementation Challenges
Managerial Challenges
Techn. counterpart at RECs level (SMTQ)
RECs familiarity with TA (FAFA, etc.)
Responsabilities of programme partners, division of labour
UNIDO HQ management
Size and Location of Regional Support Team
Donor Coordination
Communication by programme with RECs, EC (regional and national), countries, etc.
Politico- technical Challenges
Regional decisions on lab upgrading, division of labour
Regional activities: Harmonization of standards, etc.
Regional schemes are new territory

19. CONCLUSIONS
Developing Compliance Infrastructure is complex – tailor programmes
Regional programmes are needed but difficult – develop REC Capacity
REC development is an extra outcome – allocate resources and time
Programme management is intensive and needs a lot of communication
Regional outcomes are difficult but measurable – need regional convergence
Compliance Infrastructure is only one part of trade development:
3 pronged: Competitive supply – Compliance services - Connectivity

20. Merci !
Questions ?
Thank You !
Trade Capacity Building 20