1. Standards and Trade: Background/results of the project Veena Jha Geneva, 2-4 October 2002 UNCTAD

2. Sectors South Asia Fishery products Peanuts, rice, spices, tea Organic products Central America Fishery products Poultry Organic products Africa Fishery products Horticulture Organic products

3. Environmental requirements/SPS measures Key questions Effects, both positive and negative, on exports from developing countries Constraints, costs of compliance Perceptions (protection/protectionism) Responses at national/regional levels Recommendations to mitigate adverse trade effects and strengthen capacities to respond to these standards (a) national/regional (b) bilateral/multilateral (c) multilateral trading system

4. Lessons learned Importance of the standards examined in the market place? Compliance costs and trade effects Protection versus protectionism Regional strategies

5. Potential problems Lack of transparency Complexity of SPS standards Threshold limits Standard takers instead of Standard Setters Relevance of the standard to the production conditions of the exporting countries Domestic Regulatory Problems

6. Economic/developmental effects of SPS measures and environmental standards Compliance costs Trade impacts Impacts on industry

7. Economic/developmental effects of SPS measures and environmental standards Legislation Training Infrastructure Engagement in international negotiations

8. Can SPS measures and environmental standards be protectionist? Motivation: Protecting national producers against import competition? Creating a market for conformity assessment? Lowering prices? Perceptions: Insufficient scientific evidence Lack of coherence in standards

9. Africa Pesticide residues Standards for maximum residue levels for pesticides Packaging requirements Has created some concern Eco-labellingMay become more important in the cut flowers and fisheries sectors TimberExports may be affected by consumer boycotts and/or timber certification. CITESIvory trade Montreal Protocol Methyl bromide, used in agriculture

10. Sectors/cases Marine products Bangladesh, India, Pakistan HACCP EU import bans PeanutsIndiaResponding to aflatoxin standards Mango pulpIndiaQuality issues RiceIndia, PakistanStandards for pesticides residues SpicesIndia, Sri LankaDealing with aflatoxin standards / other SPS measures TeaIndiaMeeting standards on pesticides residues

11. Perceptions on Implementation of HACCP Standards for fish Certain standards are not strictly relevant for product quality Certain standards are too stringent given Indian fishing conditions The legitimate objectives of standards could be met through less cumbersome and less costly procedures Indian plants face more stringent standards than European plants (e.g. Indian plants have to undertake 62 tests to check water quality)

12. Peanuts Different testing procedures and conformity assessments required in different markets New sampling plan (3 test Dutch code methodology) would result in higher rejection rate Experts believe that 75% of the rejected lots would actually fall within the established tolerance limits

13. Tea (1) It is alleged that in 1995, German limits of 0.01 mg of tetradifon and 2 mg of ethion per kg of tea were imposed somewhat arbitrarily because of lack of data from India The Teekanne Darjeeling Gold brand of tea was rejected because it contained 0.24 mg of tetrafidon per kg No rejections in United Kingdom; most Indian tea firms follow UK principles

14. Tea (2) Cost of testing required by Germany: US$ 234 per analysis Indian standards are more stringent than ISO 3720 standardans other countries’ standards, except Japan

15. Costa Rica and the TED case Lack of enforcement capacity and reluctance of fishermen lead to non- compliance. Imported from the US at a cost of $300 each, 4 inch (10 cms.) TEDs were constantly obstructed by organic waste.

16. After the crisis, Costa Rica initiated formal procedures to seek a modification of the TEDs’ proportions. Two important studies were initiated in order to support this petition. Mid-2000: an increase in the escape holes of 2 inches, for a maximum distance between deflection bars of 6 inches (15.2 cms).

17. COURSE OF ACTION TAKEN BY COSTA RICA Engagement in international agreements and certifications programs; Enactment of national legislation; Seeking approval by showing commitment to internationally accepted norms Seeking recognition of differing national circumstances that render US regulations inapplicable by issuing scientific reports on the issues concerned (substantial equivalence). The same pattern has been shown in the Turtle-Dolphin Dispute, the new US regulation on shark fins and swordfish.

18. THE HANDLING OF THE HACCP MEASURE During 1999 and 2000, the tuna processing companies invested US$15 million in refurbishing, expansion and of course sanitary controls. National legislation requiring the HACCP. The HACCP team (INCOPESCA and ZED) Boats: INCOPESCA and CANNEP are drafting a project to address this problem. They are identifying which ships are feeding processing plants that export to the EU.

19. Strenghtening capacities: national level Awareness raising National and regional standard setting Technology, innovation and enterprise development Small and medium sized enterprises Branding and umbrella certification Institutional changes

20. Actions at multilateral level Transparent and participatory preparation of standards Trade rules