EUs past and new regulation on organic agriculture: Consequences for Turkeys EU harmonization

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EUs past and new regulation on organic
agriculture Consequences for Turkeys EU
harmonization

• Dr. Kai Bauer
• Delegation of the European Commission to Turkey

20 October, 2007 Organic Farming Congress,
Istanbul
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Outline
Accession Process
Organic Farming
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EU legislation on organic farming

• Ground breaking original basic legislation dates
  back to 1991 (Council Regulation 2092/91) and
  regulates
• the method of agricultural production
• Labelling
• Processing
• Inspection
• marketing of organic products in the Community
• the import of organic products from non-member
  countries.

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Revised Organic legislation

• Adopted by Council in June 2007
• Implementing rules before 1 January 2009

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Major changes
Revised Organic legislation

• Mainly structural
• Most technical standards remain

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Major changes
Revised Organic legislation

• Scope
• Aquaculture, wine, seaweed, yeasts
• Food and feed processing
• Extension to be studied before 2011

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Major changes
Revised Organic legislation

• Transparency in the market
• Definition of organic production
• Criteria new substances
• Simplified labelling

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Major changes

• Definition (objectives) of organic production
• Sustainable management system that
• Respects natural cycles, enhances balance and
  health
• High biodiversity
• Responsible use energy and natural resources
• High animal welfare
• High quality products
• Consumers demand wide variety, responsible
  processes

Traditional farming is NOT the same as Organic
farming
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Major changes
Revised Organic legislation

• Simplified labelling
• Mandatory EU logo domestic products, not
  exclusive
• Indication of place of farming
• Only two types of labelling
• Golden category (gt 95 organic)
• Indication in ingredient list (no lower floor)

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Major changes
Revised Organic legislation

• Equal treatment operators
• Adjustment to structural, geographic, climatic
  constraints, availability organic inputs
• Decided centrally in Standing Committee on
  Organic Farming

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Major changes
Revised Organic legislation

• Imports
• Third Country list
• No change
• Full compliance
• Control body recognised by EU
• No transaction certificate
• Equivalency
• Control body recognised by EU
• Transaction certificate

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No changes
Revised Organic legislation

• GMOs
• Ban on use GMOs and derivatives
• Derivatives last living organism GM
• No additional burden on organic sector

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No change, but legal clarity
Revised Organic legislation

• GMOs reliance on GM labelling
• No need to test all supplied material, provided
  normal precautions are taken
• Does not mean that all traces of GMO below lt0.9
  are tolerated

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No change, but legal clarity
Revised Organic legislation

• Pesticides
• Current list remains
• Future action review against criteria

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No change, but legal clarity
Revised Organic legislation

• Controls
• Supervisory role Member States reinforced
• Current private certifiers to remain
• Accreditation
• Risk based
• Whole chain covered

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Implementing rules
Revised Organic legislation

• Early stakeholder consultation
• Current standards will remain
• Except where future Council rules are different
• Difficulties
• Be ready in time
• New areas aquaculture, wine, food processing

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Support for organic farming RD

• Organic farming is fully integrated in the EU
  rural development policy (1698/2005) with support
  for
• Priority Axis 1 Competitiveness
• Investments on farm (conversion)
• Training
• Investments in processing and marketing
• Priority Axis 2 Environment
• Agri-environment (area payment)
• Priority Axis 3 Quality of life and
  diversification
• Diversification (e.g. organic village shop)

gt Organic farming at the heart of EU rural
development policy
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Outline
Accession Process
Organic Farming
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Outline
Accession Process
Organic Farming
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The Accession Process

• Formally started on 3 October 2005
• Intergovernmental conference (unanimity)
• Shared objective is full membership, but
  open-ended
• Pace will depend on Turkeys progress
• Chapters screening benchmarks
• Accession not before financial period from 2014
• EU absorption capacity is an important
  consideration

• On the day of accession Turkey adopts the acquis
  as it stands at that time

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Negotiations The 35 Chapters

• 1. Free movement of goods
• 2. Freedom of movement for workers
• 3. Freedom to provide services
• 4. Free movement of capital
• 5. Public procurement
• 6. Company law
• 7. Intellectual property
• 8. Competition policy
• 9. Financial services
• 10. Information society media
• 11. Agriculture rural development
• 12. Food safety
• 13. Fisheries
• 14. Transport
• 15. Energy
• 16. Taxation
• 17. Economic and monetary union
• 18. Statistics

• 19. Social policy and employment
• 20. Enterprise industrial policy
• 21. Trans-European networks
• 22. Regional policy structural funds
• 23. Judiciary fundamental rights
• 24. Justice, freedom security
• 25. Science and research
• 26. Education and culture
• 27. Environment
• 28. Consumer and health protection
• 29. Customs union
• 30. External relations
• 31. Foreign, security and defence policy
• 32. Financial control
• 33. Financial and budgetary provisions
• 34. Institutions
• 35. Other issues

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Negotiations The 35 Chapters

• 1. Free movement of goods
• 2. Freedom of movement for workers
• 3. Freedom to provide services
• 4. Free movement of capital
• 5. Public procurement
• 6. Company law
• 7. Intellectual property
• 8. Competition policy
• 9. Financial services
• 10. Information society media
• 11. Agriculture rural development
• 12. Food safety
• 13. Fisheries
• 14. Transport
• 15. Energy
• 16. Taxation
• 17. Economic and monetary union
• 18. Statistics

• 19. Social policy and employment
• 20. Enterprise industrial policy
• 21. Trans-European networks
• 22. Regional policy structural funds
• 23. Judiciary fundamental rights
• 24. Justice, freedom security
• 25. Science and research
• 26. Education and culture
• 27. Environment
• 28. Consumer and health protection
• 29. Customs union
• 30. External relations
• 31. Foreign, security and defence policy
• 32. Financial control
• 33. Financial and budgetary provisions
• 34. Institutions
• 35. Other issues

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EU Pre-Accession Assistance
What does the EU do to help Turkey on the way to
accession?
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EU Pre-Accession Assistance so far
Total 166 million EUR spent on 15 projects
Main objective of the Organic farming project is
alignment to the acquis
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From 2007 IPA

• Instrument for Pre-Accession Assistance

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What is IPA?

• An integrated Pre-Accession Instrument to assist
  candidate (Turkey, Croatia, FYRoM) and potential
  candidate (Western Balkan countries)
• Replaces 5 different programmes and instruments
  Phare, ISPA, SAPARD and Turkey pre-accession
  instruments, as well as the CARDS instrument
• Financial envelope (200713) 11.468 billion

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What is the structure of IPA?

• Five components
• Transition Assistance and Institution Building
• Regional and Cross-Border Co-operation
• Regional Development
• Human Resources Development
• IPARD IPA Rural Development

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Component V - IPARD

• Decentralized Management
• Full financial responsibility conferred to the
  candidate country
• National accreditation and monitoring of the
  accredited agency
• Commission approval by conferral of management
  decisions
• Monitoring and ex-post control by the Commission

Where and on what the money is spend is up to
Turkey
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Financial Envelope Turkey
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Financial Envelope Turkey
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IPARD Objectives

• Contribution to the implementation of the acquis
  communautaire concerning the Common Agricultural
  Policy and related policy areas by the candidate
  countries
• Contribute to sustainable development of rural
  areas in the candidate country

gt The objectives are to be met by implementation
of 9 different measures under 3 priority axis
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IPARD Priority Axis

• Axis 1 Improving Market Efficiency and
  Implementation of Community Standards
• Axis 2 Preparatory actions for implementation of
  the agri-environmental measures and Leader
• Axis 3 Development of the Rural Economy

gt Priority Axis equivalent to the axis under EU
rural development regulation 1698/2005
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IPARD Measures
Axis 1 - Improving Market Efficiency and
Implementing Community Standards

• Investments in agricultural holdings to
  restructure and upgrade to the EU standards
• Investments in processing and marketing of
  agriculture and fishery products to restructure
  and upgrade to the EU standards
• Supporting the setting up of producer groups

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IPARD Measures
Axis 2- Preparatory actions for implementation of
the agri-environmental measures and Leader

• Preparation for implementation of actions
  relating to environment and the countryside
• Preparation and implementation of local rural
  development strategies

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Axis 3 - Development of the Rural Economy
IPARD measures

• Improvement and development of rural
  infrastructure
• Development and diversification of rural economic
  activities
• Training
• Technical assistance

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Next steps
Establish the IPARD agency in Turkey IPARD agency
law adopted by parliament on 15 March Turkish
authorities draft the IPARD programme TR submits
IPARD programme to EU for approval IPARD agency
gets accredited by national audit and EU IPARD
agency starts work and accepts project proposals
from farmers and processors (End 2008)
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Some conclusions

• Organic agriculture is at the heart of EU rural
  development policy
• Rural development policy is a key instrument to
• Meet EU standards
• increase competitiveness
• Increase employment opportunities in rural areas
  (agriculture and diversification)
• The EU supports Turkey with IPARD in the field of
  rural development
• IPARD is designed as a twin to the EU rural
  development policy in order to prepare for
  accession
• Rural development policy is stakeholder driven gt
  without feasible project applications there will
  be no impact

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Some conclusions

• Organic farming has great potential in Turkey,
  both for expanding export and local market (still
  less than 1 of area)
• Regulatory framework has proved an important
  factor in the EU for the expansion of organic
  farming gt the same is true for Turkey
• Turkish Organic Farming Law (2004) after adoption
  of the 2005 by-law is largely in line with the
  previous EU regulation. High level of alignment
• Further efforts are needed to update to the new
  Regulation 834/2007

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Some conclusions

• Meeting EU standards is not easy, but it will
  increase international competitiveness of Turkish
  agriculture and food industry
• A more competitive agriculture will benefit
  consumers
• The role of organic farming in rural development
  has to be defined by Turkish stakeholders

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TESEKKÜR EDERIM
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Co-financing principle Rural Infrastructure
for investments not of a nature to generate
substantial net revenue
National contribution 25 of public aid
EU contribution up to 75 of public aid
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Co-financing principle
Public aid up to 50 of total eligible costs of
the investment
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New Instrument

• IPA Council Regulation (EC) No 1085/2006 adopted
  on 17 July 2006
• A unified Pre-Accession Instrument to assist
  candidate and potential candidate countries
• Replaces Phare, ISPA, SAPARD and Turkey
  pre-accession instruments, as well as the CARDS
  instrument
• Financial envelope (200713)
• 11.468 bio (current prices)

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Regulatory framework

• IPA
• Council Framework Regulation
• (EC) No 1085/2006 of 17 July 2006 (OJ L 210 of
  31 July 2006)
• Commission Implementing Regulation
• (adoption expected early 2007)
• Building on lessons learned
• Single legal base more coherence and
  co-ordination in assistance, as well as targeted
  and more efficient assistance
• Single implementing regulation harmonisation of
  implementing procedures to the maximum possible
  extent

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Structure of IPA

• Candidate countries
• 5 components to help countries to
• Adopt and implement the acquis
• Prepare for EU funds on accession
• Five components
• Transition Assistance and Institution Building
• Cross-Border Co-operation
• Regional Development
• Human Resources Development
• Rural Development

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General implementation framework

• Political and Financial Framework Multi- annual
  Indicative Financial Framework (MIFF), per
  country and per component, 3- year rolling
  forward, included in enlargement package.
• Strategic planning Multi-annual Indicative
  Planning Documents (MIPD), per country and for
  all components, following the logic of the MIFF.
• Specific programming by country and by component
  Rural Development Programme

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General implementation framework

• A.
• B.
• C.

ENLARGEMENT PACKAGE, including Multi-annual
Indicative Financial Framework MIFF by country
and by component
Multi-annual Indicative Planning Document by
country for all relevant components
Comp I
Comp II
Comp III
Comp IV
Comp V
National or Horizontal Programme
Joint Programme
Operational Programme/ Large project
Operational programme
Rural Development programme
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Multi-annual Indicative Financial framework

• Part of the enlargement package
• Financial translation of the overall priorities
  identified within the pre- accession political
  framework
• Breakdown of financial envelope by horizontal
  programmes, country and component, administrative
  expenditure
• Established for a 3 year period
• on a rolling forward basis

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MIPD - Strategic Guidance Document (for IPARD)
Multi-annual Indicative Planning Document

• Describes the current situation, major
  intervention areas, main priorities / objectives,
  expected results time frame, forms of
  assistance and financial indications
• Defines the key priorities for the next 3 years
  CORNERSTONE of IPA implementation
• Identifies the complementarities between the IPA
  components (for component V in particular
  component III Regional Development and component
  IV Human Resources Development)
• Identifies possible complementary programmes
  financed by other international organizations
• Prepared by the Commission, in close consultation
  with the beneficiary country and relevant
  stakeholders
• Submitted to IPA management Committee
• for opinion

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MIPD Guidance on IPARD Priorities /Objectives (1)
Turkey

• Priorities to be covered by IPARD ( axis 1)
• Investments in agricultural holdings to
  restructure and upgrade to the EU standards
• Investments in processing and marketing of
  agriculture and fishery products to restructure
  and upgrade to the EU standards
• Recommendation Investments mainly to
  concentrate on dairy
• and meat sectors
• Justification Upgrading these sectors to the EU
  standards is quite
• demanding. IPARD should address the structural
  shortcomings detected
• in the sectors in the required sector studies

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MIPD Guidance on IPARD Priorities/Objectives (2)
Turkey

• Priorities to be covered by IPARD (axis 3)
• Development and diversification of the rural
  areas by creation of alternative employment
• Priorities to be covered by IPA component III
  Regional Development, national sources and IFI
  support
• Development of Rural Infrastructure
• Priorities mainly to be covered by IPA component
  IV
• Training (only in particular cases to be covered
  by IPARD component)

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MIPD Guidance on IPARD Priorities/Objectives (3)

• The priorities under Axis 2
• Support to the implementation of the
  agri-environment measure and
• Preparation and implementation of a Leader type
  measures
• are not envisaged for implementation in the first
  3 years so
• that the limited resources available under the
  IPARD component
• can be concentrated in the areas (axis 1 and axis
  3) to achieve the greatest possible impact and to
  allow for the necessary capacity building process
  (mainly under component 1)

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Programming level

• MIPD supplemented by detailed annual or
  multi-annual programmes (IPARD), depending on the
  component
• Programmes established per component by Turkey
  and submitted to the Commission for approval

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Next steps

• MIFF 2007 2008-2010 presented with enlargement
  package on 8 November 2006
• Implementing regulation expected to be examined
  in IPA committee December 2006, adoption early
  2007
• Strategic planning per country, all components
  MIPD expected to be submitted to IPA Committee
  early 2007
• Specific programming per country, per component
  programmes expected mid 2007

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