ECE Working Party on Regulatory Cooperation and Standardization Policies

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Voluntary Environmental Standards for Global
Markets
Pro-active Role of Governments
ECE Working Party on Regulatory Cooperation and
Standardization Policies Geneva, 3-4 November
2008 Presented by Ulrich HOFFMANN UNCTAD
secretariat
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Market Importance of VSS

• VSS are of key importance for Market ENTRY and
  sustainable developmt
• Unless pro-actively addressed SS can become a
  serious market entry hurdle.
• Real developmental opportunities exist in the
  light of strong dynamics in markets for
  sustainably produced products, which generally
  expand much faster than conventional
  agricultural markets.
• Average Annual Rate of Growth of Key SS
  Markets (2004-2006)

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Three Key Paradoxes
1. SMEs and small farmers whom governments and
donors most want to help are those who may be the
least able to manage the changes required to meet
the requirements of voluntary sustainability
standards (VSS) 2. VSS are seen by most key
policy makers as a technicality, not a strategic
policy issue of - cost internalization - promot
ion of sustainable production and
consumption - sustainable competitiveness in
lucrative markets 3. Fear that sustainable
governance related to VSS might undermine the
hard-won improvements in market access through
the TBT SPS Agreements (e.g. food-miles)
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Some Key Concerns
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• Quite often, several VSS are required for
  effective market entry (e.g. organic, fairtrade,
  GlobalGAP) -- disproportionate costs,
  marginalization of SMEs
• Lack of interoperability of VSS
  harmonization/equivalence are concepts rather
  than practically applied tools (exceptional
  example ITF equivalence tools)
• The higher the level of harmonization/equivalenc
  e, the higher the incentive to break away,
  creating new standards or using standards ..
  approaches
• Private VSS often used as part of market
  differentiation and competitiveness instrument
  may have implications on standard governance and
  market domination
• Governments might support the objectives and
  even the application of VSS, but often there is
  policy incoherence (e.g. perverse subsidies, land
  tenure/ownership system, fiscal measures,
  extension services etc.)
• Due recognition of the fact Many producers do
  not lack the will but the capacity to use and
  comply with VSS

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Regional Issues

• In East and South-East Asia, ¾ of horticultural
  export is intra-regional trade
• Regional cooperation on harmonization and
  equivalence of SS is thus very important
• Another Example East African Organic Products
  Standard (EAOS) - Kenya, Tanzania and Uganda,
  later joined by Burundi and Rwanda or the
  Pacific Organic Standard.
• Sub-regional cooperation in building
  infrastructure for accreditation and
  certification, testing (e.g. laboratories)

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Importance of Direction of Trade and VSS
Share of FFV exports from / to EU-15 Asia US Canada Latin America Africa
Asia (Malaysia, Thailand, Vietnam) 10 70 10
Latin America (Brazil, Argentina, Costa Rica) 48 30 20
Africa 69 2 2

• For Asia, intra-Asian trade is the most important
  export market.
• In Latin America, exports to the EU and North
  America are important. Intra-LA trade is only
  important for Argentina (almost 50 of total
  exports).
• Export dependency is highest in Argentina and
  Costa Rica. Domestic-market concerns play a more
  important role in the other countries.

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Role of Governments on Private Voluntary
Sustainability Standards
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Surveillance, Supportive and Facilitating Role
Facilitating Investment
Devising flanking/support policies
Govern. / St-setting
Assuring policy coherence
Facilitating stakeholder dialogue
Capacity Weaknesses
- facilitating and engaging in stakeholder
dialogue on development impl of PVS

• among gov agencies dealing with PVS
• between public priv requirements (e.g.
  perverse incentives)
• towards donors

• Transparency, Inclusiveness, legitimacy, trade
  restrictiveness
• - Anti-trust
• Assuring coherence between mand PVS
• Facilitating interoperability between PVS

• - awareness raising/ training
• financial support
• Info instruments/ independent evalt of PVS
• SME supprt

- in physical infrastructure - in SMTQ systems
institutions - directing donor funding accordingly
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For more detail on governmental role
Conclusions and Recommendations of the Workshop
on Making Sustainability Standards Work for
Small-scale Farmers www.unctad.org/trade5Fenv/mee
ting.asp?MeetingID249
UNCTAD Consultative Task Force on Environmental
Requirements and Market Access for Developing
Countries (CTF) Analysis of trade and
developmental impact of VSS
www.unctad.org/trade_env