International Standards in the Multilateral Trading System

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International Standards in the Multilateral
Trading System

Fruit and Vegetables for the Fresh Market
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International Standards in the Multilateral
Trading System

• German Federal Agencyfor Agriculture and Food
• Section Marketing Standards and
  InspectionUlrike Bickelmann

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International Standards in the Multilateral
Trading System

• Why marketing standards for fruit and
  vegetables?

• f v grow naturally

• quality is influenced by cultivation, harvest,
  storage, handling and transport conditions

• trading volume price influenced by quality

• producers traders grade their produce
  to best serve the market

• standards serve as a trading language

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International Standards in the Multilateral
Trading System

• Positive effects of standards

• technical definition of quality parameters

• labelling as a reference (address, country of
  origin, quality class )

• reliability credibility profitability
  increased

• contract without personal inspection by the
  buyer

• transparency in the market

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International Standards in the Multilateral
Trading System

• Multiplication of positive effects

company (producer, trader)
region (producer association)
country (national standard)
two countries or more (international
standard)
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International Standards in the Multilateral
Trading System

• Negative effects of national standards

• valid for one country only

• exporters have to meet the national standards
  of the different importing countries

• importing countries should accept multiple
  export standards

• trade is complicated and paved with
  conflicting regulations

• barriers to trade established in national law

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International Standards in the Multilateral
Trading System

• Negative effects of national standards

National standards for potatoes Class I Class
II Out of grade Germany 31 8 51
Germany (disc) 6 32 62 Austria 72
11 17
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International Standards in the Multilateral
Trading System

• Positive effects of international standards

• developed and agreed by exporting and importing
  countries

• technical barriers to trade avoided

• market transparency increased

• competition based on uniform minimum standards

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International Standards in the Multilateral
Trading System

UN/ECE United Nations - Economic Commission for
Europe
Committee on Trade
Working Party on Agricultural Quality Standards
Dry and Dried Fruit
Seed Potatoes
Meat
Fresh Fruit and Vegetables
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International Standards in the Multilateral
Trading System

• Why UNECE Standards?

• to define a common trading language

• to fill the gap between food safety regulations
  and marketing

• to define commercial quality for foodstuffs

• to encourage high quality production

• to protect consumers interests

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International Standards in the Multilateral
Trading System

Process of elaborating a standard
Rapporteur prepares/amends text
Specialized Section discusses text in detail
Specialized Section and Working Party agree to
create/amend a standard
Working Party discusses text in general
UN/ECE Standard
UN/ECE Recommendation for a 21 year trial
period
http//www.unece.org/trade/agr/welcome.htm
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International Standards in the Multilateral
Trading System

• UNECE Standards enshrined in EU legislation

• Council Regulation (EC) No 2200/96 on
  the common organisation of the market in fruit
  and vegetables

• classification using common obligatory
  standards provides a reference framework
  that
• encourages fair trading and market transparency
• eliminates products of unsatisfactory quality
  from the market
• helps to improve the profitability of production

• standards take into account UNECE standards

• standardisation can only be fully effective
  when applied, subject to exemption, at
  all marketing stages and on departure from the
  production region

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International Standards in the Multilateral
Trading System

• European Union Marketing Standards

ApplesAvocadosCherriesCitrus fruit (oranges,
lemons, mandarins)Hazelnuts in
shellKiwifruitMelonsPeaches and
NectarinesPearsPlumsStrawberries Table
grapesWatermelonsWalnuts in shell

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International Standards in the Multilateral
Trading System

• European Union Marketing Standards

ArtichokesAsparagusAuberginesBeansBrussels
SproutsCarrots Cauliflower CourgettesCucumbers
Cultivated MushroomsGarlicHeaded
CabbagesLeeksLettuces and Endives
OnionsRibbed CeleryPeasSpinachSweet
PeppersTomatoesWitloof Chicory

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International Standards in the Multilateral
Trading System

• European Union Marketing Standards

I. Definition of produce II. Provisions
concerning quality - Minimum requirements -
Maturity requirements - Classification III. Pro
visions concerning sizing IV. Provisions
concerning tolerances V. Provisions concerning
presentation VI. Provisions concerning marking

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International Standards in the Multilateral
Trading System

• European Union Marketing Standards

Class Extra
Class I

Class II
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International Standards in the Multilateral
Trading System

• European Union Marketing Standards

packer/dispatcher name of produce -
variety/commercial type country of origin quality
class size

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International Standards in the Multilateral
Trading System

• European marketing standards

• obligatory in all member states

• obligatory at all marketing stages (including
  import and export)

• conformity checks
• in accordance with Regulation (EC) no. 1148/2001
• at all levels of distribution
• based on risk analysis and sampling
• resentment based on national law of the member
  states

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International Standards in the Multilateral
Trading System

• Import Inspection in Germany - 2005

35,062 lots 129,376 tons of which 3
rejections because of labelling deterioration
physiological defects skin defects cleanliness
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International Standards in the Multilateral
Trading System

• Thank you for attention!