Food

1
Food Agri Exporters Conclave

• September 9, 2009
• ASSOCHAM House, New Delhi

2
Challenges of Global Food Regulations for Indian
Exports

• Presentation by
• K. Gupta
• Advisor (WTO)
• Agricultural and Processed Food Products
• Export Development Authority (APEDA)
• Ministry of Commerce Industry
• Govt. of India, New Delhi
• Email advisorwto_at_apeda.com

3
Trade Liberalisation

• Substantial liberalization in trade in goods and
  services under multilateral processes over five
  decades, earlier under the aegis of GATT and now
  WTO
• Tariffs are being reduced/eliminated, yet
  developing countries like ours face several
  problems in exports to developed countries.

4
Barriers and Distortions

• According to estimates by World Bank economists,
  non-tariff barriers, including other distortions
  such as subsidies, price control measures and
  technical standards, make up 70 per cent of all
  global barriers to trade.
• Such hurdles are twice as high for agriculture as
  for manufacturing,
• Rich countries use such barriers at maximum
  against middle low income economies.

5
Agreement on Agriculture

• Deals mainly with three broad areas
• Export subsidies
• Domestic support
• Market access

6
Protection of Human, Animal or Plant Life or
Health

• There are two specific WTO agreements dealing
  with food safety and animal plant health
  safety, and with product standards.
• - The SPS Agreement
• - Agreement on TBT

7
SPS AgreementRights and Obligations

• Allows countries to set their own standards.
• But it also says regulations must be based on
  science. They should be applied only to the
  extent necessary to protect human, animal or
  plant life or health.
• And they should not arbitrarily or unjustifiably
  discriminate between countries where identical or
  similar conditions prevail.

8
Main Issues under SPS Agreement

• Harmonization by Members of their standards with
  international standards (Article 3)
• Equivalence (Article 4)
• Determination of the Appropriate Level of
  Protection risk assessment using techniques
  developed by the relevant international
  organisations (Article 5)
• Pest/Disease Free Areas and Areas of Low
  Prevalence (Article 6)
• Technical Assistance (Article 9) and SD
  Treatment (Article 10)

9
Agreement on TBT

• It encourages promotion of international
  standards and conformity assessment procedures
• Also tries to ensure that regulations, standards,
  testing and certification procedures do not
  create unnecessary obstacles.
• Covers all products industrial and agricultural
  and applies to measures other than SPS

10
Issue of Voluntary and Private Standards

• Imposition of voluntary international standards
  such as ISO 14000 on environmental management
  systems not only restricts market access, until
  the industry upgrades itself, but also leads to
  high cost of implementation
• The standard on Social Accountability, SA 8000
  dealing with working conditions offering better
  quality of life to workmen and other
  socio-economic issues can limit imports on
  alleged violation of any of these parameters
• Private standards and labels like EUREPGAP

11
SPS Measures and Other Technical Barriers Faced
by APEDA Products
12
SPS IssuesHarmonization

• European Communities
• - MRLs for pesticides and anti-biotics etc.

13
SPS IssuesEquivalence

• European Communities
• Delay in approval of egg products manufacturing
  units

14
SPS IssuesDelay in Equivalence

• European Communities
• Meat and meat products
• China
• Fresh fruits and vegetables
• Japan
• Mangoes (VHT) protocols
• Grapes

15
TBT Issues

• European Communities
• Definition of whiskey (CN Code)
• Japan
• Cut flowers
• Non acceptance of Conformity Assessment
• Procedures by Developed Countries

16
Growth in Food Processing Exports to lead the
Way

• Alignment of the food-processing sector to the
  requirements of the international markets would
  lead to induction of new technology.
• Adoption of the international quality and safety
  standards is essential

17
Standards and other technical requirements would
decide the direction of exports

• While the Government will have to continue to
  encourage grading, standardization, setting up of
  world-class testing facilities, accreditation of
  laboratories etc.
• The industry must speed up the process of
  adoption of Good Manufacturing Practices and
  quality management systems.

18
Importance of Backward Linkages

• Role of private extension is increasing
  particularly for adoption of suitable varieties
  by growers
• Contract farming and direct purchases lead to
  improvement in the quality of raw materials
• Traceability

19
Thank You