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Policy Options for Open Borders in Relation to Animal and Plant Protection and Food Safety

Policy Options for Open Borders in Relation to Animal and Plant Protection and Food Safety. Maury Bredahl Spencer Henson. Outline. Sanitary and phytosanitary measures Are SPS measures a problem? Overcoming trade effects of SPS measures Problems with negotiations Implications.

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Policy Options for Open Borders in Relation to Animal and Plant Protection and Food Safety

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  1. Policy Options for Open Borders in Relation to Animal and Plant Protection and Food Safety Maury Bredahl Spencer Henson

  2. Outline • Sanitary and phytosanitary measures • Are SPS measures a problem? • Overcoming trade effects of SPS measures • Problems with negotiations • Implications

  3. Cumulative Notifications of SPS Measures to WTO, 1995-2001

  4. Voluntary Standards • Product compatibility • Closely related to consumer preferences • Compliance with mandatory standards • De facto mandatory

  5. Are SPS Measures a Problem within NAFTA? • Incidence data • Border detention data • Specific examples

  6. Incidence of SPS Measures, 2000 • Incidence of SPS measures high for agricultural and food products • Differences in types of SPS measures applied and product coverage by country • High incidence of multiple measures applied to single tariff lines • Problems of differences in definitions and taxonomies between countries

  7. US Border Detentions by Product, 2001

  8. US Border Detentions by Reason, 2001

  9. US Imports of Avocados, 1991-2000

  10. Overcoming Trade Effects of SPS Measures Co-ordination Mutual Recognition Harmonisation

  11. NAFTA AgreementChapter 7 • ‘Appropriate level of protection’ • Justification: • Scientific principles • Risk assessment • Harmonisation • Equivalence • Regionalisation • Transparency

  12. NAFTA Committee on Sanitary and Phytosanitary Measures • Enhancement of food safety/SPS conditions • Activities pursuant to international standards and equivalency • Technical co-operation • Consultation on bilateral issues

  13. NAFTA Committee on Sanitary and Phytosanitary Measures, 1994-99 • Party: • Mexico: 14 • United States: 5 • Canada: 1 • Type of measure: • Plant health: 10 • Food safety: 6 • Animal health: 4

  14. Technical Working Groups • Animal health • Dairy, fruits, vegetables and processed foods • Fish and fishery product inspection • Food additives and contaminants • Packaging, labelling and food standards • Meat, poultry and egg inspection • Pesticides • Plant health, seeds and fertiliser • Veterinary drugs and feeds • NAPPO

  15. Co-ordination • FDA/CFIA Action Plan on Food Safety • Principles for mutual support in animal health emergencies • Joint US-Canada review of pesticides • Co-ordination of positions in Codex: • Committee on Food Additives and Contaminants • Committee on Residues of Veterinary Drugs in Food

  16. Mutual Recognition • US-Canada MRA on seafood inspection • US-Canada equivalence agreement on molluscan shellfish inspection programme • Equivalency of greenhouse certification • Recognition of accredited laboratories for seed certification • US recognition of Mexican poultry slaughter system

  17. Harmonisation • US-Canada potato grading scheme • US-Canada food additives regulations • Policies on BSE and TSEs • Data requirements for residue chemistry, seed treatments, terrestrial food uses etc. • US-Canada nutrition labelling and nutrient content claims regulations • Japanese beetle regulations

  18. Constraints • Competency • Trust • Science • ‘Appropriate level of protection’ • Traditions • Regulators

  19. Impact of NAFTA / WTO Dispute settlement V Policy-making

  20. US Potato Imports from Prince Edward Island (PEI) • Justified? • Settled quickly? • Less likely to happen in future?

  21. Problems with Negotiations Relating to SPS Measures • SPS capacity • Assessing the impact of SPS measures • Institutional factors: • Fragmentation of responsibilities • Expertise • Agendas • Inter-agency negotiations • Trade issues V domestic policy objectives • Minute detail matters

  22. SPS Capacity in NAFTA Countries

  23. Problems with Negotiations Relating to SPS Measures • SPS capacity • Assessing the impact of SPS measures • Institutional factors: • Fragmentation of responsibilities • Expertise • Agendas • Inter-agency negotiations • Trade issues V domestic policy objectives • Minute detail matters

  24. Implications • SPS measures a major issue for exporters • Problems assessing the impact of SPS measures • Negotiations are time consuming and costly • Need for institutional development and reform • Need for system-based approaches • Risk assessment: ‘Trading science’ • Importance of SPS capacity • Role of domestic pressure

  25. Implications • Are penalties adequate? • Reward v penalty-based system • Role for private certification?

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