U.S.-EU Organic Equivalency Arrangement Webinar

1. U.S.-EU Organic Equivalency Arrangement Webinar April 19, 2012 Jake Lewin Chief Certification Officer CCOF Certification Services, LLC

2. How to Participate Today • Open and close your Panel • View, select, and test your audio • Submit text questions • Raise your hand • Q&A breaks • Slides will be available at the end of today’s webinar

3. Agenda • U.S.-EU Equivalency Agreement • Details, timing, changes Break for questions • What it means to you • CCOF GMA program changes Break for questions • EU Labeling 101 • Next steps and final questions

4. What is the Arrangement? • Landmark recognition by both governments of each other’s organic standards. • Eliminates minor differences. Standards recognized as equivalent, not identical. • The United States will allow European products produced and certified under EU Organic Program to be marketed as “organic” in the U.S. • The EU will allow products produced and certified under USDA’s National Organic Program to be marketed as “organic” in the EU. European Commissioner DacianCioloş, U.S. Deputy Secretary of Agriculture Kathleen Merrigan, and Ambassador Isi Siddiqui, U.S. Trade Representative’s Chief Agriculture Negotiator

5. Previous Multi-Standard Certification System

6. Under U.S.-EU Equivalency Standards are equivalent. Only may need supplier verification for apple and pear products/ingredients. NOP Certification & Labels Export Doc.

7. Details U.S. Import Requirements EU Import Requirements No antibiotics in organic apple and pear production No antibiotics in organic livestock production Standards: Documents: Labeling: Import certificates Import certificates Compliance with EU organic labeling requirements Compliance with U.S. organic labeling requirements

8. Timing • February 15, 2012 Signing and exchange of letters • May begin certification/verification immediately • June 1, 2012 Trade begins under the arrangement • June 1, 2015 • EU and U.S. to revisit arrangement for areas of improvement and possible elimination of the import certificate requirements

9. Market Changes? • Flow of multi-ingredient products in both directions • Far easier for small, medium and large farms and processors • Improved access to ingredients for formulations • Ingredients can come from anywhere as long as processed/labeled in US-EU • Use of EU logo and certifier number expands access to EU retail market • Whole new ball game!

10. Break for Questions

11. What it Means to You

12. Exports by CCOF Operations

13. Regulatory Barrier Eliminated. Now What? • New CCOF programs • Meet standards of home country • Understand and meet labeling of destination country • Explore market opportunities • Consider market support and development programs • USDA, OTA, etc. • Trade missions

14. What it Means to You • Lower fees • Shorter inspections • Imports: Greater access to EU certified ingredients • Potential full or partial withdrawal from CCOF Global Market Access program • CCOF operations will save time, hassle and up to $250 in certification fees. • CCOF leadership with Canada agreement reduces paperwork • CCOF will encourage withdrawal from program where no longer needed

15. Changes to CCOF Programs • Full Global Market Access program may not be necessary • All CCOF international programs modified to meet new needs • Full descriptions, manuals, applications etc. online at www.ccof.org/international.php and www.ccof.org/eu.php

16. How it Will Work CCOF GMA program split into two new programs: • CCOF Global Market Access (GMA) program applies where U.S. has entered in to export or equivalency agreements • Japan, Taiwan, Canada, EU • $125 per market verification for EU, Canada, or Japan • CCOF International Standard applies where CCOF has received direct equivalency from a foreign body • Switzerland • EU export from outside U.S.

17. CCOF GMA Program • Modified to per market à la carte program to reduce client work and reduce costs • For exports to regions where U.S. government has agreement/arrangement with foreign governmental body: • Japan (MAFF): NO CHANGES • Taiwan: NO CHANGES • Canada: ONE SMALL CHANGE • Ruminants no longer have to meet stocking densities for livestock products due to U.S. implementation of Pasture Rule • EU: BIG CHANGES

18. What the GMA Program Provides Now • Review level verification instead of inspection process • Foreign market label review • Foreign standards and market updates • Verification of supply chain where needed for Canada, EU, other markets • Certificates demonstrating U.S. agreement compliance if required by a market, buyer, or certifier • Canada attestation statement

19. You Need GMA Enrollment if: • Want to maximize market opportunities and ensure your products will be accepted by most foreign markets and buyers • Sell CCOF certified organic products to any buyer who requires international verification certification. • Export to the EU or Japan from the U.S. • Export to Canada from any location.

20. You Need GMA Enrollment if: • Grow any crop exported to Japan by someone else. • Grow apples or pears that are exported or used in products that are exported to the EU. • Make products containing apple or pear ingredients that are exported to the EU.

21. You Need GMA Enrollment for Canada if: • A little complicated but reduces paperwork, effort, and expense for all CCOF operations • Grow crops that appear on CCOF’s list of high risk crops (see www.ccof.org/canada.php) that are exported to Canada or used in products that are exported in Canada. • Examples include: carrots, potatoes, or leafy greens • Make products containing ingredients that come from crops that are on CCOF’s list of high risk crops (see www.ccof.org/canada.php) • CCOF only requires Canada documentation where there is a risk, chilean nitrate use, or hydroponic production for that ingredient.

22. You do NOT Need GMA if: • Check with your buyer first. Do they need certifier verification for a foreign market? • You maintained GMA with CCOF for Europe only but are not a direct exporter. • You grow crops, other than apples and pears, which are exported by someone else to the EU. • Example: walnuts shipped to Germany • Grow crops, other than apples and pears, which are used as ingredients in products exported by someone else to the EU. • Example: rice grown for syrup for sale in France

23. You do NOT Need GMA if: • You grow crops that are not on the CCOF list of high risk crops and are exported directly or as ingredients to Canada. • Examples include: walnuts, rice, grains

24. You Need CCOF International Standard Program If: • Export to Switzerland from any location • Are located outside the United States and are exporting to the EU directly • CCOF EU approval will be final July 1, 2012. • Export licenses no longer required. • But…additional standards remain an issue outside of the US for direct shipments

25. Next Steps for CCOF Clients • CCOF has already reduced inspection burden and certification issues • Explore markets • Talk to CCOF and buyers • Withdraw from GMA program by Oct 1, 2012, to avoid 2013 billing • Letter to all CCOF GMA Clients soon. • Complete bottom portion and return it to CCOF:

26. Break for Questions

27. EU Labeling 101& Next Steps

28. EU Labeling 101 • Certifier logos and USDA seal OK • May use EU logo, not required • Must say “non-EU Agriculture” or ID a specific country • Certifier ID/Control # required on all products • Must be next to logo if used • “Organic” claims only: 100% and Made With Organic are not used in EU. • Wholesale boxes and/or accompanying documents must contain: • Name and address of certified operation • Name of product and organic designation • Certifier’s control number

29. Next Steps… • Global Market Access program reworked to reduce inspection and certification costs while providing thorough international label review • NEW international section at www.ccof.org, including EU and Canada labeling guides • GMA withdrawal letter coming soon • Explore until June 1, 2012 • Can accept EC 834/2007 certifications for ingredients/products from EU • Get export document for all outgoing shipments • Submit all EU labels to CCOF. Must still be approved as part of Organic System Plans

30. More Information • CCOF: www.ccof.org • NOP website: www.ams.usda.gov/nop • OTA: www.ota.com • USDA Foreign Ag Service GAIN report

31. Thank You For Attending Jake Lewin export@ccof.org