legal frameworks: existing statuses, lessons, and the way ......2/22/18 4 partnership for enabling...
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Legal Frameworks: Existing Statuses, Lessons,
and the Way Forward Katrin Kuhlmann (New Markets Lab) on behalf of the PEMEFA team
Academic Affiliations: Lecturer on Law, Harvard Law School Adjunct Professor, Georgetown University Law Center
IFDC Workshop on “Developing Private Sector Agro-Input Markets: Lessons Learned and Emerging Perspectives on Subsidy Programs”
22 February 2018 – Jinja, Uganda
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
About the New Markets Lab • Non-profitlawanddevelopmentcenterfocusedontheintersectionbetweenlaw,economicdevelopment,entrepreneurship,andsocialimpact• Programswithadiversesetofpartnersaroundtheworlddesignedtoleveragelegalsystemsinsectorswithgrowthpotential(agriculture–includingfertilizerandseed,services,technology)thatareheavilyregulated• Setofinterventionsandtoolstoimproverulesonpaperandtheirimplementationinpractice• Buildmarketcapacitythroughhands-ontrainingforlawyersfromaroundtheworld
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Gaps in the Enabling Environment • InformationGap:
• Enterpriselevel(manyenterpriseslacklegalresources)• LegalSector(marketrulesspanjurisdictionsandlegalsystems;agriculturallawnotafocus)• PublicSector(notalwaysawareofmarketneeds)
• ImplementationGap:Significantdifferencesexistbetweenlawsonthebooksandlawsinpracticeatnationalandregionallevels• RuleofLawGap:Bestpracticesandmodelsshoulddrawfromdevelopingcountries’experiences;customizedandincrementalapproachnotcommon• ScaleGap:Issuesaddressedoncase-by-casebasiswithoutimpactingsystemasawhole
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
• ApproachLawandRegulationasSystem• Designregulatorysystemtoencouragemarketinnovationandgrowth• Focusonimplementationgap• Highlightpriorities,tradeoffs,andsequencingforpolicymakers• Benchmarkagainstgoodregulatorypractices
• InnovatethroughHumanCenteredDesignSolutionsandTrainLawyers• Reduceriskinthemarket,lowertransactioncosts,andmakeregulatoryprocessesmoretransparentandinclusive
• Trainlawyersacrossnationalsystemstobuildcapacityandenhancepotentialforregionaltrade
• Uselegaltools(LegalGuides,SystemsMaps,CaseStudies)toengagepublicandprivatesectorstakeholdersinlegaldesignandimplementation
NML’s Methodology
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Examples of NML’s Work • Setofprogramsfocusedonsectorscriticaltodevelopmentandheavilyregulated• Agriculture(standards,seeds,fertilizer)• Services(ICT,financial,andtransport)• Technology(IP)• E-Commerce• EmergingIndustries
• SeedRegulationExample• Testcasesto“pressuretest”newregulations• Regionalimplementationcasestudies• TanzaniaSAGCOTexample:AGRA/USAID
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Objectives • Understandingandinterpretingcurrentregulatoryframeworks• Commonchallenges,regulatorytradeoffs,andgapsinimplementation
• Linkingregulationwithadvocacyatnationalandregionallevels• Identifyingprioritiesfordraftingandrevisingfertilizerregulatoryframeworks(nationalandregionallevels)
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
NML Partnership with AFAP (Since 2016)
• AGRASSTP/USAID• StrengthenUnderstandingofKeyComponentsofaHarmonizedPolicyandRegulatoryFrameworkforEastandSouthernAfrica(Malawi,Mozambique,Ethiopia,&Tanzania)
• ConsolidateandDisseminateComprehensiveKnowledgeofthestatusoffertilizerpoliciesandregulationsØ NationalstakeholderconsultationsØ Reviewedexistingfertilizerpolicies,standardsandregulationsØ ComparativeanalysisofcurrentpolicystatusversusamodelframeworkØ RecommendedrequirementsforastrongnationalfertilizerregulatorysystemØ Policyandregulatoryreformagendatocreateanenvironmentthatismoreconducivetoopenmarketsandregionalharmonization
Ø LegalandRegulatoryGuides
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Good Regulatory Practices
• WellFunctioningNationalPolicy,Legal,andRegulatoryFrameworktoEncourageFertilizerMarketDevelopment• Typicallyframeworkconsistsofseveralinterconnectedinstruments:FertilizerPolicy,Law/Act,andRegulations• Countrieshaveamixofmeasures• Evenwhenexistmaybeoutofdatewithmarketdevelopments(forexample,fewaddressuniquenatureofbio-fertilizersandblends)
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Country CurrentInstruments InstrumentsUnderDevelopment
Ethiopia FertilizerManufacturingandTradeProclamationNo.137/1998;GrowthandTransformationPlan(GTPII);AgriculturalPolicyandInvestmentFramework(2010-2020);CommercialRegistrationandBusinessLicensingProclamationNo.686/2010;MoANRDirectivetoEstablishCriteriaforCompetenceCertificate
DraftFertilizerProclamation;DraftProclamationtoEstablishtheNationalFertilizerIndustryAgency(NFIA)
Malawi Fertilizers,FarmFeeds,andRemediesAct(FFRA)1973,asamended1996;NationalFertilizerStrategy(NFS),2012;MalawiGrowthandDevelopmentStrategy(MGDS);AgriculturalSectorWideApproach(ASWAp),2010
FertilizerActandRegulations(underdevelopmentsince2003;modified2007);FertilizerPolicy
Mozambique StrategicPlanofAgriculturalSectorDevelopment(PEDSA)(2010—2020);FertilizerStrategy,2012;FertilizerRegulation,2013
FertilizerAct
Tanzania FertilizerAct,2009(amended2014);FertilizerRegulations2011(amended2017),Fertilizer(BulkProcurement)Regulations,2017;NationalAgriculturalPolicy(NAP),2013;NationalFertilizerStrategy(NFS),2013
N/A
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Good Regulatory Practices Cont’d • IndependentFertilizerRegulatoryAuthorityestablishedthroughRegulationsunderthenecessarylegalauthority,skilledstaffandwell-equippedlaboratories• Autonomousbodytofacilitatestableandpredictableregulatoryenvironmentandfacilitatedevelopmentofandalignmentwithregionalmeasures• Example:TFRAinTanzania
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Good Regulatory Practices Cont’d • StreamlinedandSimplifiedRegistrationProcessforNewFertilizers
• Reducethenumberofseasonsoftestingandfees• Example:Tanzaniaamendedregulationsin2017(shortenedfrom3seasonsto1)
• Removetheregistrationrequirementsfornewblends• Shifttoexpostsystemovertimeratherthanexante(focusesonenforcementratherthanmarketentry)• Phase-outapprovedlistapproachforfertilizersandadoptatruth-in-labelingapproach• Example:ZambiaandSouthAfricamaintainalistofnutrientsasopposedtoalistoffertilizergrades
• Expostmeasuresareagoodregulatorypracticebutrequiresufficientcapacitytoimplement
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Prior Regulatory Process for Fertilizer Registration in Tanzania
Regulationsambiguousastodefinitionof“new”
ApplicantmustbeaTanzanianresidentorassignanagentwhoisapermanent
Tanzanianresident
Applicantcompletesapplication,whichincludes:(1)fertilizersample,(2)certificateofanalysis,(3)writtendeclarationfertilizerisnotbannedor
restrictedincountryoforigin,(4)3copiesoflabeltobeused,(5)informationonsuitability,(6)anyotherinformationordocumentrequiredbyTFRA,
and(7)applicationfeeofUSD50
ApplicantsubmitssignedapplicationtoTFRAforapproval
Testingforsuitabilityofknownandnewfertilizersandfertilizersupplementsmust
undergolabtestsbyTFRA.Newfertilizersandsupplementsmustbetestedvialabandfieldby
TFRAforatleast3consecutiveseasons
TFRAdeniesapplication
TFRAapprovesapplicationandgrantsregistration
certificatewithmaximumtermof2years
TFRAaddsnewfertilizerorfertilizersupplementtolistofapprovedfertilizersforuseinTanzania
ApplicantpaysfortestingbyTFRA,whichcostsapproximatelyUSD10,000/seasonoratleastUSD30,000total
[Renewal]
Season2Test Season3Test
Dealerregistration
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Amended Regulatory Process for Fertilizer Registration in Tanzania
Regulationsambiguousastodefinitionof“new”
ApplicantmustbeaTanzanianresidentorassignanagentwhoisapermanentTanzanianresident
ApplicantsubmitssignedapplicationtoTFRAforapproval
Testingforsuitabilityofknown&newfertilizersandfertilizersupplementsmustundergolabtestsbyTFRA.Newfertilizersandsupplementsmustbetestedvialab
andfieldbyTFRAforatleast1season
TFRAdeniesapplication
TFRAapprovesapplicationandgrantsregistration
certificatewithmaximumtermof2years
TFRAaddsnewfertilizerorfertilizersupplementtolistofapprovedfertilizersforuseinTanzania
ApplicantpaysfortestingbyTFRA,whichcostsapproximatelyUSD10,000/season
Applicantcompletesapplication,whichincludes:(1)fertilizersample,(2)certificateofanalysis,(3)writtendeclaration
fertilizerisnotbannedorrestrictedincountryoforigin,(4)3copiesoflabeltobeused,(5)informationonsuitability,(6)anyotherinformationordocumentrequiredbyTFRA,and
(7)applicationfeeofUSD50
[Renewal]
Season2Test
Season3Test
Dealerregistration
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Good Regulatory Practices Cont’d • EnhancedImplementationofExistingLegalMechanisms
• Expandcapacityandtraining(includingfocusonlaboratories,skilledstaff,equipment,traceabilitymechanism)andenforcement(withdeterrentpenaltiesforviolations)
• StrengthenedPublic-PrivateDialoguePlatformstoImproveRegulatoryFrameworksandTheirImplementation• AMOFERTinMozambique;TanzaniaFertilizerSociety• Mozambique’sAMOFERTPlatformisawell-recognizedforumonissuesrelatedtofertilizer,andparticipatedindraftinganewFertilizerActthatisunderreviewbytheMozambicangovernment
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Good Regulatory Practices Cont’d • AwarenessBuildingofLegalandRegulatorySystems• Addresschallengesthrough(1)improveddisseminationofinformation(LegalGuides),(2)assistanceforpreparingorinterpretinglegaldocumentslikecontracts,(3)providingtransactionallegalservicestoindividualsworkingwiththeagriculturalsector• Providetailoredlegaltrainingforfarmers,includingrightsandobligations• Designtrainingprogramforlawyerstoimproveoverallregulatoryenvironmentanddeliveryofagriculturallegalservicestostakeholders
• HarmonizedFertilizerStandardsatRegionalLeveltofacilitateeasymovementofblendswithintheregion;harmonizelaboratorycapacities
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Regional Harmonization • AbujaDeclarationCallsforRegionalHarmonization• CallsonAUMemberStatesandRegionalEconomicCommunities(RECs)totakeappropriatemeasurestoreducethecostoffertilizerprocurementatnationalandregionallevelsanddevelopcapacityforqualitycontrol• Focusonensuringdutyandtax-freemovementacrossregions
• ContinentalFreeTradeArea(CFTA)andTripartiteFreeTradeArea(TFTA;amongEAC,SADC,andCOMESA)• Negotiationsatanearlystageanddonotyetincludefertilizersystems
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Regional Harmonization Cont’d. • COMESADevelopingHarmonizedFrameworks• EACHarmonizedRegulatoryInstrumentsandProceduresforFertilizerMarketUnderDevelopment• SADCRegionalAgriculturalPolicy(RAP)• Policynotspecifictofertilizer;noseparateframeworkforfertilizerexists• Noseparateframeworkforfertilizerexists
• ECOWASRegulationRelatingtoFertilizerQualityControlintheECOWASRegion
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Regional Harmonization Example: ECOWAS Fertilizer Regulations (1) • StreamlinedProductRegistration(ECOWAS–ProductRegistrationNotRequired;TruthinLabeling)• InstitutionalCooperation• FreeMovementofFertilizer(includingblends;waytomeetmarketneeds;ECOWAS)• StandardQualityDefinitionsandLabelingRequirements(ECOWAS)
• IFDCcontributedtoworkonsamplingandtesting• HarmonizedInspectionandAnalysis(ECOWAS)• CommonLicensesforFertilizerProducersandTraders(ECOWAS)• SharedLaboratoryResources(ECOWAS)
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Regional Harmonization Example: ECOWAS Fertilizer Regulations (2) • Requiresdomestication(differencesbetweencivillawandcommonlawcountries)• IFDCWAFPprojectisassistingindividualECOWAScountrieswithdomesticationprocess• Developqualitycontrolsincountrydistributionsystem(identifyandevaluatelabandhumanresources)
• EstablishagencytoenforceECOWASregulatoryframework,includingqualitycontrolandnationalcommitteestosupporttheseefforts
• Draftmodalitiesforissuanceofimportanddistributionlicenses;fixregistrationfeesforimportersanddistributors
• Setuppenaltiesforinfringementofregionalandnationalregulations
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Principles for Harmonizing Fertilizer Regulatory Frameworks • ImplementationatNationalLevelisCritical• ApproachesMayVaryAmongMembersofRegionalBloc• ConsiderSequencingofRegulatoryInterventions• Promote“LowHangingFruit”Reforms• EstablishCommonMethodologyandIndicatorstoMeasureProgress• TailorCapacityBuildingtoNeedsofIndividualMemberCountries• ListentoPrivateSectorandCivilSocietyVoices
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Regional Harmonization Interventions: Short-Term • EstablishmentofNationalEntitiesResponsibleforFertilizerRegulation
• Helpfacilitatestableandpredictableregulatoryenvironmentatthecountrylevelandsignificantlycontributetoamoreefficientregionalfertilizermarket
• ClarityonProductandBusinessRegistrationandLicensingRules• Inconsistentapplicationofregistrationandlicensingrulesimpedesharmonizationefforts
• TariffandCustomsDuties• Countriescouldagreetoexemptfertilizerfromcustomsdutiesandothertaxes,andharmonizeVATforfertilizer,includingforfertilizer-relatedservices
• ListofApprovedFertilizers• Regionalizelistofapprovedfertilizerstofacilitatetrade,withthelong-termaimoftransitioningtoanexpostapproachliketruth-in-labeling
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Regional Harmonization Short-Term Interventions Cont’d. • PackagingandLabeling
• Establishuniformrulesforpackagingandlabeling,suchasaminimumsetofinformationtobeclearlylabeledonfertilizercontainers
• HarmonizedRegionalQualityControl(IncludingInspection)
• Establisharegionalqualitycontrolsystemthatextendsallalongthefertilizervaluechain
• FertilizerStandards• Adoptuniformstandardsforfertilizer,includingblends,basedoninternationalstandards
• RaisingAwarenessofFertilizerLawsandRegulations• Atnationalandregionallevels,includingbymakingsureproposedchangesaresharedandvettedwithpublicandallrulesarepublished
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Regional Harmonization Interventions: Long-Term • ShifttoaTruth-in-LabelingApproach• ECOWASsystemisanexampleofexpostregulationandaTruth-in-Labelingapproach
• FreeMovementofFertilizerCross-Border,IncludingTransport• Removeorreducebordertaxes,roadblocks,andescortsystems;introduceone-stopborderprocesses;andimprovetradecorridors
• RegionalInspection,Analysis,Sampling,andTolerance• Inspection,analysis,andtestingprocedurescouldfollowinternationalstandardsandregionalrulesforinspectioncouldbeestablished
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Regional Harmonization Long-Term Interventions Cont’d. • OversightandAdministration• Establishregionalinstitutionalmechanismwithclearmandate
• RighttoAppealandConfidentiality• Harmonizegroundsforappealandensureclearrighttoconfidentialityforsensitivebusinessinformationtoavoidunfaircompetition
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Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Partnership for Enabling Market Environments for Fertilizer in Africa (PEMEFA)
Thank You! ThispresentationwasfundedbyagrantfromtheAllianceforAfricanPartnership,anewinnovativeinitiativeatMichiganStateUniversitythatseekstodevelopacollaborativeandcross-disciplinaryplatformforaddressingtoday’sglobalchallenges.
PEMEFAteam
• MariaWanzala-Mlobela(AFAP,[email protected])• NicoleMason(MSU,[email protected])• JoshuaAriga(IFDC,[email protected])• CharlesJumbe(ReNAPRI,[email protected])• KatrinKuhlmann(NML,[email protected])• ShannonKeating(NML,[email protected])• KillianBanda(AFAP,[email protected])
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