managed by dairy management inc.™ confronting technical barriers to trade achieving nei through...
TRANSCRIPT
Managed by Dairy Management Inc.™
Confronting Technical Barriers to Trade
Achieving NEI through Regulatory Coherence that strengthens rules on SPS measures
Agricultural Outlook Forum
February 24, 2011
U.S. Dairy Export Council….working world-wide to promote U.S. dairy exports
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Outline
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• Importance of trade to U.S. dairy and agriculture• Injury caused by unjustified SPS measures • Ways to address SPS barriers• Using the TPP talks to strengthen rules
SPS Barriers Hinder Exports and NEI Goals …. but it would be worse without the WTO SPS Agreement
• Only existing tool to deal with SPS issues
• Anchors SPS issues in WTO for dispute resolution
• Focuses SPS on scientific evidence and risk assessment
• More a set of principles rather than specific rules
WTO building, Geneva, Switzerland
U.S. Dairy Exports On Long-Term Growth Trend
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1.11.3 1.2
1.5 1.61.7
1.8 1.82.0
2.5
2.8 2.72.9 3.2
2.6
2.2
0.8 0.70.9 0.9 1.0 1.0 1.1
1.0 1.0
1.51.7
1.9
3.0
3.8
2.3
3.7
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
$ in
Bill
ions
Dairy Product Imports Dairy Product Exports
Reliance on Exports Is Transforming Industry
61996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100.0%
200.0%
400.0%
600.0%
800.0%
1000.0%
1200.0%
1400.0%
370.0%
450.0% 440.0%500.0% 520.0%
550.0%510.0%
570.0%
760.0%830.0%
930.0%980.0%
1100.0%
930.0%
1278.0%
270.0%290.0%360.0%390.0%400.0%420.0%420.0%440.0%450.0%460.0%440.0% 4.5% 400.0%
335.0%291.0%
U.S. DAIRY TRADE BALANCE, 1996-2010
Exports
Imports
U.S. Agricultural Trade (1995-2010)
30.433.8 36.4 37.1 37.9 39.2 39.5 42.0
47.554.2
59.565.5
72.1
80.7
71.8
82.0
56.260.4
57.151.8
48.4 51.3 53.7 53.159.4 61.4 63.2
70.9
90.0
114.8
98.5
115.8
0
20
40
60
80
100
120
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
$ in
Billi
ons
All Agriculture Imports All Agriculture Exports
Increased Incidence of SPS Barriers…. protectionism is one of the key drivers
• As tariffs decline, SPS barriers rise
• Industries threatened by imports are creative in ways to keep out competition
• More stringent health and safety standards -- driven by technology and consumer concerns -- add requirements for imports
Meeting NEI Goal Requires New Rules: Regulatory Coherence
• Priority: U.S. regulatory agencies must see exports as part of their mission
• Coherence: Better coordination across agencies— APHIS, FSIS, FDA, AMS, FAS, USTR, EPA, OMB/OIRA and State
• Aggressive: Proactive responses need to replace wait-and-see reaction to other countries trade barriers
• Timely Action: Quick responses to problems before new barriers are entrenched
SPS Barriers Come in Many Forms
• Measures not based on scientific evidence or process– Arbitrary risk assessments not using rigorous
standards– International standards not taken into account– Non-science considerations
SPS Barriers Come in Many Forms
• Measures not based on scientific evidence or process
• Measures are imposed without taking into account interests of exporters‒ Requirements imposed without notice‒ Needs of the trade not taken into account‒ No explanation of reasons for adjustments
SPS Barriers Come in Many Forms
• Measures not based on scientific evidence or process
• Measures are imposed without taking into account interests of exporters
• Discrimination against U.S. product to favor other suppliers– Other governments work more expediently with
importing country to provide assurances or certifications– U.S. system so transparent, and detection technology
so precise, U.S. product may appear worse than competitors
SPS Barriers Come in Many Forms
• Measures not based on scientific evidence or process
• Measures are imposed without taking into account interests of exporters
• Discrimination against U.S. product to favor other suppliers
• Documentation issues‒ Lack of standardization across countries‒ Some countries ask for unjustified data requirements
Elements of an Improved Global System
• WTO SPS agreement is a good start, but needs to be amplified
Elements of an Improved Global System
• WTO SPS agreement is a good start, but needs to be amplified
• Proactive engagement from U.S. government
Elements of an Improved Global System
• WTO SPS agreement is a good start, but needs to be amplified
• Proactive engagement from U.S. government• Reaffirm science as the core
Elements of an Improved Global System
• WTO SPS agreement is a good start, but needs to be amplified
• Proactive engagement from U.S. government• Reaffirm science as the core• Increase the role of science-based international
standards organizations
Elements of an Improved Global System
• WTO SPS agreement is a good start, but needs to be amplified
• Proactive engagement from U.S. government• Reaffirm science as the core• Increase the role of international standards
organization• New rules need to reflect comments of
stakeholders and implemented only after industry has a time to adjust
Elements of an Improved Global System
• WTO SPS agreement is a good start, but needs to be amplified
• Proactive engagement from U.S. government• Reaffirm science as the core• Increase the role of international standards
organizations• New rules need to reflect comments of
stakeholders and implemented only after industry has time to adjust
• Harmonization of import documentation
Trans-Pacific Partnership Countries
Trans Pacific Partnership Countries
• Regulatory Coherence will require all parties to adjust
• Dependence on global markets and trade will remain
• Continued proliferation likely of unjustified SPS barriers
• Achieving NEI requires adjusting SPS rules to 21st
century trade conditions
Conclusion
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