Policy Options for Open Policy Options for Open Borders in Relation to Animal Borders in Relation to Animal

and Plant Protection and and Plant Protection and Food SafetyFood SafetyMaury BredahlMaury Bredahl

Spencer HensonSpencer Henson

OutlineOutline Sanitary and phytosanitary measuresSanitary and phytosanitary measures Are SPS measures a problem?Are SPS measures a problem? Overcoming trade effects of SPS Overcoming trade effects of SPS

measuresmeasures Problems with negotiationsProblems with negotiations ImplicationsImplications

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

0

100

200

300

400

500

600

1995 1996 1997 1998 1999 2000 2001

USACanadaMexico

Voluntary StandardsVoluntary Standards Product compatibilityProduct compatibility Closely related to consumer Closely related to consumer

preferencespreferences Compliance with mandatory standardsCompliance with mandatory standards De factoDe facto mandatory mandatory

Are SPS Measures a Problem Are SPS Measures a Problem within NAFTA?within NAFTA?

Incidence dataIncidence data Border detention dataBorder detention data Specific examplesSpecific examples

Incidence of SPS Measures, Incidence of SPS Measures, 20002000

Incidence of SPS measures high for Incidence of SPS measures high for agricultural and food productsagricultural and food products

Differences in types of SPS measures Differences in types of SPS measures applied and product coverage by applied and product coverage by countrycountry

High incidence of multiple measures High incidence of multiple measures applied to single tariff linesapplied to single tariff lines

Problems of differences in definitions Problems of differences in definitions and taxonomies between countriesand taxonomies between countries

US Border Detentions by US Border Detentions by Product, 2001Product, 2001

ProductProduct MexicoMexico CanadaCanadaFresh vegetablesFresh vegetables 716716 1212

Processed vegetablesProcessed vegetables 252252 2727Fresh fruitFresh fruit 152152 44

Processed fruitProcessed fruit 1,1881,188 55FishFish 156156 5151

BeveragesBeverages 336336 1616Baked GoodsBaked Goods 180180 1515ConfectioneryConfectionery 216216 3030

Spices/SeasoningsSpices/Seasonings 2222 22Meat productsMeat products 2424 123123Dairy productsDairy products 00 99

OtherOther 1515 2424TOTALTOTAL 3,2573,257 318318

US Border Detentions by US Border Detentions by Reason, 2001Reason, 2001

ReasonReason MexicoMexico CanadaCanadaMicrobiological Microbiological contaminationcontamination

1,0441,044 132132

Physical Physical contaminationcontamination

624624 3434

LabellingLabelling 312312 105105Pesticide ResiduesPesticide Residues 1,1401,140 00

Non-permitted Non-permitted additivesadditives

576576 1515

Non-registrationNon-registration 165165 6666OtherOther 4848 44

US Imports of Avocados, US Imports of Avocados, 1991-20001991-2000

0

20000

40000

60000

80000

100000

Shor

t Ton

s

Total Mexico

Overcoming Trade Effects of Overcoming Trade Effects of SPS MeasuresSPS Measures

Co-ordination

Harmonisation

MutualRecognitio

n

NAFTA AgreementNAFTA AgreementChapter 7Chapter 7

‘‘Appropriate level of protection’Appropriate level of protection’ Justification:Justification:

Scientific principlesScientific principles Risk assessmentRisk assessment

HarmonisationHarmonisation EquivalenceEquivalence RegionalisationRegionalisation TransparencyTransparency

NAFTA Committee on Sanitary NAFTA Committee on Sanitary and Phytosanitary Measuresand Phytosanitary Measures

Enhancement of food safety/SPS Enhancement of food safety/SPS conditionsconditions

Activities pursuant to international Activities pursuant to international standards and equivalencystandards and equivalency

Technical co-operationTechnical co-operation Consultation on bilateral issuesConsultation on bilateral issues

NAFTA Committee on Sanitary NAFTA Committee on Sanitary and Phytosanitary Measures, and Phytosanitary Measures,

1994-991994-99 Party:Party:

Mexico: 14Mexico: 14 United States: 5United States: 5 Canada: 1Canada: 1

Type of measure:Type of measure: Plant health: 10Plant health: 10 Food safety: 6Food safety: 6 Animal health: 4Animal health: 4

Technical Working GroupsTechnical Working Groups Animal healthAnimal health Dairy, fruits, vegetables and processed foodsDairy, fruits, vegetables and processed foods Fish and fishery product inspectionFish and fishery product inspection Food additives and contaminantsFood additives and contaminants Packaging, labelling and food standardsPackaging, labelling and food standards Meat, poultry and egg inspectionMeat, poultry and egg inspection PesticidesPesticides Plant health, seeds and fertiliserPlant health, seeds and fertiliser Veterinary drugs and feedsVeterinary drugs and feeds NAPPONAPPO

Co-ordinationCo-ordination FDA/CFIA Action Plan on Food SafetyFDA/CFIA Action Plan on Food Safety Principles for mutual support in animal Principles for mutual support in animal

health emergencieshealth emergencies Joint US-Canada review of pesticidesJoint US-Canada review of pesticides Co-ordination of positions in Codex: Co-ordination of positions in Codex:

Committee on Food Additives and Committee on Food Additives and ContaminantsContaminants

Committee on Residues of Veterinary Drugs Committee on Residues of Veterinary Drugs in Foodin Food

Mutual RecognitionMutual Recognition US-Canada MRA on seafood inspectionUS-Canada MRA on seafood inspection US-Canada equivalence agreement on US-Canada equivalence agreement on

molluscan shellfish inspection molluscan shellfish inspection programmeprogramme

Equivalency of greenhouse certificationEquivalency of greenhouse certification Recognition of accredited laboratories Recognition of accredited laboratories

for seed certificationfor seed certification US recognition of Mexican poultry US recognition of Mexican poultry

slaughter systemslaughter system

HarmonisationHarmonisation US-Canada potato grading schemeUS-Canada potato grading scheme US-Canada food additives regulationsUS-Canada food additives regulations Policies on BSE and TSEsPolicies on BSE and TSEs Data requirements for residue chemistry, Data requirements for residue chemistry,

seed treatments, terrestrial food uses seed treatments, terrestrial food uses etc.etc.

US-Canada nutrition labelling and US-Canada nutrition labelling and nutrient content claims regulationsnutrient content claims regulations

Japanese beetle regulationsJapanese beetle regulations

ConstraintsConstraints CompetencyCompetency TrustTrust ScienceScience ‘‘Appropriate level of protection’Appropriate level of protection’ TraditionsTraditions RegulatorsRegulators

Impact of NAFTA / WTOImpact of NAFTA / WTODispute settlementDispute settlement

VVPolicy-makingPolicy-making

US Potato Imports from Prince US Potato Imports from Prince Edward Island (PEI)Edward Island (PEI)

Justified?Justified? Settled quickly?Settled quickly? Less likely to happen in future?Less likely to happen in future?

Problems with Negotiations Problems with Negotiations Relating to SPS MeasuresRelating to SPS Measures

SPS capacitySPS capacity Assessing the impact of SPS measuresAssessing the impact of SPS measures Institutional factors:Institutional factors:

Fragmentation of responsibilitiesFragmentation of responsibilities ExpertiseExpertise AgendasAgendas Inter-agency negotiationsInter-agency negotiations

Trade issues V domestic policy objectivesTrade issues V domestic policy objectives Minute detail mattersMinute detail matters

SPS Capacity in NAFTA SPS Capacity in NAFTA CountriesCountries

0

20

40

60

80

100

Technological Institutional Regulatory Total

%

Canada Mexico United States

Problems with Negotiations Problems with Negotiations Relating to SPS MeasuresRelating to SPS Measures

SPS capacitySPS capacity Assessing the impact of SPS measuresAssessing the impact of SPS measures Institutional factors:Institutional factors:

Fragmentation of responsibilitiesFragmentation of responsibilities ExpertiseExpertise AgendasAgendas Inter-agency negotiationsInter-agency negotiations

Trade issues V domestic policy objectivesTrade issues V domestic policy objectives Minute detail mattersMinute detail matters

ImplicationsImplications SPS measures a major issue for exportersSPS measures a major issue for exporters Problems assessing the impact of SPS measuresProblems assessing the impact of SPS measures Negotiations are time consuming and costlyNegotiations are time consuming and costly Need for institutional development and reformNeed for institutional development and reform Need for system-based approachesNeed for system-based approaches Risk assessment: ‘Trading science’Risk assessment: ‘Trading science’ Importance of SPS capacityImportance of SPS capacity Role of domestic pressureRole of domestic pressure

ImplicationsImplications Are penalties adequate?Are penalties adequate? Reward v penalty-based systemReward v penalty-based system Role for private certification?Role for private certification?