G/SPS/GEN/932 15 June 2009 ORGANIZATION (09-2889) Committee on Sanitary and Phytosanitary Measures
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WORLD TRADE G/SPS/GEN/932 15 June 2009 ORGANIZATION (09-2889) Committee on Sanitary and Phytosanitary Measures EFFECTS OF SPS-RELATED PRIVATE STANDARDS - DESCRIPTIVE REPORT Note by the Secretariat1 1. In the context of the Committee's work on private standards and in accordance with the Committee's decision to undertake a comparative study on the effects of private SPS standards2, the Secretariat circulated a Questionnaire on SPS-related Private Standards on 5 December 2008.3 2. The Secretariat has received a total of 40 responses to the questionnaire from 22 Members.4 The individual responses can be consulted through the WTO Members' website.5 3. The level of detail and explanations provided in the responses varies significantly, making it difficult to undertake a statistical analysis based on the replies. In addition, it is important to note that the Secretariat is not in a position to verify the accuracy of inputs in the replies, some of which might be questioned by other Members. 4. This report highlights the main points emerging from the replies. Annex II of the report includes a table showing the individual replies provided to questions 1 (HS Code and full description), 2 (main export market), 3 (entity imposing the standard), and 5 (description of private standard). The replies to the other questions have not been included in Annex II as they are more descriptive and vary significantly in length. Interested Members can also access a compilation of most replies presented in an Excel sheet through the Members' website referred to above. 5. A number of concerns regarding effects of private standards on exports of agricultural products have been raised in the responses. Some Members have also underlined the positive and trade facilitating impact of private standards. 6. Following the consideration of the replies as well as this descriptive report, the ad hoc working group on private standards will commence work on an analytical report for consideration during the October SPS Committee meeting. 7. A short summary of the replies to each question is provided below. 1 This document has been prepared under the Secretariat's own responsibility and is without prejudice to the positions of Members or to their rights or obligations under the WTO. 2 G/SPS/R/53, para. 132. 3 G/SPS/W/232. 4 Please see Annex I for a list of Members which have submitted responses to the questionnaire. 5 Please click on this address: http://members.wto.org/WTO_resources/SPS/SPS-Private- Standards_tri.htm. All responses are available in English and Spanish as these are the working languages of the 30 Members participating in the ad hoc working group. G/SPS/GEN/932 Page 2 Question 1. Product of export interest affected by private standards 8. The following products were most often identified as being affected by private standards: • Fresh fruit (HS Codes 0804, 0805, and 0810); • Fresh vegetables (HS Codes 0701 and 0710); and • Fresh, chilled or frozen meat – both bovine and poultry (HS Codes 0201 and 0207). Products that may be classified as fresh produce appear to be most affected by private standards although examples of processed foods and value-added spices have also been provided. Question 2. Main export markets 9. The replies indicate that the main markets of the concerned products are Australia, Canada, Japan, the member States of the European Communities, and the United States of America. The member States of the European Communities most referred to are Germany, Italy, the Netherlands, Spain, Sweden and the United Kingdom. Other markets that are mentioned by more than one Member in the responses include China, Switzerland, and the United Arab Emirates. Questions 3 and 4. Retailer/company/private trader/entity imposing the private standard - Type of domestic businesses whose exports need to meet the private standards 10. It appears that the primary entities imposing private standards are retailers such as supermarkets and hypermarkets, e.g. TESCO, Wal-Mart, Primus Labs, and Marks and Spencer's. Although some replies have not mentioned specific entities imposing these standards, they have indicated that major retailers and suppliers in the United States and the European Communities impose private standards. All types of businesses seem to be affected by private standards, including small, medium and large-scale enterprises. Question 5. Description of the relevant private standard(s) applied in each of the product's export markets 11. The international schemes most mentioned in the responses are GLOBALGAP, Hazard Analysis and Critical Contol Point (HACCP),6 ISO 9000, ISO 22000, and SQF (Safe Quality Food). 12. The most frequently identified national scheme setting requirements for purchasing is the BRC. In their replies, certain Members also make reference to export-oriented initiatives such as Chile GAP, Kenya GAP, New Zealand GAP, and Swiss GAP, which are benchmarked against GLOBALGAP and aim to facilitate exports. 13. As regards individual firm schemes, the replies also vary greatly, but TESCO Nature's Choice is the most commonly cited retail scheme. Private Standards applied by Heinz, McDonalds, Aldi, Edeka/Netto, Carrefour, Lidl, Metro, Norma, Plus, Rewe, Tegut, Tengelman, Marks and Spencer's, and Metro Cash and Carry are also cited. 6 It is important to note that Codex has adopted Principles on HACCP as well as Guidelines for its Application while recognizing that the details of application may vary depending on the circumstances of the food operation. Many national governments have also adopted mandatory HACCP requirements, based on the Codex guidelines and principles, with respect to the production of various food products. It is possible that the references to HACCP in the replies relate to some of the private schemes and certification requirements which take HACCP as basis. G/SPS/GEN/932 Page 3 14. Some replies to this question make reference to private standards focusing on environmental/social issues (e.g. the Rainforest Alliance) or to official government standards, which are not the focus of this study.7 Question 6. Content of the private standard 15. Over two-thirds of the replies state that the scope of the content of the private standards is food safety. Many replies have also mentioned animal and plant health, as well social and environmental issues, which fall beyond the scope of the SPS Agreement and of this study. 16. With respect to the date of entry into force of relevant private standards, the replies vary extensively, although it appears that the phenomenon gathered momentum post 2005. However, in some cases the identified private standards have been in existence since the early 1990s. It is pertinent to note that more than twenty responses did not address this question. Question 7. Relevant Codex, OIE, IPPC standards (if any) for the products in question 17. With respect to the relevant international standards for the products in question, the detail provided in the replies vary greatly. In a few cases, general references are made to Codex food safety standards, OIE animal health standards, or IPPC plant health standards. Less than half of the replies identify a relatively specific standard. Overall, most references are to Codex standards, followed by OIE standards. Although there are a number of general references to IPPC standards, no specific ISPMs have been identified. 18. Among the Codex food safety "standards", those cited most often are related to Hazard Analysis Critical Control Point (HACCP) requirements, maximum residue limits (MRLs) for pesticides, hygienic practices for meat and fresh fruits, testing laboratories, as well as commodity specific standards such as those on bananas, olive oil, etc. In this context, the replies of Paraguay and Uruguay are particularly detailed. 19. Six replies have made reference to OIE standards although only three have provided more specific references. These include animal welfare standards, and Chapters 10.4.26 (inactivation of the avian flu virus) and 11.6 (BSE) of the Terrestrial Animal Health Code. 20. At the same time, about a third of the replies do not contain any information on whether there are any relevant international standards. Some responses indicate that producers, who provided the information, are simply not aware of international standards and focus on meeting the private standards in their export markets. In other cases, it is not clear whether there is no international standard or whether this information is simply lacking. Question 8. Do the private standard(s) requirements for the product in question correspond to the relevant Codex, IPPC or OIE standard for that same product? 21. About two-thirds of the replies indicate that at least some of the requirements of private standards exceed those of the relevant international standards. Examples have been provided with respect to: • more detailed and prescriptive operational procedures; • lower MRLs than those of Codex; 7 A possible explanation for this is that, from the perspective of the producers, which have in most instances provided the inputs for the replies, what matters is the whole range of market access conditions, be they private or public, SPS- or environment-related. G/SPS/GEN/932 Page 4 • requirements regarding absence of listeria in raw meat; • requirements regarding de-boning of beef from BSE-free countries; and • stricter animal welfare standards. 22. Four of the replies indicate that the private standards requirements for beef, fish and certain fresh fruits do not exceed those of the relevant international standards. Five other replies do not contain specific information on this question. One specific example for cut flowers notes that most standards relate to socio-environmental issues and are therefore not comparable with the standards of Codex, OIE or the IPPC. Such issues would also fall outside the scope of the SPS Agreement and of this study. 23. One reply points to the positive role that private standards have had for beef and poultry products by addressing emerging risks (specific risk materials in beef and avian influenza in poultry) at an early stage.