NEPALTRADEIssue # 3 May 2012 SPECIAL SPECIAL FEATURE TEA INTELLECTUAL BEYOND CHIYA PROPERTY RIGHTS NEPALTRADE IMPRINT Publisher: Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) GmbH Narayani Complex, 4th floor, P.O.Box 1457 Pulchowk EDITOR’S NOTE Lalitpur, Nepal T +977 1 55 552 89 CONTENTS F +977 1 55 217 12 E [email protected] I www.giz.de/nepal Place and date of publication: Nepal, May 2012 Dear Reader, Editor: Philipp Kruschel (Team Leader) Spring is the season when the best tea is produced in Nepal – the GIZ WTO/EIF-SP The Agreement on Technical Barriers to first flush! Therefore we are pleased to present to you the third Deutsche Gesellschaft fuer 8 issue of the NepalTrade Magazine, this time with an in-depth Internationale Zusammenarbeit (GIZ) GmbH Narayani Complex, 4th floor, P.O.Box 1457 Trade (TBT) 4 focus on the Nepalese Tea Sector. Pulchowk Lalitpur, Nepal Policy support for Tea sector in Nepal 6 One of the oldest and most revered drinks, tea holds a special T +977 1 55 552 89 F +977 1 55 217 12 place in the lives of the Nepalese. Being endowed with favourable E [email protected] Tea and Intellectual Property Protection 8 geographic and climatic conditions, it is believed that exports I www.giz.de/nepal of high quality tea from Nepal could grow significantly in the The Nepalese Tea Industry: Text: future. However, this potential has yet to be fully harnessed by Gabriele Schlaeger (TEPC) Nepalese tea exporters. Niraj Shrestha (SAWTEE) Challenges and Opportunities 10 Dominik Berger Himadri Palikhe Access and Benefit Sharing and In this issue, we have put together important aspects that need Jannu Chudal Sherpa to be considered when discussing the trade of tea from Nepal – Moheindu Chemjong Traditional Knowledge 14 policies, issues of IPR and TBT, challenges and opportunities, Philipp Kruschel international demand and some facts and events that could be Rup Kumar BK Vidha Pradhan A PPP initiative for promoting of interest to you. As with our previous issues, we hope that this issue will prove to be informative and useful to our reader. Photos/Graphics: organic tea 17 We hope to be able to provide you with concrete and practical GIZ Himadri Palikhe overview of the most pressing issues the sector currently faces. Jakob Elbæk Egegaard Pedersen 17 Beyond Chiya 19 For updates from this sector as well as all other 19 products and services that have been identified as “export potential sectors” in Design Layout: 10 Facts about Tea 24 the Nepal Trade Integration Strategy (NTIS), please also visit Jannu Chudal Sherpa EU requirements for Tea import the website www.nepaltrade.org and request a username and Translated by: 26 Ramchandra Khatri password, if it applies to you. Calendar of Events 28 Printed by: We are looking forward to your feedback and wish you a happy S Printers and insightful reading! Disclaimer: Views expressed in Nepal Trade are those of the authors and do not necessarily reflect the official position of GIZ or its partner institutions. Philipp Kruschel 20 2 3 NEPALTRADE THE AGREEMENT ON TECHNICAL BARRIERS to TRADE (TBT) Technical Barriers to Trade (TBT) do not only protect the health, safety and satisfaction of consumers but also present a challenge for export oriented producers. Every country faces the demand of In recognition of the diversity of as TBT enquiry point. The national its people to ensure the supply of people and nations and their different enquiry points are responsible for safe consumer goods. Furthermore conception of consumer safety, the the provision of information about many see that it is the responsibility TBT Agreement seeks to provide the country’s technical regulations, of the state to secure the protection member countries with sufficient test procedures, and adherence to of human, animal and plant life as domestic policy autonomy to pursue various international standards. well as national security and the legitimate regulatory objectives. The amendment of the Nepal environment. As the understanding It counterbalances these granted Standards (Certification Mark) of “safe” consumer goods and autonomies with several provisions Act and Regulation is currently the need for protection differs aiming on limiting harmful under consideration. significantly between countries, regulation. To prevent exporters also the policies implemented by from being confronted with a vast Besides being responsible for the governments vary. Being required variety of different regulations establishment of national standards to meet these varying national and standards, governments are and technical requirements and provisions, it is difficult and strongly encouraged to adhere to maintaining laboratories for quality cost intensive for exporters and international standards. As it is tests, the NBSM monitors the producers to achieve compliance. the case with other agreements implementation process of TBT At the same time, standards and within the WTO, the most- related amendments of Nepal’s technical regulations can be misused favoured-nation provision prevents provisions and acts as focal point www.world-geographics.com/maps/world/world-map to protect domestic producers and regulations that aim at the in the WTO accession process. therefore serve as an excuse for protection of domestic industries. Since its establishment, the NBSM protectionism, becoming obstacles has been notifying and publishing to trade. TBT Commitments of Nepal information regarding TBT which the required quality documents. On the other hand, Nepal can use essential to guarantee compliance includes national and international Because of the lack of these facilities, the provisions of the Agreement on with these measures. To ensure that regulations, Besides provisions regulating the notice of standards, technical it is difficult for producers in Nepal TBT to protect its own consumers standards, testing and certification trade in goods, services and aspects regulations and conformity to guarantee a specific quality and and industries against low quality Conclusion procedures do not become of intellectual property rights (IPR), assessment procedures and other to achieve compliance with the and potentially harmful products unnecessary obstacles, the member the TBT agreement was one of relevant information. high standards and requirements from other countries. So far, the Consumers in Nepal can benefit countries of the World Trade the mandatory obligations of the for exports to developed countries. lack of sufficient infrastructure at greatly from the adoption of the Organisation (WTO) agreed to WTO that Nepal adopted with Challenges and Chances of TBTs The creation of an adequate quality the borders and inadequate TBT measures provided by the agreement include the Agreement on Technical the WTO accession package on for Nepal infrastructure is essential in the policies, have allowed low quality on TBT. Effective standards and Barriers to Trade (TBT) in the 23rd April 2004. acquisition of buyers from abroad. products to enter the domestic regulations not only protect the health regime of the WTO. Within the An insufficient level of awareness Chambers of commerce and market. Training of customs officials and well being of the consumers, WTO regime the Agreement Nepal made the following about TBT provisions within industry and product associations and the provision of information is but also benefit local producers that on TBT stands beside other commitments under the TBT the public and the private sector could assist exporters through the essential to address these problems. are not able to underbid the low agreements like the GATT, GATS Agreement during its accession to has limited the export of quality provision of information about TBT prices of low quality and harmful or TRIPS. It is closely aligned with the WTO products to foreign markets in developed countries, and support TBT and Tea products and therefore suffer from the Agreement on the Application and encouraged the import the establishment of adequate testing unfair competition. Exporting of Sanitary and Phytosanitary • The Amendment of Nepal of low quality products to the laboratories. Awareness programmes The Agreement on Application of producers in Nepal benefit from Measures (SPS), which relates to Standards (Certification Mark) domestic market. for exporters in different parts of the Sanitary and Phytosantinary (SPS) the compliance with TBT not only food safety (bacterial contaminants, Act, 1980. country about the importance and Measures that deals with food items is by gaining access to high-demand pesticides, inspection and labelling) Most countries worldwide are impact of various provisions of the especially relevant for tea producers in markets in the developed countries as well as animal and plant health • The Amendment of Nepal using their right to restrict unsafe TBT Agreement for exporters could Nepal that are exporting their goods but also by gaining the trust of (phytosanitation) with respect to Standards (Certification Mark) and low quality products from increase the producers’ abilities to to markets abroad. Tea is classified as consumers abroad. imported pests and diseases. Regulations, 1982. being imported by strict standards tackle such challenges effectively. food in many countries and therefore and technical requirements that The GoN is currently preparing to SPS measures apply for the import of Plainly said, TBT are a set of rules • The establishment of an are enforced by customs. Nepalese promulgate an Accreditation Act tea. They take into