Risk assessment procedures in SPS issues the EU versus the USA approach Seminar. Health and Consumers

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1 Risk management and trade Risk assessment procedures in SPS issues the EU versus the USA approach Seminar Lorenzo Terzi DG SANCO.G7 Bilateral International Relations The Royal Swedish Academy of Agriculture and Forestry Stockholm September 2012

2 Overview 1. The EU and International Trade 2. EU SPS Policy 3. EU Risk Management to mitigate sanitary and phytosanitary risks

3 1. The EU and International Trade Import / Export Figures * We export high added value products EU Food industry turnover 954 We import raw material Imports 50.8 billion Exports 53.7 billion Trade balance 3.0 billion 4.2 million people employed * CIAA Data & Trends

4 Import / Export Figures * EU EXPORTS MAIN PARTNERS AGRICULTURE MILLIO ON United States Russia Switzerland Japan Norway China Canada Saudi Arabia Hong Kong Turkey

5 Import / Export Figures * EU IMPORTS MAIN PARTNERS AGRICULTURE MILLION Brazil United States Argentina China Norway Turkey Switzerland Indo nesia Thailand India

6 2. EU SPS Policy Risk assessment Scientific Opinion Risk Management -Measures

7 DG SANCO - Unit G7 Bilateral International Relations Food safety, Animal Health, Plant Health

8 Unit G7 Bilateral International Relations What we do? Strengthening the EU role in the SPS global Managing the international agreements concluded; Negotiating the new international SPS agreements; Providing advice to hierarchy and MSs on imports; Coordinating the assessment of potential ti risks from imported products, proposing appropriate measures and monitoring follow-up; 8

9 The international context of the EU SPS policy It follows WTO rules and its SPS Agreement which h refers to OIE, Codex and IPPC To base the EU policy on SPS international standards is fundamental not only for international trade purpose but firstly to ensure the proper functioning of the EU Single Market SPS Agreement key provisions followed by the EU: Non-discrimination Scientific justification (harmonisation, risk assessment, consistency and least trade-restrictiveness) Equivalence Regionalisation Transparency Technical assistance Control, Inspection and approval procedures

10 3. EU Risk Management to mitigate SPS Risks The tools of EU in Risk Management: - Traceability of all products, animals and plants along food chain: Identification and registration of animals - RASFF (Rapid Alert System for Food and Feed) - Labs expertise and Vaccines available - EFSA work in revising Risk Assessment - National measures/contingency plans based on EU directives on individual diseases - Bilateral Agreements: Equivalence - Regionalisation/zoning

11 EU Risk Management to mitigate SPS Risks Bilateral Agreements: Equivalence Which are the Bilateral Agreements contributions to the risk management? Examples: USA NZ Canada Chile Mexico South Korea

12 EU Risk Management to mitigate Sanitary and Phytosanitay Risks Regionalisation/zoning: the international context Regionalisation is applied in the EU in line with OIE and as an integral element of the EU comprehensive strategy aimed at: - ensuring the best possible disease control - minimise the negative impact of disease outbreaks on the EU single market (intra-eu trade) and on exports, without lowering the level of safety of the commodities that are traded/exported (SPS agreement principles)

13 EU Risk Management to mitigate SPS Risks Successful examples of EU animal disease control policy and regionalization - Classical swine fever - Avian influenza

14 EU Risk Management to mitigate SPS Risks vs the US approach - The EU/US Veterinary Agreement , EU Deliverables 2. 2, Regionalisation 3. 3, BSE 4. 4, Anti Microbial Treatments (AMTs) 5. 5, Grade A dairy products 6. 6, Live Bivalve Molluscs 7. 7, FDA Food Safety Modernisation Act (FSMA)

15 EU Risk Management to mitigate SPS Risks vs the US approach - The EU/US Veterinary Agreement , EU Deliverables Regio END AI

16 EU Risk Management to mitigate SPS Risks vs the US approach 2, Regionalisation - Foot and Mouth Disease - African Swine Fever - Classical Swine Fever - Swine Vesicular Disease - Vesicular Stomatitis - Newcastle disease - Avian influenza - (17 disaeses)

17 EU Risk Management to mitigate SPS Risks vs the US approach 1, Regionalisation - Issue N 1 within the framework of negotiations VetAgr - Huge work on Administrative Units and remarkable progress but. - CSF 19 MS > 23MS - ND (AI) 9MS > 25MS - SVD > Italy last outbreak Problems with US "old" rulemaking delays - ND Denmark 4 years SVD Italy years? - Other diseases? Step 5?

18 EU Risk Management to mitigate SPS Risks vs the US approach 3, BSE US EU-27 Ratio US/EU Adult cattle population 42,6 42,7 million 99,77 % million Number of cattle tested in 2011* ,64 % Including: healthy slaughtered cattle % Fallen stock ,66 % Emergency slaughter and clinical i l signs at ante-mortem inspection ,07 % BSE clinical suspects ,65 %

19 EU Risk Management to mitigate SPS Risks vs the US approach 3, BSE - EU/US Cooperation within OIE in List of tradable commodities - Boneless beef - Tallow with max level of insoluble impurities of 0,15% in weight - Proposed BSE rule 16 March Final rule? 2013?

20 EU Risk Management to mitigate SPS Risks vs the US approach 4, AMTs - Poultry chlorine dioxide, acidified sodium chlorite, trisodium phosphate or peroxyacids - Beef 2012 lactic acid

21 EU Risk Management to mitigate SPS Risks vs the US approach 5, PM dairy products - US can export the whole range of dairy products including with milk obtained by animals treated with BST! - PMO EU cannot export Grade A dairy products! - Talks started in 2002 and

22 EU Risk Management to mitigate SPS Risks vs the US approach 6, LBM - EU cannot export LBM to US - US cannot export LBM - Classification: - US water - EU flesh - Report SC Category A: EU>US - Category B: EU=US

23 EU Risk Management to mitigate SPS Risks vs the US approach 7, FSMA Example of excellent regulatory cooperation Seminar in Maryland in 2011 Outstanding issues raised on the Act: the role of private certification and accreditation bodies; the possible absence of recognition of the EU and MS role; the focus on individual inspections of foreign supplier establishments; the conditions that may be imposed by US importers on their suppliers. But! SEC COMPLIANCE WITH INTERNATIONAL AGREEMENTS. Nothing in this Act (or an amendment made by this Act) shall be construed in a manner inconsistent with the agreement establishing the World Trade Organization or any other treaty or international agreement to which the United States is a party.

24 Conclusions The EU system for imports of food and feed is robust, risk-based, SPS compatible and OPEN The EU non-negotiable issues are: hormones, AMTs, Biotech,.. There are a couple of trade issues still to be resolved for the EU exports But also the US has some points

25 Thank you for your attention Lorenzo Terzi Head of Bilateral l International Relations Unit lorenzo.terzi@ec.europa.eu europa eu