EU Food Safety Standards and Turkey Workshop on the EU, Turkey and the WTO T.C Yeditepe University, Istanbul 27-28 February 2009 Denise Prévost Institute for Globalisation and International Regulation
Outline Importance of agricultural sector EU-Turkey trade in agricultural products Food safety barriers to agri-food trade Role of the WTO SPS Agreement Strategies for the future
Agricultural Sector Importance for Turkey GDP: 11% Employment: 30% Comparative advantage Geographic and climatic conditions Winter garden for EU Agricultural exports High-value fresh produce Dried fruits and nuts Processed foods
Trade in Agricultural Products Destination of Turkey's Agricultural Exports Composition of Turkey's Agricultural Exports to the EU 42% 58% EU Non-EU 29% Fruit & Veg Other 71%
Obstacles to Agri-food Trade Traditional obstacles Tariffs & subsidies Role of CU and preferential regime Customs union - agriculture excluded AC Decision 1/98: Preferential regime for agriculture Abolition of most ad valorem tariffs (54%) Preferential tariffs (36%) MFN tariff (10% of which 7% at zero) Role of WTO Agreement on Agriculture
Obstacles to Agri-food Trade Non-tariff barriers to trade: Measures to address risks: Food-safety measures Animal health measures Plant health measures = Sanitary and phytosanitary measures Checking conformity with these measures: Control, inspection and approval procedures Role of CU AC Decision 1/98
EU Food Safety Regime White Paper on Food Safety (2000) Reflects the EU s integrated approach to food safety aiming to ensure a high level of food safety, animal health, animal welfare and plant health within the EU through coherent farm-to-table measures and adequate monitoring. Acquis communautaire Large number of Regulations, Directives and Decisions laying down food-safety requirements; traceability requirements for food and feed; and control, inspection and testing requirements
EU Food Safety Regime Farm-to-table approach (HACCP) Processed food Fisheries Meat products High level of food-safety (MRLs) Fresh fruit and vegetables (pesticides) Nuts (aflatoxins) Monitoring Traceability, testing capacity
Turkey s Reform of Food-Safety Regime Harmonisation with EC regulations Implementation of acquis communautaire, e.g. Ban on use of antibiotics and hormones in animal feed Action plan for aflatoxins Traceability scheme for bovines Participation in Rapid Alert System for Food & Feed Food Act 1995: regulates all stages of production Upgrading laboratory capacity and training inspectors Adoption of international standards
SPS Barriers to Turkey-EU trade Import restrictions, certification, increased surveillance: Dried figs and fig paste, pistachio nuts, hazelnuts and derived products Mycotoxins controlled by 2006/504/EC Non-cultivated mushrooms Radioactivity linked to the Chernobyl incident EU approved residue monitoring plans only for: Poultry, aquaculture, milk & honey EU approved establishments only for: Live bivalve molluscs, fishery products, treated stomachs, bladders and intestines
Role of the SPS Agreement Aim of the SPS Agreement Balance Trade Health
Substantive rules of the SPS Agreement Recognises right to regulate But disciplines the exercise of this right Encourages harmonisation International standards of CAC, OIE, IPPC Safe harbour for harmonised SPS measures In absence of harmonisation: Scientific justification by means of a risk assessment Recognition of equivalence Adaptation to regional conditions
Special rules for Developing Countries Special and differential treatment (SDT) Take account of DCM needs Longer time frames for compliance Transparency of SDT Limits of SDT Technical assistance (TA) Facilitate provision of TA Consider granting TA where substantial investments required Facilitate participation in CAC, OIE & IPPC
Procedural Mechanisms under the SPS Agreement Transparency procedures Advance notification and publication of SPS measures Notification of SDT, equivalence and regionalisation SPS Committee Specific trade concerns mechanism (STC) Mediation mechanism Review of harmonisation Dispute settlement Consultations (and possibility of good offices/mediation) Adjudication
Turkey s participation in STC EC MRL for aflatoxins in foodstuffs Raised by: Argentina, Australia, Bolivia, Brazil, Gambia, India, Indonesia, Malaysia, Philippines, Senegal, Thailand (1998) Supported by: inter alia Turkey Concern: New MRLs for aflatoxins not based on international standard, no risk assessment, sampling procedure unduly burdensome and costly Bilateral consultations with Bolivia Technical assistance for strengthening export certification system
STC regarding Turkey s SPS measures Ban on livestock (FMD) Raised by Hungary & US; supported by i.a. EC (1998) Partially resolved (2001) Ban on pet food from European countries (TSE) Raised by Hungary (2000) Dispute initiated resolved in consultations (2004) Control certificate requirement for bananas Raised by Ecuador (2001) Dispute initiated resolved in consultations (2002)
Strategies for the Future Participation in international standard setting Factual input in development of standards Monitoring of notifications Proactive approach to trade barriers stakeholder involvement Equivalence and regionalisation Use of new procedures Participation in SPS Committee discussions Raising concerns at technical level Requests for technical assistance For compliance, participation etc. Transparency mechanism
Conclusion Great potential for agricultural trade High-value fresh produce Processed foods Obstacles in the form of EU food-safety requirements Possibilities to address obstacles Bilateral discussions in the shadow of SPS Agreement Multilateral discussions in SPS Committee Technical assistance requests