SPS Issues for Indian Agricultural Exports
Tamanna Chaturvedi
Consultant
Indian Institute of Foreign Trade
%
?
1947
2009
Two Way Dilemma
How do you ensure that the country’s
consumers are being supplied
food safe to eat?
How can you ensure strict health &
safety regulations are not being used
as an excuse for protecting
domestic producers?
WTO Agreement on Sanitary and Phyto Sanitary Measures
WTO Agreement on Sanitary and Phyto Sanitary Measures
SPS stands for Sanitary & Phytosanitary Measures
The right to protect
human, animal
or plant life or
health
Avoiding
unnecessary
barriers to trade
SPS or TBT ?
SPS Measures
 human or animal health from
food-borne risks
 human health from animal- or
plant-carried diseases
 animals and plants from pests
or diseases
 examples:
 pesticide residues
 food additives
TBT Measures
 human disease control
(unless it’s food safety)
 nutritional claims
 food packaging and quality
examples:
 labelling (unless related
to food safety)
 pesticide handling
 seat belts
Harmonization
Article 3
Standard-setting organizations
food safety
CODEX
animal health
plant health
OIE
IPPC
Codex = Joint FAO/WHO Codex Alimentarius Commission
OIE = World Organization for Animal Health
IPPC = International Plant Protection Convention (FAO)
Member Countries are encouraged to use International standards.
It allows countries to set their own standards
On what basis??
Scientific Justification
To what extent???
Should be applied only to the extent
necessary to protect
Equal Treatment??
Non Discrimination
Key Provisions of SPS Agreement
1.
2.
3.
4.
5.
6.
7.
Non-discrimination
Scientific justification
• harmonization
• risk assessment
• consistency
• least trade-restrictiveness
Equivalence
Regionalization
Transparency
Technical assistance/special treatment
Control, inspection and approval procedures
Scientific justification
Article 2.2
based on scientific principles
Members
shall
ensure
that any
SPS
measure
is:
applied only to the extent
necessary to protect human,
animal or plant life or health
(least trade restrictive)
not maintained without
sufficient scientific evidence
except as provided for in Article 5.7
Scientific Justification
Articles 3 & 5
Measures must be based on
Risk assessment
OR
International Standards
How is risk assessment done?
• SPS measures to be based on
 assessment of risks to human, animal or plant life or health, taking into
account risk assessment techniques developed by international
organizations.
 available scientific evidences; process and production methods; inspection
& sampling methods; prevalence of specified disease or pests; existence of
pests/disease-free areas,etc
 relevant economic factors & cost effectiveness of alternate approaches
• Avoid arbitrary/unjustifiable distinctions in the levels in different situations
if these result in disguised restrictions
Exception: Provisional measures
Article 5.7
Members may provisionally adopt SPS measures
when relevant scientific information is insufficient
on the basis of available information
In such circumstances, Members shall
seeks to obtain additional information to assess
risk
review the measure within a reasonable period of
time
Non-discrimination
Article 2.3
No unjustifiable discrimination
– between Members with similar conditions
– between own territory and other Members
SPS permits Members to impose different sanitary and
phytosanitary requirements on food, animal or plant
products sources from different countries, provided that
they "do not arbitrarily or unjustifiably discriminate
between countries where identical or similar conditions
prevail".
Equivalence
If the exporting country objectively
demonstrates that its measures achieve the
same ALOP as the importing country
Members shall
Accept SPS measures of other Members as equivalent
Equivalence of Phytosanitary Measures
Examples of Phytosanitary Equivalence
•
Alternative treatments of wood packaging material
Nº 15)
(ISPM
•
Phytosanitary measures to mitigate risks of fruit flies (pest
free areas, area of low pest prevalence, pest free places of
production, treatments, risk mitigation systems, inspection)
Disease free areas Article 6
• Adaptation of SPS measures to regional conditions, including pest- or
disease- free areas, differing climatic conditions & different pest or diseases
or food safety conditions so as to lead to the development/imposition of
different SPS requirements
• Exporter to demonstrate (reasonable access to be given for inspection/testing)
Transparency
Article 7 & Annex B
Members shall
establish an Enquiry Point
AND
designate a Notification Authority
notify other Members of new or changed
SPS regulations when
no international standard exists
OR
the new regulation is different
than the international standard
AND
regulation may
have significant
effect on trade
When to notify?
Regular measures
When modifications are
still possible
(draft text)
Allow 60 day comment period!!
Emergency measures
IMMEDIATELY!!
Transparency timeline
Min.
6 months
9. Entry into force of the regulation
8. Publication of the regulation
7. Adoption of the regulation
6. End of comment period
...Time...
Min.
60 days
5. Receive & discuss comments
4. Draft text upon request (or website)
3. Notification to other Members
2. Publication of a notice
1. Drafting of the regulation
Special & Differential Treatment and Technical Assistance
Articles 9 & 10
Members...
• ...shall take account of the special needs of developing
countries
• ...should accord longer time frames for compliance
• ...agree to facilitate provision of Technical Assistance
India’s Concern
Tariff and Non Tariff barriers For Herbal
exports
MFN
range
Switzerland
0-0
Japan
0-10
USA
0-6
NTM%
NTM Description
50% Labelling requirement
Product ch.requirement to protect
8.60% human health
60% Authorization to protect plant health
Our target destinations
Code
Description
Major Export Destinations
030613
Frozen Shrimps & Prawn
United States, Japan, United Kingdom,Belgium
030614
Frozen Crabs
Japan, USA, UK, Spain
030619
Frozen others
USA, Japan, China, Singapore
030379
Fish with bones frozen
China, Hongkong,South Korea, Singapore
080132
Shelled Cashewnuts
USA, Netherlands,UK, UAE
080121
Brazilnuts in shelled
Spain, UK, Italy
080450
Gauava & Mango
UAE
080300
Banana
UAE, Nepal, Saudi Arabia
160520
Shrimps & Prawn
Japan, USA
160540
Other crustaceans
China, UAE
200110
Cucumber & gherkins
USA, Spain
200190
Vegetable pp by Vinegar
UAE, Saudi Arabia
200310
Mushrooms
USA, Netherlands
200830
Citrus fruit
UK
NTM Coverage and Number of NTMs on Indian Exports
1.
2.
Fish & Fish
Preparations
Fruits &
Vegetables
Markets with 100%
SPS/TBT
Markets with less
than 50% SPS/TBT
USA, Hong Kong,
Singapore, Thailand,
Australia, Canada,
Switzerland, Japan
Thailand, Malaysia,
Japan
Australia, Japan, USA,
Saudi Arabia, Mexico,
Bangladesh,
Singapore, Canada,
Egypt
-
Markets with
more than 1
SPS/TBT
USA, Japan
Australia,
Japan, Mexico,
USA, Singapore
Analysis…
• Widespread use of SPS/TBT both by developed & developing country
markets.
• In major importing countries of Fruits and marine products, NTM
coverage is 100%.
• Single product faces number of SPS standards in the same market.e.g.
USA& Japan for fish and Australia, Japan, USA, Mexico & Singapore for
fruits.
• Single product faces different import standards in different markets.
• Countries have different health standards for imports as against domestic
production.
Tariffs and NTMs on Indian Exports
(i)
Tariffs and NTMs together imposed on
 Oilseeds in Taiwan
 Cane Sugar in Bangladesh
 Bovine meat in Egypt
 Crustaceans in Thailand
 Malt extract in USA Bangladesh
(ii)
Only NTMs
 Pepper in Canada
 Rice in Nigeria
 Oilseeds in USA, Taiwan
 Cane sugar in Malaysia, Indonesia
 Fish products in USA
 Tea in USA
Understanding Technical regulations
Incidence of product withdrawals
Rapid Alert Notifications from EU FOR Indian Products
Complete ban from India
Plant
Conditions
Any plant of the following genera:
Ananas
Citrus
Ipomoea
Every such plant shall be grown
in Quarantine until the Director is
Satisfied that it is free from plant
pests and may be released or that it
Is diseased and must be destroyed.
Musa
Groundnut and any other plant of
the genus Arachis
May only be imported as
Decorticated seeds.
Rice and any other plant of the
genus Oryza intended for propagation
Every consignment shall on
importation be immediately handed
to the Director who shall cause
the plant to be grown in quarantine
For one generation.
Complexities of buyer’s requirement
Maximum levels for Aflatoxins in spices in various developed
countries
Comparison of CODEX level with Country standards for Fruits
GRAPES
CODEX
U.S.A.
EU
AZINPHOS-METHYL
1.0
5.0
1.0
ALPHA-CYPERMETHRIN
0.5
0.5
BENALAXYL
0.2
0.2
CARBARYL
5.0
CHLOROTHALONIL
JAPAN
2.0
CANADA
AUSTRALIA
NEW ZEALAND
5.0
2.0
2.0
0.5
0.05
0.1
0.5
0.5
3.0
1.0
5.0
5.0
3.0
0.5
3.0
0.5
0.1
10.0
5.0
CHLORPYRIFOS
0.5
0.5
1.0
0.1
1.0
1.0
DIMETHOATE
1.0
0.1
5.0
2.0
DITHIANON
3.0
0.1
2.0
2.0
ENDOSULFAN
1.0
2.0
0.5
1.0
2.0
2.0
FENARIMOL
0.3
0.2
0.3
1.0
0.1
0.1
0.1
IPRODIONE
10.0
60.0
10.0
25.0
5.0
20.0
10.0
MALDISON
8.0
8.0
0.5
8.0
8.0
8.0
8.0
METALAXYL
1.0
2.0
1.0
1.0
1.0
2.0
MYCLOBUTANIL
1.0
1.0
1.0
1.0
1.0
1.0
0.2
PERMETHRIN
2.0
0.05
5.0
2.0
PROCYMIDONE
5.0
5.0
5.0
5.0
1.0
2.0
TRIADIMENOL
2.0
1.0
2.0
0.5
0.1
0.5
10.0
1.0
Better off than CODEX
0.02
0.5
5.0
More stringent than CODEX
Countries varies in their SPS standards-case of
Salmonella
Importing
Country
Regulations regarding Salmonella
Hong Kong
Japan
Products may be subjected to lab examination or
microbiological contamination & positive testing shipment
refused entry
Japanese Min of health reserves the right to test shipments
China
No separate Salmonella specific requirements
Canada
No separate Salmonella specific requirements for raw products
Korea
No separate Salmonella specific requirements
Estonia
Mechanically deboned meat is tested for salmonella at port of
entry Positive testing denied entry
Salmonella widely present in domestic supply chains in USA however country claims to have
has zero tolerance for the pathogen
Different Operative Procedures for Conformity
Requirements for Fruits
Importing
Country
Australia
USA
EU
Regulations regarding Fruits
Strict attention to plant health(fumigation only using
methyl bromide)
Strong official attention to product cleanliness, labeling
for allergens & fumigation banned out.
In contrast Fumigation is already banned in EU
v
Spain
Importance to testing on pesticide residue
v
Germany
Hardly any consignment tested
v
UK
Most pesticide residue testing is undertaken for
products at retail level
Customers of South Europe prefer large sizes of tropical fruits (pineapples, papayas
& mango) whereas customers in North Europe prefer small fruits.
Traceability Requirements
Different Marketing Standards between countries
• Health control: food law, hygiene, microbiological criteria,
contaminants, pesticides
• Plant Health: phytosanitary control
• Marketing Standards: generic or specific
• Other: food additives, food contact material, food irradiation, novel
foods, GMOs, labeling & organic products
Imports prohibited on the basis of Risk Assessment
Incompatible SPS Standards: case of Milk Production in India
Strict Packaging requirement
Strict Certification & Import Procedures: example of China
• Many regulations and requirements are updated frequently and often without
prior notice.
• Possibility of variation in the documentation required for various products in
various Chinese ports.
• A new and original phytosanitary certificate must accompany each
consignment of fresh fruits, vegetables, or tree nuts.
• A tamper-resistant, bilingual label should be on the outside of each carton.
• The establishment number should be printed on the inner poly liner, poly bag,
or vacuum bag.
• Although pre-approval is not mandatory, China’s General Administration of
Customs (GAC) can require pre-import analysis if warranted.
Strict Labeling Requirements
• A large amount of information has to be provided on the label
in both English & Chinese.
• The establishment number should be printed on the inner poly
liner, poly bag, or vacuum bag.
• In the case of Alcohol & Pre-packaged food
– Labeling should be in Chinese.
– Specific font sizes have to be maintained.
• In the case of milk & milk products
– Labeling should be in Chinese.
– Specific background colors have also been mentioned.
Few examples….
Let’s see what Pakistan has to ask for?
Food quality and safety control
Code of practice
EUREP-GAP
quality control
by packing
Produce
Quality
control
selection
packagin
g HACCP
Packing station
Exporter
Governme
ntal SPS /
Vet control
quality
control
temp
check
Temperature
and humidity
check
Point of
departure
Governme
ntal SPS /
Vet control
quality
control
MRL
control
Control of
compliance
with code of
practices
Transport
Point of
entry
Control of
compliance
with BRC
Importer
Retailer
Private
specifications
/ protocols
Private
specifications
/ protocols
Micro costs of EurepGap compliance
Main Products Affected
31 (+ 2) disputes have invoked
the SPS Agreement
Agreed Solution (7)
21%
Report(s)
Adopted (9)
27%
Consultations - Pending (13)
40%
Panel
Established (4)
12%
Equivalence Agreements status of India
India is seeking equivalence agreements with the health
authorities of major trading partners.
• The EIC has already been designated a competent authority
by the European Commission (EC) for marine products and
basmati rice and by the U.S. for black pepper.
• Similar recognition awaited from the EC for egg, milk, and
poultry products.
• Equivalence agreements with Australia for marine products
• SriLanka for 86 items.
• It is negotiating an agreement in various sectors with
Singapore and will soon have an agreement with Italy.
http://www.fao.org/es/esn/food/foodandfood_fruits_en.stm
www.ipfsaph.org
1.
General
Policies which have no or minimal production or trade distortion effects
Should not involve transfers from consumers or provide price support to producers.
2.
Government service programmes
research
pest and disease control
training services
extension and advisory services
inspection services
3.
Environmental programmes
Related to fulfillment of specific conditions including production methods or inputs under
government programmes.
Payment limited to increased costs or income loss due to compliance with the programme
4.
Regional assistance
Producers must be in disadvantaged regions
Compensate for loss of income or extra costs in undertaking production
Contract Farming examples:
•
Tomato cultivation in Punjab, Haryana and Rajasthan,
 Mushrooms in Haryana,
 Sunflower in Andhra Pradesh and Karnataka,
 Gherkins in Karnataka
 Fruits and vegetables in Tamil Nadu, Maharashtra and Andhra Pradesh.
Other efforts
•
•
•
•
•
Amul & NDDB for milk procurement
Sugarcane cooperatives in Maharashtra,
Green leaf satellite out growers to the South Indian tea manufacturing
industry,
Prawn aqua culture farmers of AP &
Poultry projects in West Bengal, Tamilnadu, Maharashtra, Andhra
Pradesh & Punjab.
Tamanna Chaturvedi
tchaturvedi@iift.ac.in
+91-11-26967558