January Dear readers,

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1 January 2010 Dear readers, We have entered into a new year. It is time to take stock of the past year and to look to the future. We have had some remarkable milestones in trade like initialling our biggest bilateral trade agreement ever, with South-Korea, and solving some difficult and long-standing trade disputes including bananas with Latin-American countries and beef with the US. The year 2009 was a very busy one in the SPS- field: we were dealing especially with trade barriers related with Novel influenza, Avian Influenza, or beef related import restrictions due to the BSE just to mention a few. We also saw some successes: India partly lifted the import bans due to Avian Influenza on certain products, and changed the rules for exports of hides and skins to India; the Philippines and Indonesia partly lifted the import bans for beef due to BSE, Belarus lifted novel flu ban restrictions concerning pork products, China set new requirements for imports of pork products, avoiding unnecessary testing of meat and disinfection of containers, and Ukraine revised inspection requirements for imports of animals and animal products. Preventing problems is even more important. Our early contacts with a number of countries helped to avoid that the novel influenza outbreaks triggered even more unnecessary measures against pig and pig meat products. Many of our EU Delegations in partner countries proved again their value in identifying possible SPS measures at an early stage and in pursuing our EU market access interest. SPS market access will continue to keep us busy. For the agro-food sector, non tariff barriers frequently pose the single most important obstacle to trade in our most important markets. The number and frequency of these barriers is expected to continue increasing. The effects of SPS measures can be disruptive as these measures tend to put not only a cost on trade, but to close-off markets entirely. Our main concerns remain excessive levels of protection, absence of risk assessment, the lack of respect for international standards, and lack of transparency and predictability in the articulation and management of import procedures. New challenges for our agricultural products lie ahead, for example climate change. Food production contributes to climate change, and climate change will affect agricultural production. Farming influences climate change mainly by producing two powerful greenhouse gases, methane and nitrous oxide. In the EU, however, the production of these gases is limited and falling. Encouragingly, agricultural emissions in the 27 EU countries fell by 20 % between 1996 and At the same time, food production will have to double by 2050 to feed this world. Decreasing average annual and seasonal rainfall will be a serious problem in many EU regions. While the worst consequences may not be felt until 2050, significant adverse impacts are expected even in the short term from more frequent extreme conditions affecting EU agriculture: sudden heat-waves, droughts, storms and floods. The European Union recently conducted a study of the impact of climate change on different agri-climatic zones and options for adaptation. We also see risks to animal, plant and human health shifting. Pest and diseases are migrating with changing climate patterns. In such times of change, it is particularly important to maintain an open, transparent and science based approach to SPS measures. Close-cooperation between authorities in the 1

2 multilateral framework is a must. We need all this to ensure that the international trading system remains open and flexible to easily accommodate possible changing trading patterns, to make its contribution to food security, while guaranteeing safe and affordable food for all. It remains for us to wish all of you a successful year 2010! DG Trade SPS Team (left to right) - Ulrich - Violeta - Paulo - Eva - Hans - Hanne -Taina - Ditte - Henrique 2

3 WTO SPS meeting in Geneva The Sanitary and Phytosanitary (SPS) Committee took place during the last week of October The SPS Committee gives the opportunity to World Trade Organisation (WTO) members to express concerns on SPS trade problems faced with other WTO members and to explain and defend their position in relation to domestic regulation and imports. The European Union raised the following market access trade concerns in the October 2009 SPS Committee: restrictions in relation to Avian Influenza, import restrictions due to BSE, restrictions in relation to novel influenza and the non-respect of regionalisation. The concerns were raised both in formal sessions and during bilateral meeting in margin of the SPS Committee. Bilateral meetings on EU market access interests were held with several Third Countries. Market access issues raised in formal session EU together with Mexico, Canada and US repeated its concerns on novel influenza restrictions, which was supported by Australia, Japan, Chile, Brazil and New Zealand. EU raised concerns on Ukraine measures related to the new import conditions, with support from Canada, Norway, US and Iceland. EU further raised BSE related restrictions in general terms, Indian measures on avian influenza together with US, and Indonesian meat import conditions. Australia announced the relaxation of its measures on BSE. A number of Developing Countries interventions acknowledged the good work done by the EU in respect to SPS-related technical assistance. Main highlights on market access noted during bilateral meetings In bilateral meetings the main topics discussed related to the inspection system in place by certain third countries, the non-recognition of EU s application of regionalisation, restrictions on animals related to Pandemic (H1N1) influenza virus, import requirements related to Listeria monocytogenes (far stricter than the Codex Alimentarius standard) and last but not least longstanding bans on beef due to BSE. All these restrictions have been raised by EU as they are considered unnecessarily trade disruptive and thus not in line with the obligations of WTO Members under the WTO-SPS agreement SPS-related technical assistance The European Union continues its efforts to provide SPS related technical assistance to Developing Countries. Among many of the SPS related initiatives of the EU, it is worthwhile highlighting the Better Training for Safer Food Initiative (BTSF). Under this initiative a project called "Better training for safer food Africa" project worth 10 million Euros has taken off in April The European and African Union Commissions are jointly coordinating capacity building training activities covering health and plant health (SPS) during 2009 and The activities target African public and private sector actors at national, regional and continental levels. This important programme for Africa consists of two components, one implemented by the OIE and targeted on the public service, whereas the second component focuses on support of Small and Medium Sized Enterprises. More information can be found on: Europeaid initiatives of the European Commission can be found on: 3

4 Aid for Trade: Furthermore, European Commission contributions are provided to the three organisations that are officially recognised in the WTO SPS Agreement, i.e. the Office International des Epizooties (OIE), the International Plant Protection Convention (IPPC) and Codex Alimentarius in the fields of animal health, plant health and food safety and quality respectively. The European Union contributes to the three international standards setting bodies to allow experts from Developing Countries to attend their meetings. The Standards and Trade Development Facility (STDF) is a joint initiative in capacity building and technical cooperation aiming at raising awareness on the importance of sanitary and phytosanitary (SPS) issues, increasing coordination in the provision of SPS-related assistance, and mobilising resources to assist developing countries enhance their capacity to meet SPS standards. The European Commission is one of the donors of this facility. Recently the STDF produced a video highlighting the importance for a country to meet food safety and health standards. The STDF video together with more information can be found on: U.S. request for WTO panel on treatment of poultry The United States on 8 October 2009 requested the establishment of a WTO panel to rule on EU hygiene legislation on the processing and sale of poultry. The US is challenging EU rules on hygiene and marketing of poultry under which slaughterhouses can use only water or other approved substances to rinse meat products, in order to diminish their bacterial contamination ("antimicrobial treatment", or AMT). This rule applies to all meat products sold in the EU, irrespective of whether they are produced in the EU or they are imported. Products that meet EU standards can enter the EU market. This rule is part of wider EU legislation ensuring a high level of safety throughout the food chain, from farm to fork. The US submitted requests for approval of certain substances used in the US for the cleaning of poultry carcasses (mainly substances based on chlorine), but the EU rejected the approval of these substances in EU imports of poultry from the US have been marginal since 1997, when the EU removed from its list of authorized slaughterhouses several US establishments that were found not to be in line with EU hygiene requirements. The EU imported over 890,000 tons of poultry from third countries in 2008 (mainly from Brazil and Thailand). 4

5 Pandemic (H1N1) influenza virus Late April 2009, a novel influenza A/H1N1 virus outbreak in the human population, first reported in Mexico and in the US, was notified to the World Health Organization (WHO). At a later stage, human cases occurred in other countries, including most EU Member States. More recently, several cases in animals have been notified. However, the earlier statements made by several International Organisations 1 have not changed and they clearly continue to say that eating of pig and pig meat products is safe and that the imposition of trade restrictions is not justified. There is no scientific evidence that novel influenza virus can be transmitted to humans through the consumption of food. Despite repeating these statements, some countries continue to maintain unjustified restrictions on mainly pig and pig meat which affects also European exports. The European Commission remains concerned that several countries have imposed an unjustified ban on pigs and pig meat from EU Member States. The European Commission successfully intervened with a number of trading partners, who abstained from taking measures or who have lifted their restrictions or who announced that restrictions still in place would be lifted. The European Commission continues its efforts to ensure the lifting of all remaining restrictions. 1 World Organisation of Animal Health (OIE): European Commission - Health and Consumers Public Health Novel Influenza virus: European Food Safety Authority (EFSA): Novel Influenza virus: _ htm World Health Organisation (WHO): World Trade Organisation WTO: 5

6 Market access key barrier exercise: building on a stronger partnership A strong market access policy is a key function of the common commercial policy, and a key area in which the EU can deliver real economic benefits for its Member States and EU industries. At the heart of the strategy is a stronger partnership between the Commission, Member States and business which aims to set-up a more effective service for EU exporters by teaming up resources and creating synergies with Member States and EU industry. Following Council conclusions of December 2008, a process has started in early 2009 to identify key market access barriers in about 30 most important markets for European exporters. The objective of this process is twofold to: Prioritise the work on market access issues following the criteria laid down in the Market Access Strategy, i.e. (i) potential economic benefits for EU business in the short to medium term, (ii) whether or not the barrier in question represents a serious infringement of bilateral or multilateral agreements and (iii) likelihood of resolution of the problem within a reasonable timeframe; Focus the market access activities of Commission, EU Member States and stakeholders. SPS issues are a very important part of the Market Access Strategy and of the key barrier exercise. The key barriers exercise adds further impetus to resolving these issues, making full use of the EU s joint forces. The SPS market access database captures the full picture of pending and resolved SPS market access issues. To learn more about EU Market Access Activities, read the latest Market Access Newsletter at: 6

7 SPS Market Access Working Groups - 11 December 2009 The two market access working groups on Sanitary and Phytosanitary issues (SPS MAWGs) met on 11 December 2009 in Brussels. They followed the thematic approach started in June 2009, driven by presentations made by EU industry associations, Member States and the European Commission on SPS market access issues and related activities. A presentation made by the former chair of the WTO SPS Committee focused on general aspects of WTO work and on the key provisions of the SPS Agreement. Presentations Three sectors were covered during these meetings: Dairy and pork sectors and seeds. The presentation made by the Commission focused on the main world players (importers and exporters), and export incentives and import protection in the EU in the dairy and pork sectors. The European Dairy Association (EDA) focused on the main exports of dairy products (cheese, whole milk powder, skimmed milk powder, butter, caseines/caseinates, whey, lactose, and milk protein concentrates), the main producer EU Member States, and the main difficulties affecting a sector. The dairy sector has a turnover of approximately 120 billion Euro per year, employs around people in the EU, and represents 15% of the EU food and drink industry. The presentation made by one company associated to the EDA included analytical testing concerns, and concerns related to health certificates. The presentation by a representative of the Liaison Centre for the Meat Processing Industry in the European Union (CLITRAVI) focused on the position of the pig meat sector in the EU, which has a turnover of approximately 70 billion Euros per year, employs around million people, and represents about 40% of the EU meat sector. The presentation also included SPS problems and solutions related to food safety, animal health, standards, protectionism and the precautionary principle. The presentation made by a representative of the seeds industry focused on the position of the seeds market in the world and on the main SPS problems affecting the exports of seeds. Among these problems, exporters face difficulties related with providing phytosanitary information for seed lots to be re-exported, requirements not scientifically justified, access to lists of quarantine pests and import requirements. All presentation highlighted the increasing importance of exports for these sectors, including in the context of a further reform of the Common Agricultural Policy. Trade policy and SPS market access activities will have to play their role in this endeavour. The next meetings of the SPS MAWGs are scheduled for 21 April, 9 September, and 9 December

8 Export of plants and plant products The major barriers to export of plants and plant products seem to be: lack of transparency in legislation or procedures in third countries, and lengthy procedures for handling of applications on export of new products or recognition of alternative treatments. Efforts are made, by the European Commission to encourage transparency, e.g. during WTO Trade Policy Reviews, and by providing comments to WTO notifications from third countries. Furthermore discussions are ongoing bilaterally with USA, China and India to facilitate the handling of the export requests from EU Member States. Barriers to trade are explored during meetings in the SPS Market Access Working Group (as above mentioned). In the key barrier exercise, as yet, only one fiche on plants and plant products has made its way to the lists of top ten barriers to export for main export markets. The fiche covers long pending applications to export fruits and to export plants in growing medium to USA. Hopefully, the work done in the EU-US Plant Health Technical Working Group will ensure some progress on the files. The aim of this working group is to facilitate trade in plants and plant products by providing clarification on legislation and procedures and by facilitating the handling of requests to export. EU has provided prioritised lists of applications to export and intends to follow the files closely, to assist in the US administration and allow for a swift handling. The very first joint EU application, supported by Italy, France and Belgium, covers apples and pears. ISPM 15 Wood Packaging Material (WPM) The ISPM 15 standards for wood packaging materials (WPM) are widely used and more and more countries implement ISPM 15 in their import requirements. The standard is valuable because of the wide use of WPM for trade in all kinds of products and the dire consequences if deviating sanitary requirements would restrict the use of WPM. Lately, a few issues have been noted: Notifications on implementation from several Asian countries (not fully in accordance with ISPM 15; Commission is following up); unnecessary strict import measures in the USA (return of entire consignment, if WPM are not in accordance with ISPM 15). The USDA/APHIS has informed that in case of non-compliance, importers can fill in the Customs and Border Protection mitigation form, which has to be done within 24 hours (see link to the respective form at 8

9 Country-specific issues Ukraine During summer 2009, Ukraine announced new inspection requirements for imports of animals and animal products which would have caused serious difficulties for EU exporters. The implementation of these measures was scheduled for mid-january The European Commission immediately expressed concerns about these announced measures. Thanks to co-operative and constructive discussions between the EU and Ukrainian authorities, Ukraine cancelled its measure in early January Ukraine announced in a more transparent way the possible inspections for 2010: Ukrainian authorities intend to do 5 inspection missions to EU Member States during 2010, based on a systems approach, including visits to a limited number (2-3) of establishments. Information on the issues and questions to be covered during the inspection missions will be published on the web pages of The State Veterinary Service. The missions will be planned in close co-ordination with the competent authorities of EU Member States and EU Commission. With regard to plant and plant products, the Commission has met with Ukrainian authorities to seek further information on background, scope and objective of the recently notified registration requirements for plant products. Ukraine is planning to extend the list of plant products for which certification of compliance with a number of Ukrainian food standards Maximum residue level, contaminants, and nitrate) is required. The standards are only available via a database in Ukraine and are not published electronically. Their compliance with international standards remains to be verified. Also the certification procedures need further examination as some legal instrument is only available in the database. The Commission voiced concerns about the new certification requirements, their objective and necessity, and the additional cost and burden which they would pose for EU exports of fruit and vegetables to Ukraine. Ukraine has also notified to WTO the exclusion of certain products (margarine and soft margarine; chocolate sweets; canned meat; tea; coffee natural roasted) from the list of products to be certified. Australia Important trade SPS related barriers to EU exports still persist. Those are the cases, amongst others, concerning restrictions on exports of pork meat and poultry meat, due to strict bio-security measures, and also raw milk cheese products. For alleviating beef import restrictions due to BSE, some progress would seem possible. In October 2009, Australia notified new requirements for the importation of beef and beef products for human consumption, which would relax the previously imposed ban and move towards OIE standards. The Commission has provided comments on this SPS notification to Australia. For 2010, the EU will make an important effort for pressing further progress on those unsolved issues. Pork meat and meat products will be a priority, with regard to the volume of potential exports that it represents. The EU will take all the proper forum of debate with AUS during 2010, to push for those issues, including the Trade Policy Dialogue, to be held in February 2010 in Australia. A technical SPS mission to Australia is foreseen for May 2010, the EU Australia partnership framework, during which the SPS trade barriers imposed by Australia, will be debated. 9

10 China European participants in the China World Fruit and Vegetable Trade Fair 2009 China World Inspection and Quarantine of Fruit and Vegetable and Fruit and Vegetable International Trading Forum The China World Inspection and Quarantine of Fruit and Vegetable and Fruit and Vegetable International Trading Forum was organised on 13 November 2009 in Guangzhou, China. The event was supported by General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and hosted by China Entry-Exit Inspection and Quarantine Association (CIQA). China is an important fruit-importing as well as exporting country. China is the ninth biggest fruit importing country in the world. In 2008, China imported 1.7 million tons fruit, which was 10 % more than in the previous year. The main import fruits to China were bananas, grape, kiwi fruit, citrus, apple and longan-fruit. The majority of these imports come from Thailand, USA, Vietnam, Chile and Philippines. Therefore, it is clear that an enormous potential and massive market could be explored concerning both imports and exports of Chinese fruit and vegetable industry. The Forum was organised in order to accelerate the development of fruit and vegetable market, strengthen the communication between the inspection and quarantine department of all countries.the Chinese organiser announced that the event is planned to be take place annually. The Forum was organised concurrently with the "China World Fruit and Vegetable Trade Fair 2009" where Chinese fruit and vegetable import and export enterprises were present in the exhibition hall. The programme in the Forum included presentations from China on their Entry-Exit Inspection and Quarantine System for fruit as well as presentations from US, Chile, Thailand, New Zealand, Australia and Europe. The European Commission was invited to make a presentation in the Inspection and Quarantine forum. The presentation by Freshfel-BFV European industry-perspective gave insight on trade trends between China and the European Union. The main imports from China to EU are grapefruit ( tonnes), garlic ( tons), apples, pears and grapes. At the same time, the EU exports to China just 0.066% of its total exports of fresh fruit and vegetables, despite China having one fifths of the world's population. In the presentation some possible explanations were given for this trade asymmetry: Euro- Yuan exchange rate, different approach/interpretation on WTO SPS principles (regionalisation, appropriate level of protection, etc) and reference to the long approval procedures were mentioned as hindering exports from EU Member States to China. Therefore greater transparency in legislation, recognition of EU controls to avoid duplication, greater level of proportionality of mitigation measures, speeding up processes for negotiations of protocols are recommended. 10

11 Korea European Commission Seminar on Sanitary and Phytosanitary issues for administrators from the Republic of Korea (South Korea) on November 2009, Brussels The seminar was part of the assistance that the European Commission offers to assist countries to overcome technical problems for their exports to the EU by improving their ability to meet EU Sanitary Requirements. This targeted technical assistance in the area of food safety, animal and plant health takes place within the framework of the obligations in the WTO SPS Agreement on technical assistance. The specific seminar aimed to improve mutual understanding and transparency of SPS issues between the EU and South Korea and to reduce difficulties in relation to export requirements and by doing so, facilitate the implementation of the FTA recently signed between the EU and South Korea. The specific objectives were to ensure that administrators involved in food controls in South Korea are properly informed on the EU legislation for export to the EU of food products and products of animal or plant origin. More information on this seminar could be found on: where also presentations about Korean import systems on meat and plants can be found.. EU Trade Director Ignacio Bercero Garcia made the opening speech of the seminar Disclaimer: The European Commission services issue this newsletter to enhance information about its initiatives and activities. Our goal is to keep this information timely and accurate. If errors are brought to our attention,we will try to correct them. However the Commission accepts no responsibility or liability whatsoever with regard to the information in this newsletter. The disclaimer, the copyright notice and the statement on Personal Data Protection that you can find at apply accordingly to this newsletter and the data collected for its distribution. Produced by European Commission DG Trade Unit C1 SPS-team To subscribe/unsubscribe please send an to mentioning Subscribe/Unsubscribe in the subject line. More 11