Trade facilitating effects of regulatory cooperation in Regional Trade Agreements (RTAs)

Transcription

1 Trade facilitating effects of regulatory cooperation in Regional Trade Agreements (RTAs) Organisation for Economic Co-operation and Development (OECD) Paris, 21 st November 2014 Dr. Teresa Babuscio COCERAL

2 Outline COCERAL facts and figures Global grain today: buyers and sellers EU position in the global market; RTAs and trade challenges: where does the EU stand? EU Case studies: Chile, Serbia, Canada, United States Conclusions. RTAs and regulatory cooperation: what is needed

3 EU association representing the trade with cereals, oilseeds, rice, feedstuffs, olive oil and agrosupply Grain merchants, storers and/or international traders 30 Member Associations 19 EU countries 2 Associated members Switzerland Serbia 2700 companies

4 Bulk grains handling system Global grain trade today: buyers and sellers North America Europe Russia Ukraine East Asia Central America Caribbean North Africa Middle East South Asia Southeast Asia Imported South America Sub- Saharan Africa Oceania Exported

5 RTAs and trade challenges Where does the EU stand? Traditional trade barriers: Tariffs Trend towards trade liberalisation tariff reduction or elimination - predictability Preferential and tariff cuts/quotas the main tangible benefit of RTAs Non tariffs trade barriers Technical and Sanitary-Phytosanitary constraints Policies often based on zero tolerance or reduced limits Emerging environmental and sustainability requirements to meet societal expectations Our own ability to create our barriers for Europe and within Europe Increased financial risks Commodity price increases / size of shipments Threat of market disruptions Grain production Increased weather variability caused by climate change Limited new land area Limited access to new technology Capacity building and post harvest loss

6 EU Case studies Chile, Serbia, Canada, United States

7 EU- Chile Association Agreement in force since February 2003 Cooperation in the standards and technical regulations; conformity assessment procedures; Exchange of scientific/technical information SPS: capacity building, infrastructure and technological transfer; Customs: simplification of custom procedures; sharing best practices EU-28 trade with CHILE IMPORTS (t) EXPORTS (t) CEREALS OILSEEDS OILS MEALS

8 EU- Serbia Stabilization and Cooperation Agreement in force since September 2013 Regulatory cooperation briefly tackled; Agriculture/SPS/Customs: cooperation aiming at supporting the gradual approximation of Serbian legislation and procedures to the EU rules and standards; EU-28 trade with SERBIA IMPORTS (t) EXPORTS (t) CEREALS OILSEEDS OILS MEALS

9 EU- Canada Comprehensive Trade and Economic Agreement (CETA) End negotiations September 2014, not yet in force Extensive regulatory cooperation foreseen; Regulatory compatibility, transparency and efficiency; Building trust and understanding regulatory governance; Regulatory Cooperation Forum established Possible exchange of officials working in regulatory fields EU-28 trade with CANADA IMPORTS (t) EXPORTS (t) CEREALS OILSEEDS OILS MEALS

10 Transatlantic Trade and Investment Partnership (TTIP) 7 th negotiations round September 2014 November 3 Regulatory cooperation: unique opportunity to reduce differences between EU and US having negative effects on trade; Negotiations on regulatory chapters very slow: supremacy of the 2 parties respective standards; Technical progress on regulatory chapters achieved during the 7 th negotiation round EU-28 trade with the USA IMPORTS (t) EXPORTS (t) CEREALS OILSEEDS OILS MEALS

11 RTAs and regulatory cooperation: what is needed Don'ts Produce less / stop trading Delay Free Trade negotiations Do s Embrace forward-looking policies in FTAs to minimize non tariff barriers Science based regulatory systems / regulatory cooperation is the key area Acknowledge zero risk does not exist Commercially acceptable solutions Risk mitigation methods: maximize the value of grain products and minimize cost inefficiencies along the supply chain Embrace innovative approaches to addressing market access issues International initiatives Standardisation, adoption of internationally-recognised standards Assess and work on the business climate in place with the counterpart signing the Agreement with the EU Multi-stakeholders platforms at European and international level

12 COCERAL Working together to make trade work Thank you for your attention Website: