Grain Industry Symposium 19 th November 2013
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1 Grain Industry Symposium 19 th November 2013 Dennis Stephens Secretary International Grain Trade Coalition - secretariat@igtcglobal.com 1
2 IGTC International Grain Trade Coalition - history December 2000: Montpellier, France 1 st Meeting of Intergovernmental Committee on Cartagena Protocol Potential decisions could have profound impact on global grain trade Most delegates from environmental ministries - little knowledge nor interest in commercial implications of decisions NGOs had profound impact on decisions Exporter trade associations (CGC and NAEGA) had minimal impact Conclusions: Exporters should avoid ratification of Cartagena Protocol on Biosafety New global grain trade advocacy strategy must be developed to minimize Protocol s potential adverse trade impact Trade disruptions impact both importers and exporters New advocacy strategy must involve both importers and exporters - secretariat@igtcglobal.com 2
3 IGTC International Grain Trade Coalition created June 2001: Vancouver, Canada DFAIT financing CGC hosts meeting of sovereign importer and exporter grain trade associations International Grain Trade Coalition formed to advise governments on implementation of the Biosafety Protocol to protect global biodiversity while meeting the needs of the world s food, feed and processing industries IGTC scope refined in 2006 to focus existence on the goal of avoiding disruptions in the international trade of grain, oilseeds, pulses and derived products - secretariat@igtcglobal.com 3
4 IGTC Membership - 22 Organizations / 8000 Members / 80 Countries COCERAL CGC GAFTA RGU NAEGA, NCGA, NGFA, USGC, USW, CRA, ANIAME, APPAMEX CNFA CNAGS CAPECO ABIOVE ANEC CEC SOPA SESPA GTA, AGEA 4
5 IGTC major files Cartagena Protocol on Biosafety Synchronization of event approvals/low Level Presence policies international and national approaches IPPC International Phytosanitary Grain Standard Technology developer stewardship policies - secretariat@igtcglobal.com 5
6 Major files Biosafety Protocol Article 18.2(a) scheduled for review at COP/MOP-7 September 2014 in Korea 18.2(a) dictates shipping documentation required for transboundary movement of LMOs Current requirements decided in 2006 at COP/MOP-3 (Curitiba) Use of commercial invoice Contains for IP shipments of specific event May contain with list of events that may be in shipment for normal bulk trade May contain without list of events in Party/Non-Party trade (Mexico/US/Canada) Expected demands Stand alone documentation No exemption for Party /Non Party trade Bar codes for each event that may be in shipment - secretariat@igtcglobal.com 6
7 IGTC COP/MOP-7 strategy? Key focus will be Article 18.2(a) Minimum objective Maintain status quo Highlight benefits of Mexican corn pilot study Reject demands for stand alone documentation, bar codes and removal of Party /Non Party exemption Maximum objective Extend may contain without list of events from Party / Non-Party to Party / Party Ensure other issues adopt commercially acceptable decisions Liability & Redress Risk Assessment/Risk Management Biosafety Clearing House - secretariat@igtcglobal.com 7
8 Major files - LLP The evolving use of biotechnology and the divergent regulatory approaches to managing GM crops are threatening global food security Importing countries: zero tolerance policy on GM Exporting countries: increasing GM commercialization High risk of detecting GMOs in imported commodities - secretariat@igtcglobal.com 8
9 Types of LLP LLP from asynchronous approval: May occur when the country of export has already approved a GM event for cultivation, while the country of import is in the process of authorizing it LLP from isolated foreign approval (often described as asymmetric approval): May occur when the country of export approves a GM event for commercial production and in the country of import no submission for the approval is sought by the developer of the event or in which an approval is not granted for reasons falling outside food safety LLP from discontinued event: May occur when in the country of import the approval of the GM event expires and the technology developer does not submit an application for the continuation of the approval - secretariat@igtcglobal.com 9
10 LLP policies: key objectives Scientifically based internationally consistent Encourage policy harmonization synchronization of approvals Provide for food, feed environmental safety LLP policy Providers, producers and subsequent holders to be fully responsible Viability of supply legal certainty to operators Consistent with bulk handling system and manufacturing practices - secretariat@igtcglobal.com 10
11 New GMO regulatory policies must reflect differences in risk YES NO NO Low levels of recombinant DNA plant materials that have passed a food safety assessment according to Codex guideline for the conduct of food safety assessment of foods derived from recombinant-dna plants (CAC/GL ) in one or more countries but may on occasion be present in food in importing countries in which the safety of the relevant recombinant-dna plants has not yet been determined definition of LLP adopted by Global LLP Initiative Adventitious Presence (AP): unintentional presence of GMOs that have never been approved anyplace on the basis of the Codex international guidelines for food plant safety assessment - secretariat@igtcglobal.com 11
12 LLP Policies: risk management Be consistent by providing for 3 approaches as the LLP sources Explore international process Be temporary by following a process-based authorization Commercially practical feasible Biotech developers commitment to be fully responsible for GM commercialization Provide for LLP marketing threshold - secretariat@igtcglobal.com 12
13 IGTC recommends 5%: Marketing LLP thresholds recommendations With food safety concerns addressed, governments must ensure that LLP policies do not create unintentional increases in food and feed prices International grain trade experience confirms that 5% levels can be achieved with minimal cost impact within the global handling and transportation system International Agricultural Trade Research Consortium study Guillaume Gruere Asynchronous Approvals of GM Products, Price Inflation, and the Codex Annex, What Low Level Presence Policy for APEC Countries? going from 0% to 5% would reduce total costs by over 70% in both the case of maize and soybeans - secretariat@igtcglobal.com 13
14 Current LLP regulatory status National public consultation phase Canada Philippines Colombia International Global LLP Initiative Members- Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Mexico, Paraguay, Philippines, Russia, United States, Uruguay, Viet Nam; Observers - China, Colombia, Korea,, South Africa, EU 3 Meetings Vancouver 2012, Rosario 2012, Durban 2013 Next meeting 4 th quarter 2014 Future IGTC recommends FAO LLP Consultations 2014 Generate discussion among developing countries on potential food security impact of LLP detection - secretariat@igtcglobal.com 14
15 Major files phytosanitary grain standard The International Plant Protection Convention (IPPC) is an international agreement on plant health signed by 179 governments to protect cultivated and wild plants by preventing the introduction and spread of pests. The Commission on Phytosanitary Measures (CPM) that governs IPPC agreed at its 8 th meeting in Rome in April, 2013 to the continued development of an International Standard for Phytosanitary Measures (ISPM) on the international movement of grain. The ISPMs are the standards, guidelines and recommendations recognized as the basis for phytosanitary measures applied by the WTO under the application of the Sanitary and Phytosanitary Measures Agreement (SPS Agreement). A Standards Committee develops the proposed standards that are then submitted to the CPM for approval. - secretariat@igtcglobal.com 15
16 Scope of Grain Standard CPM-8 requested Standards Committee Narrow scope of proposed specifications to phytosanitary issues and to exclude Living Modified Organisms (LMOs), climate change, food safety and quality issues Determine if traceability should or should not be excluded IGTC supports CPM-8 s decision to exclude LMOs, climate change, food safety and quality issues Standards Committee meets in Rome on November to redraft proposed standard for consultation by member countries. Three strategic experts from the United States, Brazil and Kenya have been named to provide strategic advice IGTC urges governments to exclude traceability from the scope of specifications for the proposed new international phytosanitary grain standard. - secretariat@igtcglobal.com 16
17 IGTC recommendations Proposed ISPM for the international grain movement must reflect existing industry practices, be easy and of minimal cost to implement and be designed to minimize trade disruptions. Phytosanitary risk mitigation measures must be commensurate with the risk associated with the regulated pests. Global bulk handling system is designed to move commodities from areas of surplus to areas of deficit for food, feed or for processing. These shipments are not intended for intentional introduction into the environment. Grain risk mitigation measures must consider the further processing and eventual end use of the product. Risk mitigations methods therefore should be examined along the entire supply chain to identify the most effective, least cost method to minimize quarantined pest risk involving both exporting and importing countries. Such processes are likely to be much more effective and significantly less costly than imposing traceability systems into an international phytosanitary grain standard. - secretariat@igtcglobal.com 17
18 IGTC Strategy Development of appropriate resource materials Meetings by members with their respective governments Meetings with members of the Strategic Experts Group who will advise Standing Committee Meetings with members of Standing Committee IGTC to seek participation on standard drafting group? - secretariat@igtcglobal.com 18
19 Conclusions IGTC faces exciting opportunities Many challenges Increasingly international regulatory policies are developed outside national governments in international processes such as Biosafety Protocol, IPPC and CODEX that require a global advocacy approach Reason for success Coalition of sovereign trade associations that develops commercial approaches to achieve exporter, importer and government objectives on key international grain trade market access files IGTC members advocate consensus policies to respective governments Grain trade interests most likely to be achieved if major trading partners advocate similar policies IGTC global approach to international market access issues - secretariat@igtcglobal.com 19
20 Thank you - secretariat@igtcglobal.com 20
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