Animal identification, animal breeding and International trade The future EU legislation on Zootechnics

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Animal identification, animal breeding and International trade The future EU legislation on Zootechnics ICAR, May 2014 Berlin, 20-23 May 2014 Sergio PAVON European Commission DG Health and Consumer Protection Unit G.2 Animal health This presentation does not necessarily represent the views of the European Commission Sergio.Pavon@ec.europa.eu

AGENDA 1- Animal Identification and traceability in the EU 2-Animal identification, traceability and international trade 3- Major challenges for international trade of genetic material 4-The future EU legislation on zootechnics

1- Animal Identification and traceability in the EU -In the light of the Bovine Spongiform encephalopathy (BSE) crisis Union rules on the identification and traceability of bovine animals were re-enforced in 1997 -Regulation (EC) No 820/97 of the European Parliament and of the Council established a regime of individual traceability of cattle by means of: Individual animal identification of animals with two ear tags; Holding register on each holding (e.g. farm, market, slaughterhouse) Individual passport for each animal containing data on all movements Reporting all movements to a national database that is able to quickly trace animals and identify cohorts in the case of disease.

1- Animal Identification and traceability in the EU These principles were upheld later in Regulation (EC) No 1760/2000 of the European Parliament and the Council Objectives: to re-establish consumer confidence in beef and beef products through transparency an d traceability of bovine food products to localise and trace animals for veterinary purposes, which is of crucial importance for the control of infectious diseases To assist with the management and supervision of certain Community aid schemes in the field of agriculture such as livestock premiums as part of the Common Agricultural Policy (CAP) subsidy schemes.

1-Animal identification and traceability in the EU 1- Consumer protection information: to restore confidence in beef and other bovine-derived products in the consumer after the BSE crisis through transparency and traceability 2- Human health: food can be traced quickly through the food chain and can be quickly withdrawn from the market (dioxins, residues ) 3- Animal health: Location, tracking and culling of animals for veterinary purposes (fundamental for controlling infectious diseases) 5- Fraud Prevention 6-Ensuring the functioning of a "Single market" (28 Member States) 7- From "Birth to slaughter..but also "From the Farm to the table" 5

1-Animal identification and traceability in the EU o The vision of the EU with regard to animal identification is not limited to BSE o In terms of animal health there is other major reason: "Regionalization" o facilitates trade despite the presence of highly contagious diseases in a region or country o You must know the origin of the animal and the time spent in certain areas / regions o Information on the export place (place of dispatch) does not seem to be sufficient ( one-step-back ) o In the EU and some international trade partners require further information on the previous movements the animal ("full traceability back") 6

1-Animal identification and traceability in the EU - EU experience: was it worth it? YES!!! At the level of animal health (not just BSE) At the level of consumer protection and information In terms of market access However: Costs involved Administrative burden (will change) -Electronic Identification in cattle and others 7

1-Animal identification and traceability in the EU -The final test of the effectiveness of a traceability system depends very much on the performance of the database - database should ensure a real time bovine-tracking - system -this effectiveness will depend on how often and how quick the database is fed with the necessary information -The responsibility of "feeding" the database depends heavily on farmers 8

1-Animal identification and traceability in the EU A fundamental requirement for having a labeling system which is credible is that it is based on an effective system of AI & T The EU legislation contains provisions for beef labelling Any beef which goes on sale in the EU for the consumer must include on the label information on the origin: -A reference number that enables to trace-back to the holding of origin (birth) - Information regarding the origin of the meat: "Animal Born: in Spain; Raised: in France, Slaughtered: in Germany" 9

1-Animal identification and traceability in the EU These principles are contained in Regulation (EC) No 1760/2000 of the European Parliament and the Council which has been reviewed recently: - introduces EID in cattle (voluntary bases) - electronic exchange of information (reducing paper word) - certain derogations for old animals - modifications on beef labelling (voluntary) - applicable in 2019 10

1-Animal identification in the EU 11

1-Animal identification and traceability in the EU 12

2- Animal Identification, traceability and international trade Main principles: 1. 1-A traceability system cannot be achieved without costs 2. 2-It is necessary that the IA & T systems are proportionate to the objective and the goals to be achieved 3. 3-Depends on the objective: 1. Animal health (AUS, NZ ) 2. Food safety (EU, JAP, KOR ) 3. Market access (BRA, ARG ) 4. 4-Depends on the animal species (sheep, goats, pig, cattle..?) 13

2- Animal Identification, traceability and international trade The animal species: - Production systems and business trends for each animal species may be different - Traceability in cattle more complex than in pigs - Mixture of cattle from different sources - Mixture of sheep from many different sources - Age verification (e.g. BSE-cattle) - Less expensive a traceability based on "group of animals" (batch/lot) than on an "individual 14

2- Animal Identification, traceability and international trade Mandatory or Voluntary? Most exporting countries: mandatory AI systems (some of them voluntary AI system) Major importing countries: mandatory AI systems Record movement of animals is common in countries with mandatory IA systems Not to forget: importing countries are the ones establishing the minimum standards that exporting countries will need to satisfy to access their markets 15

2- Animal Identification, traceability and international trade - IA & T have become essential requirements for international trade not only meat but other products of animal (and vegetable) - Tendency to generalize: many countries have developed systems of IAI & T - Difficult to isolate the impact of traceability in international trade - Its absence may limit market access - Its tenure can quickly lift trade restrictions

2- Animal Identification, traceability and international trade - during the BSE crisis, more than 80 countries imposed restrictions on EU products - today, many of these restrictions have been lifted based on: The implementation of a proper AI & T system The "farm to the fork" concept ABP management Crucial to restore confidence on business partners 17

2- Animal Identification, traceability and international trade Regionalization: - trade facilitation tool - Allows SAFE trade of live animals and animal products within the EU and also at international trade - EU policy is to promote regionalization as much a possible: 1. Internally 2. At international level (BRA, ARG ) 3. for major animal diseases: -Foot and mouth disease -Avian influenza -Newcastle disease - Classical swine fever 18

3- Major challenges for international trade in genetic material - EU is one of the major exporters of genetic material worldwide - the OIE's animal health code contains recommendations for safe trade in genetic material - OIE is recognised by the WTO (World Trade Organization) as the ISSO (International standard setting organization) for animal health - WTO sets the main principles for international trade 19

3- Major challenges for international trade in genetic material Case 1: International recommendations exist but importing countries decide to go "beyond" conventional pathogens Case 2: lack of OIE's recommendations= lack of international standards for safe trade.emerging pathogens Case 3: administrative, environment and biodiversity reasons 20

3- Major challenges for international trade in genetic material Case 1: International recommendations exist but importing countries decide to go "beyond" - with scientific bases (legal, but on a temporary bases ) - without scientific bases.resulting in unjustified trade restrictions 21

3- Major challenges for international trade in genetic material "Conventional" pathogens: 1.BSE, FMD 2.Blue Tongue 3.Infectious bovine rhinotracheitis/infectious pustular vulvovaginitis 4.Bovine Viral Diarrhoea BSE is a clear case of importing countries "going beyond "international standards International trade in genetic material is safe in relation to BSE no justification for restrictions. 22

3- Major challenges for international trade of genetic material Other problem is Regionalization (e.g.: FMD): Refuse to recognize regionalization Resulting in unjustified restrictions to genetic material from regions/areas which are free of the virus OIE contains recommendations on Zoning and compartmentalisation (Chapter 4.3) The WTO contains provisions regionalization (disease free areas) in Article 6 of the SPS Agreement 23

3- Major challenges for international trade of genetic material Case 2: the lack of OIE's recommendations= lack of international standards for safe trade - "emerging pathogens" - Leptospirosis (L. interrogans and L.borgpettersenii) - some importing countries request unjustified treatments with antibiotics for bovine semen (excessive and prolonged in time) - lack of international recommendations: the pathogen does not met the criteria as to be considered by the OIE - result? Incertitude for international trade in genetic material. 24

3- Major challenges for international trade of genetic material Case 2: the lack of OIE's recommendations= lack of international standards for safe trade - Schmallenberg virus (SBV) - does not represent a source of concern for international trade - does not met criteria for being listed as a disease in the OIE - result? Unjustified restrictions for live animals and their genetic material 25

3- Major challenges for international trade in genetic material Case 3: administrative, environment and biodiversity reasons - Import restrictions due to administrative problems are raising as a major problem for international trade: - Long delays at BIPs - Excessive administrative burden and requests - Excessive documentation request without previous notification - Environmental reasons and protection of the domestic Biodiversity are provoking trade disruptions for genetic material 26

3- Major challenges for international trade in genetic material Case 3: administrative, environment and biodiversity reasons Undue delays in the application process for getting market access (this can take years, without any justification provided by the importing country) Discriminatory treatment between trading partners different import conditions (animal health) for different exporting countries without justification might be required by the importing country; Discriminatory treatment in comparison to domestic market e.g. importing country does not put measures in place for diseases for which it requires strict import conditions (e.g. diseases belonging to the same group as SBV). 27

3- Major challenges for international trade in genetic material -Genomic Selection may be on disadvantage in relation to countries holding domestic policy subsidies, resulting on more competitive prices once on the market - market forces driven (farmers may choose the product in the market with the best price ) - risk for biodiversity? - fair competition? 28

3- Major challenges for international trade in genetic material To reflect: 1. Excessively protective policy on animal health? 2. Excessively protective policy on food safety? 3. imports of genetic material do pose a threat for Biodiversity? 4. Protectionism approach towards domestic production? 29

4. Major challenges for international trade of genetic material Final reflections Trade barriers imposed by third countries: Animal health reasons Recently, barriers of an administrative nature Recently, environmental and biodiversity reasons Protection of national/domestic production? WTO legal gap? SPS, TBT Agreement? How to challenge these types of trade barriers? Incertitude & unpredictability in terms of international trade must be avoid

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the zootechnical and genealogical conditions for trade in and imports into the Union of breeding animals and their germinal products

4. The new EU Regulation on zootechnics - the European Commission recently adopted a legislative proposal with the objective to set up the EU level of zootechnia and genealogical conditions for in and imports into the EU of breeding animals and their germinal products - this proposal has been presented for discussions to the colegislators (European Council and the European Parliament) - some time before a final agreement is reached and before is applicable 32

4. The new EU Regulation on zootechnics - current Union legislation is organized vertically according to species - the new proposal aims to: To present in a SINGLE FORMAT of a Regulation for bovine, porcine, ovine, caprine and equine species streamlining existing provisions Drafting on a more precise and consistent language (different national transposition of Directives or different language for similar or identical content) Avoid obstacles to trade resulting from national transpositions (the concept of single market and free circulation of goods and services must be respected) Adaptation to the Lisbon Treaty 33

4. The new EU Regulation on zootechnics The new proposal provides principles for: -recognition and listing of breeding organisations -breeders associations and private undertakings - approval of their breeding programmes - entering of animals in herd books, flock-books, stud-books and their classification according to merits - registration of hybrid breeding pigs in registers - performance testing and genetic evaluation - the content of zootechnical certificates for breeding animals and their semen, ova and embryos 34

4. The new EU Regulation on zootechnics In addition, the new proposal provides principles for: - imports from third countries of breeding animals, their semen, ova and embryos - the designation of reference centres for breeding of animals - provisions to carry out official controls - provisions to resolve disputes arising where zootechnical checks disclose non-compliance with zootechnical requirements 35

4. The new EU Regulation on zootechnics Reasons for this new proposal: - cross border activities of approved breed societies - problems raised by: Breeders Breed societies and Competent Authorities Different interpretation of the existing legislation 36

4. The new EU Regulation on zootechnics obstructing EU cross-border activities of "foreigners" breeders' organizations. In some cases foreign breeder organizations are not authorised or not registered and in some other occasions, restrictions are put in order to "expand" or to "operate freely". Council directive 2009/157/EC (on pure-bred animals of bovine species) is very clear on its wording: EU MS shall ensure that activities like intra-eu trade on pure-breed animals, on semen, ova, embryos, the establishment of herd-books and the recognition of organisations and associations maintaining herd-books ARE NOT PROHIBITED, RESTRICTED or IMPEDED on zootechnical grounds COM Decision 84/247 provides the legal basis to refuse to recognise a new breeder's organisation (or association) but this is only in case it endangers the preservation of the breed or jeopardise the zootechnical programme of the existing organisation.

4. The new EU Regulation on zootechnics imposing unjustified restrictions on intra-eu trade of bovine genetic material (e.g. bovine semen included those which are GS tested by ICAR/Interbull validated systems) This is resulting on questioning the role of international standard setting organisations like ICAR. COM clarified during 2010 that the breeding values which are established in accordance with the approved systems (e.g.: ICAR/Interbull validation methods) are on line with EU legislation and qualify bulls so tested for artificial insemination in accordance to Directive 87/328/EEC. "own interpretation" for some genomic performance parameters in order to calculate the breeding value of an animal (e.g. -beef conformation- COM Decision 2006/427/EC)

The end Time for questions Sergio PAVON 39