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Policy Options for Open Borders in Relation to Animal and Plant

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Policy Options for Open Borders
in Relation to Animal and Plant
Protection and Food Safety
Maury Bredahl
Spencer Henson
Outline
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Sanitary and phytosanitary measures
Are SPS measures a problem?
Overcoming trade effects of SPS measures
Problems with negotiations
Implications
Cumulative Notifications of SPS
Measures to WTO, 1995-2001
600
500
400
USA
Canada
Mexico
300
200
100
0
1995
1996
1997
1998
1999
2000
2001
Voluntary Standards
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Product compatibility
Closely related to consumer preferences
Compliance with mandatory standards
De facto mandatory
Are SPS Measures a Problem within
NAFTA?
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Incidence data
Border detention data
Specific examples
Incidence of SPS Measures, 2000
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Incidence of SPS measures high for
agricultural and food products
Differences in types of SPS measures
applied and product coverage by country
High incidence of multiple measures
applied to single tariff lines
Problems of differences in definitions and
taxonomies between countries
US Border Detentions by Product,
2001
Product
Mexico
Canada
Fresh vegetables
716
12
Processed vegetables
252
27
Fresh fruit
152
4
Processed fruit
1,188
5
Fish
156
51
Beverages
336
16
Baked Goods
180
15
Confectionery
216
30
Spices/Seasonings
22
2
Meat products
24
123
Dairy products
0
9
Other
15
24
TOTAL
3,257
318
US Border Detentions by Reason,
2001
Reason
Mexico
Canada
Microbiological
contamination
1,044
132
Physical contamination
624
34
Labelling
312
105
Pesticide Residues
1,140
0
Non-permitted
additives
576
15
Non-registration
165
66
Other
48
4
US Imports of Avocados,
1991-2000
80000
60000
40000
20000
Total
Mexico
20
00
19
99
19
98
19
97
19
95
19
96
19
94
19
93
19
92
0
19
91
Short Tons
100000
Overcoming Trade Effects of SPS
Measures
Co-ordination
Mutual
Recognition
Harmonisation
NAFTA Agreement
Chapter 7
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�Appropriate level of protection’
Justification:
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Scientific principles
Risk assessment
Harmonisation
Equivalence
Regionalisation
Transparency
NAFTA Committee on Sanitary and
Phytosanitary Measures
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Enhancement of food safety/SPS conditions
Activities pursuant to international
standards and equivalency
Technical co-operation
Consultation on bilateral issues
NAFTA Committee on Sanitary and
Phytosanitary Measures, 1994-99
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Party:
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Mexico: 14
United States: 5
Canada: 1
Type of measure:
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Plant health: 10
Food safety: 6
Animal health: 4
Technical Working Groups
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Animal health
Dairy, fruits, vegetables and processed foods
Fish and fishery product inspection
Food additives and contaminants
Packaging, labelling and food standards
Meat, poultry and egg inspection
Pesticides
Plant health, seeds and fertiliser
Veterinary drugs and feeds
NAPPO
Co-ordination
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FDA/CFIA Action Plan on Food Safety
Principles for mutual support in animal
health emergencies
Joint US-Canada review of pesticides
Co-ordination of positions in Codex:
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Committee on Food Additives and Contaminants
Committee on Residues of Veterinary Drugs in
Food
Mutual Recognition
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US-Canada MRA on seafood inspection
US-Canada equivalence agreement on
molluscan shellfish inspection programme
Equivalency of greenhouse certification
Recognition of accredited laboratories for
seed certification
US recognition of Mexican poultry
slaughter system
Harmonisation
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US-Canada potato grading scheme
US-Canada food additives regulations
Policies on BSE and TSEs
Data requirements for residue chemistry,
seed treatments, terrestrial food uses etc.
US-Canada nutrition labelling and nutrient
content claims regulations
Japanese beetle regulations
Constraints
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Competency
Trust
Science
�Appropriate level of protection’
Traditions
Regulators
Impact of NAFTA / WTO
Dispute settlement
V
Policy-making
US Potato Imports from Prince
Edward Island (PEI)
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Justified?
Settled quickly?
Less likely to happen in future?
Problems with Negotiations
Relating to SPS Measures
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SPS capacity
Assessing the impact of SPS measures
Institutional factors:
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Fragmentation of responsibilities
Expertise
Agendas
Inter-agency negotiations
Trade issues V domestic policy objectives
Minute detail matters
SPS Capacity in NAFTA Countries
100
80
%
60
40
20
0
Technological Institutional
Canada
Mexico
Regulatory
United States
Total
Problems with Negotiations
Relating to SPS Measures
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SPS capacity
Assessing the impact of SPS measures
Institutional factors:
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Fragmentation of responsibilities
Expertise
Agendas
Inter-agency negotiations
Trade issues V domestic policy objectives
Minute detail matters
Implications
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SPS measures a major issue for exporters
Problems assessing the impact of SPS measures
Negotiations are time consuming and costly
Need for institutional development and reform
Need for system-based approaches
Risk assessment: �Trading science’
Importance of SPS capacity
Role of domestic pressure
Implications
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Are penalties adequate?
Reward v penalty-based system
Role for private certification?
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