Policy Options for Open Borders in Relation to Animal and Plant Protection and Food Safety Maury Bredahl Spencer Henson Outline пЃ® пЃ® пЃ® пЃ® пЃ® 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 пЃ® пЃ® пЃ® пЃ® Product compatibility Closely related to consumer preferences Compliance with mandatory standards De facto mandatory Are SPS Measures a Problem within NAFTA? пЃ® пЃ® пЃ® Incidence data Border detention data Specific examples Incidence of SPS Measures, 2000 пЃ® пЃ® пЃ® пЃ® 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 пЃ® пЃ® вЂ�Appropriate level of protectionвЂ™ Justification: пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® Scientific principles Risk assessment Harmonisation Equivalence Regionalisation Transparency NAFTA Committee on Sanitary and Phytosanitary Measures пЃ® пЃ® пЃ® пЃ® 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 пЃ® Party: пЃ® пЃ® пЃ® пЃ® Mexico: 14 United States: 5 Canada: 1 Type of measure: пЃ® пЃ® пЃ® Plant health: 10 Food safety: 6 Animal health: 4 Technical Working Groups пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® 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 пЃ® пЃ® пЃ® пЃ® 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: пЃ® пЃ® Committee on Food Additives and Contaminants Committee on Residues of Veterinary Drugs in Food Mutual Recognition пЃ® пЃ® пЃ® пЃ® пЃ® 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 пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® 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 пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® Competency Trust Science вЂ�Appropriate level of protectionвЂ™ Traditions Regulators Impact of NAFTA / WTO Dispute settlement V Policy-making US Potato Imports from Prince Edward Island (PEI) пЃ® пЃ® пЃ® Justified? Settled quickly? Less likely to happen in future? Problems with Negotiations Relating to SPS Measures пЃ® пЃ® пЃ® SPS capacity Assessing the impact of SPS measures Institutional factors: пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® 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 пЃ® пЃ® пЃ® SPS capacity Assessing the impact of SPS measures Institutional factors: пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® Fragmentation of responsibilities Expertise Agendas Inter-agency negotiations Trade issues V domestic policy objectives Minute detail matters Implications пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® пЃ® 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: вЂ�Trading scienceвЂ™ Importance of SPS capacity Role of domestic pressure Implications пЃ® пЃ® пЃ® Are penalties adequate? Reward v penalty-based system Role for private certification?