COFI:FT/VIII/2002/6  |
| COFI:FT/VIII/2002/6 |
Item 7 of the Provisional Agenda |
COMMITTEE ON FISHERIES |
SUB-COMMITTEE ON FISH TRADE |
Eighth Session |
Bremen, Germany, 12-16 February 2002 |
INTERNATIONAL FISH TRADE: EXPERIENCES WITH PROVISIONS OF THE TECHNICAL BARRIERS TO TRADE AGREEMENT (TBT) AND INFORMAL TRADE BARRIERS |
1. In response to the request by the Sub-Committee at its Seventh Session1, FAO's Fish Utilization and Marketing Service (FIIU) carried out a number of studies on the impact of the Uruguay Round Agreements on international fish trade and the adaptation of developed and developing countries to changes in fish import regimes in major markets. In particular, studies were undertaken on the experiences with provisions of the Agreement on Technical Barriers to Trade (TBT) and their application. Paragraphs 7-15 summarise the results of the studies.
2. Technical regulations and industrial standards are important, but they vary from country to country. Having too many different standards create unnecessary difficulties for producers and exporters. If the standards are set or applied arbitrarily, they could be used as an excuse for protectionism and can therefore become obstacles to trade. The Agreement on Technical Barriers to Trade therefore determines the conditions according to which regulations, standards, testing and certification procedures are not to be considered obstacles to international trade. This principle of eliminating hidden barriers is also enshrined in the Code of Conduct for Responsible Fisheries, in Article 11 on Post-Harvest Practices and Trade.
3. The Agreement on Technical Barriers to Trade is of particular importance for highly perishable products such as fish and fishery products for which inspection, testing procedures as well as stringent labelling requirements are in place. After the recent introduction of stricter import requirements by major international markets, an unbiased and correct application of rules, standards and procedures has become of even greater importance. This aspect is of course important for all exporters and exporting countries but take on a crucial significance for those in developing countries that rely heavily upon fish exports for a great part of their export revenues. It is therefore not surprising that many countries have voiced concern that an incorrect application of rules and standards could create informal trade barriers to international trade in fish and fishery products.
4. The incentives to raise informal trade barriers and thus protect local producers have increased with the significant concomitant decrease in import duties for fish and fishery products resulting from the Uruguay Round of multilateral trade negotiations. The fact that duty barriers have come down has changed the workings of the international fish market; today the capability to adhere to quality and safety standards and to labelling requirements has become among the most crucial parameters used by importers for evaluating products of potential suppliers. It also means, however, that today, real or perceived problems related to quality and safety, represent probably the most important obstacle to international trade in any given fish product.
5. FAO commissioned regional reports on informal barriers to trade from the major exporting regions as well from some of the major import markets, with particular attention given to products from developing countries. In addition, FAO carried out a survey through its own network of industry contacts, which were followed up with personal interviews on a confidential basis. All respondents were companies involved in processing, export or import of fish and fishery products. In addition to quality and sanitary matters, commercial, financial and logistical aspects related to international trade were also covered.
6. As any product exported is by definition also an imported product in some other market, the responses of importers were investigated in order to evaluate their experiences when importing, both during importation and at final destination. Aspects covered were problems with quality and safety standards as well as with labelling, but commercial, financial and logistical issues were also included.
7. The problems reported with informal barriers to trade focus mainly on the following issues:
8. Exporters and importers also suggested remedies that they felt would improve the situation and thus facilitate international fish trade. Among these were:
9. Exporters were generally concerned about the correct application of rules and procedures by authorities in exporting as well as in importing countries. On a regional basis, exporters in countries with a strong tradition in fish exports reported fewer problems that those countries that only recently have commenced fish exports on a large scale.
10. Importers focused on problems in importing countries but were also concerned about logistics and cold chain capabilities in the entire cold chain from the production site onwards. Importers in developed countries reported considerable variance in the application of rules and regulations by inspectors, not only between different ports of entry in the same country or by different countries of wider economic areas but sometimes by the same inspector when carrying out subsequent inspections. In some instances, rules were applied in a different manner by officials at point of entry and at point of sale in the wholesale markets. The reasons for this, according to the importers, are unclear regulations and directives which allow for various interpretations.
11. Importers were generally satisfied with quality of product from developing countries and highlighted the importance of personal knowledge and experience with the exporting companies. Importers were also generally impressed with the achievements of many developing countries in implementing HACCP programmes and the upgrading of processing facilities to required international standards. They were frequently less impressed with some of their own neighbouring countries and in some instances noted lack of significant progress by domestic operators. However, some importers noted problems with consistency in quality from developing countries, especially with packaging of fresh fish.
12. Inadequate cold chain infrastructure at landing sites is a major concern for marine fish in developing countries. Lack of sufficient infrastructure in many exporting countries, especially of high standard access roads to point of shipment and cold chain deficiencies were reported as recurring problems, despite some recent improvements. Cold chain deficiencies were particularly acute for exports of fresh fish by air transport, but lack of sufficient cold store capacity in the ports of many importing countries, was also reported as a problem in developed countries.
13. The increased emphasis on food safety and mandatory HACCP programmes over the last years has consequently led to added focus on hazards represented by imported food products, including fish and fishery products. Tighter scrutiny of processing factories and new requirements to documentation at production site and for documents accompanying the products are factors that have led many exporters, especially in developing countries to perceive the regulations, procedures and document requirements as constituting informal trade barriers.
14. Based on the findings in the above described studies, most of the reported hindrances and obstacles to international fish trade are due to unclear regulations in importing countries leading to more unpredictability and uncertainty at point of entry. More uncertainty leads to higher risks and costs for importers and for consumers, and could over time also lead to lower prices for exporters, including those in developing countries.
15. In the findings, some possible remedies are suggested:
16. The Sub-Committee is invited to consider the findings presented in this paper and to identify appropriate means and specific action for dealing with presented problems. It may wish to provide suggestions for further studies to be undertaken in 2002-2004 with regard to technical and informal barriers to trade in fish and fishery products.
1 Paragraph 31 of the Report of the Seventh Session, FAO Fisheries Report No. 621.
2 The reference to specific markets frequently reflects the importance of those markets in terms of imported volume and value and is not necessarily an indication that practises are worse there than those encountered elsewhere.