UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO

WTO SEMINAR TECHNICAL ASSISTANCE AND CAPACITY-BUILDING RELATED TO

THEAGREEMENT ON THE APPLICATION OF SANITARY AND

PHYTOSANITARY MEASURES Geneva, 5 November 2002

Presented by Dr. Bernardo Calzadilla-SarmientoSenior Advisor - UNIDO Office at Geneva

UNIDO’S ACTIVITIES RELATED TO MARKET ACCESS FACILITATION & SPS

MEASURES



• UNIDOs Conceptual framework: the 3 Cs approach

• UNIDOs TBT& SPS related programmes: an overview

• SPS related case Study: Lake Victoria Project

UNIDO’S ACTIVITIES RELATED TO MARKET ACCESS FACILITATION &

SPS MEASURES



DEVELOPING COUNTRIES ARE TAKING LIMITED ADVANTAGE OF IMPROVED

ACCESS CONDITIONS BECAUSE:

• They have serious shortfalls in capabilities

• They face major non-tariff barriers to trade



CAPACITY SHORTFALLS

often incompatible with international standards. Standards

Metrology and testing no recognized laboratory capacities.

Supply unable to produce goods of competitive quality and quantity.

Trade little say in international trade agreements

Marketing and export promotion

unable to identify and attract target consumers



Graphic 1 - Means-End diagram for market access facilitation

NON-TARIFF BARRIERS AFFECTING MARKET ACCESS

MarketAccess

Facilitation

Technical Barries toTrade (TBT)

Transportationand transit

processinspection

productdevelopment

accreditation ofconformity

assessment

registryprocedures

taxes

Sanitary andPhytosanitary measures

(SPS)

TBT relatedissues

standards fromCodex AlimentariusCommission (CAC)

Intl. Off ice ofEpizootics (IOE)

standards

health

InternationalPlant Protection

Conventionstandards

(IPPC)

domesticrequirements

International rulesfor trade

tradeagreements

prohibitiions

Registration,documentation and

customs issues

licences

w arehousing

customclearance

domestictaxation of

goods

intellectualproperty

tradedisputes

Investment andfinancial related

matters

foreignexchangemeasures

DFIregulations

banking

customvaluation

biosafetystandards (GMO)

dumpingpractices

UNIDOITCFAO

UNIDO

UNIDOIAFILAC

WHO

FAOWHO

UNCTAD

WTOUNCTAD

WTO

WTO

WIPO

-

WB

IMFUNIDOIMO

ICAO

National EnquiryPoint

ITC

certif ication(systems)

ITC

packagingand labelling

ITC

tests andcalibration

UNIDO

environmentalsystems

UNIDOUNEP

localcontent

schemes

UNIDOISOITC

ITC

airportservices

ICAO

foreigninvestment

taxes

WTO agreement fortrade

ITC

products and marketdevelopment

ITC

enterprises'competitiveness

UNIDOITC

tradenegotiationstechniques

UNCTAD

UNIDO - 22/Apr/02

internationalstandards

UNIDOISOITC

storageUNIDO

quotas,prices

subisidies

profitrepatriation

limits

UNCTADWTO

inspection

services

harbourservices

IMO

measurementstandards

UNIDOBIPM

IECOIMLITU

National EnquiryPoint

ITC

MARKET ACCESS FACILITATION

INTERNATIONALRULES FOR TRADE

TRANSPORTATION & TRANSIT

TECHNICAL

BARRIERS TO

TRADE (TBT)

NON – TARIFF BARRIERS AFFECTING MARKET ACCESS

SANITARY &

PHYTOSANITARY

MEASURES (SPS)REGISTRATION,

DOCUMENTATION

& CUSTOMS

ISSUES

INVESTMENT & FINANCIAL MATTERS



PRE CONDITIONS FOR MARKET ACCESS The three Cs

Enhanced COMPETITIVENESS of Supply Capacity

Countries must have marketable products to sell

Recognized CONFORMITY with standards

Products must meet market/client requirements

Efficient CONNECTIVITY to Markets

Rules for trade, customs must be harmonized



Connect to the Market

M A

R K

E T

S

P

R

O D

U

C

T

S

Products to Market

….by upgrading supply capacities and standards infrastructures

DevelopCompetitive

ManufacturingCapability

Prove Conformity with Market

Requirements

Compete Conform Connect

INTERNATIONAL AGREEMENTS & RULES FOR TRADE

WTO

INVESTMENT FACILITATIONFINANCIAL FLOWS

UNCTAD

STANDARDS &

CONFORMITY

ASSESSMNT

INFRASTRUCTUR

E

(TBT, SPS)

UNIDO, FAO,

WHO

CUSTOMS

PROCEDURES

TRANSPORTATIO

N

DOCUMENTATIO

N

UNCTAD, IMO

SUPPLY

DEVELOPMENT

(Capacity &

Competitivenes

s)

UNIDO

EXPORT PROMOTION

ITC

A CONCERTED INTER-AGENCY STRATEGY FACILITATES MARKET ACCESS

Compete Conform Connect



• UNIDOs Conceptual framework|: the 3 Cs approach





UNIDO’s Trade Facilitation & Market Access Programmes

Strategic choices:

• Support at national level through UNIDO Integrated Programmes

• Engage with regional economic integration processes

• Focus on sectors and products with high export potential



TOTAL NUMBER

TOTAL NUMBER WITH FUNDING

TOTAL FUNDING REQUIREMENTS

AVERAGE ANNUAL FUNDING RECEIVED

AVERAGE PROGRAMME DURATION

38

32

US$49.837,735

US$ 5,800,000

3 YEARS

OVERVIEW OF UNIDO’S INTEGRATED PROGRAMMES

AVERAGE ANNUAL FUNDING REQUIRED US$16,612,578



GEOGRAPHICAL LOCATION OF ACTIVITIES

ASIA7%

LAC3%

E.EUROPE6%

ARAB34% AFRICA

50%

REGION VALUE %

AFRICA $ 25,338,675 50.8ARAB $ 16,902,560 33.9ASIA $ 3,296,500 6.61E. EUROPE $ 2,758,000 5.53LAC $ 1,542,000 3.09TOTAL $ 49,837,735 100

Standardization Quality Certification Testing Metrology AccreditationPolicy-making

Standardization Quality Food Awareness raising;Experience exchange;

Standardization Quality Test Labs Awareness raising;ExpertiseTraining

Standardization Quality Food PrimaryLegal

Awareness raising;Experience exchange;

Standardization Quality FoodLeatherTextile

Primary Test Labs Awareness raising;Experience exchange;Training;

Standardization Quality Food Primary National Accreditation Body Awareness raising;Experience exchange;Training;

Standardization Quality Fish Industrial Awareness raising;Experience exchange;Training;Expertise

Standardization Quality QMS for labs

Standardization Quality Food Awareness raising;Experience exchange;Training;Expertise

AREA OF ACTIVITY IN RELATION TO TOTAL UNIDO PROGRAMME

100% (TOTAL VALUE US$49,837,735)

Metrology: 43.54%

Testing Labs: 43.54%

Certification: 63.03%

Accreditation: 63.83%

Standardization: 68.66%

Quality: 92.08%



Trade Facilitation: MSTQ for Market AccessEngagement with regional economic integration processes

UEMOA

SADC

ECOWAS (LDC)

LATINAMERICA Central America

ARABCOUNTRIES

AIDMO /ESCWA /UNDPYemen

ASIA South-Asian LDCs

AFRICA Being Finalized

Follow-up LDC III: Regional programme for Trade participation

Regional ProgrammeNational Programme strengthening Competitiveness for WTO accession

$ 2,700,000

€ 12,500,000

$ 5,300,000; being Finalized

$ 2,500.000Mekong-Delta



Accreditation

•Accreditation secretatiat at UEMOA

• Laboratory network

• Harmonisation of methods of analysis

Standardization

•Regional coordination system

•Regional standards documentation center

•Harmonisation of technical regulations

Quality Promotion

•Sectoral technical structures

• Consumer protection

• Promotion of standards, technical regulations & quality management

• UEMOA award

2002 ACTIONSApproved € 12.5 ml• Coordination Unit established• Awarenes phase on going• Training Seminars (Standards, ISO 17025

• Study tour to SADC/Central America

Establishment of a UEMOA System for Accreditation,

Standardization and Quality Promotion

Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo



UNIDO / SADC Initiative to Eliminate current and potential TBTs

• Assistance in building up the regional infrastructure for the elimination of TBT.

• The framework for the SADC Regional Programme was formulated at a UNIDO - SADC/SQUAM Workshop held in Pretoria, South Africa 27 - 31 August 2001.

• The Programme will give effect to the SADC Protocol on Trade (1st September 2000) and enable members of SADC to meet WTO requirements on the elimination of non-tariff barriers to trade within eight years.

• The Programme will enable SADC countries to take advantage opportunities to enhance their manufacturing and export capacity



Facilitating trade participation of 7 ECOWAS countries through enhancement of standards, metrology, testing, quality promotion

and related services• Focus: Main export commodities, such as food, textile and leather

• US$ 88,500 German funding for programme preparation

• Programme Components:•Strengthening of supply capacities•Increasing market reach, harmonization of standards•Development of conformity assessment, laboratory accreditation•Market intelligence services and export promotion•Strengthening of trade negotiation capacity•Streamlining of custom procedures

• Cooperating Agencies: WTO, UNCTAD, ITC, PTB

Cape Verde, Gambia, Ghana, Guinea (Conakry), Liberia, Nigeria, Sierra Leone.



Preparatory assistance funded by UNIDO Programme finalized Launching by Vice-Presidents

Trade facilitation in Central America • The Programme aims at tackling specific technical barriers to trade (TBTs) in

production areas with critical export potential.

• Part of the technical assistance will be to improve the required infrastructure for standardization, product certification and information networks, and the introduction of quality management systems at the enterprise level.

• An important component will be to estimate the losses and foregone benefits afforded by the Central American countries to enter harmonized markets because of difficulties to comply with their technical regulations and standards.

• The Programme is being developed with relevant UN partner agencies will also be active partners.

• With a budget of approximately US$ 5 million and a time span of three years, the programme is expected to significantly improve the access to market of products originating from the region, thus spurring economic growth and creating employment opportunities

2002 ACTIONS



2001 ACTIONS•Programme Formulation

Trade facilitation in Asia

• The Programmes are based on UNIDO work in LDCs in Asia in 1998

• South-Asian LDCs

• Mekong-basin countries

Regional Programme for Arab Countries

• Cooperation with AIDMO, ESCWA and UNDP

• Focus on Regional Accreditation

• Cooperation between standards bodies in Arab countries and in other regions

2001 ACTIONS•Programme Finalization•Expected final approval (UNDP)



• UNIDOs Conceptual framework|: the 3 Cs approach





Case of Victorian Lake Fish industry

Situation Before

• Major fish industry (Nile perch) developed around Lake Victoria, shared by Tanzania 51%, Uganda 43% and Kenya 6%

• Revenues from exports exceeded USD 200 million/year

• Employment for almost 500.000 people

• Favorable ground for local suppliers and complementary industries.




Effect of Lake Fish Poisoning

• EU export ban imposed in 1999

• Fish exports dropped by 50% in Tanzania and Uganda

• 30% of workers lost their jobs

• Most of the fish factories closed or worked far below capacity




Challenge – Project Objectives

• Identify immediate and structural deficiencies

• Establish solid foundation for fish safety system

• Lift the ban imposed by EU



GOVERNMENT (GENERAL) LEVELGOVERNMENT (GENERAL) LEVEL

INSTITUTIONAL FRAMEWORK LEVELINSTITUTIONAL FRAMEWORK LEVEL

ENTERPRISE LEVEL (OPERATORS)ENTERPRISE LEVEL (OPERATORS)

CONSUMER LEVEL (MARKET)CONSUMER LEVEL (MARKET)

THE CHALLENGES – LAKE VICTORIA

Appropriate strategy for risk analysis, management and communication

Appropriate food control legislation (FAO)

Coordination and monitoring mechanisms involving all the stakeholders

Appropriate strategy for risk analysis, management and communication

Appropriate food control legislation (FAO)

Coordination and monitoring mechanisms involving all the stakeholders








Inspection (regulations enforcement, system auditing and product certification,hazard identification and analysis)

Support services: Testing analyses (GLP-accredit. ISO17025), training andcertification bodies; etc.

Inspection (regulations enforcement, system auditing and product certification,hazard identification and analysis)

Support services: Testing analyses (GLP-accredit. ISO17025), training andcertification bodies; etc.








Strengthening individual and collective awareness and skills of personal

Implementing GHP and HACCP based programs with benchmarking mechanisms

Implementing quality management systems

Strengthening individual and collective awareness and skills of personal

Implementing GHP and HACCP based programs with benchmarking mechanisms

Implementing quality management systems








Collective awareness through the media

Education focusing on young generation through school programs

Strengthening capacity of consumers organizations

Collective awareness through the media

Education focusing on young generation through school programs

Strengthening capacity of consumers organizations




Project Implementation

• Integrated corrective actions taken by UNIDO in partnership with

1. Uganda National Bureau of Standards2. Tanzania Bureau of Standards3. Federation of Kenya Employers4. Lake Victoria Fishers Cooperative5. UNDP, WHO, FAO, DFID

• 3 years, USD 4.6 million

• Sources of funds: Austria, Denmark, Germany, Italy, Japan, UK, UNDP, UNIDO




Results achieved

• Organizational and regulatory framework for fish industry improved, service capacity for fish inspection strengthened

• Testing laboratories locally available and internationally recognized

• In-plant group training carried out in 17 factories for 950 staff and critical mass of expertise provided to processing plants in GHP, HACCP, ISO 9000

• Quality control upgraded at all levels

• EU ban lifted by the end of 2000 and new market in US opened



Case of Victorian LakeFish industry

Lessons learned

• Establishment of QMS and HACCP systems was essential for restarting fish export

• Strengthening simultanuoesly local support institutions such as standardization bodies and testing houses, inspection and certification bodies was decisive to regain the EU market and get access to new markets

• HRD was indispensable to upgrade technical skills of the fish processing plants and support institutions

Documents

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