INDONESIAN CHALLENGES IN THE FREE TRADE ERA

Damayanti BuchoriDepartment of Plant Protection

Bogor Agricultural University

DEMOCRACY AND FREE TRADE: What Is The Relationship?

• Griswold, 2004: – Economic openness can create political reform and

democracy– Increased trade and economic integration promote

civil and political freedom– Opening society to new technologies,

communications and democratic ideas• Economic liberalization provides a counterweight

to government power—and creates a space for civil society

• Trade promotes political freedom indirectly by creating an economically independent and politically aware middle class

PREREQUISITE• Educationally literate society equipped to quickly

learn new knowledge • Clean Government •Farmers have capitals

FREE TRADE AND DEMOCRACY: THE FLAWS OF LINEAR THINKING AND SIMPLISISTIC VIEW

OF SOCIETYHYPOTHESIS

• Economic openness create political reform and democracy

• Increase trade promote civil and political freedom

• Trade opens access to new technologies, communication and democratic ideas

REALITY• Economic openness creates

deregulation which opens foreign investments

• Freedom to choose does not automatically means democracy

• If not careful: trade will create imbalances between the users of technologies and the producers

• Democracy can only be achieved if society understand what choices they have and the implications of those choices

FREE TRADE AND DEMOCRACY

• Assumptions used by Griswold etc:– Democracies treat all trading partners equally– In reality:….??

• Kono, 2007: – Free trade has led and will lead to discrimination in

international trade– Democratization should lead to liberalization with wealthy

countries but increase protection against poor ones

• Case Study: Indonesia: What is the effect of free trade on Indonesia’s export-import and how does it effect agriculture regulation in the country?

Export mango (to Japan and Australia), mangosteen (to China), salak (to China), pineapple (to Malaysia)

It’s hard to have the market access

??????

Opportunity for Indonesian’s tropical fruits

Import From Taiwan

Export To Taiwan

EXPORT INDONESIA-TAIWAN

• 2003: 13 commodities was denied entry to Taiwan due to fruitflies (Bactrocera spp): tomato, paprika, tangerines, cucumber, pineapple, avocado, manggo, mangostene, melon, apple, rambutan, chili, grapes

• Other countries: cacao (automatic detention), vegetables (pesticide residue), etc

OTHER CASES OF REJECTIONS:

• Automatic detention of Indonesian cocoa beans to the United States, because of negligence against the requirements set by importing countries, due to low quality, moldy, small seeds and a lot of “waste”.

• Rejection of North Sumatra vegetables by Singapore because they contain pesticide residues exceeding the maximum force in the country (2009)

• Indonesian fruits also had rejected the Taiwan market, because it was feared contain fruit fly pest(2001)

• 52 cases barriers to horticultural exports to Taiwan because they contain pests such as mealybugs, etc (2002)

• Plan vegetable exports from the Paguyuban Petani Merbabu di Kecamatan Ngablak, Kabupaten Magelang, to China and Singapore to be delayed because of varieties of vegetables from the farmer does not comply with the request immediately importer (2010)

• Indonesian fruit and vegetable products into international markets is difficult because of excessive use of chemical fertilizers by farmers

• Currently, there are three commodities fruits that are difficult to enter the international market, including mango, mangosteen (manggis), and bananas

• The product is hampered fruit pest problems that cause rejection of the buyer country

• In the mango fruit, for example, common problems are susceptible to fruit fly pests, while mangosteen problems with yellow sap and ants, as well as banana bacterial wilt problem. Dirjen Hortikultura Kementerian Pertanian

• In 2006, through the company's national fruit exporter PT Friendship Prima complaint with the rejection of exports, papaya, mango and barked by China

Cases of Imports to IndonesiaCucumber seeds from The Netherlands was destroyed

in Djuanda Airport on July 15, 2010

infested by Arabic Mosaic Nepo Virus (quarantine pest)

75.000 kg rice seeds (Oryza sativa) from China was destroyed in Tanjung Priok Seaport on May 23,

2010

infested by bacteria Pseudomonas syringae pv. syringae (quarantine pest)

WHAT IS THE ISSUE HERE?

• Exotic Pest and disease • Invasive Pest and disease• Protection of local agricultural production

from pests and diseases that are not present in target countries

• Protection of local biodiversity

Export mango (to Japan and Australia), mangosteen (to China), salak (to China), pineapple (to Malaysia)

It’s hard to have the market access

Because of quarantine requirements of importing country (eg. produce from fruit fly pest free area, if not fruit must be treated for

fruit fly, and best quality of fruit)

Opportunity for Indonesian’s tropical fruits

To prevent the spread and introduction of pests of plants and plant products through export-import activities

PLANT QUARANTINE

Pest Risk Analysis, Pest listing, recognition of Pest Free Areas and Areas of Low Pest Prevalence, Official Control for Regulated Pests, Systems Approach, Surveillance, Pest

Reporting, Phytosanitary Certification, Phytosanitary Integrity and Security of consignments, prompt action, Emergency

Measures,

Phytosanitary Measures should be technically justified (SCIENCE BASED) and transparent

FREE TRADE and THE ROLE OF SCIENCE

• FREE TRADE and the development of ISPM (International Standard for Phytosanitary Measures)

• Scientifically based, transparent• Science as a tool for trade• Non-tariff barrier

SANITARY AND PHYTOSANITARY(SPS Agreement)

SANITARY(ANIMAL)

PHYTOSANITARY(PLANTS and PLANT

PRODUCTS)

CODEX ALIMENTARIUS

With the purpose of securing common and effective action to prevent the spread and introduction of pests of plants and plant products, and to promote appropriate measures for their control, the contracting parties undertake to adopt the legislative, technical and administrative measures

INTERNATIONAL PLANT PROTECTION CONVENTION (IPPC)

ISPM

EXAMPLE:Pest Free Areas

An area, whether all of a country, part of a country, or all or parts of several countries, as identified by the competent authorities, in which a specific pest or disease does not occur (Annex A.6, SPS Agreement)

Pest or Disease-Free Area

A pest or disease free area may surround, be surrounded by, or be adjacent to an area — whether within part of a country or in a geographic region which includes parts of or all of several countries -in which a specific pest or disease is known to occur but is subject to regional control measures such as the establishment of protection, surveillance and buffer zones which will confine or eradicate the pest or disease in question.

Procedures for Recognition of Pest Free Areas

• A country may apply for recognition of pest free area and should submit data and information as follows to the Bureau of Animal and Plant Health Inspection and Quarantine

• Description of the pest free area• Biology of the pest• Systems or information to establish pest free area• Quarantine measures used to maintain status of the pest free area• Follow-up inspection and verification of pest free area

• If deemed necessary during the review process, the exporting country may be requested to dispatch appropriate personnel for consultation

• After conclusion of the review, inspector(s) will be sent to the exporting country in proper season to conduct on-site inspection for confirmation of pest free status.

• The expenses for inspection of the pest free status by the inspector(s) of the BAPHIQ shall be borne by the exporting country

Procedures for Recognition of Pest Free Areas Cont….

Procedures for Pest Free Area

• The duration of survey data required to be submitted with the application for recognition of pest free area

• One to five years of survey data may be required for other pests, depending on their life cycles

PEST FREE AREA

Requirement of Information• Description of the pest free

area• Biology of the pest• Systems or information to

establish pest free area• Quarantine measures used

to maintain status of the pest free area

• Follow-up inspection and verification of pest free area

Sciences• Landscape of the area, GIS

maps, land uses• Biology, taxonomy and

ecology of pests• How was the PFA

established? What information was collected

• What measures were used (control methods)

• Verification of PFA

Area of Low Pest or Disease Prevalence

• An area, whether all of a country, part of a country, or all or parts of several countries, as identified by the competent authorities, in which a specific pest or disease occurs at low levels and which is subject to effective surveillance, control or eradication measures (Annex A.7, SPS Agreement)

• The SPS Agreement requires WTO members to base their SPS measures on a risk assessment, as appropriate to the circumstances.

• Phytosanitary measure must be based on international standards or justified on the basis of Pest Risk Analysis (SPS Articls 3 &5)

• The IPPC has set standards for risk analysis as outlined in the International Standard for Phytosanitary Measures (ISPM) No. 11

PEST RISK ANALYSIS

Stages of PRA

• Initiation• Risk Assessment• Risk Management

Initiation Stage

• The identification of a pathway, usually an imported commodity, that may allow the introduction and/or spread of quarantine pests.

• The identification of a pest that may qualify as a quarantine pest.

• Review or revision of existing phytosanitary policies and priorities.

Risk Assessment Stage

• The scientific evaluation of the biological risks and potential consequences

• Pest categorisation

• Assessment of the probability of introduction (entry and establishment) and spread; and

• Assessment of potential economic consequences (including environmental impacts).

Risk Management

• A process of determining appropriate measures to reduce risk

• To reduce risk or protect threatened areas

• Should be based on the information gathered during the assessment.

• SPS measures should not be more trade-restrictive than necessary to achieve their appropriate level of sanitary or phytosanitary protection, taking into account technical and economic feasibility.

a PRA should be sufficiently documented so that when a review or dispute arises, the PRA will clearly state the sources of information and the rationales used in reaching a management decision regarding phytosanitary measures taken or to be taken.

IMPLICATIONS

• A country needs to equip with the right human resources– Entomologist, plant pathologist– Taxonomist, Pest Managers

• National regulation that complies with SPS• Agency to control the quality (from field to

packaging to exports)• Negotiation skills: diplomacy

WHAT NEXT?• The role of science is very strong• Needs quality human resources to do the science and

link it to applicative purposes• Human resource in:

– Quarantine Agency– On the ground: with Dinas Pertanian and extension

services– Changing the habit of “civil” governments.

• Science as TOOL FOR INTERNATIONAL TRADE• Democracy under imbalanced scientific knowledge

results in imbalances and discriminations