Integration and Trade

Sector (INT) activities

on SPS related issues

Juliana Salles Almeida

jalmeida@iadb.org

2

1. IDB current strategy

2. SPS Agenda

3. SPS Areas of intervention

Contents

IDB Strategic Pillars: capital increase of US$ 70 billion

3

Focus for SPS:

1.SPS regional integration/initiatives

(harmonization regulation, institutional

capacity whithin LAC trade blocs)

2.SPS/trade facilitation: strengthen

border operations, reduce costs and

speed up the clearance process of

agricultural products at customs

4

Less Value-Added More Value-Added

0%

10%

20%

30%

40%

50%

60%

70%

Cere

al gr

ains

Veg a

nd fr

uits

Lives

tock

Oth

er ag

ric.

Coal

, cru

deoi

l &

gas

Min

eral

s

Mea

t

Dairy

pro

d.

Oth

er fo

od

prod

Text

iles

Wea

ring

appa

r.

Leat

her p

rod.

Oth

er Li

ght

man

ufac

t

Chem

ical &

Pl

astic

pro

d

Met

als

Mot

or

Vehi

cles

Mac

hine

ry &

eq

uip.

Imposed by the

World

Imposed by LAC

partners

NTBS AD VALOREM EQUIVALENTS

FACED IN INTRA-REGIONAL TRADE (BY PRODUCT)

Source: IDB – INTRADE, BASED ON: WTO; NICITA, KEE AND OLARREAGA (2008); FDA OASIS ONLINE DATABASE

Trade regulation simplification: Regional harmonization of NTBs

Trade facilitation: Reduce costs of doing business across borders

Source: PORTUGAL-PEREZ AND WILSON (2010), WB (LOGISTIC PERFORMANCE INDEX, 2010)

0

1

2

3

4

5

6

7

8

9

CHL CAN NIC USA COL PAN URY MEX DOM ECA GTM PER LAC EAP BRA CRI ECU ARG BOL VEN

CLEARANCE TIME (DAYS) (THE LOWER, THE BETTER)

(WEIGHTED BY PROBABILITY OF PHYSICAL

INSPECTION)

0

1

2

3

4

5

6

7

DO

M

CA

N

PAN

UR

Y

CH

L

NIC

USA

ECU

CR

I

AR

G

MEX

LAC

GTM

WO

RLD

BR

A

PER

BO

L

VEN CO

L

NUMBER OF DOCUMENTS REQUIRED

TO IMPORT AND EXPORT (INDEX; THE LOWER, THE BETTER)

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

GU

Y

JAM

HTI

VEN

UR

Y

BO

L

NIC

ECA

EAP

PE

R

LAC

PR

Y

CO

L

GTM EC

U

SLV

MEX CR

I

PA

N

CH

L

AR

G

HN

D

DO

M

BR

A

USA

CA

N

PERCEIVED LIKELIHOOD OF ON-SCHEDULE DELIVERY OF EXPORTS (INDEX; THE HIGHER, THE BETTER)

(SURVEY OF GLOBAL FREIGHT FORWARDERS AND EXPRESS CARRIERS)

PF based on data from WEF, Doing Business, WDI, Transparency International (2004-2007)

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

VEN PR

Y

UR

Y

GTM GU

Y

EC

U

HN

D

PER

BO

L

CR

I

LAC

AR

G

SLV

BR

A

CH

L

NIC

JAM

CO

L

TT

O

ME

X

DO

M

USA

PAN

CA

N

OEC

D

WO

RLD

BORDER AND TRANSPORT FACILITATION EFFICIENCY (PRINCIPAL FACTOR; 1=BEST)

Import

Export

SPS / TRADE FACILITATION

Key activities include:

•Digitalize documentary procedures: issuance of export/import SPS certificate on-line/

single window.

•Quarantine: Upgrade national border quarantine services (including harmonization of laws

and procedures, infra-structure)

•Databases: support creation of database for records of pests and diseases of plants and

animals

•Capacity building: Foster human capacity on documentary procedures for pest

surveillance, export/import certification, inspection

• Clearance: reduce physical inspections at the border in favor of a risk analysis management approach

6

Activities on SPS 2010/2011

I. Capacity Building

II. Analytical Studies and Export Guide

III. Loan and Grant

IV. Data base

Others NTB Trade

Facilitation

“Demand-driven”

trainings (public and private sectors)

Annual Executive Program

Annual

IDB/WTO Program

“Supply-driven” trainings

( public sector)

SPS SPS

I. Capacity Building Structure

Latin America 72%

Caribbean 28%

Trainings implemented/by subject, 2005/2010

Trainings implemented/by region, 2005/2010

Trainings “Supply-Driven” with the WTO

III. Loan/Grants with SPS component

II. Research

i) The Treatment of Agriculture in the RTAs in the Americas,

IDB, Oct 2009

ii) Regional Trade Agreements Treatment of Agriculture,

OECD/ IDB May 2011

iii) SPS Import Requirements to Access the EU Market, IDB,

April 2010

iv) SPS Import Requirements to Access the Asian Market

IDB, August 2011

Project. Title Beneficiary Value US$ Year NI-L1016 Foreign Trade Support Program Nicaragua 10,437,000 2010

BL-L1009

Agricultural Services Program

Belize

5,000,000

2009

JA-L1012 Agricultural Competitiveness Program Jamaica 16,000,000 2010

RG-T1679

Harmonized System of Bovine Traceability

Central America

1,900,000 2009

DR-L1048

Animal and Plant Health and Food Safety

Dom. Republic

10,000,000 2011

12

13

14

SPS PROBLEMS / BY REGION

TO EXPORT AGRICULTURAL

PRODUCTS TO US

15

Note: quantity measured in metric tons

16

Sh

are

o

f Im

po

rt R

efu

sa

ls a

t U

S b

ord

er

by

SP

S p

rob

lem

, 2

002

-20

10

17

Sh

are

of

Im

po

rt R

efu

sa

ls a

t U

S b

ord

er

by p

rod

uct,

2002 -

20

10

18

SPS Problems found in the Agricultural Imports

into US, 2002-2010

*Without Mexico

LACFilthy 24%

Pesticide 23%

Labeling 21%

Africa

Labeling 43%Filthy 20%

Missing info. 15%

Australia & Pacific

Labeling 38%

Additive 19%

Filthy 15%

Europe

Labeling 42%

Missing info. 29%

Additive 12%

Asia

Filthy 25%

Labeling 21%

Missing info 16%

19

Reason for the refusals at US Border LAC

Products refused

48%

20

Reason for the refusals at US border ASIA

Products refused

21

Comparison

US/ EU

US

EU

Thank you!

INTradeBID

Available at

http://www.iadb.org/int