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Organisation for Economic Co-operation and Development (OECD) Paris, 21 st November 2014 Dr. Teresa Babuscio COCERAL Trade facilitating effects of regulatory cooperation in Regional Trade Agreements (RTAs)
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Page 1: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

Organisation for Economic Co-operation and Development (OECD) Paris, 21st November 2014

Dr. Teresa Babuscio

COCERAL

Trade facilitating effects of regulatory cooperation in

Regional Trade Agreements (RTAs)

Page 2: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

Outline

• COCERAL facts and figures

• Global grain today: buyers and sellers – EU position in the global market;

• RTAs and trade challenges: where does the EU stand?

• EU Case studies: Chile, Serbia, Canada, United States

• Conclusions. RTAs and regulatory cooperation: what is needed

Page 3: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

TEXT HERE

EU association representing the trade with cereals, oilseeds, rice, feedstuffs, olive oil and agrosupply

Grain merchants, storers and/or international traders

30 Member Associations 19 EU countries 2 Associated members

Switzerland Serbia

2700 companies

Page 4: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

Bulk grains handling system Global grain trade today: buyers and sellers

North America

Caribbean

Central America

South America

North Africa

Sub- Saharan

Africa

Europe

Russia Ukraine

East Asia

Southeast Asia

Oceania

Middle East

Imported

Exported

South Asia

Page 5: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

• Traditional trade barriers: Tariffs – Trend towards trade liberalisation tariff reduction or elimination - predictability

– Preferential and tariff cuts/quotas the main tangible benefit of RTAs

• Non tariffs trade barriers – Technical and Sanitary-Phytosanitary constraints

– Policies often based on zero tolerance or reduced limits

– Emerging environmental and sustainability requirements to meet societal expectations

– Our own ability to create our barriers for Europe and within Europe

• Increased financial risks – Commodity price increases / size of shipments

– Threat of market disruptions

• Grain production – Increased weather variability caused by climate change

– Limited new land area

– Limited access to new technology

– Capacity building and post harvest loss

RTAs and trade challenges Where does the EU stand?

Page 6: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

EU Case studies Chile, Serbia, Canada, United States

Page 7: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

• Cooperation in the standards and technical regulations; conformity assessment procedures;

• Exchange of scientific/technical information

• SPS: capacity building, infrastructure and technological transfer;

• Customs: simplification of custom procedures; sharing best practices

EU- Chile Association Agreement in force since February 2003

EU-28 trade with CHILE

IMPORTS (t) EXPORTS (t)

2012 2013 2012 2013 CEREALS 59 73 1 0

OILSEEDS 3.643 3.391 42 20 OILS 6 133 743 1.013 MEALS 0 0 6 0

Page 8: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

• Regulatory cooperation briefly tackled;

• Agriculture/SPS/Customs: cooperation aiming at supporting the gradual approximation of Serbian legislation and procedures to the EU rules and standards;

EU- Serbia Stabilization and Cooperation Agreement

in force since September 2013

EU-28 trade with SERBIA

IMPORTS (t) EXPORTS (t)

2012 2013 2012 2013

CEREALS 892.651 451.325 21.554 24.523

OILSEEDS 19.850 93.300 79.346 20.498

OILS 94.372 100.113 17.784 5.888

MEALS 112.826 58.716 15.881 37.021

Page 9: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

• Extensive regulatory cooperation foreseen;

• Regulatory compatibility, transparency and efficiency;

• Building trust and understanding regulatory governance;

• Regulatory Cooperation Forum – established – Possible exchange of officials working in regulatory fields

EU- Canada Comprehensive Trade and Economic Agreement (CETA)

End negotiations September 2014, not yet in force

EU-28 trade with CANADA

IMPORTS (t) EXPORTS (t)

2012 2013 2012 2013

CEREALS 1.283.178 1.635.624 3.621 23.237

OILSEEDS 1.130.172 1.409.266 5.319 975

OILS 35.724 6.955 614 591

MEALS 67.235 62.112 95 1.041

Page 10: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

• Regulatory cooperation: unique opportunity to reduce differences between EU and US having negative effects on trade;

• Negotiations on regulatory chapters very slow: supremacy of the 2 parties respective standards;

• Technical progress on regulatory chapters achieved during the 7th negotiation round

Transatlantic Trade and Investment Partnership (TTIP) 7th negotiations round September 2014 – November 3

EU-28 trade with the USA

IMPORTS (t) EXPORTS (t)

2012 2013 2012 2013 CEREALS 1.095.278 1.195.238 208.141 257.426

OILSEEDS 2.136.313 3.270.427 5.446 7.828 OILS 43.106 29.206 15.038 17.784 MEALS 736.249 1.518.403 4.076 3.880

Page 11: Trade facilitating effects of regulatory cooperation in ... Trade facilitating effects o… · • Building trust and understanding regulatory governance; • Regulatory Cooperation

Don'ts • Produce less / stop trading

• Delay Free Trade negotiations

Do’s • Embrace forward-looking policies in FTAs to minimize non tariff barriers

– Science based regulatory systems / regulatory cooperation is the key area

– Acknowledge “zero” risk does not exist

– Commercially acceptable solutions

– Risk mitigation methods: maximize the value of grain products and minimize cost inefficiencies along the supply chain

• Embrace innovative approaches to addressing market access issues – International initiatives

– Standardisation, adoption of internationally-recognised standards

• Assess and work on the business climate in place with the counterpart signing the Agreement with the EU

• Multi-stakeholders platforms at European and international level

RTAs and regulatory cooperation: what is needed

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COCERAL

Working together to make trade work

Thank you for your attention Website: http://www.coceral.com

E-mail: [email protected]


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