standards issues in agricultural development
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Standards Issues in Agricultural Development. Lawrence Busch R. James Bingen Craig Harris Thomas Reardon Institute for Food and Agricultural Standards Michigan State University Paper presented at USAID Washington, February 2000. Why should we be concerned about standards?. - PowerPoint PPT PresentationTRANSCRIPT
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Standards Issues in Agricultural Development
Lawrence BuschR. James Bingen
Craig HarrisThomas Reardon
Institute for Food andAgricultural Standards
Michigan State UniversityPaper presented at USAID Washington, February 2000
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Why should we be concerned about standards?
New rules for global trade Differentiation of demand New economic opportunities New economic constraints Potential for supply
disruptions Potential for democracy
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What I will talk about ... What are standards for? What is at stake Negotiating standards Market Access Outcomes Where we go from here Benefits
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What are standards? Standards: Measures by which
products, processes and producers are judged
Grades: Categories used to implement standards
Standards are… for people and things ubiquitous therefore ignored
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What are standards for?
Reducing transaction costs
Transparency Coupling Functionality Ensure well-being
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What is at stake for agricultural development?
Participation in global markets by firms nations
Disruption of commodity flows Building economic
infrastructure Cultural identities Fairness and equity
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Negotiating Standards Who gets to participate? Do some actors dominate? Who gets to vote? How are standards
modified?
But negotiation continues throughout the process...
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Standards and Market Access
Who can participate? Who is excluded? What biases are introduced
by the standard? Can this be changed?
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What are the outcomes? Who benefits? Who loses? Are risks acceptable? What third party effects? What impact on
environment? Impacts on other standards?
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Standards FormationIndustry leaders
Trade associations
Government agencies
NGOs
Quality, Food Safety, Environment & Labor Standard Setting and Negotiation Process
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Standards Formation
CriticalStandards
Points
Farmers
Transporters
Processors
Final Consumers
Transporters
Exporters
Transporters
Input Suppliers
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What This Means Chain is only as strong as
weakest link Attention must be paid to
standards across the subsector Standards may conflict, e.g.,
environmental and quality standards
Let’s look at some examples...
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Example 1:US Soybeans
Foreign matter in US soybeans
debated for >50 years Millions of $ rest on 1% trash Reputations of farmers, elevator
operators, exporters, processors, retailers rest on 1% trash
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Example 2:Chinese Rapeseed
China wants to export canola-type rapeseed oil
Establishes standards for seed, grain, oil, etc.
Builds modern processing facilities
Project fails for lack of price differential at elevator
No incentive to meet standard
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Example 3:Malian Mangoes
President Chamber of Agriculture of Mali attempted to import Malian mangoes
Malian phytosanitary certificates obtained
Product rejected at US port of entry
Did not meet US phytosanitary standards
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Lessons Learned
One link was sufficient to cause a problem
Incomplete strategies: did not look at each CSP
In Malian case, quality and environmental standards conflicted
So what is needed topromote profitable, fair and equitable agricultural development?
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What is needed?
Education about ... Who are the actors? What are their roles? How do nations and the civil sector
participate? What are the rules? How can standards be used strategically?
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What is needed?
WTO de facto enforcement
International
standards
Codex Alimentarius
OECD
IPPC
OIE
UNECE
Industrialized nations’
standards
United States
European Union
Others
Corporate de facto
standards
Education aboutstandards
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Who needs education? Government ministries Regulatory agencies Input producers Farmers Transporters Processors Retailers Consumers
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What else is needed?
Greater transparency Fair implementation of standards
nationally internationally
Voice for developing nations, consumers
Equivalence of processes, tests Help in meeting international
norms