EU market access requirements Identification & relevance AGEXPORT – Wednesday April 28th 2010 – Guatemala City, Guatemala

Day 2 - Market Access Requirement This session What An overview of what market access requirements are Tthe most important issues Various drivers Consequences for SME’s Why To understand HOW MAR influences your company’s export succes 28 April 2010 Day 2 - Market Access Requirement

EU market access requirements

EU market access requirements

EU market access requirements Part of what EU buyers require from their suppliers purchase policies product specifications process characteristics CBI: the package of requirements of the EU trading partners that products and companies must meet before being granted access on the EU market EU legal requirements EU additional industry requirements (non- legal) differences between EU Member States, therefore should in your EMP be connected with market research and selection of countries, cultural differences etc. 28 April 2010 Day 2 - Market Access Requirement

Why do importers/buyers set requirements? Drivers of MARs 28 April 2010 Day 2 - Market Access Requirement

Drivers behind requirements Driver 1: EU consumers Driver 2: Environment Driver 3: Social issues Driver 4: Quality link met ethical, health and safety, etc 28 April 2010 Day 2 - Market Access Requirement

Consumer health and safety requirements Hazardous substances Unsafe design The EU consumer is very important – they buy the productsand should be protected agianst faulty products – faulty as being unsafe for consumption. In the food sector it is very sensitive - several food crises, to mention some: Nutricia baby food Growth hormones in meat production BSE Food and Mouth disease Birds flue Dioxin in chicken, animal feed Salmonella in chicken Shigella bacteria in shrimps Glycol in Austrian wine Contaminated nile perchbut also other products. Pictures: all products were taken off the market because they were proved to be fulty. The EU has a websiote where these products have to be notified, some exmaples: The two products on the left were taken from the market because the materials were highly flammable. – fake fur on childerns sweater, coffee beans in candle The three products in the right hand corner were taken from the market because they contained too much hazardous substances. aflatoxins in nuts (contamination), azo dyes in leather gloves – can cuase cancer and are forbidden and the colouring material of vegetable origin contains mould / fungi of the Acremonium genus. The inoculation of this pigment into skin may cause skin inflammation / infection. tatto ink The problem with the baby suit below had to do with the press fastners which were not of proper quality. the iron hasd a serious risk of electric shock Unsafe materials (flammable)

Increasing focus on product safety Nutricia baby food Growth hormones meat BSE Foot and Mouth disease Birds flue Dioxin in chicken, animal feed Salmonella in chicken Shigella bacteria in shrimps Glycol in Austrian wine Contaminated nile perch 28 April 2010 Day 2 - Market Access Requirement

Consumer expectations

Consumer labels One of the tools for making product or process improvements from an environmental point of view, that I outlined in the introduction are environmental labels or ECO-LABELS. I would like to start with remark that there are MANY ECO-LABELS.

EU RAPEX rapid alert system http://ec. europa Product: Wooden hammock Year-week: 2008-34 Notifying country: United Kingdom Country of origin: Hong Kong Danger: Risk of injuries because deterioration of the timber frame caused by water may create a weakness in the wood around the metal socket at the base of the hammock frame. This may lead to the hammock frame breaking whilst in use. 21 recorded incidents. Measures: Voluntary withdrawal from the market and recall from consumers by the retailer. Relevant legislation: EU General Product Safety legislation, Directive 2001/95/EC

EU RAPEX rapid alert system http://ec. europa Product: Wooden toys - Locomotive with wagons Year-week: 2008-26 Notifying country: Estonia Country of origin: Bulgaria Danger: choking because of small parts, which fit entirely into the small parts cylinder. Measures: Withdrawal from the market and recall from consumers ordered by the authorities. Relevant legislation: EU legislation on toys, Directive 88/378/EEC and the relevant European standard EN 71-1.

Driver 2: the environment Forestry Pollution EU legislation: only concerned about the environment in the EU EU buyers: also local circumstances for example: FSC for sustainably managed forests waste water plants in the garment sector use of pesticides, how to store them, etc in GLOBALGAP related to total quality of a product and plant, exporters in our programmes confirmed that, be organised Dangerous substances Waste

Driver 3: social issues Risk management Working conditions Minimum wages Forced labour Non discrimination Minimum age Buyer requirements – why? group negative media coverage image social responsibility related to total quality of a product and plant product safety perspective of the EU buyer and perspective of producer – more quality, human capital working conditions: most visible for EU purchaser, often small investments for improvements (instructions, lines around machines, clean floors, ppe etc), some are more difficult, but EU bueyrs have programmes to assist or transition periods Working hours Occupational health and safety Right to union membership

Social issue / NGO Campaigning

Quality standards fruit Driver 4: quality Certification Textile labelling Footwear labelling Quality standards fruit

Who’s behind and where are requirements set? 28 April 2010 Day 2 - Market Access Requirement

Market Access Requirements Other stakeholders Governments NGOs Consumers Legislation Company policy Purchase requirements set by companies: 1. Legislation (minimum level) 2. Additional requirements (based on company policy)

Day 2 - Market Access Requirement Trends Life-cycle approach (design - waste disposal) Traceability through the entire product chain Zero-tolerance for risks and recalls Accumulating scientific evidence /Better testing equipment More procedures (compliance, testing, certification) Private sector fills ‘gaps’ of legislation A shift from niche to mainstream 28 April 2010 Day 2 - Market Access Requirement

Benefits of adopting MARs? Compliance is a pre-requisite Compliance as pro-active strategy Staying ahead of competitors Marketing tool Improvement local production facilities Cost reduction by less use of (raw) materials, energy reduction, less spillage, less waste, recycling Better motivation of personnel, less drop-outs, less accidents Better quality of process and product 28 April 2010 Day 2 - Market Access Requirement

CE marking HACCP Global Gap REACH Examples of MARs CE marking HACCP Global Gap REACH 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement CE Marking Conformité Européene Common requirements for product safety Some 60% of all industrial products Adopted into national laws Essential product safety requirements Harmonized standards EC Declaration of Conformity 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement Food hygiene: HACCP Hazard the potential to cause harm and can be microbiological, chemical or physical to it characteristics; Critical control point step in the production process which, if controlled by control measures, will eliminate or reduce a hazard to an acceptable level. Control measures actions and/or activities that are required to eliminate hazards or reduce their occurrence to an acceptable level. 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement GlobalGAP global partnership of voluntary members, who aim to harmonize good agricultural practices (G.A.P.) worldwide. Pre farm gate standard Traceability up to farm level is required GlobalGAP supports the principles of and Encourages the use of HACCP 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement REACH EU legislation on R egistration E valuation A uthorization and restriction of CH emicals Objectives Protect human health & environment Through better and earlier identification of the properties of chemical substances. Promote development / use of alternatives for hazardous methods or substances Enhancement of Innovative capability and Competitiveness of the EU chemicals industry. 28 April 2010 Day 2 - Market Access Requirement

Bottlenecks exporters

Bottlenecks exporters Importance of the issue!! Proper information & scope of issues Not one source for all information Interpretation and analysis Priorities, where to start Implementation Role for AGEXPORT and consultants! non-compliance = taken off the market 28 April 2010 Day 2 - Market Access Requirement

What could be their role?

Day 2 - Market Access Requirement Role BSO’s Select and screen information Provide added-value information Create awareness and knowledge Create active attitude Support implementation and compliance Use contacts and network to help you Use reliable websites Promote your services One-stop shop for knowledge 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement Sources for MAR 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement Sources market access Legislation CBI website www.cbi.eu/marketinfo including helpdesk marketaccess@cbi.eu EU Expanding Exports Helpdesk http://exporthelp.europa.eu/ including helpdesk Sector specific organisations Freshfel Quality Guide http://www.freshquality.org/english/home.asp Newsletters and websites ICTSD BRIDGES monthly review: http://ictsd.net/news/bridges/ The International Centre for Trade and Sustainable Development (ICTSD) http://www.ictsd.org/ 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement Sources market access Non-legislation CBI website www.cbi.eu/marketinfo including helpdesk marketaccess@cbi.eu Websites of leading companies AHOLD on sustainable trade http://csr2007.ahold.com/sustainable_trade.html#5 Heiploeg on corporate social responsibility http://www.heiploeg.nl/verantwoord-ondernemen.en_US.html H&M: Code of Conduct http://www.hm.com/filearea/corporate/fileobjects/pdf/en/COMMON _CODEOFCONDUCT_ENGLISH_PDF_1124202692491_115026982208 5.pdf 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement What has CBI to offer? Information – www.cbi.eu/marketinfo Training Coaching programmes Helpdesk – marketaccess@cbi.eu Introduction assignment no time to explain too many things, so through the assignment see what is there for your sector/product and if you see things that you do not understand, let me know 28 April 2010 Day 2 - Market Access Requirement

Day 2 - Market Access Requirement Conclusions Market Access requirement Legislative Market/buyer Be aware of them You must comply Can be competitive advantage 28 April 2010 Day 2 - Market Access Requirement