How to Minimize Trade Disruptions Related to the MRL Positive List System Japan Positive List Seminar Matt Lantz Bryant Christie Inc. January 22 and 24, 2007

I. How US Industries Prepared for the Positive List Transition II. Using the Maximum Residue Level (MRL) Database III. Issues Beyond MRLs IV. What is Being Done to Ensure Compliance with Japan’s MRL Regulations Presentation Agenda

Aware of transition early Compared original Japan MRLs with US MRLs, identified missing MRLs and where MRLs were more restrictive in Japan Weighed in with both USDA and MHLW on MRLs and sought additional tolerances on three occasions. Provided backup for requested MRLs Cooperated with relevant Japanese groups on transition Where MRL differences, contacted pesticide registrants to determine whether there would be difficulties Considered registration status and use patterns Gathered information on MHLW sampling/testing strategies to know what to expect after transition I. How US Industries Prepared for the Positive List Transition

Sponsored by USDA’s Foreign Agricultural Service Located at: Currently includes horticultural & tropical products Goal: Become leading provider of international MRL information for US growers Importance: Need for one location for accurate MRL information Only includes Japan MRL if the MRL corresponds to US MRL. Only permanent MRLs are included, no Section 18’s, temporary tolerances, or regional standards II. Using the MRL Database

Current Database Specifics 79 “markets representing at least $1 million in annual specialty crop exports Contains MRLs for pesticides and commodity combinations registered in U.S. 291 pesticides & 350 commodities Searchable by commodity, pesticide, crop grouping, pesticide type Features include Excel, notification, and market information pages. Continually updated daily, weekly, and monthly Over 100 users a day MRL Database, continued

Individual commodity groups address specific issues in the transition Exempt from tolerance issues Emergency tolerances/Section 18s Default tolerances Processing issues How new MRLs will be established III. Issues Beyond MRLs

Industry weighed in with USDA/MHLW prior to transition to prepare Ensuring grower/shippers know of transition and can use MRL database to check on status of pesticides in Japan Being aware of Japanese residue monitoring policies Ensuring that newly registered crop protection products also seek tolerances in Japan Working with US Embassy in Tokyo to ensure that industry contacts are readily available should a question or issue arise Encouraging cooperation between Japanese and US governments to avoid trade disruptions as a result of the policy When possible, cooperating with Japanese groups to continue to monitor this issue IV. What is Being Done to Ensure Compliance with Japanese MRL Regulations