Good Hygiene Practices along the coffee chain The World Trade Organization Module 2.2

Slide 2 Module 2.2 – The World Trade Organization Objectives  Inform on the role and activities of the WTO  Create awareness of the international importance of WTO agreements  Create understanding of the mechanisms within the WTO for handling questions of food safety regulation within international trade

Slide 3 Module 2.2 – The World Trade Organization Content  Introduction to the WTO  What is it? What are its objectives? How does it function?  The Uruguay Round Agreements  Establishment of the WTO  The SPS and TBT Agreements  WTO mechanisms and how they have been used in relation to OTA limits in coffee

Slide 4 Module 2.2 – The World Trade Organization The Uruguay Round  Multilateral trade negotiations that took place  For the first time included liberalisation of agricultural products  Resulted in the establishment of the WTO

Slide 5 Module 2.2 – The World Trade Organization WTO Agreements  The 13 WTO Agreements are binding to all members of WTO  The agreements governing regulation of safety and quality of food in international trade are:  Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)  Agreement on Technical Barriers to Trade (TBT)

Slide 6 Module 2.2 – The World Trade Organization The SPS Agreement  Recognises the rights of Members to establish appropriate measures to protect:  Human life and health  Animal life and health  Plant life and health On the condition that SPS Measures are:  Non-discriminatory and not unnecessarily trade restrictive  Based on sound science and internationally-agreed risk analysis procedures

Slide 7 Module 2.2 – The World Trade Organization The SPS Agreement Emphasises the following:  Harmonisation  Science base  Least trade restrictiveness  Recognition of equivalence  Transparency Specifically recognises:  Codex Alimentarius - Food safety  OIE - Animal health  IPPC - Plant health Stricter measures are allowed if justified by a risk assessment

Slide 8 Module 2.2 – The World Trade Organization What are the SPS ‘tools’?  SPS contains transparency provisions  Notification authorities  Enquiry points  SPS committee meets twice yearly  International forum for discussion  An effective dispute settlement mechanism exists within WTO  There are other relevant ‘tools’...

Slide 9 Module 2.2 – The World Trade Organization Other relevant ‘tools’  Membership and participation in international standardization bodies  Codex Alimentarius food safety standards  IPPC standards for phytosanitary standards  OIE for zoosanitary standards  Opportunities for capacity building in developing countries in the area of food safety  To promote effective participation of developing countries in the elaboration of international standards  To facilitate the development of a ‘whole chain’ approach to ensuring food safety

Slide 10 Module 2.2 – The World Trade Organization What are the SPS rules?  According to the WTO SPS Agreement, food safety measures should:  Be based on science  Not be unnecessarily trade-restrictive  Not discriminate arbitrarily between Members  Be based on Codex standards  NB – these apply to official measures

Slide 11 Module 2.2 – The World Trade Organization The TBT Agreement  Covers all technical regulations, voluntary standards and conformity assessment procedures except when these are covered by the SPS  Legitimate objectives include:  National security  Prevention of deceptive practices  Human health  Plant and animal health  Environment  Others

Slide 12 Module 2.2 – The World Trade Organization The TBT Agreement  Requires use of international standards (including Codex Alimentarius standards on food quality, labelling, etc.)  Except when such standards would be an ineffective or inappropriate means for the fulfilment of the legitimate objectives pursued

Slide 13 Module 2.2 – The World Trade Organization Summary  The WTO Agreements are binding to Member States  SPS and TBT Agreements cover animal, plant and human life and health  Requirement of the use of international standards, such as Codex

Good Hygiene Practices along the coffee chain How have these ‘rules and tools’ of food safety regulation been used in the case of OTA contamination of foods? Module 2.2

Slide 15 Module 2.2 – The World Trade Organization Dealing with the OTA issue – the case of cereals  Within FAO/WHO food safety programme  Code of practice for the prevention of mycotoxin contamination in cereals (with annex on OTA reduction) adopted by Codex in July 2003  Re-evaluation of OTA carried out by JECFA in 2001 at request of Codex  Maximum level for OTA in some cereals is being considered by the Codex Alimentarius Commission  Discussions of need for a Codex Code of Practice for the reduction of OTA in coffee and cocoa initiated in April 2005

Slide 16 Module 2.2 – The World Trade Organization Dealing with the OTA issue  Within the EU  Various task forces looking into levels of exposure to OTA from selected commodities, including coffee  Considering, on the basis of available data, risk management options – including establishment of limits

Slide 17 Module 2.2 – The World Trade Organization EC harmonized control for mycotoxins  Aflatoxins: nuts, cereals, milk, spices  Ochratoxin A: cereals, raisins  2003 – Patulin: apple products  2004 – Aflatoxins and ochratoxin: baby foods and foods for infants and young children  Ochatoxin A: roasted coffee, soluble coffee, grape juice and wine  2005 – Ochratoxin A: decisions on whether to proceed with maximum limits for green coffee, beer, cocoa and spices

Slide 18 Module 2.2 – The World Trade Organization OTA in coffee: involvement of WTO  17/06/ Notification by Germany to WTO on intention to set maximum limits for OTA in instant and roasted coffee and other products (wine not included)  05/08/ Addendum to Germany’s notification extending date for comments  22/10/ Questions posed by Colombia to the EC regarding Germany’s notification through SPS Committee  12/02/2004 – EC Standing Committee on the Food Chain Toxicological Safety agrees to notify WTO of proposed maximum limits for OTA in roasted (5  g/kg) and soluble coffee (10  g/kg), grape juice and wine (2  g/kg)

Slide 19 Module 2.2 – The World Trade Organization OTA in coffee: involvement of WTO  02/03/2004 – ‘Specific Trade Concerns’ reported over 2003 summarised by WTO Secretariat  08/03/ Submission by Papua New Guinea to SPS Committee on German notification  15/03/2004 – Statement by Colombia regarding German notification at SPS Committee  18/05/04 – Reply of the EC to Statement by Colombia and Comments of Papua New Guinea

Slide 20 Module 2.2 – The World Trade Organization Green RoastedInstant  EU?510  Finland555  Germany36  Greece20--  Italy844  Netherlands-1010  Portugal844  Spain (8)44  Czech Rep  Hungary  Switzerland555 All ppb Existing national limits

Slide 21 Module 2.2 – The World Trade Organization Looking back…looking ahead  Decisions are being taken internationally that affect the coffee trade  Be informed of what is happening and influence the decision-making process!!!  Effective participation takes work…  Collaboration and coordination  Building scientific evidence  Be serious about national OTA prevention programme