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

2. 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

3. EU market access requirements

4. EU market access requirements

5. 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

6. Why do importers/buyers set requirements?
Drivers of MARs
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Day 2 - Market Access Requirement

7. 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

8. 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)

9. 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

10. Consumer expectations

11. 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.

12. EU RAPEX rapid alert system http://ec. europa
Product: Wooden hammock
Year-week:
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

13. EU RAPEX rapid alert system http://ec. europa
Product: Wooden toys - Locomotive with wagons
Year-week:
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.

14. 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

15. 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

16. Social issue / NGO Campaigning

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

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

19. 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)

20. 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

21. 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

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

23. 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

24. 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

25. 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

26. 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

27. Bottlenecks exporters

28. 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
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Day 2 - Market Access Requirement

29. What could be their role?

30. 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
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Day 2 - Market Access Requirement

31. Day 2 - Market Access Requirement
Sources for MAR
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Day 2 - Market Access Requirement

32. Day 2 - Market Access Requirement
Sources market access
Legislation
CBI website
including helpdesk
EU Expanding Exports Helpdesk
including helpdesk
Sector specific organisations
Freshfel Quality Guide
Newsletters and websites
ICTSD BRIDGES monthly review:
The International Centre for Trade and Sustainable Development (ICTSD)
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Day 2 - Market Access Requirement

33. Day 2 - Market Access Requirement
Sources market access
Non-legislation
CBI website
including helpdesk
Websites of leading companies
AHOLD on sustainable trade
Heiploeg on corporate social responsibility
H&M: Code of Conduct
_CODEOFCONDUCT_ENGLISH_PDF_ _ pdf
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Day 2 - Market Access Requirement

34. Day 2 - Market Access Requirement
What has CBI to offer?
Information –
Training
Coaching programmes
Helpdesk –
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

35. 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