EU countries bullying agri exporters

The very few Filipino entrepreneurs who are in the business of exporting agricultural products are worried sick. Come March 2003, the European Union (EU)-dominated Codex Alimentarius Commission (CAC) – which decides on global safety food standards – is having a plenary session in The Netherlands.

(Codex Alimentarius is the global reference point for harmonized or uniform food standards to ensure the protection of public health and promote fair practices in the food trade.)

The CAC is expected to make some crucial decisions in its March plenary session that could have far-ranging effects on our exports. And yet up to now, adequate representation has not been organized to ensure the Philippine position is well presented and defended during said international meeting.

Despite pleas by the private sector, government seems to be taking its own sweet time. Again, the lack of sense of urgency among our government officials in the agri sector is placing another part of our agriculture sector in jeopardy.

At a time when our agriculture exports continue to decline, the sector is facing another threat, this time of unreasonable and highly discriminatory restrictions on product quality. If this is unchecked, the export of aquaculture products – prawns, shrimps and even fish – may be headed for a nosedive.

Unrealistic, discriminatory proposed standards

Early this year, European Union (EU) countries called for the imposition of new lead levels for various types of foods despite pronouncements made by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO) that existing standards for lead levels are adequate.

Our agricultural exporters were understandably concerned since the EU proposal wanted to bring the amount of lead contaminants in fish, marine and aquaculture products to a maximum level of 0.2 parts per million (ppm).

The current standard levels set by the CAC and accepted by other international bodies are a lead content of about 0.4 ppm for seaweed and tuna harvested in Philippine waters and lead levels of 0.9 ppm to 1.0 ppm for other marine products.

As of now, there is no existing methodology in developing countries that would bring down lead levels of fishery/aquaculture products to a maximum 0.2 ppm as proposed by the EU countries.

It would have been the kiss of death for the export of our aquaculture products to the EU if this proposal were adopted.

EU countries’ bullying continues

The EU, however, seems bent on pushing for lower lead levels. They have elevated their proposed standards for discussion at the Codex plenary level. They are conjuring health risks as a reason, yet these existing standards are set and accepted by international bodies involved in global health.

One cannot help but suspect that these EU countries are going around their commitment to open their market by setting up non-tariff restrictions to protect their own tuna and salmon fishing industries.

The EU lobby to lower the lead content of fish and other marine products to 0.2 ppm would have been immediately implemented were it not for the strong objection of the Philippines fisheries and aquaculture sector led by the Seaweed Industry Association of the Philippines (SIAP).

The SIAP lobby, however, was only successful at the committee level, i.e., the Codex Committee on Food Additives and Contaminants (CCFAC). The EU countries are preparing for the bigger battle at the forthcoming plenary session of the Codex Commission.

Bullies triumph when we run

It’s a good thing that SIAP put up a fight. They clearly know the stakes. It appears, however, that other agri-exporters like the coconut oil and food crops sectors are not fully aware of the influence of the CAC in establishing international standards that can change their whole business future.

The CAC has been there since 1965, acting like an exclusive club of bullies and protecting its turf by imposing even more stringent rules for the entry of products coming from competing developing countries.

Many developing countries, because of constraints, have not been able to organize themselves to protect and pursue their interests. With the growing viciousness of global trading, a strong representation in Codex is a must because so many new food standards are being passed without proper consultation of all concerned.

Bureaucratic bickering stymies preparations

A proposal to create a Philippine Codex team representing all sectors in agriculture has been forwarded. But things are not moving fast enough.

Currently, the Philippines’ only representation to Codex is through Bureau of Agriculture and Fisheries Product Standards (BAFPS) under the National Agricultural and Fishery Council (NAFC), an attached agency of the Department of Agriculture.

However, internal problems in the BAFPS as well as differences of opinion with the private sector are reportedly impeding preparations to create a solid and well-prepared team that will battle the bullies. The issue of who will form the national team remains the biggest problem.

Agri-exporters are strongly recommending for heavy representation from the private sector since they are, after all, directly affected by ongoing issues at the Codex. For whatever reason, BAFPS is not too receptive.

BAFPS also does not have the budget or the staff competence to mount a campaign against the polished arguments of EU countries. Neither does it have the sustained resources for studies, researches and tests to support our own counter-arguments before the CAC.

Paging Sec. Lorenzo

Time is running out. We are again calling the attention of the newly designated Agriculture Secretary Luis Lorenzo. Please put a stop to these bureaucratic bickering and form a strong, qualified, well-prepared Philippine team to do battle with the EU bullies at the CAC plenary session this coming March.

The value of having a strong team to represent the Philippines in the Codex cannot be underscored. With stacks of more brilliant non-tariff barriers being imposed to block our exports, what we cannot afford is a wimp of a team.

Bullies will continue winning if we don’t prepare and put up a good fight.

Population issue on television

This week, we will be discussing why population explosion is considered the root cause of poverty in the Philippines at Isyung kalakalan at iba pa on IBC-13 News (5 pm and 10:30 pm, Monday to Friday). Population and poverty growth should be everyone’s concern.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. If you wish to view the previous columns or telecasts of Isyung Kalakalan at iba pa, you may visit my website at http://bizlinks.linkedge.biz.