PhilExport-Cebu braces for new US, EU policies

CEBU, Philippines - PhilExport-Cebu braces for the worst as new policies on food exports in the United States and the European Union (EU) pose threats to the country’s food export performance.

Philexport Cebu yesterday announced that it is now looking for ways to help food exporters comply with these strict requirements and standards.

Philexport’s Local Export Experts are now being engaged to help the Food Export Sector create a Sectoral Export Marketing Plan (SEMP) which will set the road map on how to penetrate and facilitate the entry of our food products to difficult markets like the US and the EU.

Anytime soon the U.S. will be preparing to sign into law the proposed FDA Food Safety Modernization Act. If things turn out as expected, the new US law will take effect on January 2, 2010.

On the other hand, the European Union (EU) is also set to implement its Fishing Regulation: Catch-Certification Scheme that will cover all export of fishery products to the EU. This new EU requirement will take effect on January 1, 2010.

These new non-tariff trade barriers of the US and the EU are expected to put added pressured on the food export industry of the Philippines, PhilExport-Cebu said.

The proposed FDA Food Safety Modernization Act of the US contains provisions that will make exporting of food, drugs and cosmetic products to the US more difficult.

The new US law will require (a) Foreign Supplier Verification Program, (b) Authority to require import certification for food and (c) Prior notice of imported food shipments, just to name a few.

In the case of the EU, the Fishing Regulation: Catch-Certification Scheme will require product traceability at all stages of production from catching, to processing, to transporting and marketing of all fishery products exported to the EU.

Fishing companies in every country will be required to issue such certification while the concerned government authority in the respective countries are required to validate the certificates in accordance with the requirements of EU.

The U.S. and E.U. are the top two (2) largest food importers in the world. Both are also the top two (2) markets for food products of the Philippines. The total food exports of the Philippines averaged around US$ 1.7 Billion per year in 2005 and 2006.

While, about 60 percent to 70 percent of these food exports are comprised of fresh fruits, processed fruits, frozen marine and processed marine products.

Reportedly, 15 containers of food exports to the US from the Philippines were denied entry for various violations on quality and safety standards on May of this year.

Two weeks ago, Philexport National reported that the Bureau of Fisheries and Aquatic Resources (BFAR) sounded off the alarm that they will have difficulties in the implementation of EU’s Catch-Certification Scheme by January 1, 2010.

Food exports to US and EU are expected to decline further if no bold and drastic measures are taken by the industry to address these issues.

Philexport Cebu also partnered with Vincent Duncan, an American expert on food, drug and cosmetic exports to the US. He is a former United States Food & Drug Administration Certified Investigator, having served the US agency for more than 18 years. Duncan opened a consultancy firm here in Talisay, Cebu.

Duncan’s services were endorsed by the Department of Trade & Industry. While he was still employed with the USFDA,

The American expert plans to help facilitate the entry of Philippines food products to the USA by ensuring that these products are in compliance with USFDA regulations.—Ehda M. Dagooc