Cafan Workshop Fao

Reducing the Transaction cost of goods traded by dealing adequately with sanitary and phytosanitary requirements by Hesdie Grauwde, Policy officer, FAO Sub-Regional Office, Barbados

Understanding transaction costs ,[object Object],[object Object],[object Object],[object Object]

In essence, trade facilitation endeavors aim at the reduction of transaction costs in trade. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Trade facilitation is especially important because it encourages economic growth! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The SPS Agreement – to facilitate trade - Origin of problem areas ,[object Object],[object Object],[object Object],[object Object],[object Object]

Basic principles of the SPS Agreement are : ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

WTO SPS Agreement and IPPC ,[object Object],[object Object]

Complexity of agricultural trade -risk assessment ,[object Object],[object Object]

Complexity of agricultural trade - Private sector requirement – Private standards ,[object Object],[object Object],[object Object],[object Object]

Complexity of agricultural trade - principal issuers of COPs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Missing trade phenomenon ,[object Object],[object Object],[object Object]

Major issues in Trade Facilitation Negotiations: Costs and Delays ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Issues at play – Mandatory sanitary requirements encountered ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

How to analyse sanitary requirements in trade 1. TRADE BARRIER 2. RESPONSE (short term) 3. SOLUTION (long term) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Best practice of exporting companies is to seek compliance with whatever regulation put forward (keep trade going)

Economic impact of sanitary requirements Trade loss Transaction cost “ Response” “ Solution” Cost for firm Detained shipment Markets restricted Volumes, prices drop Loss of market position Scan foreign regulations Compliance costs: products, labels, tests, certification Negotiation Second-best business solutions Cost for govern-ment, industry organization -- Prepare compliance, certificates Negotiations Inspections Standard-setting Dispute settlement

What to do? - actions ,[object Object],[object Object],[object Object]

Cost of complying with SPS Agreement ,[object Object],[object Object],[object Object],[object Object]

Transaction Costs to Agribusiness ,[object Object],[object Object],[object Object],[object Object],[object Object]

Issues impacting on agricultural trade and reduction of transactions costs ,[object Object],[object Object],[object Object],[object Object],[object Object]

Recommendations to reduce transaction cost in SPS ,[object Object],[object Object],[object Object],[object Object],[object Object]

Recommendations to reduce transaction cost in SPS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Cafan Workshop Fao

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