Post on 21-May-2020
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2018/SCSC/WKSP4/004 Session: 3
Equivalence Recognition in Free Trade Agreements in the Asia-Pacific Region
Submitted by: ASEAN
Workshop on Trade Facilitation Through the Recognition of Food Safety Systems
EquivalenceLima, Peru
21-22 June 2018
ARIFIN TASRIF, Ph.D Director of Center for Quarantine Compliance, Cooperation, and Information
Indonesia Agricultural Quarantine Agency (IAQA),
Ministry of Agriculture, Republic of Indonesia
Website : http//www.barantan.go.id
Email :arifintasrif@kementan.go.id
Email: arifintasrif@yahoo.co.uk
HP/WA: +62.81290810111
EQUIVALENCE RECOGNITION IN FREE
TRADE AGREEMENTS IN THE ASIA-PACIFIC REGION
Outline :
1. Background
2. NTM’s Implementation in Regional Trade
Agreement
3. Equivalence Recognition Implementation
in APEC Region
4. Challenges and Opportunities of Equivalence
Recognition In APEC Region
1.Background
Why Equivalence Recognition ?
1. Equivalence assessment and acceptance is an
alternative way of facilitating trade;
2. The equivalence concept is based on the fact that
regulatory goals, in relation to health (animal, plant
and food safety), may be fulfilled by the use of
different kinds of measures.
3. Equivalence recognition can lead to the same results
as harmonization.
4. Encourage the use of equivalence to facilitate trade.
The Objective of SPS (Equivalence recognition)
measures in trade facilitations among APEC region is :
1. To minimise effects of regulations on trade by
encouraging the Parties regulators to work together;
2. To respect legitimate goals to protect human, animal
an plant health;
3. To remove unnecessary trade barriers; and
4. To improve transparancy and provide clear timelines
for approving imports or new products between the
countries.
Outline : 2. NTM’s Implementation in Regional Trade
Agreement
6
Example of NTMs
Non-Tariff Measures (NTMs):
Non-tariff measures (NTMs) are policy measures — other than
ordinary customs tariffs — that can potentially have an economic
effect on international trade in goods, changing quantities trade,
or prices or both (UNTAC).
1. Sanitary and Phytosanitary Measures (SPS):
Measures that are applied to protect human or animal life from risks arising
from: additives, contaminants, toxins or disease-causing organisms in food.
2. Technical Barriers to Trade (TBT) :
Measures referring to technical regulations, and procedures for assessment of
conformity with technical regulations and standards.
3. Contingent Trade-Protective Measures:
Measures implemented to counter act particular adverse effects of imports in
the market of the importing country contingent upon the fulfilment of certain
procedural and substantive requirements
Regional Trade Countries
CEPA/EPA/FTA Market Access (Trade in Goods)
Tariff
MFN Preferential
Tariff
Non Tariff
TBT
SPS
Others
Recognition of Equivalence and MRA
Agricultural
Products
Manufactured
Products
Cooperation /
CCB
9
No. Country Measures
SPS TBT ADP CV SG SSG QR TRQ XS
1 Brunei
Darussalam
3 2 - - - - - - -
2 Cambodia - 3 - - - - - - -
3 Indonesia 122 118 47 - 3 - - 2 1
4 Lao PDR 2 1 - - - - 12 - -
5 Malaysia 40 236 25 - 3 - - 13 -
6 Myanmar - 2 - - - - - - -
7 Philippines 403 256 2 - 3 7 21 14 -
8 Singapore 59 57 - - - - 143 - -
9 Thailand 240 609 51 - 2 - 112 23 -
10 Vietnam 94 114 7 - 4 - - 2 -
Table 1 : Non-Tariff Measures (NTMs) in ASEAN Region
10
No. Country Measures
SPS TBT ADP CV SG SSG QR TRQ XS
1 Australia 442 205 80 12 - - 178 2 6
2 Brunei Darussalam 3 2 - - - - - - -
3 Cambodia - 3 - - - - - - -
4 China (RRC) 1201 1230 105 6 2 - 42 10 -
5 Indonesia 122 118 47 - 3 - - 2 1
6 India 200 117 352 2 3 - 59 3 -
7 Japan 545 805 9 - - 57 85 18 -
8 Korea, Republic of 587 839 34 - - 39 92 67 -
9 Lao PDR 2 1 - - - - 12 - -
10 Malaysia 40 236 25 - 3 - - 13 -
11 Myanmar - 2 - - - - - - -
12 New Zealand 561 108 6 - - - 83 3 1
13 Philippines 403 256 2 - 3 7 21 14 -
14 Singapore 59 57 - - - - 143 - -
15 Thailand 240 609 51 - 2 - 112 23 -
16 Vietnam 94 114 7 - 4 - - 2 -
Table 2 : Non Tariff Measures (NTMs) in RCEP Region
11
No. Countries Measures
SPS TBT ADP CV SG SSG QR TRQ XS
1 Australia 442 205 80 12 - - 178 2 6
2 Brunei
Darussalam
3 2 - - - - - - -
3 Canada 1149 669 78 26 - - 48 21 11
4 Chile 563 499 4 - - - - 1 -
5 Japan 545 805 9 - - 57 85 18 -
6 Malaysia 40 236 25 - 3 - - 13 -
7 Mexico 326 566 71 3 - - 57 11 5
8 New Zealand 561 108 6 - - - 83 3 1
9 Peru 730 99 8 3 - - 6 - -
10 Singapore 59 57 - - - - 143 - -
11 Vietnam 94 114 7 - 4 - - 2 -
Table 3: Non Tariff Measures (NTMs) in TPP Region
12
No. Countries Measures
SPS TBT ADP CV SG SSG QR TRQ XS
1 Australia 442 205 80 12 - - 178 2 6
2 Brunei Darussalam 3 2 - - - - - - -
3 Canada 1149 669 78 26 - - 48 21 11
4 Chile 563 499 4 - - - - 1 -
5 China (RRC) 1201 1230 105 6 2 - 42 10 -
6 Hong Kong (China) 41 79 - - - - 142 - -
7 Indonesia 122 118 47 - 3 - - 2 1
8 Japan 545 805 9 - - 57 85 18 -
9 Korea, Republic of 587 839 34 - - 39 92 67 -
10 Malaysia 40 236 25 - 3 - - 13 -
11 Mexico 326 566 71 3 - - 57 11 5
12 New Zealand 561 108 6 - - - 83 3 1
13 Papua New Guinea - 1 - - - - - - -
14 Peru 730 99 8 3 - - 6 - -
15 Philippines 403 256 2 - 3 7 21 14 -
16 Russian Federation 145 85 20 - - - 93 4 -
17 Singapore 59 57 - - - - 143 - -
18 Taiwan (Chinese Taipei) 448 312 14 - - 20 44 22 -
19 Thailand 240 609 51 - 2 - 112 23 -
20 United State of America 2970 1523 355 109 2 173 59 52 13
21 Vietnam 94 114 7 - 4 - - 2 -
Table 4: Non Tariff Measures (NTMs) in APEC Region
Measures: Anti Dumping (ADP), Countervailing (CV), Quantitative Restrictions (QR), Safeguards (SG), Sanitary and
Phytosanitary (SPS), Special Safeguards(SSG), Technical Barriers to Trade(TBT), Tariff-rate Quotas (TRQ), and Export
Subsidies (XS)
Outline :
3. Equivalence Recognition Implementation
in APEC Region
14
Members shall
Accept SPS measures of other Members as
equivalent
If the exporting country objectively demonstrates that
its measures achieve the same Appropriate Level of
Protection (ALOP )as the importing country
G/SPS/19/REV.2
EQUIVALENCE :
15
Standard-setting organizations
food safety
CODEX plant health
IPPC animal health
OIE
EQUIVALENCE
Booster Trade Facilitation on APEC Region
1. FOOD SAFETY
2. ANIMAL HEALTH
3. PLANT HEALTH
IRA RISK MANAGEMENT
OPTION EQUIVALENCE
RECOGNITION
1. Single Product
2. Group of Products
3. Wide System Base
EQUIVALENCE RECOGNITION
MECHANISMS
Reff:
1. CODEX : CAC/GL 34-1999; CAC/GL 53-2003;
2. IPPC : ISPM 24-2017; Book Publ. By Megan Quinlan, 2016);
3. OIE : OIE-ATHC, (Chapter 1.7.3., 2003);
Issues:
EQUIVALENCE
RECOGNITION
FUTURE IMPLEMENTATION OF
RECOGNITION OF EQUIVALENCE IN REGIONAL
TRADE PARTNERSHIP AGREEMENTS
TPP
RCEP
ASEAN
APEC
USA
CANADA
NEW ZEALAND
AUSTRALIA
JAPAN
SOUTH
AFRICA
ARGENTINE
FRANCE
Indonesia experience on the implementation of
Recognition of Equivalence in Food Safety Systems
( Group of Products and wide system bases)
19
AGRICULTURE STANDARDIZATION
PRACTICES (National Regulation For Best Agriculture Practices)
Production Input
Agriculture
Production Handling Packaging Distribution Market Consumer
ASEAN cooperation related to SPS
No ASEAN cooperation related to SPS 1. ASEAN Trade In Goods (ATIGA):
• ASEAN SPS Contact Points;
• ASEAN Committee on SPS;
2. ASEAN Single Window (ASW)
3. SPS COOPERATION IN ASEAN:
• ASEAN Food Security Information Systems (AFSIS);
• ASEAN General Guidelines on the Pre-peration and Handling on Halal Food;
• ASEAN Integrated Food Security (AIFS)/Strategic Plan of Action on Food Security in The ASEAN
Region (SPA-FS);
4. SPS Cooperation in SPS:
• ASEAN Plant Health Cooperation Network (APHCN);
• ASEAN Regional Diagnostic Initiative (ARDI);
• ASEAN Maximum Residue Limits (ASEAN MRL’s);
• ASEAN Good Agriculture Practices (ASEAN GAP);
• ASEAN Food Safety Network (ASEAN FSN);
• ASEAN Standard for live Infectious Bronchitis Vaccine and Inactivated Infectious Bronchitis
Vaccine;
• Regional Framework for Control and Eradication of HPAI;
• ASEAN Animal Health Trust Fund (AHTF);
• ASEAN Phytosanitary Cooperation Network;
• ASEAN Network of Fisheries Post-Harvest technology Center / ASEAN Fisheries Development
Center (SEAFDEC);
• ASEAN Shrimp Alliance (ASA);
• ASEAN Network on Aquatic Animal Health Center (ANAAHC).
• ASEAN Network on Pest Risk Analysis (ASEAN-PRA);
Outline :
4. Challenges and Opportunities of Equivalence
Recognition In APEC Region
“SPS-plus”
(EQUIVALENCE)
Inform on
detention of goods and
facilitate test procedures
(TF Art.5)
Review and publish
fees and charges
(TF Art.6)
Allow pre-arrival
processing/publish average
release times
(TF Art.7)
Border Agency
Cooperation
(TF Art.8)
Review and reduce
import/export transit
formalities
(TF Art.10)
Freedom of transit:
Limit formalities and
Documentation
Requirements
(TF Art.11)
Publish wide range of
information related to
import/export
requirements and
procedures
(TF Art.1)
Provide advance
ruling besides
tariff classification
and origin
(TF Art.3)
CHALLENGES EQUIVALENCY COOPERATION IN ADDRESSING
FREE TRADE AGREEMENT
Challenges of an Equivalence Acceptance
Conditions for Success
1. Cost-benefit analysis.
before entering into negotiation involving equivalence assessments of
regulatory systems, the Party has to analyse the associated costs and
benefits. Establishing equivalence is both complicated and time-consuming.
The Party should thus consider carefully whether they should spend the
efforts to entering into negotiation for trade facilitation.
2. Compatibility of regulatory systems.
A certain degree of symmetry between the parties regulatory systems should
exist before starting negotiations for trade facilitation. For instance, sound
and effective regulatory infrastructure calls for three basic elements :
Law and accompanying regulations (i.e legislative and administrative base).
3. Resources availability
Qualifies trained staff to deal with programmes, and performance provisions
and well equipped analytical laboratories and other facilities.
Challenges applied an Equivalence
Acceptance Conditions for Success (cont’)
3. Resources availability
Quality trained staff to deal with programmes, and performance provisions
and well equipped analytical laboratories and other facilities;
4. Learning from experience
The gradual process of establishing equivalence under a general trade
framework gives regulatory agencies useful experience in dealing with
complicated discrepancies between national systems. Regulatory agencies
to search for information on how such trade arrangement work for other
products and other countries.
Challenges applied an Equivalence
Acceptance Conditions for Success (cont’)
5. Scope of the equivalence agreement
Negotiating an umbrella arrangement that lays down the general principles
that can be used to guide subsequent sectoral agreements on specific product
or product groups. Equivalence (of measures of conformity assessment
procedures) can thus established on case-to-case basis.
6. Building capacity and trust
a. Regulatory convergence between the parties is a process over time that
requires information exchange, mutual learning, training and trust building.
b. Confidence between the parties is thus an important conditions for making it
possible to establish and maintain equivalence. This is particular important
with regard to the conformity assessment systems.
c. The negotiating parties should thus start the process with information sharing
and visits to each other’s facilities.
d. parties can assist each other in building capacity into the systems, making
the system of the exporting country capable of performing assessment
requires by the importing country
Challenges applied an Equivalence
Acceptance Conditions for Success
5. Scope of the equivalence agreement
Negotiating an umbrella arrangement that lays down the general principles
that can be used to guide subsequent sectoral agreements on specific product
or product groups. Equivalence (of measures of conformity assessment
procedures) can thus established on case-to-case basis.
6. Building capacity and trust
a. Regulatory convergence between the parties is a process over time that
requires information exchange, mutual learning, training and trust building.
b. Confidence between the parties is thus an important conditions for making it
possible to establish and maintain equivalence. This is particular important
with regard to the conformity assessment systems.
c. The negotiating parties should thus start the process with information sharing
and visits to each other’s facilities.
d. parties can assist each other in building capacity into the systems, making
the system of the exporting country capable of performing assessment
requires by the importing country
aa
Oppurtunities applied Equivalence Recognition in
APEC Region
Implementation of Equivalence in APEC Region Covered:
1. The parties will recognize export certificates issued by the participating
agencies, thus minimizing the requirements for further inspections and
analysis. The Certificates will ensure that exporter meets the importing
country requirements.
2. The agreements leaves inspection with the exporting country without any
Additional inspection and analysis on arrival.
3. The parties thus mutually accept each others health (animal, plant, food
safety) control and inspection systems as equivalent in order to ensure
compliance with applicable regulation and standards.
4. The agreement thus combines a required compliance of the judgment of
equivalence of conformity assessment procedures.
The Need APEC’s Trade Facilitation Approach
1. Analyse why are rejected at borders and publish in Trade Standard
Compliance Reports (TSCRs) which identify and address the bottlenecks
in order to furher facilitate trade;
2. Support the development of a sound country risk management systems
through assisting stakeholders to comply with technical regulatoions in
in order to enhance the transparancy of trade procedures;
3. Assiss testing, inspection and accreditation entities to achieve internationally
recognised accreditation thus enabling them to effer their services to clients
competetive prices. This results in a cut production costs of local companies
and reduce delays at the border;
4. Boost existing WTO SPS/TBT Enquiry Points active throughout developing
regions by feeding in new information on TFA requirements and providing
those involved in trading with access to an accurate and up to date
information base;
5. Support Small and Medium Enterprice (SMEs) to overcome SPS and TBT
related issues (eg. booster Equivalence/MRA), this minimizes the economic
distance travelled by good in order to reach their market.
THANK YOU VERY MUCH GRASIAS
TERIMA KASIH