Regional Perspectives Presentation of the Scoping Paper for Central America: The Experience of Costa Rica by Eduardo Git

1. Strengthening Developing Countries’ Capacities to respond to Health, Sanitary and Environmental Requirements • Regional Perspectives • Presentation of the Scoping Paper for Central America: The Experience of Costa Rica by Eduardo Gitli Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

2. Background: Central American Component Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

3. Scope & Objectives Scope: • Implications of health, sanitary & environmental requirements in international markets for exports of Central America. • Trading conditions for organic agricultural products. Objectives: • Designing strategies at the national & international levels to strengthen capacities to respond to health & environment related requirements & opportunities. • Recommendations for future trade negotiations & improve DCs insertion into the MTS. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

4. Main Findings: Poultry • Poultry exports by Central American countries are very small and confined to trade within this region. • Different degrees of tariff protection and sanitary measures exist throughout Central American countries. • Costa Rica, the main poultry exporter is the only one that has made efforts to be declared “Newcastle V free” to be able to enter the US market. Despite these efforts Costa Rica cannot export poultry to the US because HACCP has not yet been widely implemented. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

5. Main Findings: (Continued) • Difference between the price per pound of chicken breast which almost doubles the price per pound of drumsticks. Source: Gitli 2001,Supermarket Prices for Chicken and Chicken Parts, 1999 and 2000 Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

6. Lessons learned: Poultry • In Central American countries compliance with SPS measures is considered the reasonable “way of doing business”. • In particular, CR attempts to engage proactively in standard setting processes & to anticipate standards if/when possible. • However, other Countries, i.e., Guatemala, prefer to focus on the regional market rather than on developed country markets in the case of poultry exports. • Compliance with standards = market access Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

7. Main Findings: Organic Products • Organic markets are very demanding, i.e., quality, packaging & costs of certification are very high. • Organic farms are small & dispersed throughout Costa Rica, difficult to achieve economies of scale. • Trade in organic food and the growth in OA production are hampered by lack of harmonized regulations among potential trading partners. • Recently the Government of CR through the National Program of Organic Agriculture (1995, within MAG) & other stakeholders are actively involved in promoting organic production and exports. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

8. Main Findings: Organic Products • National Organic Standards & Regulations • Organic Certification • Cost of Certification • Effort to become included in the EU equivalent “third country” list • Harmonization of organic food regulations Commercialization • Institutional Support • Commercialization • Identification of Priorities/ Recommendations Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

9. Lessons Learned: Organic Products The NPOA has identified the following priorities at the national level: • Strengthening alliances with media & consumers consumption. • Providing training for extension workers. • Developing incentives. • Building a national strategy through a participatory process. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

10. Main Findings: Fishery Products Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

11. Main Findings & Lessons Learned: Fishery Products • Environmental barriers are here to stay. (WTO litigation, Shrimp-Turtle and Asbestos Case, effectiveness). • Equivalency is interpreted as “sameness” as the TED and HACCP experience shows. • Technical aid seldom crystallizes (e. g. HACCP labs). • Often, negotiation leads to better results than litigation. • National legislation is a prima facie token of good faith. • Notification mechanisms do not work as soundly as expected. Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

12. The extension of HACCP to the whole supply chain (fishing boats, offshore storage facilities, processing plants) is the main threat for Costa Rican fisheries. It makes sense from an innocuousness point of view. But technical assistance and a longer phase- in period are required if we want to prevent a social catastrophe. Main Findings & Lessons Learned: (Continued) Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

13. The Way Forward • At the National Level • Pro-active/Preventive Actions • Drafting/Implementing national legislation • Capacity-building • Public-private coordination • At the Multilateral Level • Harmonisation • Equivalency & mutual recognition of standards • Transparency • Technical Assistance • Standard setting Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI

14. All the papers are available on the UNCTAD Trade and Environment website: http://www.unctad.org/trade_env/index.htm Workshop on Standards and Trade 16-17 May 2002, Geneva, Palais des Nations, Room XXVI