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Philippe Binard Freshfel Europe Trading fruit and vegetables with China

Philippe Binard Freshfel Europe Trading fruit and vegetables with China. CHALLENGES AND PROSPECTS FOR CHINA EU AGRICULTURAL TRADE. FRESHFEL EUROPE. Freshfel represents the interests of European fresh fruits and vegetables sector

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Philippe Binard Freshfel Europe Trading fruit and vegetables with China

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  1. Philippe BinardFreshfel EuropeTrading fruit and vegetables with China CHALLENGES AND PROSPECTS FOR CHINA EU AGRICULTURAL TRADE Catsei project Brussels, 14 November 2007

  2. FRESHFEL EUROPE • Freshfel represents the interests of European fresh fruits and vegetables sector • Broad-based membership: 200 companies and national associations involved in production, shipment, export ,import, export, wholesale, distribution, service providers across EU-27. • Objectives: to facilitate market access in Europe and beyond, of safe and qualitative fruits and vegetables, ensure greater efficiency through harmonisation, and ultimately stimulate consumption of fruit & vegetables Catsei project Brussels, 14 November 2007

  3. Plan of the presentation • Fruit and vegetables :trade facts and figures • Reasons of unbalance • The way forward Catsei project Brussels, 14 November 2007

  4. Trading fruit and vegetables with China TRADE : FACTS & FIGURES Catsei project Brussels, 14 November 2007

  5. EU Trade of fresh produce with China Enormous and growing deficit on fresh F&V trade => absence of reciprocity in trade Absence of reciprocity Catsei project Brussels, 14 November 2007

  6. EU fresh trade with China by product Europe exports to China just 0.0002% of its fresh F&V total exports, despite China having one fifth of world population Catsei project Brussels, 14 November 2007

  7. US Trade of fresh produce with China Reciprocity Catsei project Brussels, 14 November 2007

  8. Trade of F&V: Degree of openness • European Union more open than China on trade of F&V • EU imports 6 times more F&V than China (16 times more when population is taken into account) • Export figures of EU and China are much more similar => disproportion between import and export figures reflect not only competitive advantages, but also entails a protectionist bias in the case of China Catsei project Brussels, 14 November 2007

  9. China: consumption and imports of F&V; comparison of EU and US market shares EU supplies very little (only 0.02% of total imports into China), and well below the United States (4.72%) Catsei project Brussels, 14 November 2007

  10. Comparison mainland China and SAR Hong Kong • Imports from Europe of F&V into SAR Hong Kong from Europe are 10 times those of China, despite HK having 1/200 the population of mainland • US exports to SAR Hong Kong are just twice those of China • SAR Hong Kong applies greater regulatory transparence; SPS philosophy approach is a much more open one, similar to the one existing in EU Catsei project Brussels, 14 November 2007

  11. Trading fruit and vegetables with China TRADE : REASONS OF IMBALANCE Catsei project Brussels, 14 November 2007

  12. Euro-Yuan Evolution Yuan Renminbi depreciated 38% vis-a-vis EURO over last years, despite growing Chinese surplus on trade with EU Catsei project Brussels, 14 November 2007

  13. WTO : KEY PRINCIPLES • Harmonisation • Equivalence • Regionalisation • Appropriate level of protection • Transparency Asymmetry in trade policy lead to asymmetry in trade flow Catsei project Brussels, 14 November 2007

  14. MAJOR DISEQUILIBRIUM IN PROVISIONS AND PROCEDURES FOR IMPORT AND EXPORT, DIFFICULT NEGOTIATIONS TO BE APPROACHED AND FINALIZED, LONG TIMETABLES EXPORT OF EU PRODUCTS BECOMES OFTEN IMPOSSIBLE! THIRD COUNTRIES: RESTRICTIVE APPROACH “What is not explicitly allowed is forbidden” THE ONLY REQUEST IS TO RESPECT CLEAR RULES ESTABLISHED BY THE EU (MARKETING STANDARDS, MRLs, etc.) NEED TO NEGOTIATE SPECIFIC PROTOCOLS PER COUNTRY (EACH EU MEMBER STATE) /PRODUCTS/VARIETIES DIFFERENT APPROACHES: EU & THIRD COUNTRIES EU: PERMISSIVE APPROACH “What is not explicitly forbidden is allowed” Catsei project Brussels, 14 November 2007

  15. EXISTING AND UPCOMING PROTOCOLS • FRANCE - APPLES • SPAIN – CITRUS • FRANCE- KIWIFRUITS • ITALY – KIWIFRUITS • BELGIUM - PEARS • THE NETHERLANDS - PEARS • CYPRIUS – CITRUS EXTENSION OF RULES? Catsei project Brussels, 14 November 2007

  16. Trading fruit and vegetables with China TRADE : THE WAY FORWARD Catsei project Brussels, 14 November 2007

  17. THE WAY FORWARD • Greater transparency • Recognition of EU controls • Avoid duplication of measures • Provide cost effective solutions • Greater level of proportionality of mitigation measures • Speed up process for negotiation of protocols • Greater choice of points of entry • Improve transparency • Simplification and relaxation of registration procedure Catsei project Brussels, 14 November 2007

  18. Raise consumption up to WHO recommendations • China should open trade to • increase Chinese consumers choice and diversity • ease compliance for its consumers with WHO recommendations and • avoid the obesity epidemic! Or ? Catsei project Brussels, 14 November 2007

  19. THANKS ! info@freshfel.org www.freshfel.org www.freshquality.org Catsei project Brussels, 14 November 2007

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