FAO COMMODITIES AND TRADE TECHNICAL PAPER 2

TECHNICAL PAPER
2

FAO
COMMODITIES
AND TRADE

Environmental and Social Standards, Certification and Labelling for Cash Crops

Prepared by
Cora Dankers
with contributions from Pascal Liu

Raw Materials, Tropical and Horticultural Products Service (ESCR)
Commodities and Trade Division

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 2003

 

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Table of Contents


EXECUTIVE SUMMARY

ACRONYMS AND ABBREVIATIONS

ACKNOWLEDGEMENTS

GLOSSARY OF BASIC CONCEPTS ASSOCIATED WITH CERTIFICATION PROGRAMMES

1. INTRODUCTION

2. A BIT OF HISTORY

2.1. FOOD LABELLING
2.2. LABOUR STANDARDS AND SOCIAL ACCOUNTABILITY
2.3. SUSTAINABLE AGRICULTURE AND LABELLING
2.4. FAIR TRADE

3. THE CONCEPTS OF STANDARDS, CERTIFICATION AND LABELLING

3.1. STANDARDIZATION
3.2. STANDARDS
3.3. CERTIFICATION
3.4. ACCREDITATION
3.5. LABELS
3.6. ECONOMICS OF ENVIRONMENTAL AND SOCIAL LABELLING

Economics of information
Variables determining the effects of labelling

4. OVERVIEW OF EXISTING STANDARDS AND CERTIFICATION PROGRAMMES

4.1. TYPES OF STANDARD-SETTING ORGANIZATIONS
4.2. STANDARDS WITH GOVERNMENT INVOLVEMENT
4.3. STANDARDS SET BY INDUSTRY

EUREPGAP
COLEACP Harmonized framework

4.4. STANDARDS SET BY NGOs

Rainforest Alliance Certified
Fair trade
SA8000

4.5. STANDARDS WITHOUT CERTIFICATION PROGRAMMES

ICFTU/ITS Basic Code of Labour Practice
Ethical Trading Initiative
Sustainable Agriculture Initiative Platform
"Race to the Top" project

4.6. COLLABORATION IN LABELLING INITIATIVES

ISEAL Alliance
SASA project

5. PRODUCTION AND MARKETS

5.1. MARKETS FOR LABELLED PRODUCTS

Organic production and markets
Rainforest Alliance labelled products
Fair-trade production and markets
Markets for selected labelled products

5.2. CASE STUDY: THE MARKET FOR ORGANIC AND FAIR-TRADE BANANAS

Sources of supply
Market situation
Prices
Market prospects
Implications for banana producers

5.3. MARKETS FOR CERTIFIED BUT UNLABELLED PRODUCTS

SAN-certified products
SA8000-certified products
EUREPGAP

6. IMPACT ASSESSMENT OF SOCIAL AND ENVIRONMENTAL CERTIFICATION

6.1. CERTIFIED ORGANIC AGRICULTURE

Organic fresh vegetables for local supermarkets in El Salvador
Organic mango pulp from Alto Piura, Peru
Organic tropical fruits - a business opportunity in Uganda
Organic bananas from the Dominican Republic
Cocoa and banana production in Talamanca, Costa Rica
Organic shade coffee from the Baturité mountains in Northeast Brazil
Organic coffee in Costa Rica
Organic coffee from Huehuetenango, Guatemala
Maikaal Cotton from India
The EPOPA project and organic cotton from UGANDA
Organic sugar from small-scale producers in Misiones, Argentina
Organic tea from Bio Foods Ltd., Sri Lanka

6.2. DISCUSSION AND CONCLUSIONS FROM ORGANIC CASES
6.3. FAIR-TRADE

Fair-trade bananas from Volta River Estates Ltd., Ghana
Divine cocoa from Kuapa Kokoo, Ghana
Fair-trade coffee in Bolivia
Fair-trade coffee from Coocafé, Costa Rica
Smallholder coffee from UCIRI, Mexico
Café Mam high altitude coffee, ISMAM, Mexico
Coffee from cooperatives in Tanzania

6.4. LESSONS LEARNED FROM THE FAIR-TRADE CASES
6.5. OTHER STANDARDS

Sustainably grown oranges from Costa Rica
Ethical Wine from South Africa
EurepGap-certified pineapples from Ghana

6.6. DISCUSSION

7. THE WTO AND ENVIRONMENTAL AND SOCIAL STANDARDS, CERTIFICATION AND LABELLING

7.1. INTRODUCTION
7.2. BASIC PRINCIPLES OF THE WTO

GATT Articles I and Iii: Non-discrimination of like products
GATT Article XX: General Exceptions

7.3. THE AGREEMENT ON TECHNICAL BARRIERS TO TRADE

Definitions of regulations and standards

The definitions
Mandatory or voluntary?
Unrelated PPM labelling
NGO standards

Article 4: Preparation, Adoption and Application Of Standards
Code of Good Practice for the Preparation, Adoption and Application of Standards

General provisions of the Code of Good Practice
The MFN and NT principles
International harmonization
Publication and consultation provisions

Other TBT Articles relevant for standards

Articles 5 to 9: Conformity Assessment
Article 12: Information and differential treatment of developing countries
Article 14: Dispute Settlement

7.4. IMPLICATIONS OF TBT AND GATT PROVISIONS FOR VOLUNTARY ENVIRONMENTAL AND SOCIAL STANDARDS, CERTIFICATION AND LABELLING

National Regulations

Organic agriculture regulations
National regulations on social responsibility

Standards and labelling systems developed by NGOs

The ISO system
IFOAM
SAN, FLO, SAI and ETI

7.5. ONGOING DEBATES AT WTO LEVEL

Latest discussions
Outstanding issues

8. CONTINUING DEBATES

8.1. LOCAL SPECIFICITY VERSUS GLOBAL CREDIBILITY

Standard-setting
The verification system

8.2. ACCOUNTABILITY OF STANDARD-SETTING NGOS AND ACCREDITATION BODIES
8.3. THE "CERTIFICATION INDUSTRY"
8.4. WHO PAYS?
8.5. POTENTIAL AND CONSTRAINTS FOR DEVELOPING COUNTRIES AND SMALLHOLDERS

General potential and constraints
Potential and constraints in relation to specific certification programmes

8.6. THE POTENTIAL ROLE OF GOVERNMENTS

BIBLIOGRAPHY

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