NERC/04/5  |
| NERC/04/5 |
Twenty-seventh FAO Regional Conference for the Near East |
Doha, Qatar, 13 - 17 March 2004 |
Food Safety and International Trade in the Near East Region |
II. SITUATION AND PERFORMANCE OF FOOD SAFETY SYSTEMS IN THE NEAR EAST REGION
III. FOOD AND AGRICULTURE TRADE IN THE NEAR EAST REGION
A. Intra-Regional Trade
B. Trade with Developed Countries
C. Challenges and Constraints to Food and Agricultural Trade
IV. IMPACT OF FOOD SAFETY STANDARDS ON FOOD AND AGRICULTURAL TRADE IN THE NEAR EAST
V. PROPOSED PLAN OF ACTION TO PROMOTE FOOD SAFETY AND FOOD TRADE IN THE NEAR EAST
1. Food safety has ascended to the forefront of international trade discussions following the conclusion of the Uruguay Round in 1995. Since then, Sanitary and Phytosanitary standards and regulations in developed countries have become increasingly comprehensive, and stringent, in some cases restricting trade and/or significantly increasing the costs of food exports from countries in the Near East Region.
2. Trade in agricultural and food products is essential for countries in the Near East. In a Region where natural resources, especially water, are scarce, meeting food needs and ensuring food security depend to a large extent on food imports; therefore, systems to control their quality and safety are vital for public health. Food exports, on the other hand, provide an important means for countries in the Region (non-oil economies in particular) to generate foreign exchange. Effective food safety systems are therefore also critical to maintain and expand market shares in food and agricultural exports.
3. Although several countries of the Region have been taking steps to develop new and improved food safety systems, the capacity and efficiency of many countries need to be improved to control the safety of locally produced and imported food for public health, and to ensure and demonstrate compliance with food safety standards in export markets. This is particularly important as the Region's exports are dominated by fruits, vegetables, olive oil and fish, for which food safety requirements are very strict and continuously changing, compared with other products, and because the bulk of these products are exported to the EU, where food standards are higher than in other markets to which the Region's products are shipped.
4. This document reviews food safety systems and food trade in the Near East, as well as the relationship between them, and recommends practical actions for governments and FAO in order to enhance food safety in the Region and promote agricultural and food trade.
5. The status and performance of food safety systems varies considerably throughout the Near East. Countries in the Region are at very different stages in the development and operation of food safety systems. During recent years, an increasing number of countries have moved to update and strengthen their systems and infrastructure for food control and introduce risk analysis in their approaches.
6. Throughout the Region, efforts have been made or are underway to reform and improve food control systems. For instance, activities have been carried out to develop a national strategy for food control (Morocco, Tunisia), draft new food legislation according to international requirements (Cyprus, Egypt, Jordan, Lebanon, Morocco, Oman, Pakistan, Sudan and United Arab Emirates), review and update food standards and regulations (Islamic Republic of Iran, Sudan and Syria). The majority of countries are harmonizing their food standards with Codex, and introducing good manufacturing and quality assurance systems (Tunisia), and are moving towards an approach based on risk management (Egypt, Jordan, Morocco). In 1999, WHO members in the Eastern Mediterranean Region adopted a Regional Action Plan for Food Safety and many have since initiated a review of their national food safety situation. More recent activities, supported by FAO, have further improved the food control system in Morocco and Syria through enhanced quality control measures and harmonization of tasks between the various national agencies involved in food control. Efforts to review and update national food standards and regulations, and harmonize them with international standards have been underway in Sudan with FAO support since 2002.
7. Modern food risk management control systems to monitor and control the safety of domestically produced and imported food have been developed. For instance in the UAE, inspection systems for domestic and imported food utilize customized software reaching towards total inspection chain, which enhances access to information, focuses attention on high risk foods, accelerates the clearing process for food imports, increases incentives for better performance and improves overall food safety. Some other countries, such as Jordan revised their food laws in 2001, harmonized their food safety standards with Codex and moved towards a food safety system based on risk management, which has reduced test analysis costs by half, decreasing clearance process time with a semi-automated archiving system for tracking and reporting.
8. A number of countries have established national committees to coordinate the work of the various administrations involved in food safety. For instance, in the Gulf Cooperation Council (GCC) countries, food safety committees were created to provide a forum for all ministries and other bodies concerned to collaborate on food control and legislation issues. Egypt, the Islamic Republic of Iran, Iraq, Morocco, Sudan and Syria have national food committees to oversee laws and regulations and enhance coordination. In some countries these committees are also involved in standard setting. Other countries have established national Codex committees. For instance, a national Codex committee was created in Tunisia in 2000 with FAO support to assist national efforts to strengthen food quality and control systems and respond to changes in the global trade environment. Furthermore, in 2003, Jordan and Saudi Arabia established independent administrations for the control of food and drugs.
9. There is growing acceptance and increasing use of Good Manufacturing Practices (GMP), good agricultural practices (GAP) and Hazard Analysis Critical Control Point (HACCP) throughout the Region. In a number of countries, many industries apply HACCP on a voluntary basis in order to improve food safety domestically as well as increase their share of export markets. In Oman, Tunisia, UAE and Yemen, quality management regulations based on HACCP have been adopted for fish and fish products to regain access to importing markets (ex. EU market). In addition, Tunisia has introduced provisions for the application of HACCP by the fish industry in its food safety legislation. Some countries, such as Lebanon, Morocco, Oman, and UAE have or are developing legislation and guidelines on GMP and the HACCP system. The Islamic Republic of Iran has introduced legislation requiring HACCP certification for food exports and has strengthened its national capacity to monitor and control residues (pesticides, animal drugs and chemical residues) in foodstuffs with FAO assistance.
10. Steps have been taken in other countries to ensure good production practices (GAP, GMP and HACCP) for major food export commodities, often in consultation with, or supported by, importing countries. For instance, in Egypt, regulations specifying growing locations and other production requirements have been issued for potatoes and peanuts, and are being prepared for vegetables and fruits, in order to meet European Union (EU) standards.
11. Supported by FAO, Lebanon has undertaken efforts to improve the efficiency and capacity of the food control system through a thorough review and to establish a core group of trainers on HACCP. Revised and updated food standards and an improved system of quality assurance have resulted. A new draft food law was also developed for consideration by the Government. Activities have been implemented in Syria, also with FAO support, to improve the analytical capabilities of national food control laboratories and to raise their performance to levels required by international accreditation bodies and to establish a well functioning Codex National Committee. Several other countries in the Region have been engaged in efforts to improve efficiency of their food control structure by establishing integrated food safety agencies.
12. The harmonization of food policies, regulations and standards at a Regional level has also received attention in many countries of the Region. For instance, members of the GCC countries have drafted a common food export procedure which allows for shared inspection policy and standards. Food produced in or imported into any of the member countries enjoys free circulation throughout the GCC countries.
13. Even with such success stories and efforts of capacity building performed in many countries of the Region, a majority of countries still have overly fragmented, less developed or outdated systems for food control. At the national level, responsibility for food safety is complex and usually shared across several different ministries and departments with little clarity on roles, and weak coordination among the institutions involved. Besides, many countries in the Region continue to separate the control of locally produced and imported foods.
14. In some countries there are no separate national food laws. Food legislation is reflected in more general public health or fraud prevention legislation. In other countries, food legislation has not been updated to reflect current developments and requirements since it was written decades ago. Some other countries have a number of different laws related to food but, more often than not, fail to completely cover food safety. Bahrain and Oman have an extensive food legislation, which is strictly applied to imported and exported food, but less adequately applied to food produced and consumed locally.
15. Although GMP and quality assurance systems such as HACCP have been introduced throughout the Region, they are not fully integrated in the domestic inspection systems which continue to focus primarily on end-product control. Laboratories have limited scientific and technical expertise, financial resources and equipment, and lack internationally recognized accreditation.
16. Food inspection activities vary greatly throughout the Region. Few countries (Jordan, UAE) have successfully adopted an approach based on risk analysis, while for a number of countries, food inspection services and laboratories have little, if any, experience with the risk-based approach, and limited capacity beyond relatively routine analysis. For example, many countries enforce date-marking requirements which are not scientifically based.
17. Although some countries (Jordan, Kuwait, Oman, Saudi Arabia and UAE) have well functioning mechanisms for reporting food-borne diseases, most other countries have less efficient food-borne disease surveillance mechanisms. Additionally, the occurrence of food-borne diseases is perceived as a fact of daily life, and incidences are often unreported. As a result, the incidence of food-borne diseases is often not reflected in the setting of national food safety strategies. Food safety measures are not given the priority they deserve with regard to microbiological contaminants and pathogens of relevance to the Region.
18. Although street foods are an important food source for a large proportion of the population in various countries in the Region; little or no education and/or public awareness in food handling practices have been introduced.
19. In many countries, efforts have been undertaken towards raising the awareness of consumers and food handlers on food safety; although their impact has not been assessed yet.
20. Many countries in the Region have joined the World Trade Organization (WTO) and standard-setting bodies like Codex Alimentarius. Of the 32 countries in the Region, 16 are members of the WTO, 9 are in the process of negotiating accession and 3 have requested accession (see Annex 1). Twenty two countries are members of Codex and some (such as Egypt, Jordan, Morocco, Sudan, Syria and Tunisia,) have created National Codex Committees. Although an increasing number of countries are represented at meetings, the limited scientific, technical and financial resources continue to hinder the ability of many countries to participate actively in Codex and WTO technical committees. In several countries standards and regulations are not completely in line with Codex and WTO agreements.
21. Although countries in the Near East Region account for less than 4 percent of world agricultural trade; agriculture still represents a high percentage of the GDP for many of them. Food trade plays an essential role in ensuring food security and/or generating foreign exchange earnings in many countries.
22. Given the limited natural agricultural resources, especially water, and the rapidly growing populations in the Region, countries increasingly rely on imports to cover their food needs and sustain food security. Over the last 25 years, imports of food have grown by 7 percent annually, and have exceeded the value of agricultural exports. Most countries are net food importers and have large deficits in food production, particularly for cereals and vegetable oils. Approximately 30 percent of cereals used in the Region are imported. From 1997 to 1999, Algeria, Egypt, Yemen and the Gulf States imported more than 50 percent of their requirements of wheat and wheat flour which are the main staple foods in those countries. In some countries up to 30 percent of milk and dairy products and 20 percent of meat consumed come from imports. About 30 percent of imported agricultural and food products (particularly meat, dairy, cereals, sugar, fats and oils) come from the European Union (EU) countries. Most countries, especially the non-oil economies, are facing difficulties to generate sufficient foreign exchange earnings to finance food imports.
23. Fruits, vegetables and fish are the leading food exports from the Region. During 1997-2002 exports of primary fruits and vegetables alone made up over 14 percent of the Region’s total value of agricultural exports. Almost 70 percent of agricultural exports from the Mediterranean Basin countries currently go to the EU. About 85 percent of these exports are made up of fresh and processed fruits and vegetables, olive oil and fish.
24. Fish represents an increasingly important and high-value food export commodity for several countries in the Region. Morocco is the largest exporter of fish among Arab and African countries. Its main customers are the EU and Japan. The export of each kilogram of fish products is equivalent in value to the import of about four kilograms of other food products. In Mauritania, fish exports are highly concentrated on a single species – the common octopus. Exports are destined to Japan (40 percent) and the EU (60 percent). For some Gulf States, such as Oman, fish is the second largest source of export earnings after oil.
25. Countries have ratified a number of Regional Trade Agreements. The most important of which are: the Arab Free Trade Area (1996), the Arab Maghreb Union (1989) and the Gulf Cooperation Council (1981). In practice, these agreements are not fully implemented. For instance, according to the agreements between Arab countries on trade exchange facilities and transit trade; most primary agricultural commodities are exempt from tariffs, and tariff rates are subject to a 50 percent reduction for processed agricultural products such as butter, cheese, sugar, apricot syrup, and dried onions and garlic. However, in general, full tariff rates are applied and complicated administrative procedures continue to be required in most countries.
26. Intra-Regional agricultural and food trade is limited in scope and largely focused on two or three countries and a few products. With the exception of Oman, the value of imports coming from within the Region is less than 10 percent for most other countries. Major constraints and challenges facing intra-Regional trade include the lack of diversity in agricultural products, non-tariff barriers, inadequate trading support services and divergent political and economic interests.
27. Most countries in the Region, especially those in the Mediterranean Basin, have strong economic ties with developed countries, particularly the EU. The relative importance of the EU market for countries in the Mediterranean Basin varies significantly from country to country. More than 50 percent of exports from the Near East to the EU come from Egypt, Morocco, Syria and Tunisia. The composition of agricultural exports to the EU also differs widely. For instance, fruits and vegetables are important exports to the EU for all countries in the Mediterranean Basin except Lebanon and Syria. Fish is an important commodity for Algeria, Morocco, Oman, Tunisia, UAE and Yemen. Potatoes are an important export commodity for Egypt, while olive oil is only important for Tunisia, which accounts for more than 55 percent of its agricultural exports to the EU.
28. Several countries in the Region are involved in the Euro-Mediterranean Partnership, which aims at creating a Free Trade Area between the EU and countries in the Mediterranean Basin by 2010. To date, partnership agreements have been signed by Algeria, Cyprus, Egypt, Jordan, Lebanon, Malta, Morocco, the Palestinian Authority, Tunisia and Turkey. Agricultural goods are not included in the free trade agreement, but are subject to preferential trade rules.
29. The high costs of complying with the standards recognized by the WTO SPS and TBT Agreements continue to create obstacles to market expansion. This is particularly acute for the small economies in the Region. In order to be able to take advantage of and defend their rights, and meet their obligations under the WTO, countries must develop their capacity to participate effectively in the WTO system.
30. Barriers to markets for fruits and vegetables in the EU and elsewhere impede exports from the Region. The Uruguay Round has not resulted in significant improvements in market access for fruit and vegetable exports from the Region. Most of the Region’s exports of fruit and vegetables to the EU are subject to tariffs that vary by product, season and country of origin. During periods when imports compete with EU domestic production, higher tariffs are imposed. Tariff escalation also presents a barrier for processed food exports from the Region. Although countries like Cyprus, Egypt, Lebanon, Turkey, the Maghreb countries and others have good export potential for processed food products; they are constrained by high trade barriers in many developed countries.
31. Many countries in the Region are facing a challenge to respond in the most appropriate way to the demands of their citizens for safe and healthy food on the one hand, and to WTO requirements for the elimination of technical barriers to trade, on the other hand. In general, most countries in the Region have limited capacity to plan and implement policies that affect food safety and trade, to implement relevant international agreements, and to take advantage of trade opportunities. Several countries face difficulties in meeting international safety and quality standards because of their weak capacity in scientific research, testing, conformity and equivalence. As a result, a major challenge in the Region is to raise the SPS and TBT standards of exports to reach internationally recognized levels, as well as the often higher standards set by developed countries.
32. Given the strong reliance of the Region on food imports, ensuring the safety and quality of imported food is a recognized concern throughout the Region. In this context, many countries regard the dumping of food that is low in quality, adulterated or close to shelf-life expiry on their markets as a serious concern. For instance, between 6 to 7 percent of imported consignments in the UAE were rejected in 2001-2003 due to non-conformity with local food safety standards. In Bahrain, 379 tons of imported food products unfit for human consumption (due to contamination with lead, mercury and cadmium or contamination with pathogenic micro-organisms) were confiscated over a six-month period in 2003. Unsafe food imports have acquired greater significance following recent food safety problems in Europe and elsewhere (such as BSE and dioxin in meat and poultry) with many countries acknowledging their limited capacity to take appropriate actions to protect their consumers in this regard.
33. In some cases, countries in the Region have imposed restrictions on imported products, which have been questioned by other countries because of lack of scientific justification. These trade concerns have included the requirement for a maximum moisture content of 5 percent for frozen poultry (considered too low by some WTO members), prohibition of beef imports with a fat content greater than 7 percent, expiry date for certain products, etc. Sometimes, countries in the Region applied zero tolerance to certain imported foods, which need now to be replaced by Sanitary Measures based on risk assessment. In addition, information on Sanitary and Phytosanitary measures is generally insufficient and often not available.
34. In terms of exports from the Region, most countries face unfavourable market access in the markets of greatest interest to them. Sanitary and Phytosanitary Standards applied by developed countries have represented some of the most important barriers to food and agricultural exports. For instance, from January to June 2001, 27 percent of food exports from Egypt, Jordan, Lebanon and Syria to the United States were rejected by the Food and Drug Administration due to non-compliance with the U.S. safety measures (filth, microbiological contamination, greater than permitted levels of pesticide residues or food additives) and 58 percent due to labelling problems.
35. Product bans have resulted in significant economic losses for the exporting countries of the Region. In September 1997, Iranian pistachios (the country’s third most important foreign exchange earner after oil and carpets) were banned from entering the EU because of a high content of aflatoxins. Japan imposed a similar ban on Iranian pistachios in October 1998. As a result, Iran lost its 80 percent share of Japan’s pistachio market.
36. Bans on food exports from the Region have also resulted in considerable difficulties to re-enter and regain market share in once important developed country markets. For instance, in September 1998, exports of Egyptian potatoes to the EU were halted because of contamination from brown rot following an EU decision requiring imports to be derived from certified disease-free areas. Following this decision, the EU considered all imports diseased unless proven to be disease-free. As a result, Egypt was obliged to submit dossiers to prove the disease-free status of its potato growing areas. However, the EC authorities recognized only 23 of the 133 dossiers submitted by Egypt claiming that it was due to inadequate documentation (illegible maps and insufficient translation from Arabic) and only five areas were granted pest-free status.
37. Although countries have sometimes been able to comply with SPS measures, often the available technical and financial resources have been inadequate, and achieving compliance has been difficult and time consuming. For instance, in 1998 the EU banned fish and fish products from the Gulf States due to failure to meet environmental and health regulations based on HACCP. Exporters suddenly lost their market share, and the public and private sector was faced with considerable costs to comply. Adopting quality management regulations based on HACCP and demonstrating compliance (including modifications and reconstruction to meet sanitation requirements, new testing laboratories, personnel training, consultant fees, HACCP documentation, etc.) is often costly and may require support from governments. The EU lifted the ban in Oman in 1999, Yemen in 2002 and UAE in 2003, once fish exports were certified as fully compliant.
38. Most countries in the Region have yet to harmonize their national food safety standards with international standards, which is a complex task. As a result, they are obliged to demonstrate the equivalency of their SPS requirements with those of developed countries, which hinders access to developed country markets and increases the costs for exporters. The form and level of international standards is sometimes inappropriate and/or unachievable for countries in the Region because the current procedures through which international standards are established do not adequately consider developing countries’ needs and special circumstances.
39. Countries of the Region should be prepared for the upcoming challenges related to the testing and certification of food imports and exports, including irradiated food, food derived from genetically modified organisms, traceability, organic food and the provisions of scientific risk assessment whenever there is diversion from international standards.
(i) Recommendations for Governments
40. Based on the above, it is suggested that Member Countries of the Region are called-upon to:
a. Raise awareness among policy and decision-makers of the importance of food safety and quality for consumer protection, food trade and economic development. This should be carried out through seminars, workshops and communication campaigns targeted at senior government officials, food industry, the media and consumer associations.
b. Review and improve the institutional framework for food safety at the national level in order to improve efficiency, minimize duplication and clarify the roles and responsibilities of relevant institutions:
c. Create an enabling and strong legal and regulatory framework for food quality and safety by:
d. Develop a national strategy for food safety based on a holistic approach that extends “from farm to fork” and involves all the relevant stakeholders (government officials, food industry, the media and consumer associations).
e. Modernize, strengthen and maintain the capacity of food inspection services to:
f. Upgrade the capacity of food control laboratories to support monitoring, compliance and enforcement activities performed by food control services through:
g. Implement quality assurance systems in food production and processing through:
h. Enhance national scientific and technical expertise by:
i. Improve participation in the work of the Codex Alimentarius Commission through:
j. Enable food producers and industry to take advantage of international and Regional export opportunities through:
k. Use existing Regional and sub-Regional groupings to reach consensus on issues related to food and agricultural trade with a view to increasing attention to Regional trade concerns related to food safety, support efforts to pursue unfair cases before the WTO’s SPS Committee, and increase bargaining power in global trade negotiations.
l. Strengthen the capacities for national food-borne diseases surveillance and create a rapid alert system and mechanism for communication with food control authorities and for implementing necessary corrective measures.
m. At the Regional level:
B. Recommended Actions for FAO
41. Within the available financial and human resources, FAO in collaboration with WHO, is called upon to strengthen the capacity of countries to manage food safety through the provision of appropriate needs-based technical assistance, at Regional, sub-Regional and national level, as well as to help in implementing the above action plan.
World Trade Organization (WTO) |
Codex Alimentarius |
World Organization for Animal Health (OIE) |
International Plant Protection Convention |
|
Afghanistan |
- |
- |
X |
- |
Algeria |
Applied1 |
X |
X |
X |
Azerbaijan |
Applied1 |
- |
X |
X |
Bahrain |
X |
X |
X |
X |
Cyprus |
X |
X |
X |
X |
Djibouti |
X |
- |
X |
- |
Egypt |
X |
X |
X |
X |
Iran |
Request submitted2 |
X |
X |
X |
Iraq |
- |
X |
X |
X |
Jordan |
X |
X |
X |
X |
Kazakhstan |
Applied1 |
X |
X |
- |
Kuwait |
X |
X |
X |
- |
Kyrgyzstan |
X |
|||
Lebanon |
Applied1 |
X |
X |
X |
Libyan Arab Jamahiriya |
Request submitted2 |
X |
X |
X |
Malta |
X |
X |
X |
X |
Mauritania |
X |
X |
X |
X |
Morocco |
X |
X |
X |
X |
Oman |
X |
X |
X |
X |
Pakistan |
X |
X |
X |
X |
Qatar |
X |
X |
X |
- |
Saudi Arabia |
Applied1 |
X |
X |
X |
Somalia |
- |
- |
X |
- |
Sudan |
Applied1 |
X |
X |
X |
Syrian Arab Republic |
Request submitted2 |
X |
X |
- |
Tajikistan |
Applied1 |
- |
X |
- |
Tunisia |
X |
X |
X |
X |
Turkey |
X |
X |
X |
X |
Turkmenistan |
- |
- |
X |
- |
United Arab Emirates |
X |
X |
X |
X |
Uzbekistan |
Applied1 |
- |
- |
- |
Yemen |
Applied1 |
X |
X |
X |
Total Members |
16 |
22 |
28 |
20 |
1 In the process of negotiation to become members of the WTO. | ||||
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WHO. 1999. Technical Paper on Food Safety. Presented to the 46th Session of the Regional Committee for the Eastern Mediterranean (July 1999) http://www.emro.who.int/nfs/FoodSafety-TechnicalPaper.pdf