International Standards in the Multilateral Trading System

1. International Standards in the Multilateral Trading System Fruit and Vegetables for the Fresh Market

2. German Federal Agencyfor Agriculture and Food Section Marketing Standards and InspectionUlrike Bickelmann International Standards in the Multilateral Trading System

3. Why marketing standards for fruit and vegetables? International Standards in the Multilateral Trading System • f & v grow naturally • quality is influenced by cultivation, harvest, storage, handling and transport conditions • trading volume & price influenced by quality • producers & traders grade their produce to best serve the market • standards serve as a trading language

4. Positive effects of standards International Standards in the Multilateral Trading System • technical definition of quality parameters • labelling as a reference (address, country of origin, quality class ) • reliability & credibility & profitability increased • contract without personal inspection by the buyer • transparency in the market

5. Multiplication of positive effects International Standards in the Multilateral Trading System company (producer, trader) region (producer association) country (national standard) two countries or more (international standard)

6. Negative effects of national standards International Standards in the Multilateral Trading System • valid for one country only • exporters have to meet the national standards of the different importing countries • importing countries should accept multiple export standards • trade is complicated and paved with conflicting regulations • barriers to trade established in national law

7. Negative effects of national standards International Standards in the Multilateral Trading System National standards for potatoes Class I Class II Out of grade Germany 31 % 8 % 51 % Germany (disc) 6 % 32 % 62 % Austria 72 % 11 % 17 %

8. Positive effects of international standards International Standards in the Multilateral Trading System • developed and agreed by exporting and importing countries • technical barriers to trade avoided • market transparency increased • competition based on uniform minimum standards

9. International Standards in the Multilateral Trading System UN/ECE United Nations - Economic Commission for Europe Committee on Trade Working Party on Agricultural Quality Standards Dry and Dried Fruit Seed Potatoes Meat Fresh Fruit and Vegetables

10. Why UNECE Standards? International Standards in the Multilateral Trading System • to define a common trading language • to fill the gap between food safety regulations and marketing • to define commercial quality for foodstuffs • to encourage high quality production • to protect consumer’s interests

11. International Standards in the Multilateral Trading System Process of elaborating a standard Rapporteur prepares/amends text Specialized Section discusses text in detail Specialized Section and Working Party agree to create/amend a standard Working Party discusses text in general UN/ECE Standard UN/ECE Recommendation for a 2+1 year trial period • http://www.unece.org/trade/agr/welcome.htm

12. UNECE Standards enshrined in EU legislation International Standards in the Multilateral Trading System • Council Regulation (EC) No 2200/96 on the common organisation of the market in fruit and vegetables • classification using common obligatory standards provides a reference framework that • encourages fair trading and market transparency • eliminates products of unsatisfactory quality from the market • helps to improve the profitability of production • standards take into account UNECE standards • standardisation can only be fully effective when applied, subject to exemption, at all marketing stages and on departure from the production region

13. European Union Marketing Standards International Standards in the Multilateral Trading System ApplesAvocadosCherriesCitrus fruit (oranges, lemons, mandarins)Hazelnuts in shellKiwifruitMelonsPeaches and NectarinesPearsPlumsStrawberries Table grapesWatermelonsWalnuts in shell

14. European Union Marketing Standards International Standards in the Multilateral Trading System ArtichokesAsparagusAuberginesBeansBrussels SproutsCarrots Cauliflower CourgettesCucumbersCultivated MushroomsGarlicHeaded CabbagesLeeksLettuces and Endives OnionsRibbed CeleryPeasSpinachSweet PeppersTomatoesWitloof Chicory

15. European Union Marketing Standards International Standards in the Multilateral Trading System • I. Definition of produce • II. Provisions concerning quality • - Minimum requirements • - Maturity requirements • - Classification • III. Provisions concerning sizing • IV. Provisions concerning tolerances • V. Provisions concerning presentation • VI. Provisions concerning marking

16. European Union Marketing Standards International Standards in the Multilateral Trading System Class Extra Class I Class II

17. European Union Marketing Standards International Standards in the Multilateral Trading System • packer/dispatcher • name of produce - variety/commercial type • country of origin • quality class • size

18. European marketing standards International Standards in the Multilateral Trading System • obligatory in all member states • obligatory at all marketing stages (including import and export) • conformity checks • in accordance with Regulation (EC) no. 1148/2001 • at all levels of distribution • based on risk analysis and sampling • resentment based on national law of the member states

19. Import Inspection in Germany - 2005 International Standards in the Multilateral Trading System 35,062 lots = 129,376 tons of which 3 % rejections because of labelling deterioration physiological defects skin defects cleanliness

20. Thank you for attention! International Standards in the Multilateral Trading System