International standards in the multilateral trading system

International Standards in the
Multilateral Trading System

Fruit and Vegetables
for the Fresh Market

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International Standards in the
Multilateral Trading System

German Federal Agency
for Agriculture and Food
Section
Marketing Standards and Inspection

Ulrike Bickelmann
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International Standards in the
Multilateral Trading System
Why marketing standards for fruit and vegetables?
➢

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

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International Standards in the
Multilateral Trading System

Positive effects of standards
➢

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
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International Standards in the
Multilateral Trading System
Multiplication of positive effects

company (producer, trader)
region (producer association)
country (national standard)
two countries or more (international standard)

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International Standards in the
Multilateral Trading System
Negative effects of national standards

➢ 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
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International Standards in the
Multilateral Trading System
Negative effects of national standards

National standards for potatoes
Class I
Germany
Germany (disc)
Austria

Class II

Out of grade

31 %

8%

51 %

6%

32 %

62 %

72 %

11 %

17 %

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International Standards in the
Multilateral Trading System
Positive effects of international standards

➢ developed and agreed by exporting and importing countries
➢ technical barriers to trade avoided
➢

market transparency increased

➢ competition based on uniform minimum standards

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International Standards in the
Multilateral Trading System
UN/ECE
United Nations - Economic Commission for Europe

Committee on Trade

Working Party on Agricultural Quality Standards

Fresh Fruit
and Vegetables

Dry and
Dried Fruit

Seed
Potatoes

Meat

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International Standards in the
Multilateral Trading System

Why UNECE Standards?
➢ 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
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International Standards in the
Multilateral Trading System
Process of elaborating a standard
Specialized Section and
Working Party agree to
create/amend a standard

Rapporteur
prepares/amends text

Specialized
Section discusses
text in detail

Working Party
discusses text in general

UN/ECE Standard

UN/ECE
Recommendation
for a 2+1 year trial period

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International Standards in the
Multilateral Trading System

UNECE Standards enshrined in EU legislation
➢ 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

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International Standards in the
Multilateral Trading System

European Union Marketing Standards
Apples
Avocados
Cherries
Citrus fruit (oranges, lemons, mandarins)
Hazelnuts in shell
Kiwifruit
Melons
Peaches and Nectarines
Pears
Plums
Strawberries
Table grapes
Watermelons
Walnuts in shell

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International Standards in the
Multilateral Trading System

European Union Marketing Standards
Artichokes
Asparagus
Aubergines
Beans
Brussels Sprouts
Carrots
Cauliflower

Courgettes
Cucumbers
Cultivated Mushrooms
Garlic
Headed Cabbages
Leeks
Lettuces and Endives

Onions
Ribbed Celery
Peas
Spinach
Sweet Peppers
Tomatoes
Witloof Chicory

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International Standards in the
Multilateral Trading System

European Union Marketing Standards
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

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International Standards in the
Multilateral Trading System

European Union Marketing Standards

Class Extra
Class I

Class II

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International Standards in the
Multilateral Trading System

European Union Marketing Standards

packer/dispatcher
name of produce - variety/commercial type
country of origin
quality class
size

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International Standards in the
Multilateral Trading System

European marketing standards
➢ 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 18


International Standards in the

Multilateral Trading System

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

Thank you for attention!

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