Trade and Biodiversity: The BioTrade Experiences in Latin America

Trade biodiversiTy: BioTrade experiences Latin America York Geneva, 2012 ii Trade Biodiversity: BioTrade Experiences Latin America NOTE Symbols United Nations documents composed capital letters combined figures. Mention symbol reference United Nations document. designations employed presentation material publication imply expression opinion whatsoever part Secretariat United Nations legal status country, territory, city area, authorities, delimitation frontiers boundaries. Material publication freely quoted reprinted, acknowledgement requested, reference document number. copy publication quotation reprint UNCTAD secretariat. views expressed publication author necessarily reflect views United Nations. ACKNOWLEDGEMENTS publication prepared Lorena Jaramillo Castro, Project Officer BioTrade Initiative UNCTAD. UNCTAD gratefully acknowledges support Swiss State Secretariat Economics Affairs (SECO) publication. author acknowledges contributions received BioTrade partners Plurinational State Bolivia, Colombia, Ecuador Peru, Cosmetic Valley Union Ethical BioTrade. , publication benefited inputs support Adriana Arcos, Jean-Luc Ansel, Marí Arguello, Lucas Assunçã, Marí José Baptista, John Bejarano, Ana Carolina Benitez, Maria Helena Cendales, Yves Darricau, Yuri de Lima Mantilla, Rafe Dent, Eduardo Escobedo ( section .3), Felipe ómez Villota, Rosa Guamá, Vanessa Ingar, Marion Klein, égolène Leloutre, Rik Kutsch Lojenga, Lalen Lleander, Alfonso Llobet Querejazu, Nancy ánchez, Evenlyn Sassarini, Helena Sisniegas, Emma Torres, Diana Toscano, Richard Vaca David Vivas ( section VII annex 4). valuable inputs received participants UNCTAD/UNDP Informal meeting “BioTrade Potential Growth Sustainability” (7 April 2010), delegates Latin American Caribbean missions Geneva, experts IPR ABS. UNITED NATIONS PUBLICATION Copyright© United Nations, 2012 rights resserved UNCTAD/DITC/TED/2010/3 iii Contents . INTRODUCTION .........................................................................................1 II. THE BIOTRADE INITIATIVE ......................................................................3 2.1. Background ....................................................................................................................................... 3 2.2. BioTrade framework..................................................................................................................... 3 2.3. Overview BioTrade programmes ..................................................................................................... 4 2.4. BioTrade outcomes Latin American Region ................................................................................ 5 III. MARKET ACCESS AND VALUE CHAIN DEVELOPMENT .....................11 3.1. Market potential biodiversity-based businesses ........................................................................... 11 3.2. chain development .................................................................................................................. 12 3.3. Capturing market potential biodiversity-based products services ...................................... 14 IV. BIOTRADE IN LATIN AMERICA - ILLUSTRATIVE CASES .....................17 4.1. “Jambi Kiwa” Producers’ Association Medicinal Plants Ecuador ............................................ 17 4.2. Fondo Biocomercio Colombia ........................................................................................................... 19 4.3. Natura Cosmeticos equitable benefit sharing .............................................................................. 21 4.4. Business partnership Nativa (Colombia) Cosmetic Valley (France) ................................................................................................................. 23 . INTERNATIONAL BIOTRADE ISSUES ....................................................25 5.1. UNCTAD XII BioTrade ................................................................................................................. 25 5.2. Multilateral Environmental Agreements (MEAs) BioTrade ............................................................ 25 5.3. WTO, SPS TBT Committee .................................................................................................. 25 5.4. BioTrade national regional forums Latin America .......................................................... 26 VI. LOOKING FORWARD - CHALLENGES AND OPPORTUNITIES ...........29 6.1. Challenges opportunities data measuring impact BioTrade activities ........................................................................................................................... 29 6.2. Challenges opportunities developing/strengthening chains ............................................. 30 6.3. Challenges opportunities market access strategies ................................................................. 31 6.4. Challenges opportunities policy frameworks ....................................................................... 33 VII. BIOTRADE AND INTELLECTUAL PROPERTY RIGHTS .......................35 7.1. Development opportunities BioTrade current IPRs regimes ................................................. 35 7.2. examples IPRs applied biodiversity-based products Latin America Caribbean ..................................................................................................... 37 7.3. Opportunities, challenges lessons learned .................................................................................. 37 VIII. CONCLUSIONS AND RECOMMENDATIONS .....................................39 8.1. Upscaling BioTrade LAC region ............................................................................................... 39 8.2. Policy frameworks ........................................................................................................................... 40 iv Trade Biodiversity: BioTrade Experiences Latin America 8.3. Developing biodiversity-based sectors .............................................................................................. 41 8.4. Private sector engagement ............................................................................................................... 41 8.5. Concrete policy recommendations ................................................................................................... 42 ANNEXES Annex 1. BioTrade UNCTAD Accra Declaration ................................................................................... 45 Annex 2. BioTrade Convention Biological Diversity (CBD) ........................................................ 46 Annex 3. Classification main IPRs figures ....................................................................................... 48 Annex 4. Adressing biopiracy thought IPRs .............................................................................................. 49 Annex 5. Issues related CBD discussion TRIPS Council, stated WTO ..................................................................................................................... 50 REFERENCES ...........................................................................................51 NOTES ......................................................................................................55 1I. Introduction Growth opportunities generated sustainable business practices enable countries rich biological resources achieve development objectives. Current markets environmentally- friendly products services showed growth rates, economic slowdown. instance, 2008, United States organic sector showed 17.1 cent annual growth rate1 2009 Cone Consumer Environmental Survey revealed 34 cent consumers buy environmentally responsible products, 44 cent mentioned environmental habits changed consequence crisis2. Consumers, Europe United States, search ethical, social, natural, healthy products. scenario, UNCTAD suggests countries rich biological resources implement BioTrade framework capture market potential, transform sustainable development engine. BioTrade simultaneously generates business opportunities, growth sustainable livelihoods rural populations, allowing conservation sustainable biodiversity. biodiversity enhanced, risks business usual, stresses biological resources, reduced. paper illustrates potential developing Sustainable Environment Management practices BioTrade Latin America. 2008, practices generated $230 million exports sustainably-produced products services derived Latin American’ biodiversity. Examples results obtained : diversification exports; strengthening biodiversity-based sectors including enhancement policy framework promotes sustainable development; facilitating access small medium enterprises (SMEs) differentiated quality products national international markets, fair equitable distribution benefits generated. , BioTrade good sense business biodiversity. results presented case studies built experiences BioTrade practitioners programmes national, regional international levels SMEs, multinational corporations (MNCs), financial entities clusters. Issues related Intellectual Property Rights (IPRs) dealt indirectly experience BioTrade practitioners appellation origin green labels. paper cover issues related Free-Trade Agreements, criteria standardization issues (certification). paper divided sections. section refers framework BioTrade Initiative, providing overview programmes outcomes, Latin America. section describes market potential biodiversity- based products proposes -chain approach capture potential. Section presents business case biodiversity BioTrade case studies Latin America. International issues related BioTrade section , challenges opportunities develop BioTrade shown section . Intellectual Property Rights, relevance BioTrade examples presented section . Finally, conclusions recommendations section . . INTRODUCTION 3II. BioTrade Initiative Latin America reinforced South-South links established BioTrade practitioners. 2.2. BioTrade framework joint process carried UNCTAD National Programmes, BioTrade Principles Criteria agreed adhered BioTrade Initiative, programmes partners. Principles Criteria applied contexts, driving BioTrade processes promote conservation biodiversity sustainable commercial (figure 1). framework, BioTrade practitioners work basic approaches (UNCTAD, 2007): -chain approach - strengthening chain critical element implementing BioTrade Principles Criteria; Adaptive management approach - implementing sustainable practices, crucial identification impacts species ecosystems, continual improvement BioTrade initiatives; Ecosystem approach - planning productive processes related BioTrade initiatives environmentally socially responsible regard impact species, habitats, ecosystems local communities. BioTrade frames implementation activities global conservation development objectives established Millennium II. THE BIOTRADE INITIATIVE3 2.1. Background 1996, UNCTAD, BioTrade Initiative, working promote trade investment biological resources sustainable development line objectives Convention Biological Diversity (CBD). objectives : () conservation biological resources; () sustainable components; () fair equitable sharing benefits arising utilization genetic resources. BioTrade refers activities related collection, production, transformation, commercialization goods services derived native biodiversity (species ecosystems) criteria environmental, social economic sustainability. develop activities, UNCTAD works national regional partners implement BioTrade programmes Africa, Asia Latin America. partners support SMEs, producer associations, cooperatives, government entities, academia, ., implementing viable sustainable BioTrade chains. South-South cooperation place exchange information experiences implementing BioTrade biodiversity- based sectors, instance accessing markets, developing implementing management plans, chain strengthening, . Capacity- building events development methodologies partners Asia, Africa Mandate CBD objectives Conservation Sustainable (Addis Ababa principles) Equitable benefit sharing CSD - MDG Sustainable development objectives MEAs CITES, UNCCD, RAMSAR Adaptive management chain Ecosystem approach BioTrade prniciples P1. Conservation P2. Sustainable P3. Equitable benefit sharing P4. Socio-economic sustainability P5. Legal compliance P6. Respect actors’ rights P7. Clear land tenure resource access Approaches Figure 1. BioTrade framework Source: UNCTAD, 2007. 4 Trade Biodiversity: BioTrade Experiences Latin America Development Goals (MDGs), Commission Sustainable Development (CSD) CBD Convention International Trade Endangered Species Wild Fauna Flora (CITES). 2.3. Overview BioTrade Programmes National BioTrade Programme started Colombia 1998 programmes created Andean Region, Plurinational State Bolivia, Ecuador Peru. countries involved developing BioTrade activities, including Brazil, Costa Rica Paraguay. programmes developed jointly local counterparts national circumstances country / region. , BioTrade build bottom- approach. regional activities needed, share experiences knowledge, promote enabling regional environment, UNCTAD, General Secretariat Andean Community (SGCAN) Andean Development Corporation (CAF) launched Andean BioTrade Programme World Summit Sustainable Development (WSSD) 2002. programme supports Box 1. BioTrade Programmes developed Andean Region Colombia, Sustainable BioTrade Programme launched 1998 worldwide pioneer initiative. created support UNCTAD, Ministry Environment Alexander von Humboldt Institute. Programme evolved managed National Technical Committee Biodiversity Competitiveness (CTNBC) (Presidential Decree 2828 23 August, 2008). , Fondo Biocomercio Colombia created 2006 businesses implement BioTrade activities access national, regional international markets. 2001, Ecuador launched programme initiative Ministry Environment UNCTAD. programme coordination implemented Export Investment Promotion Corporation (CORPEI) strategic alliance environmental NGO EcoCiencia. Peru Plurinational State Bolivia, programmes launched 2003. Peru National BioTrade Promo- tion Programme (NBPP) launched institutions public private sectors. Ministry Trade Tourism President NBPP, managed Peruvian Export Tourism Promotion Board (Promperu) Peruvian Amazon Research Institute (IIAP)4. Plurinational State Bolivia, Sustainable BioTrade Programme managed Fundació Amigos de la Naturaleza (FAN) mid-2005 2008. incorporated activities Bolivian Vice-Ministry Biodiversity Natural Resources. , FAN continues supporting BioTrade chains programmes. Table 1. Geographical scope sectors supported BioTrade Programmes BioTrade countries Biodiversity-based products services supported Plurinational State Bolivia Brazil Colombia Ecuador Peru Southern Africa: Botswana, Malawi, Namibia, Mozambique, South Africa, Swaziland, Zambia Zimbabwe ( PhytoTrade Africa) Uganda Natural ingredients products cosmetics: essential oils, natural dyes, soaps, creams butters, moisturizers, . Natural ingredients products pharmaceuticals: extracts infusions medicinal plants, natural medicine capsules, . Natural ingredients products food: fruits, cereals, grains, tuberous, nuts, cocoa, fish products, jams, sweets snacks, jellies, pulps juices, spices sauces, teas infusions, food supplements, crocodile meat, . Leather garments: skin Caiman yacare Nile crocodile, . Wildlife pets: butterflies, chameleons, snakes, tortoise, . Flowers foliage: heliconias tropical flowers. Fish products: paiche (Arapaima gigas). Handicrafts: furniture, decoration objects, jewelry garments. Sustainable tourism: ecotourism, nature-based tourism, bird-watching, . development: Viet Nam, Indonesia, Costa Rica, Paraguay 5II. BioTrade Initiative implementation Regional Biodiversity Strategy Andean Community. support Amazon Cooperation Treaty Organization (ACTO) UNCTAD, activities developed promote sustainable conservation biodiversity Amazon-basin countries. regional programme developed guidance National BioTrade Programmes local partners. programme focuses strategic lines: () enabling policy legislation; () research technological development; () market development; () financial mechanisms. Worldwide, BioTrade activities developed Southern Africa Uganda, shown table 1. generates South-South cooperation scenario platform knowledge information exchange BioTrade partners practitioners. market driven selection chains supported BioTrade programmes. Methodologies tools select promising chain/products economic, financial, social, environmental legal criteria selection development process. sectors supported BioTrade network include natural ingredients products food, cosmetic, pharmaceutical, garment industries; handicrafts; sustainable tourism, fauna, ., shown table . methodologies results obtained detailed sections. 2.4. BioTrade outcomes Latin American Region BioTrade programmes Latin America focused developing strengthening chains BioTrade added products services. actions, chain actors (.. companies, producers, collectors, hunters) capture growing market demand biodiversity-based products services environmentally socially responsible. markets BioTrade focuses differentiated products services. Significant trade values beneficiary countries obtained, contributing region’ diversification exports. generated business opportunities contributed family income rural producers, conserving biodiversity. added products services offered variety sectors species ( figure 2) : Sustainable agriculture/agroforestry systems: camu-camu (Myrciaria dubia), maca (Lepidium meyenii), tara (Caesalpinia), cocoa (Theobroma cacao), organic/shadow coffee; -timber forest products: Brazil nut (Bertholletia excelsa), cochinilla (Dactylopius coccus), amaranth, çai, honey, cupuazu (Theobroma grandiflorum); Sustainable garments: Caiman yacare, vicuñ (Vicugna vicugna), taitetú (Tayassu tajacu); Sustainable aquaculture: paiche (Arapaima gigas) ornamental fish; Native tropical flowers foliages: Heliconias; Sustainable tourism: ecotourism, nature-based tourism, bird-watching; Construction: jatata (Geonoma deversa); : butterflies. Total sales (domestic exports) biodiversity- derived products Andean countries accounted $223.4 million 2007 $238.7 million 2008. Peru, instance, highest export $111.9 million $114.6 million 2007 2008, . products derived priority species Peruvian BioTrade Programme, high, $101.5 million 2007 $101.7 million 2008. Plurinational State Bolivia, work undertaken Fundació Amigos de la Naturaleza (FAN) Brazil nut (Bertholletia excelsa) chain generated $77 million exports 2007. Similar figures registered Colombia Fondo Biocomercio 2007-2009 (August), sales-turnover beneficiary companies accounted $57 million. Colombian exports natural ingredients generated $10 million 2006, stated Alexander von Humboldt Institute. Ecuador, sales beneficiary BioTrade companies working “Arriba flavour” cocoa natural ingredients cosmetic food industries registered sales $6,5 million 2008, data beneficiary companies working bird-watching decoration subsectors (table 2). Finally, sales members Union Ethical BioTrade (UEBT)5, 2008 sales accounts $2 billion. UEBT member’ includes companies Latin American regions 6 Trade Biodiversity: BioTrade Experiences Latin America Figure 2. Sectors supported BioTrade Initiative Latin America (estimates) Sources: Plurinational State Bolivia progress report BTFP ; FAN; FAN Report activities PNBS publication: “20 ños conservando la biodiversidad de Bolivia”; Instituto Boliviano de Comercio Exterior (IBCE); Colombia progress report BTFP ; Fondo Biocomercio; CORPEI BioTrade National Programme Ecuador; Peru progress report BTFP , Promperu PeruBiodiverso report 2009. Notes: Colombia, includes results Fondo Biocomercio 2008. NTFP 74.31% Sust. agriculture 22.28% Sust. tourism 1.70% Sust. garments 1.41% Sust. aquaculture 0.27% Construction 0.03% 0.01% Native flowers 0.00% 0.03% 2007 NTFP 63.50% Sust. agriculture 30.40% Sust. tourism 1.80% Sust. garments 3.10% Sust. aquaculture 0.35% Construction 0.35% 0.49% Native flowers 0.01% 0.85% 2008 7II. BioTrade Initiative Ta bl 2. ol um al es en er ed io di ve rs ity - ed ec rs , nc lu di ng io Tr ad ne fic ia ry om pa ni es iti iv es ( ou sa ni te St es ol la rs ) Pl ur io na ta te ol iv ia lo bi Ec ua Pe ru 20 07 20 08 20 07 20 08 20 06 /7 20 08 20 07 20 08 Vo lu al es ($ ) 91 ,8 09 ,1 94 10 9, 51 1, 95 9 3, 37 8, 77 7 8, 12 0, 63 6 16 ,3 51 ,5 52 6, 48 3, 72 4 11 1, 87 0, 26 2 11 4, 59 3, 02 5 pl es sp ec , ro du ct ec rs ei ng pr om ot ed ch illa ( ac ty lo pi oc cu ) , ar , ar , ac ( ep id iu ey en ii) , ca , ho ne , ua zu ( ob ro gr di flo ru ), ca ca ( ob ro ca ca ) , ra zil ut ( er ol le tia xc el sa ), qu oa , ai ya ca , liz ar . Na tu ra ng di en ts fo fo od , os ic ph ar ac eu tic al du st rie , fa fo fo od , ea er du st rie , ha ic ra fts , oc oa , ey er iv es , az fr ui ts , ur , st ru ct io er ia . Ca ca ( ob ro ca ca ) , ed ic al ar om ic er bs , ta ab le ur ( ird - ch ) . Na tu ra ng di en ts fo fo od , sm ic ha rm ac eu tic al du st rie , su st ai na bl ur , ild lif fo ( rn en ta fi sh ut te rfl ) . ur ce Pl ur io na St Bo liv ia pr og ss po rt TF FA , er . om , po rt ct iv iti es NB pu bl ic io : “ 20 ñ os se rv la bi od iv er si da de ol iv ia ”; st itu ol iv ia er ci te rio ( IB CE ); po rt fo rm io fo 20 08 . lo bi : ro gr es po rt TF . su lts Bi oc om er ci lo bi ly. Ec ua ro gr es po rt TF ; Bi oT ra de io na Pr og ra Ec ua . CO RP EI , io na te rn io na ar ke nf io fro 2 00 8. Pe ru ro gr es po rt TF Pr om pe ru 2 00 9 fo ar ke nf io 20 07 . Pe ru Bi od iv er po rt 2 00 9, Pr om pe ru 2 00 9 - nt er na tio na ar ke ts fo rm io fro 20 08 . ot : lu rin io na ta te ol iv ia : nf io fro TA TF ro gr es po rt, st itu ol iv ia om er ci xt er io ( IB ). ol om bi : fo rm io ly fr om io Tr ad ne fic ia ry om pa ni es io er ci . cu ad : nf io ly fr om io Tr ad ne fic ia ry om pa ni es . Pe ru : nf io fro ro pe ru er uB io di ve rs al es io di ve rs ity - ed ec rs en er al . ol iv ia ol om bi cu ad er 0 20 07 20 08 50 ,0 00 10 0, 00 0 15 0, 00 0 20 0, 00 0 25 0, 00 0 91,809 109,512 3,379 8,121 16,352 6,484 111,870 114,593 223,410 238,709 (thousand USD) 8 Trade Biodiversity: BioTrade Experiences Latin America involved natural ingredients committed implementing BioTrade Principles Criteria. Organization BioTrade chains Country assessments developed Latin American countries (.. Plurinational State Bolivia, Colombia, Ecuador, Peru, Costa Rica) defining potential developed BioTrade-related activities. Specific chain assessments prepared key inputs formulate implement strategies. Findings assessment suggested biodiversity-based sectors organized, lacking common vision strategic documents. sector associations existed, , participation companies recognition sector government level, worked disperse way6. result support BioTrade programmes partners natural ingredients sector, Peruvian Institute Natural Products (IPPN) strengthened, Nativa Colombia Nativa Ecuador created. , regional business association Andean Amazon Association BioTrade natural ingredients products “BioNativa” created involving BioTrade beneficiary companies Plurinational State Bolivia, Colombia, Ecuador Peru7. Plurinational State Bolivia, BioTrade Programme led FAN supported organization Caiman yacare chain Department Beni ( box 2). Box 2. Strengthening Caiman yacare chain Plurinational State Bolivia Caiman yacare crocodilian species native southern Brazil, Plurinational State Bolivia, Paraguay, northern Argentina. Due illegal hunting 1970’, population threatened considered Ap- pendix II species CITES 1975. Plurinational State Bolivia, Government implementing programmes control illegal trade caiman’ skins meat. part efforts, management plans developed ten indigenous lands (Tierras Comunitarias de Origen, TCO) Municipality Department Beni. involved approximately 13.700 inhabit- ants 106 communities. sustainable management species generated benefits: Double price received hunters legally hunted crocodiles ( skins) illegal ; Closer relationship hunters tanneries, increased quality skins strengthen skills capacity chain actors; Legal hunters long term planning activities, line carrying capacity ecosys- tem specie . long term planning biodiversity incorporated territorial manage- ment TCO; Tanneries plan production based annual quantities establish quality standards raw material. increase quality products stabilize supplies; Wetlands Caiman yacare depends -valued conserved, reducing transformation land (.. rice crops); Illegal hunting reduced due increase local controls ( local legal hunters). plans developed jointly -governmental organization (NGO) Fundació Amigos de la Naturaleza part BioTrade Programme Plurinational State Bolivia, indigenous organization Central de Pueblos - ígenas del Beni (CPIB), Loreto Municipality (local government) NGO Asociació Boliviana de Conservació (ABC). coordinated local tanneries Beni Department. species important local communities 60 cent income trade Caiman yacare leather captured indigenous populations stated study TRAFFIC International/WWF International (2008). dynamic sector country economy, benefits local communities, generates income taxes country. instance, Bolivian skins products derived Caiman yacare exported Italy, generating $1,4 million 282 cent increase 2003; United States, $496.8 thousand 364 cent increase 2003. (IBCE, August 2009) Sources: Pers. comm. Alfonso Llobet, FAN, October 2009; PNBS - FAN - CAF (2009), Biocomercio Sostenible en Bolivia); IBCE (August 2009), Roe, (2008).. 9II. BioTrade Initiative Regional coordination activities programmes developed, strengthening South-South cooperation exchange experiences selected chains methodologies. addition, multilateral projects developed CAF-UNEP-GEF Programme “Facilitation financing biodiversity-based businesses support market development activities Andean Region”. -year full-size programme supports BioTrade activities Colombia, Ecuador Peru, expected start 2010. Social environmental impact Natural resources located rural areas, 70 cent world’ poor live depend resources cover 90 cent terms food, fuel, medicine, shelter transportation8. 1.6 billion people depend forest -timber forest livelihoods billion depend marine coastal biodiversity9. Latin American Region exception - Peru , 65 cent agricultural production depends biologicial resources provide food security source inhabitants 25 cent exports based resources10. Colombian natural products laboratories SMEs natural finished products generates approximately 8,200 direct indirect jobs 2001, figure natural ingredients producers raw material producers difficult obtained involves growers, collectors sellers raw dehydrated material ingredient.11 case Caiman yacare chain Plurinational State Bolivia (box 2), work FAN benefited 13,700 inhabitants 106 communities Department Beni. 2007, work Bolivian BioTrade Programme strengthening natural ingredients, sustainable leather, Brazil nut construction materials chains, benefited 392 communities, 33 indigenous associations 21 companies. Colombia 2001-200412, Colombian BioTrade Programme benefited 529 initiatives, including companies (SMEs Micro-SMEs), formal informational associations, foundations, . average 30 employees initiative, programme benefited 15,850 people13. initiatives work sustainable agricultural systems, -timber forest products, ecotourism timber products. key actor working BioTrade Fondo Biocomercio Colombia (FBC), benefited 60 companies, generating direct employment 700 people impacting 3,200 families 2007 2009 (August). results positive environment, 19 thousand hectares sustainably managed, BioTrade practices. cases, good environmental management conservation natural resources ( BioTrade practices) differentiation mechanisms market BioTrade initiatives.14 work needed raising awareness consumers beneficiaries government agencies. chains supported Sustainable BioTrade Programme Ecuador, Ministry Environment/CORPEI/EcoCiencia benefited 11 thousand families working national “Arriba” cocoa, Amazon fruits natural ingredients cosmetic food industries 2006 2008. programme benefited instance 2,300 rural families grouped 13 producers associations foundations, 30 SMEs laboratories preparing products ingredients cosmetic pharmaceutical industries15. beneficiaries located rural areas Andean, Amazon Coastal region country. , organized producer associations / community-based companies. Peru16 2003 2007, approximately 2,550 families involved BioTrade activities natural ingredients sector food, cosmetic pharmaceutical industries 54,000 hectares distributed Junin, Cajamarca, Madre de Dios, Huanuco, Huaraz, Loreto Ucayali. Peru’ BioTrade Promotion Programme, Perubiodiverso project (SECO/GTZ), Public- Private Partnership established maca chain Meseta del Bombon. Perubiodiverso, involved Junin Region Association Maca Producers Processors (Nation Pumpush) corporation Bebidas Interandinas, benefiting 48 families indirectly approximately 3,000 maca producing families. Companies working BioTrade Principles Criteria comply generate social environmental benefits, sustainably conserve natural resources implement fair equitable 10 Trade Biodiversity: BioTrade Experiences Latin America sharing practices benefit rural producers communities. , benefit-sharing widely recognized essential conservation sustainable biodiversity objectives CBD, BioTrade17. distribution benefits considered participation actors involved chain takes place relation monetary -monetary gains derived trade biological resources18. generation social capital pillars sustainable development respect rights actors involved BioTrade activities fundamental part BioTrade. , activities promoted BioTrade tend generate benefits local communities. social impact cases involves establishment business linkages company suppliers (producers), reducing length chain reducing unnecessary intermediaries. linkages “-time” transaction continued mutually beneficial commercial relationship partnership. include fair, equitable mutually agreed price, capacity building, technology transfer, generation social funds, benefits direct producers community benefit. benefits direct suppliers (producers) company involve local communities resource / traditional knowledge used19. Illustrative cases types partnerships established shown partnership Nativa Colombia Cosmetic Valley, Natura ( section IV). maximize generation added products community level key activities promoted BioTrade companies, increasing income local producers. distillation natural ingredients producers order obtain trade essential vegetable oils fresh aromatic plants, trade final products herbal infusions Jambi Kiwa (illustrative case study section IV). BioTrade contributes food security management biodiversity, rescue native species support diversification food products. , communities dependent food products, vulnerability climate change effects decreased. 11III. Market Access Chain Development 3.1. Market potential biodiversity- based businesses20 International markets study prepared Fondo Biocomercio Colombia 2008, reveals annual market BioTrade products estimated $141.3 billion.21 market BioTrade products services growing, preference consumers healthy, natural, fair trade organic products.22 2009 Cone Consumer Environmental Survey states approximately “34 cent consumers buy environmental responsible products 44 cent stated environmentally habits changed result economy.”23 result 2009 Eurobarometer survey EU’ attitude sustainable consumption production,24 environmental impact product key purchasing decision 83 cent surveyed participants. Organic Trade Association (OTA), United States sales organic products, food/ beverages -food (.. fibers, personal care products pet foods) amounted $24.6 billion 2008 (annual increase 17.1 cent).25 organic food sector’ growth rate 15.8 cent, quadrupling growth rate United States food sector 4.9 cent26, 27. food organic products, consumers searching traceability, ethical sourcing, sustainability corporate social responsibility28. Supermarket chains active segment Foods, Tesco, Carrefour, Sainsbury, Wal-Mart, REWE AG, Costco, Kraft, General Mills, . EU market natural cosmetics showed annual growth rates 20 cent years, expected exceed €2.1 billion 200829. Ethical BioTrade Barometer30 cosmetic industry stated 87 cent consumers favor ethically sourced products buying cosmetics 79 cent boycott companies disregard environmental ethical concerns. line results presented major companies organic cosmetic sector reported positive growth 2008, including Weleda (sales increased 9.5 cent 238.3 million), Wala (Dr. Hauschka brand sales increased 7.3 cent €103 million) Lavera (increased 16 cent, €35 million).31 III. MARKET ACCESS AND VALUE CHAIN DEVELOPMENT Source: Josef Brinckmann (2009), Consultant Market News Service Medicinal Plants Extracts ITC (UNCTAD/WTO). Market Latin American Medicinal Plants Market Access Requirements. Presentation Seminar Plantas Medicinales: Biocomercio Desarrollo Sostenible, 26 28 October 2009, Panama Table 3. Summary South American Botanical Exports 2008 Volume (kg) (United States dollars) South America country 2008 export volume (kg) Botanical ingredients 2008 export (USD) Botanical ingredients Brazil 216,618,827 591,405,664 Argentina 128,987,213 220,864,210 Peru 107,878,633 243,929,720 Colombia 11,093,239 42,908,705 Ecuador 8,071,581 31,328,275 Paraguay 4,215,804 15,924,429 Bolivia 914,605 3,973,985 Uruguay 648,376 2,530,169 Guyana 447,471 539,830 Suriname 325,648 773,013 Total 479,201,397 1,154,178,000 Chile 2008 data 2008 data Venezuela 2008 data 2008 data 12 Trade Biodiversity: BioTrade Experiences Latin America trade volume medicinal plants extracts South American countries 2008, accounted $1.154 billion. Brazil leader country 51 cent market share, major exports coming cocoa butter, essential oils extracted oleoresins, pepper fruit (Piper spp.), maté leaf, . Argentina Peru. relation tourism industry, considered fastest largest growing economic sectors worldwide world’ largest service industry. generated $944 million international tourism receipts 2008 (1.7 cent increase 2007) $922 millions international tourist arrivals ( 2 cent growth 2007)32. 2020, United Nations World Tourism Organization (UN–WTO) estimated revenues tourism reach $1.6 billion,33 representing annual increase 6.1 cent 2000 2020. industry increasingly addressing environmental issues stage tourism chain, European Travel Commission stated concept sustainability Europe.34 Biodiversity sustainable business opportunity strategy context. biodiversity-based sectors sustainable tourism, agriculture, aquaculture, forestry, timber forest products (NTFP), handicrafts decoration, garment industries. efforts promote inclusion social environmental issues business practices trade, response consumers demand Europe, America Asia. Dutch Centre Promotion Imports developing coutries (CBI), businesses access EU market comply social environmental standards practices, define instruments implementation good management monitoring practices guide, design improve activities mitigate impacts environment. , care environment part business activities integral part government policy, consumers environmental groups pushing governments industries develop environmental standards. Regional domestic markets Regional domestic markets important consumers biodiversity-based products services. Access markets initial focus SMEs community-based associations/ cooperatives, traditional food products. general, BioTrade initiatives start consolidating activities local market national international markets. Market studies BioTrade products Colombia highlight importance national markets, identifying main sales channels (supermarkets, restaurants, specialized stores natural products, organic products, specialist flower shops, fairs open markets).35 7 cent national consumers pay premium price 6 cent 10 cent certified fruits, mushrooms, dried spices, jams, honey, panela coffee36. heliconias, national market absorbs 60 cent total production. dependency BioTrade companies domestic market shown results study37 100 BioTrade initiatives supported BioTrade Programme Colombia. initiatives analyzed, 63 cent sell local market, 50 cent regional market 29 cent national market. , 16 cent initiatives accessed international markets. market requirements terms administrative procedures, quality, documentation volume, investment, logistics marketing main reasons . study mentions limited addition products sold factor limiting sales BioTrade initiatives Colombia. 3.2. chain development importance chain approach Coordination actors involved production process product place. Business relationships characterized lack integration trust producers, processors, traders, exporters government support organizations. BioTrade assessments natural ingredients cosmetic, food pharmaceutical industries Latin America, Africa Asia, identified problems: Lack trust actors chain - private public actors, communities; quality products ( quality planning systems place, traceability middle- men, guarantee sustainable resources long term supply); 13III. Market Access Chain Development Limited processing technology; Lack basic documentation information species products needed access markets, instance taxonomical identification preparing Material Safety Data Sheets; Gaps lack clear application relevant legislation (permits, quotas); Lack tool environmental authorities assure sustainable resources. , actors informally organized short, medium long term vision. , lack cooperation trust visible actors stage chain. context, chain approach methodology develop strengthen sector natural ingredients. chain refers coordinated relationships actors involved indirectly productive activity, aim product service supplier manufacturer wholesaler retailer consumer.38 establishes market-oriented strategic alliances BioTrade producers, processors, distributors, traders, regulatory support institutions. actors organized meet common agreed goal, refers development strengthening sector, instance, access target market satisfy consumer’ . collaborative arrangements enhanced competitiveness sector, facilitated cooperation coordination actors, obtained environmental, social economic benefits chain. Concretely, results achieved : Access higher volume quality raw material, reducing waste; Increase productivity, reducing waste rates assuring product quality, safety traceability chain; Broader range quality products; Create platforms share practices information instance technology, market requirements linking producers middle-men processors exporters; Reduce costs, common storage transportation raw material final products, joint research development projects, market studies differentiation strategies, trade fair participation; Enhance purchasing power inputs needed harvesting post-harvesting phases; Identification sectors potential Selection chains Participatory assessment chain Formulation sector strategy Implementation Participation chain actors List products services Product groups Selection matrixes Strategic analysis Gathering information Mapping GAP analysis Strategic lines work Formulating work plan activities Validation strategy Implementation strategy Analysis problems solutions Prioritizing solutions Prioritizing Figure 3. Diagram support process chain BioTrade products Source: Becerra MT (2009 ). 14 Trade Biodiversity: BioTrade Experiences Latin America Generate trust public private sectors, communities strengthens communication flows ; Share responsibilities conservation management natural resources; Advocacy creating enabling policy environment. chain methodology support BioTrade products services Adapting existing methodologies UN Food Agriculture Organization (FAO)39 ITC (UNCTAD/ WTO),40 UNCTAD BioTrade developed methodology support / strengthen chains BioTrade products services. methodology enriched experience accumulated Plurinational State Bolivia, Colombia, Costa Rica, Ecuador, Peru Uganda. BioTrade chain methodology involves steps. starts identification selection sectors chains based environmental, biological, social, political, economic, market, technological infrastructure criteria. , participatory assessment selected sector/ chain developed, includes identification problems solutions accessing current potential markets. Finally, sector strategy formulated implemented strengthen develop sector promoting empowerment companies sector associations process short, medium long term. monitoring system designed implemented. steps consists activities lead achievement concrete results, active participation government representatives, private sector, academia, NGOs, community-based initiatives, actors working sector. methodology inclusive bottom- approach builds existing capacities knowledge, promotes sharing information, coordination activities establishment partnerships. process, takes months, deliverables figure 3. chains supported UNCTAD BioTrade partners Latin America BioTrade framework, national regional organizations working development strengthening selected chains, developed complementary market strategies. Latin America, 15 chains supported : Plurinational State Bolivia: Wildlife fauna food garment/leather industries (Caiman yacare, Tayassu tajacu, Vicugna vicugna); products ingredients food, cosmetics pharmaceutical industries; natural products construction handicrafts. Brazil: Natural ingredients food, cosmetics pharmaceutical industries support FUNBIO / Amazon Cooperation Treaty Organization (ACTO) / Union Ethical BioTrade (UEBT). Colombia: Natural ingredients food, cosmetics pharmaceutical industries; flowers foliage; ecotourism; handicrafts; garments; natural products construction, fauna pet industry. Ecuador: Natural products ingredients food, cosmetics pharmaceutical industries; bird- watching; handicrafts garments. Peru: Natural ingredients products food, cosmetics pharmaceutical industries; fish ornamental consumption; sustainable tourism. Examples activities supported include, inter alia, development quality programmes companies selected chains; capacity-building activities related sustainable native biodiversity implementation management plans wild-collected species; Business Business (B2B) programmes, trade fair participation business missions SMEs beneficiary countries order access international markets; support overcoming trade barriers developing -depth studies impact selected countries disseminate results bodies (.. sanitary phytosanitary (SPS), technical barriers trade (TBT) committees WTO). 3.3. Capturing market potential biodiversity-based products services Market differentiation strategies BioTrade products services Market recognition BioTrade products services important compensate efforts companies engaged implementation Principles Criteria. differentiate 15III. Market Access Chain Development enhance consumption national, regional international markets. BioTrade programmes partners, possibilities explored differentiate products services supported. include specialized showrooms, membership association, Appellation origin trademarks green labels. information Appelation origin green labels, related Intellectual Property Rights (IPRs), shown section VII. Specialized showrooms Sala Andes Amazonia Amazon Basin countries, activities place promoting sustainable conservation biodiversity regional actions favor trade investment biodiversity products services, natural ingredients ornamental fishes. Sala Andes Amazonia concrete output collaboration aims differentiate BioTrade products services derived Amazon Andean regions. showroom allowed participation ExpoSustentat trade fairs 2007 2008, businesses initiatives working biodiversity-based products services, benefiting 3,500 families include indigenous people, traditional communities farmers Plurinational State Bolivia, Brazil, Colombia, Ecuador Peru. Sala joint effort National BioTrade Programmes region, ACTO, UNCTAD, Ministry Environment Brazil, GTZ SGCAN. PeruNatura Peru, NBPP aims contribute economic development rural areas country adequate management biodiversity capturing market demand products. PeruNatura main promotion platform products developed BioTrade framework, including organic fair trade. edition PeruNatura organized Expo Alimentaria Peru Fair September 2009, developed support Promperu PeruBiodiverso Project (SECO/GTZ). Twenty- BioTrade initiatives participated, reported estimated sales $1.350 million 12 months. importance PeruNatura buyers visited stands included traders (20 cent), exporters (16 cent), agents (16 cent), distributors (15 cent), importers (12 cent) processors (7 cent). 59 cent America (18 cent United States 8 cent Canada), 25 cent Europe, 14 cent Asia 2 cent region. 230 participants participated PeruNatura Forum, 43 cent private sector 57 cent public support organizations involved food sector. BioExpo Colombia41 2002, BioExpo Colombia created order provide specialized platform disseminate, promote strengthen clean production, green markets BioTrade country. initiative Ministry Environment, Housing Territorial Development (MAVDT), Regional Autonomous Corporations (Corporaciones Autónomas Regionales) CORANTIOQUIA, CVC, CORPOCHIVOR, CRQ, Alexander von Humboldt Institute. inception, versions fair organized Armenia-Quindio 2003, Medellin- Antioquia 2005, Cali-Valle 2008. BioExpo 2008, 44 thousand people visited fair exhibitors reported sales COL$500 million, COL$2 billion expected sales. event, 32 national international speakers addressed topics production competitiveness, sustainable consumption. fourth edition BioExpo held November 2010. emphasis fair environmental services, ecotourism, important promissory activity BioTrade. BIOEXPO 08 – Plurinational State Bolivia Plurinational State Bolivia, International BioTrade Fair – BIOEXPO 08 – held 5-7 June 2008 Santa Cruz, Plurinational State Bolivia. organized Sustainable BioTrade Programme Plurinational State Bolivia, National BioTrade Chamber - BioNativa Ministry Rural Agriculture Development Environment. Fair brought 250 representatives private companies, producers’ associations, academia, certification agencies, government ministries international cooperation institutions Plurinational State Bolivia, Brazil, Colombia, Ecuador Peru. fair aimed strengthen contribute positioning BioTrade sectors domestic 16 Trade Biodiversity: BioTrade Experiences Latin America regional markets, create opportunities establish commercial financial ties participants, promote products, share experiences develop common strategies. Participants exhibit products benefit business tables specialized tables exchanging experiences lessons learned. Topics addressed included: market access European markets, -commerce, sustainable businesses, access benefit sharing, . Membership associations Membership associations created BioTrade actors. Examples country level business associations BioNativa (Plurinational State Bolivia), Nativa Colombia Nativa Ecuador groups BioTrade companies natural ingredients sector working comply BioTrade Principles Criteria country. regional level, regional business association Andean Amazon Association BioTrade natural ingredients products “BioNativa” created includes national associations mentioned . international level, Union Ethical BioTrade created October 2007 -profit membership association. (box 3). tool compliance BioTrade Principles Criteria BioTrade verification framework. implementation framework enhances market recognition ethical, environmental quality standards BioTrade products differentiated markets. BioTrade Verification Framework developed 2007 native natural ingredients implemented UEBT business--business level. addition, BioTrade country programmes partners framework develop implement activities. Box 3. Union Ethical BioTrade (UEBT) UEBT -profit association promotes “Sourcing Respect” ingredients native biodi- versity. resulted expressed companies differentiate products marketplace. UEBT helps companies adhere Principles Criteria Ethical BioTrade Ethical BioTrade verification system, based BioTrade Principles Criteria defined section 1. verification system business- -business market differentiation tool, promoting shared responsibility companies supply chain. certification system -product label allowed. verification system UEBT explained section 6, information obtained www.ethicalbiotrade.org. 17IV. BioTrade Latin America - Illustrative Cases 4.1. “Jambi Kiwa” Producers’ Association Medicinal Plants Ecuador42 business case Jambi Kiwa interesting , initiated implemented minority group engaged production marketable added products environmental social practices. Producers Association Medicinal Plants “Jambi Kiwa” Ecuadorian province Chimborazo Andean region, poorest country, pilot project 20 women started 1998. aimed improve quality life, foster gender equality, guarantee sustainable surrounding natural resources, capture market potential medicinal plants. achieved transformation commercialization medicinal aromatic plants sold local national markets. project created Ecuadorian crisis 1998 led dollarization economy. difficulties related instability local currency, prices costs, initiative evolved communitarian business (SME) named Jambi Kiwa 2001. result leadership commitment beneficiaries, market potential products produced access credit Canadian organization. organization donated credit Jambi Kiwa, originally established local currency “Sucre”. involves 600 families (80 cent women high levels illiteracy 75 cent indigenous Puruhá). Jambi Kiwa implementing BioTrade concept 2003. support Sustainable BioTrade Programme Ecuador - PNBSE, project 2004 2008 implemented support Organization American States (OAS). project promoted economic development minority groups strengthening institutional, business productive capacities Jambi Kiwa, consolidating participation national international markets. Organization strengthening Jambi Kiwa, small company, faces challenges : strengthening structure ( producer’ association company), improving production process, developing quality added products, accessing markets, . challenges addressed Jambi Kiwa competitive local, national international markets. SME dedicated resources efforts enhancing technical management skills knowledge manager, leaders, factory employees, producers members. , PNBSE supported Jambi Kiwa capacity-building activities. Coaching mentoring programmes implemented, instance, business administration Jambi Kiwa’ Manager Good Agricultural Collection Practices (GACP) agronomist producers. Technical trainings organized producers sustainable management plans, organic agriculture, Good Manufacturing Practices (GMP), . replicate experience knowledge community-based projects Ecuador, internship programme established. Organizational trainings workshops organized, producer’ association - IV. BIOTRADE IN LATIN AMERICA - ILLUSTRATIVE CASES Box 4. Fact figures Jambi Kiwa Created: 1998 Members: 632 (480 active, 182 qualified producers); 80 cent women; 75 cent indigenous Puruhá. Products: ingredients food pharmaceutical - dustries, personal care products. Markets: - Local national markets (7 cent total - dicinal herbs national market). products sold biggest national supermarket chains; - International: France, Canada Latin America. Additional information: - Quality certification ISO/TEC 17025, organic fair trade certifications; - Brand recognized national market regis- tered Ecuadorian Intellectual Property Insti- tute (Instituto Ecuatoriano de la Propiedad Intelectual (IEPI). Sources: CORPEI (2008), OAS (2008). 18 Trade Biodiversity: BioTrade Experiences Latin America basis SME - strengthened. , Jambi Kiwa implementing planning quality control systems enhance productivity, generate high quality -added products natural resources sustainably. Quality differentiated added products access niche markets Jambi Kiwa participated local national trade fairs, international Europe, North South America. allowed SME understand market trends, guide activities satisfy . company prioritized generation added quality products trainings, capacity-building activities acquisition equipment, competitive national international markets. instance, organically certified medicinal herbs’ “tea-bags” sold dried herbs increased sales price Jambi Kiwa’ products. accessed niche markets differentiating products certification schemes, quality certifications BioTrade practices. Jambi Kiwa recognized supplier high-quality medicinal aromatic plants Ecuador, products sold national international markets (Latin North America, Europe). Sustainable biodiversity Jambi Kiwa capacity develop, implement monitor management plans collected species, good practices plans cultivated species. participatory process supported PNBSE, plans identified sustainable harvest rates adequate species, good recollection agricultural practices, documentation monitoring systems. importance usefulness plans, differentiation characteristic achieved implementation, motivated Jambi Kiwa engage BioTrade. Creation microcredit fund Small producers access funds order improve yields (quantity quality products raw material), harvesting post-harvesting practices. establishment microcredit fund mechanism Jambi Kiwa address . structure operation fund unique Jambi Kiwa, designed Box 5. Summary support PNBSE strengthen structure Jambi Kiwa · Trainings organized topics: organizational strengthening association; sustainable management medicinal plants; GACP GMP; . · Technical assistance Jambi Kiwa’ producers implementing GACP management plans wild-collected species. assistance supported development Jambi Kiwa’ internal control system line ISO/TEC 17025. · Coaching Jambi Kiwa’ indigenous manager business administration, agronomist extensionists harvesting practices. · -week internships 93 producers Ecuadorian projects located coast, Andean range Amazon regions. Market access differentiation Jambi Kiwa’ products · Participated national, regional international trade fairs, buyer sellers missions. generated exports EU, Latin North American markets. · Accessed major Ecuadorian supermarket chains, nation-wide presence. strategic alliance major Ecuadorian tea/infusions company. · Enhanced processing capacity SME generate quality added products compete na- tional international markets (.. purchasing equipment establishing quality control laboratory). · Improved quality packaging products, increasing product range Jambi Kiwa. · Established communication marketing strategy revalues culture traditions Jambi Kiwa’ mem- bers, women, promotes empowerment company members. 19IV. BioTrade Latin America - Illustrative Cases , structure operation. members ( Committees) decide operation, granting microcredits guarantees; SME manages fund. Trainings members staff Jambi Kiwa manage fund adequately. Credits allocated assessment Committee technical, economical financial viability application. , 56.2 cent resources fund , 37.8 cent recovered. fund considered revolving fund members apply credit -kind (seeds, plants, equipment) enhance yields, pay order enable community members access . Administrative costs expenditures related operation fund covered increase interest rate additional fee. Lessons learned “Finally, significant social impact experience [BioTrade project], achievement economic development model indigenous farmers’ communities, compete international market, strengthening local culture consolidating production methods sustainably biodiversity ecosystems region” [Translated Spanish] (OAS, 2008). leadership, engagement active participation Jambi Kiwa members business, sustainable practices - BioTrade, key drivers success. market-driven strategy implemented Jambi Kiwa resulted development added products comply market requirements differentiated characteristics: certifications, sanitary permits, sustainably produced products recognized Puruhá culture traditions. Traditional knowledge recovered reinforce collective identity. Jambi Kiwa mobilized (cash -kind) resources members organization -finance activities. creation revolving microcredit fund important activity company engage members. planning monitoring tools developed support PNBSE 2004, allowed Jambi Kiwa obtain GACP, GMP, organic certification, fulfill quality standards (ISO/ TEC 17025) implement plans sustainable biodiversity. gradual access markets important lesson learned. Firstly, SME satisfied high demand medicinal aromatic plants local market; activities consolidated expanded national international markets. 4.2. Fondo Biocomercio Colombia43 Access finance biodiversity-based SMEs biodiversity-based companies access financial resources key challenge BioTrade initiatives (.. SMEs, community-based associations, projects, .). general, traditional financial entities differentiate conventional environmentally-friendly companies. , familiar biodiversity-based sectors markets, risky higher interest rates; amounts required BioTrade companies small. demand side, businesses aware financial opportunities, lack needed business capacity, guarantees cases, formality, don’ credit history. study prepared SME Partners (2005)44 stated major financial BioTrade business Colombia, Ecuador, Peru Bolivarian Republic Venezuela working capital, infrastructure equipment, access markets information, technical assistance, training business administration. Fondo Biocomercio Colombia general, Colombian BioTrade companies: newly established companies limited administrative management capacities; Lack business guarantees fulfill requirements financial institutions; limited experience knowledge managing credits; culture -reimbursable financial support. scenario, Fondo Biocomercio created Colombian BioTrade Programme (managed Alexander von Humboldt Institute) December 2005. launched 2006 -profit organization “aims contribute implementation 20 Trade Biodiversity: BioTrade Experiences Latin America CBD objectives providing coverage financial services enhancing development BioTrade Colombia”45. , Fund financial services companies committed comply BioTrade Principles Criteria. products services financed Fondo Biocomercio include: -timber forest products (.. plants parts medicinal, cosmetic food industries); ecotourism; agricultural productive systems (.. agricultural products, agro-ecological practices, wildlife breeding farms) timber products (.. wild timber species). Financial support received initially Global Environment Facility (GEF) World Bank Royal Netherlands Embassy Colombia. Fund responds MDGs, CBD objectives, Colombian Agenda 2019, National Development Plan National Strategic Plan Green Markets. Criteria applying financial services company requesting financial support agree comply BioTrade Principles, legally established registered Chamber Commerce. experience minimum year commercializing goods services, prepare business plan fill request form. loan allocation, respect social, environmental economic criteria assessed progress reports field visits. , progress company full compliance BioTrade Principles monitored measured, Fondo’ monitoring evaluation system aims guarantee beneficiaries: endangered species, listed Appendix CITES; Respect free decisions previously informed consent ethnic minorities communities farmers participate initiatives; chemicals, , company toxic ; Respect protected areas; promote monoculture. Finally, Fondo Biocomercio priority communitarian enterprises, SMEs, associations cooperatives. Financial services Fondo Biocomercio offers BioTrade companies financial services adequate characteristics. services flexible account risks biodiversity-based products services, include loans, factoring investment. Credit loans, type loans: Basic loan working capital, reimburse debts, cover administrative costs buy land. minimum amount $1,400 (3 million Colombian pesos) interest rate 8 cent indexed DTF interest rate46. Loans payable Colombian pesos fixed monthly payments 24 months. Expolínea loan facilitate participation enterprises fairs commercial events. amount $1,400 $2,900 (3 million 6 million Colombian pesos) interest rate 12 cent 14 cent indexed DTF rate. duration 3 6 months, reimbursable maximum fixed monthly payments Colombian pesos. Ecoturismo loan ecotourism activities. reimbursement fixed monthly basis defined seasons planned tourist visits. mitigates risks instability tourism motivate companies engage ecotourism. addition, contracts travel agencies considered guarantees credit, create potential income increase. Associations cooperatives financial options. , request loan convert revolving fund. Venture Capital Investment - Fondo invest capital company, purpose guaranteeing sustainability project. contribute 49 cent company’ patrimony. Factoring - Fondo proposes “factoring” service enhance working capital (liquidity) BioTrade companies. term acceptance invoices maximum 180 days, maximum amount $490 (1 million Colombian pesos) distributed invoices. companies pay commission 12 cent indexed DTF rate. Results obtained 2007, beneficiaries stated improvement 40 cent 50 cent environmental 21IV. BioTrade Latin America - Illustrative Cases social performances, . impacts Fondo’ activities shown table 4. Lessons learned Access financial resources working capital requirements difficult SMEs communitarian initiatives, sectors BioTrade. sense, financial services offered Fondo Biocomercio, support companies engaged implementing conservation sustainable practices. fund dedicated biodiversity-based companies challenges faced BioTrade companies, amount required, reimbursement period, amount guarantees. instance, reimbursement loan “ecotourismo” defined seasons planned tourist visits. Finally, guarantee required (.. feasible strong business plan contracts travel agencies) Fondo Biocomercio key driver attraction private actors sustainable practices. 4.3. Natura Cosmeticos equitable benefit sharing47 Access benefit sharing main objectives Convention Biological Diversity , framework Convention refers specifically genetic biological resources, equitable distribution benefits arising sustainable trade biodiversity products services central characteristic BioTrade. Brazilian multinational cosmetic enterprise Natura offers concrete BioTrade methodologies, fair equitable sharing benefits promoted. launch Ekos line 2000, Natura Brazilian company commit share benefits generated innovation accessing genetic assets communities’ traditional knowledge. Relationships communities Natura 56 negotiated natural asset supply agreements farms, companies communities Brazil Latin America. , 19 natural supply asset agreements traditional communities local providers genetic assets traditional knowledge native species. agreements benefited 1,600 families. Relationships communities assessed basis criteria. , group Number companies benefiting Fondo Biocomercio 59 Total turnover beneficiaries (2008) $57’645.824 Hectares BioTrade practices 19.252 Number species BioTrade practices 306 Employment generated local communities minorities 707 Number beneficiary families 3,206 Number companies add- biodiversity-based products services 55 cent Source: Fondo Biocomercio Colombia, September 2009. Table 4. Results achieved Fondo Biocomercio 2007- 2009 (August) Box 6. Fact figures Natura’ Ekos product line Ekos line Ekos line accounts 10 cent company’ sales. 2008, total sales Natura accounted 4.9 billion Brazilian Reais 4.3 billion 2007. Benefit sharing important aspect Ekos line products. Communities network 19 natural supply asset agreements traditional communities local providers. Examples raw materials sourced Brazil nut (Bertholletia excelsa), breu branco (Protium carnosum), murumuru (Astrocaryum murumuru), andi- roba (Carapa guianensis), candeia (Vanillosmopsis erythropappa), cupuazu (Theobroma grandiflorum), er- va-mate extract, aromatic erva-mate extract, maracujá- proteína, pariparoba, sesbânia. Source: Ricardo Arnt (2008). Natura access genetic resources traditional knowledge. 22 Trade Biodiversity: BioTrade Experiences Latin America criteria refers level understanding communities agreements enter, information transparency, payment punctuality satisfaction final result. criterion examines participation communities price negotiation. Challenges surrounding legal framework benefit sharing ratifying CBD 1992, Brazil obligation define rules regulate access benefit sharing genetic resources, respect traditional knowledge local communities. bills proposed approved. share genetic resources regulated Provisional Measures 2.052-00 2.186-16 (August 2001) created Genetic Asset Management Council (CGEN). Provisional Measures define contractual requirement “owner” traditional knowledge merit benefit sharing. , traditional knowledge widely disseminated vast territories persons. , identifying owner traditional knowledge difficult arbitrary. legal context challenging Brazilian companies work closely local communities: moment, “owners” request companies obtain share benefits traditional knowledge. Natura actively participated discussions surrounding benefit sharing. difficulties surrounding legal framework, continued working local communities sustainable biodiversity. Benefit sharing practice practice, benefit distribution, Natura seeks generate relationships empowers communities work . CGEN approved Benefit Usage Sharing Agreements Natura. regulate access breu branco, candeia, cupuazu-manteiga, erva-mate extract, aromatic erva-mate extract, maracujá-proteína, pariparoba sesbânia. Benefit distribution 19 traditional communities regulated Box 7. Iratapuru case - extract Arnt (2008) Surrounding Iratapuru State Sustainable Development Reserve, Amazon forest Satate Amapá, remote Iratapuru community exemplary case Natura’ learning traditional local communities. - munities lived collecting Brazil nut generations, extractivistic techniques approaches changed time. 2002, important agreement signed Natura provision Brazil nut oil Ekos line. Composed 30 families, Mixed Extractivistic Producer Cooperative Iratapuru River sells crude Brazil nut oil Cognis, processing company refines essence delivers Natura , turn, manufacture shampoos, conditioners, bar soap. community paid , beginning productive chain, provi- sion oil sale, , percentage Natura product sales. set fair price input percentages sale, community meetings held partici- pation family leaderships, Natura professionals, Cognis employees. stakeholders presented expectations debated costs, prices, profit margins. State Amapá Government, “Amigos da Terra” (Friends Earth) environmentalist organization, local academic community representatives supported participated negotiations. spite positive outcomes, learning processes, Natura’ relationships setback- problem-free. years, resources derived agreements investments Natura community allowed construction oil extraction plant community community operates. Natura paid hiring Imaflora, Forest Stewardship Council’ representative Brazil, certified nut production “FSC green seal” 2004. community dependent company, prevent appearance “handout” - lationship, part received sale products allotted creation Sustainable Development Fund. purpose foment economic initiatives community order reinforce technical - mercial management capacity. community charge setting sustainable development goals support Natura. 23IV. BioTrade Latin America - Illustrative Cases Genetic Asset Access Law, represent 9 cent total payments indirectly Natura. activities, Natura contributes generation income communities purchase raw materials. company encourages development strengthening productive chains generate greater income distribution. Box 7 illustrates Natura promoted fair equitable sharing benefits. 4.4. Business partnership Nativa (Colombia) Cosmetic Valley (France)48 Nativa (Colombia) Nativa (Colombia) created August 2006 support UNCTAD BioTrade Initiative partners, CBI Colombian BioTrade National Programme/Alexander von Humboldt Institute. sector association BioTrade companies involved native natural ingredients. association recognizes important role private sector play implementation CBD MDGs. fulfill role, enterprises acknowledged importance working , national level creation Nativa finally regional level creation BioNativa.49 Colombian association focuses sustainable native ingredients (.. plants) promotes development trade - added products, involving companies 200 producers. activities carried framework chain approach implementation BioTrade Principles Criteria. part activities, Nativa aims contribute development supportive environment network companies working natural ingredients sectors respecting BioTrade Principles Criteria. instance, sector association promotes knowledge sharing, facilitates development studies projects, access finance members. Cosmetic Valley (France) Cosmetic Valley created 1994 hailed French Inter-ministerial Committee Regional Development Competitiveness competitiveness cluster50. French association world leading resource centre perfumes cosmetics forty- thousand jobs €10 billion turnover. coordinates network 470 enterprises, big perfume cosmetic companies SMEs, 200 public research laboratories, 136 training institutes, universities 7,580 scientists. company members Guerlain Dior (LVMH), Shiseido, Hermè, Nina Ricci Paco Rabanne, Lolita Lempicka, Gemey-Maybelline Yves Saint Laurent Beauté (’éal), Clarins, Caudalie Chanel. Cosmetic Valley works French épartements regions: Centre (Eure--Loir, Indre--Loire, Loiret, Loir--Cher), Ile-de-France (Yvelines) Haute-Normandie (Eure). cluster creates supportive cohesive structure cosmetic sector approach promotes innovation expansion international markets. aims adopt practices respecting biodiversity conservation. , main challenges Cosmetic Valley include/promote conservation sustainable practices business activities, convert practices source innovation. , Cosmetic Valley disseminates practices sustainable development objective bring member companies virtuous circle, adoption GMPs, responsible production consumption practices clean means transport. cluster integrates sustainable development factors design products stimulate innovation. initiated development eco-responsibility charter based agreed commitments resources preservation, fair relations southern countries, carbon sinks scientific cooperation programmes.51 Finally, cluster create sustainable partnership countries rich biodiversity. Business partnership Nativa (Colombia) Cosmetic Valley Chamber Commerce Bogota, promotion Colombian products exchange technology - Colombia Europe, approached United Nations Industrial Development Organization Service France (UNIDO - France). activities, organized French-Colombian exchange experiences 24 Trade Biodiversity: BioTrade Experiences Latin America competitiveness clusters, Cosmetic Valley Nativa Colombia participated. result activity, Cosmetic Valley Nativa (Colombia) started discussions strengthen collaboration due shared commitment sustainable biodiversity export- readiness Nativa interesting innovative products. Memorandum Understanding signed Nativa Cosmetic Valley. national actors contributed achieve partnership Colombian National BioTrade Programme/Alexander von Humboldt Institute Colombian Fondo Biocomercio. result partnership, members organizations gain access broad number Colombian French companies, laboratories research organizations. Detailed results table . Lessons learned existence market biodiversity-based products BioTrade companies guaranteeing medium long term sustainability activities companies supported. creation environmentally responsible clusters, Nativa (Colombia) Cosmetic Valley, promote adoption practices respecting biodiversity conservation sustainable criteria brings companies, academia laboratories. benefits obtained cluster/association individual companies order promote engagement partnership BioTrade. instance, results obtained Nativa (Colombia) - Cosmetic Valley partnership : Members Nativa (Colombia) Cosmetic Valley: access target markets broad range products; develop & projects; positioning organization (.. company, university) products national international markets; share costs, information technology enhance company’ competitiveness. Organization strengthening Nativa (Colombia) Cosmetic Valley: offer -added services members training information; facilitate access markets joined trade fair participation. Cosmetic Valley Nativa (Colombia) · Learned interesting products derived native biodiversity. · complementary product offer Cosmetic Valley cluster. · Facilitated access Colombian companies research organizations. · Facilitated access potential buyers pool experts (market access, product quality, sustainable supply chains, ). · Learned develop competitive cluster cosmetic sector. · Created possibilities training members (.. universities training institutes). Joint activities implemented · Joint participation trade fair Beauty (Paris, October 2008) strengthen links members associations. · Mutual promotion Nativa (Colombia) Cosmetic Valley national international markets. · Continuous development joint practices conservation sustainable biodiversity, special focus resource management technology transfer. · Development virtual logistic platform exchange products aiming increasing links members clusters establishing potential commercial agreements companies’ members Nativa Cosmetic Valley. · Mutual research development (&) projects related natural ingredients, colorants, , financial support Cosmetic Valley Colombian Administrative Department Science, Technology Innovation (Colciencias). Table 5. Results Nativa (Colombia) - Cosmetic Valley partnership 25V. International BioTrade Issues 5.1. UNCTAD XII BioTrade UNCTAD, 193 member States recognized positive contribution BioTrade Initiative making trade work conservation sustainable biodiversity. addition, Member States instructed UNCTAD continue support creating enabling policy environment fosters private sector engagement (UNCTAD XII Accra Accord, 2008). information Accra Accord, refer annex 1. 5.2. Multilateral Environmental Agreements (MEAs) BioTrade Multilateral Environmental Agreements recognized UNCTAD’ efforts developing BioTrade Initiative, considered incentive measure conservation biodiversity CBD Decisions VIII/26 IX/6, tool promotes private sector engagement (CBD Decisions IX/26) Agricultural biodiversity (CBD Decision VIII/23). report press, COP Decisions reached Tenth Session Conference Parties (COP 10) reference work UNCTAD poverty alleviation development (DX/6), cooperation conventions international organizations initiatives (DX/20), sustainable biodiversity (DX/32), business engagement incentive measures (/ X21 DX/44, ). information text CBD Decisions, refer annex 2. CITES, BioTrade recognized Decision 14.46 countries instruct Secretariat continue cooperation BioTrade/UNCTAD. , Memorandum Understanding signed UNCTAD CITES March 2010. 5.3. WTO, SPS TBT Committee Biodiversity agenda multilateral trade framework years, debate included issues related emerging markets biodiversity green technologies perspective market access creation, sanitary phytosanitary measures, trade facilitation, technical barriers trade, technology transfer innovation, trade related investment issues, subsidies incentive measures. adds traditional discussions related intellectual property rights linked traditional knowledge discussions World Trade Organization (WTO) MEAs. growing interest emerging biodiversity issues ensuring adequate international trade policy framework enable development emerging markets increase trade concerns put developing countries issues European regulations foods Registration, Evaluation, Authorization Restriction Chemical substances (REACH) sanitary phytosanitary (SPS), technical barriers trade (TBT) committees WTO. Regulation (EC) 258/97 foods Trade concerns related EU Food Regulation (NFR) refer application Regulation traditional foods countries incompatibility Regulation vis-à-vis WTO Agreements, SPS Agreement. result SPS measures countries trade restrictive, developing countries full advantage comparative advantages area emerging markets biodiversity due costly processes require extensive scientific historical data prove safety. Regulation foods, EU regulation adopted 1997 main objective establishing harmonized rules placing foods Community view ensuring high level human health consumers’ protection, posed important barriers producers traditional foods developing countries. Moving strategic window opportunity opened mandated revision Regulation, UNCTAD important number strategic partners countries international level began process research dialogue document negative trade impacts Regulation BioTrade activities formulate recommendations modification . INTERNATIONAL BIOTRADE ISSUES 26 Trade Biodiversity: BioTrade Experiences Latin America adoption treatment traditional foods countries BioTrade products fall . result efforts developing countries stakeholders, results worldwide consultation, EU Commission published NFR proposal January 2008. publication, international efforts address inefficiencies Regulation stepped . 2008, research agenda developed implemented included development technical studies: Legal analysis NFR application Nangai Nuts conducted collaboration Sidley Austin LLP; Policy Paper History Safe Definitions NFR. time, bilateral discussions regional multilateral forums, government representatives negotiators mainstreamed substantive legal arguments consultative processes. International civil society organizations played pivotal role facilitating dialogue actors providing essential communication channels inform relevant stakeholders. process, UNCTAD BioTrade brought , governments, universities, specialized consulting firms, SMEs, MNCs, scientific communities, international organizations, regional organizations, finance institutions, donor agencies, civil society organizations, law firms, business associations, work contributing fairer treatment traditional foods EU NFR. Representatives institutions Latin American countries participated project including : Plurinational State Bolivia, Brazil, Colombia, Costa Rica, Ecuador, Mexico, Paraguay Peru. ongoing negotiations Andean countries European Union, biodiversity negotiating table created important issues -tariffs barriers, intellectual property rights, environmental protection clauses, environmental goods services discussed. 5.4. BioTrade national regional forums Latin America BioTrade concept discussed national regional fora Latin America, tool promotes economic development contributes poverty alleviation, line sustainable conservation biodiversity. Andean Community, BioTrade concept implementation considered key topic enhance conservation sustainable biodiversity. , support BioTrade projects recognized part Line action 552 Decision 523 “Regional Biodiversity Strategy Tropical Andean Countries”. Andean Environment Agenda 2006-2010 recognizes importance BioTrade supports consolidation Andean BioTrade Programme (Line action 1: Conservation Sustainable biodiversity). Brazil, Conferência Nacional sobre Direito Ambiental Questã da Amazônia organized Manaus, BioTrade-related activities supported Manaus Declaration, paragraph 8. event place Amazon Day September 2009. Latin American Seminar “Sustainable Medicinal Plants BioTrade” (Seminario Latinoamericano sobre aprovechamiento de Plantas Medicinales Biocomercio) organized University Panama OAS, BioTrade recognized opportunity support development medicinal plants chain Latin America. event held October 2009 Panama City. Participants speakers Argentina, Plurinational State Bolivia, Brazil, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Panama, Paraguay, Peru United States, government, academia private sectors, NGOs IGOs. Latin America, conferences forums organized BioTrade Programmes Plurinational State Bolivia, Colombia, Ecuador Peru regional partners ACTO SGCAN. Colombia, instance, Forum “BioTrade, green markets rural development” (Foro sobre Biocomercio, mercados verdes desarrollo rural) held Colombian Congress 12 August 2009. Chamber Representatives, PBA Corporation Fondo Biocomercio Colombia organized event aimed discuss promote agreed concrete public policies sustainably 27V. International BioTrade Issues biodiversity mechanism rural development Colombia. events organized Conference Parties MEAs (CBD, CITES, Ramsar, UNCDD) trade fairs (.. PeruNatura Sala Andes). , BioTrade forums organized International Seminar Sustainable BioTrade (Seminario Internacional de Biocomercio Sostenible) held Cartagena, Colombia 2005. 29VI - Challenges Opportunities 6.1. Challenges opportunities data measuring impact BioTrade activities importance biodiversity ecosystems humans, economic valuation established, dedicated systems valuation. Consequences lack market prices53 biodiversity ecosystems services resulted overseeing, neglecting undervaluation decision-making processes benefits derived goods considered public nature. , activities threatened biodiversity fostered contribute loss biodiversity poverty. biodiversity affected , important measure, monitor report positive negative impacts search equilibrium development conservation natural resources. relation BioTrade, adaptive ecosystem approaches based, addresses . BioTrade activities implemented worldwide, constant demonstrate measure contribution sustainable development trade investment, conservation sustainable biodiversity. obtain real, precise comparable information ground monitor social, economic environmental benefits generated relation conservation sustainable aspects species ecosystems , economic benefits generated. BioTrade Impact Assessment System intends address explained -section. BioTrade products included general HS codes, making difficult obtain concrete data trade flows. instance, natural dyes commercialized Andean companies included HS 3203008000 Coloring matter vegetable animal origin, (nesoi). products data shown, differentiate trade generated conventional products environmentally friendly products (.. BioTrade, FSC, organic, Rainforest Alliance, .). lack information, policymakers underestimate trade importance products services derived biodiversity, native species. Confidentially issues limit access data turn-, costs margins, sensitive companies’ information. BioTrade programmes associations access information trust confidentiality basis information . Biological information limited, species promoted BioTrade. Partnerships academia needed applied research relevant private sector (.. biological identification specie , identify document ) identification huge number potential species products developed. , research applied organized cost-efficient manner, prioritizing species products social, economic environmental feasibility. instance, BioTrade programmes Colombia, Ecuador Peru identified list priority species natural ingredients products sector, species social, economic/market environmental potential. Peru, BioTrade sectors included national research plan; Colombia 38 monographs medicinal plants elaborated local universities, Alexander von Humboldt Institute UNCTAD. activities increased product lines offered Andean BioTrade companies, including essential oils, extracts, vegetable oils, oleoresins resins, infusions, personal care products, cosmetics, . findings relevant BioTrade activities, biodiversity-based initiatives working Latin America. BioTrade Impact Assessment System (BTIAS) BioTrade network, independent efforts national regional programmes partners measure report impact activities supported place, data obtained comparable. UNCTAD developing BioTrade Impact Assessment System (BTIAS) measure contribution BioTrade (UNCTAD, national, regional, international VI. LOOKING FORWARD - CHALLENGES AND OPPORTUNITIES 30 Trade Biodiversity: BioTrade Experiences Latin America partners, beneficiary companies) sustainable development. BTIAS based BioTrade Principles Criteria adaptive management, ecosystem, chain sustainable livelihood approaches. BTIAS conceived information management tool compile process data field order report impact BioTrade - instance beneficiary Governments, donors MEAs (CBD, CITES), identifying areas improvement. environmental, social, economic governance indicators, BioTrade’ contribution sustainable development objectives CBD, measured. Examples impact indicators address effectiveness management conservation areas area influence BioTrade business, usage exploitation rate resources relation regeneration capacity, benefit-sharing compliance national international environmental social legislation, . major challenge development system identification selection participatory process indicators quantifiable, accurate, relevant, , practical, objective credible. reason diversity sectors actors supported BioTrade network, geographical distribution activities. cases difficult measure impact BioTrade timeframe results obtained (medium long term) complexity isolating BioTrade contribution factors generated impact (.. Government expenditure infrastructure: roads, telecommunication, water supply, ). continuous engagement BioTrade programmes practitioners system crucial success users generate data periodically fed system. 6.2. Challenges opportunities developing/strengthening chains BioTrade Initiative sees strengthening chains critical element facilitating implementation good practices related sustainable conservation biodiversity promoting equitable sharing environmental, social economic benefits chain participants (UNCTAD, 2007). implementation BioTrade activities chain approach created opportunities beneficiary SMEs countries active sustainable commercialization trade biodiversity-based products. development sector strategies process suggested UNCTAD combines objectives interests chain actors common goal. goal aims enhance growth chain social, economic environmental sustainability (BioTrade Principles). Horizontal vertical integration processes place BioTrade practitioners, South-South cooperation activities sharing information. integration facilitates capturing commercial opportunities overcoming common problems/barriers channeling prioritizing resources effort planned activities. examples activities : access finance establishment BioTrade funds, improvement quality raw material meet sustainability market requirements (.. norms, standards, sustainable protocols/management plans), access markets establishment strategic partnerships producers SMEs business associations developed developing countries. , tools methodologies developed UNCTAD BioTrade54 created opportunities cost-efficient guidance implementing sustainable practices private sector, supporting engagement implementation CBD MEAs. , business actors BioTrade business tool enhance Internal Control Systems differentiate products marketplace, guaranteeing sustainable species harvested/collected improving product’ documentation traceability. requirements needed accessing international markets. achievements obtained BioTrade programmes practitioners development chains Latin America, joint efforts continue : Create enabling policy environment BioTrade businesses; 31VI - Challenges Opportunities Select priority products fulfill market, environmental, social technological criteria identify adequate distribution channels markets specific characteristics BioTrade products services; Access market accurate, reliable current market information priority products identified supported; Generate knowledge recognition consumers native species efforts companies implementing conservation sustainable practices; Differentiate BioTrade products services marketplace; Obtain scientific technical knowledge information species – native species - ecosystems , facilitate technology infrastructure order sustainably; Strengthen technical, entrepreneurial organizational capabilities producers, SMEs sector associations, including formalization organizations products; Maintain sustainable supply chains management development quality -added products improve competitiveness SMEs national international markets; Empower continue engaging chain actors process obtain results sector business levels. , engagement empowerment private sector (.. SMEs) crucial implementing sector/ chain strategies medium long term; Share equitably benefits generated BioTrade, chain actors; Facilitate access finance BioTrade initiatives; Develop biodiversity conservation schemes adapted incorporated normal business practices. Concretely Peru55, progress relation BioTrade country level, challenges overcome limited applied research development potential biodiversity-based products fulfill market requirements, research implementation quality systems, limited organization (association) producers, -tariff barriers Foods regulation, statistical information obtain specific data Harmonized System obtain information companies complying BioTrade Principles Criteria. 6.3. Challenges opportunities market access strategies BioTrade products -traditional commodities (.. developed native species developing countries) widely , international markets EU, United States Japan. products frequently traded unstructured niche markets knowledge regulators consumers limited existent. situation presents challenges levels. instance, creating market demand building awareness products services target markets, accessing reliable market information potential, verifying safety issues consumer. Creating market raising consumer’ awareness national regional levels, sector trade fairs organized display BioTrade products, services beneficiary companies potential clients, general public media. Events PeruNatura, BioExpo Colombia Bolivian BIOEXPO 08, buyer-sellers meeting Natural ingredients sector Colombia Ecuador, examples developed BioTrade partners Andean region. Producers SMEs participated regional international trade fairs Biofach, -Cosmetics, Beauty, Vitafoods, Expo-East Expo-West. participation allowed establish contacts potential buyers, display product’ offer learn market trends, requirements competition target markets. BioTrade practitioners working understand requirements trends target markets. basic high-quality product addition ethical environmental issues, motivate purchasing target consumers. , consumers’ awareness studies developed, UEBT’ Biodiversity Barometer overview consumers’ awareness biodiversity United States selected EU countries. BioTrade partners information develop marketing strategies company, sector country levels. Technology scientific information capacities 32 Trade Biodiversity: BioTrade Experiences Latin America contribute development BioTrade products services, increase market allowing development marketing strategies position products services target markets. Examples Ecuador’ slogan natural ingredients sector: Biodiversity center world slogan Bogota Cundinamarca region: Colombia: Native Biodiversity World Beauty. participation organization events, trade fairs B2B complemented promotional material, newsletters publications specialized media, cases product testing (.. testing fruit infusion supermarket chain target market). Market studies, species product’ research, establishment business partnerships, key components creating markets raising consumer’ awareness BioTrade products. natural, environmentally-friendly socially responsible products demanded, special attention place avoid green-washing / generate confusion. exists EU market word BioTrade, consumers confused organic products recognized word Bio. efforts, government support organizations understand BioTrade importance country’ development. Additionally, implementing -mentioned activities expensive BioTrade companies. challenges , overcome integrated coordinated manner, involving chain actors BioTrade practitioners local, national international levels. Market barriers BioTrade products innovative general, identification -tariff barriers carried- vary depending final product instance food, dietary supplements, personal care product, . 2005 2006, BioTrade Programmes Colombia, Ecuador Peru prepared studies identify barriers limit development biodiversity- based markets56. barriers identified national level related lack duplicity laws regulations (.. permits required activity competence Ministries) lack clarity implementation norms protocols sustainable / trade biodiversity. issues instance difficulty applying legal requirements special characteristics business activity / species . obstacles discourage investments biodiversity-based sectors. barriers, BioTrade programmes, government entities chain actors (SMEs communities) worked jointly providing recommendations solutions overcome . instance, activities implemented included: identification development recommendations overcome market barriers specific sectors; facilitate creation sector committees/roundtables enhance communication public private actors; development guidelines fulfill legal requirement export natural ingredients. information mentioned section VI.4. international level, UNCTAD working closely Ministries Foreign Affairs Latin American countries order coordinate efforts overcome international market access barriers. region active enhancing regulatory policy market access framework bilateral, plurilateral multilateral platforms. Topics addressed sanitary phytosanitary issues, standards, certification, packaging technical barriers trade, regional international levels. Market information Market information costly, relates niche markets biodiversity- based products international markets. Specific market studies briefs prepared expensive activity individual SMEs. reason, work chain approach leverage funds establishment strategic alliances trade promotion agencies. relation challenge, strategic partnerships established trade promotions agencies CBI Netherlands, Swiss Import Promotion Programme (Osec/SIPPO) ITC (UNCTAD/ WTO). , countries BioTrade programmes hosted trade promotion agencies Promperu. 33VI - Challenges Opportunities 6.4. Challenges opportunities policy frameworks policy frameworks related BioTrade broad address important issues development cooperation, technology innovation, public health, environment agriculture, mention . complexity important challenges tackled coherent inclusive matter, chain approach. BioTrade partners addressing challenges mentioned section 6.3, identifying market barriers, proposing recommendations establishing multi- institutional platforms public private actors communicate coordinate actions chain approach. Examples National Technical Committee Biodiversity Competitiveness (CTNBC) Colombia Peru National BioTrade Promotion Programme (NBPP). BioTrade mainstreamed national regional strategies Latin America, Andean region countries. instance, regulatory frameworks natural ingredients sector -defined, confusing absent, limiting development. situation improved countries support governments, chain actors BioTrade partners. Colombia Ecuador product standards developed, administrative processes streamlined, communication channels sector associations/companies Government enhanced. Finally, capacity-building awareness raising activities government officials private actors developed. concrete 48-hours specialization BioTrade Sustainable Development organized Swiss-German funded project “Fomento de Productos Servicios de la Biodiversidad - PeruBiodiverso” implemented NBPP, Catholic University Peru 2009. Box 8. National legislations promoting BioTrade Colombia BioTrade integrated national legislation strategies. BioTrade - cept included National Biodiversity Strategy Action Plan, National Development Plan 2006-2010. 2008, High Council Competitiveness Regions Presidency Republic es- tablished National Technical Committee Biodiversity Competitiveness (CTNBC), part National System Competitiveness. created Presidential Decree 2828 23 August 2008. Technical Committee focused sustainable biodiversity Colombia strategic sector country’ development includes promotion BioTrade part specific objectives. regional Competitiveness Biodiversity committees established include regional environmental authorities, academia, private sector, trade chambers research institutes/centers. Peru, definition importance BioTrade stated Regulation Conservation Sustainable Biodiversity (Supreme Decree ° 068-2001-PCM). , National BioTrade Strategy 2007-2011 adopted NBPP involving strategic lines: () Development competitive supply Peru; () Promotion market access; () Fostering research innovation; () Policy advocacy institutional capacity-building. NBPP members include Ministries Trade Tourism, Foreign Affairs Production, Promperu, National Council Science Technology (CONCYTEC), Peruvian Exporters Association (ADEX), Peruvian Institute Natural Products (IPPN), . Sources, Colombia: MAVDT ( 2005). Comité de Biodiversidad Competitividad liderado por la Presiden- cia de la República, document UNCTAD meeting ViceMinister Clau- dia Mora; Pers. comm. Felipe ómez Villota, MAVDT Diana Toscano, Fondo Biocomercio. Peru: Jaime árdenas (2009). Estrategia de institucionalizació: ú. Presentation Regional Sala Andes Amazonia workshop, 28-29 January 2009. Brasilia, Brazil; National BioTrade Promotion Programme - NBPP, brochure 2009. 35V.II BioTrade Intellectual Property Rights (Distinctive Signs) Intellectual Property Rights (IPRs) tools generate added BioTrade products services differentiation market place. IPRs facilitate access markets BioTrade products services, reinforce social benefits BioTrade, participation smaller producers chain benefits obtained. classification main IPRs figures include: industrial property, rights plant varieties, copyrights related rights (annex 3). section analyze distinctive signs, geographical indication (GIs)/appellation origin (AoO) Trademarks/brands relevant BioTrade products. show practical examples GIs/AoO Trademarks applied biodiversity-based products LAC. 7.1 Development opportunities BioTrade strategic distinctive signs general, BioTrade products services significant added sold product se, include effort BioTrade companies/beneficiaries conserve biodiversity making sustainable biodiversity providing sustainable livelihoods rural populations. , BioTrade supports local producers possibility obtain specific product benefit premium-price paid easily identified trademark GIs protected industrial design.57 GIs sign biodiversity-based products specific geographical origin possess qualities reputation due place origin. subject matter GI protection cover indications geographical connotation. consumers, GIs distinguishes origin unique characteristics linked origin, guarantees benefits generated stay control owners/producers developed responsibly established procedures.58 GIs applied biodiversity- based products agricultural products handicrafts, primary processed. Traditional knowledge important component, processed products. special kind GIs, Appellation Origin (AoO) products specific quality characteristic exclusively essentially due geographical environment including natural human factors, products produced. uniqueness product , instance, related post-harvesting practices, industrial processing, ecology site genetic characteristics. GI instance applied Café de Colombia, AoO applied coffee produced region country.59 Trademarks/brands signs company specific holder exclusive rights . Collective trademarks/brands relevant BioTrade, holder brand association groups individual producers private companies. , suited implemented communities costs shared holders.60 Certifications standards ISO organic instruments differentiate specific aspect products marketplace technical specifications product production methods. Decision 486 Andean Community common regulation industrial property, states signs designed applied products services qualities characteristics certified trademark holder. , certifications instruments protection violation GIs IPRs.61 BioTrade GIs/AoO GIs important promote market differentiation BioTrade products services (sustainable tourism) built local agro- ecological (.. unique organoleptic aspects unique region) cultural characteristics (.. traditional production practices) products valued consumers. GIs contribute organization product’ chain, improve quality traceability/documentation products registered, establishment monitoring system. BioTrade partners practitioners, AoO assessed market differentiation tool reinforce activities conservation VII. BIOTRADE AND INTELLECTUAL PROPERTY RIGHTS (IPR’) (DISTINCTIVE SIGNS) 36 Trade Biodiversity: BioTrade Experiences Latin America biodiversity contribution poverty alleviation rural communities. Andean region, feasibility studies obtain AoOs selected BioTrade products developed. result work, 2008 AoO Ecuadorian cocoa “Arriba” obtained (box 9). BioTrade trademarks, collective trademarks certifications standards Trademarks collective trademarks implemented BioTrade beneficiaries producers’ associations companies. differentiate product target markets show fulfillment technical specifications production methods. examples experiences promote green trademarks Colombian BioTrade Programme Amazon chains. native Amazon fruits chain, regional identity strategy designed developed jointly Corporació de Desarrollo Sostenible para el Sur de la Amazonia - Corpoamazonia (environmental authority region). included communication strategy unique logo phrase “Amazonia, essence life” (Amazonia, esencia de vida). guideline manage brand (“logo”) finalized Corpoamazonia consultancy implemented register trademark.62 interesting UEBT63 pioneering model member companies possibility differentiate demonstrating ethical responsible sourcing native biological resources. UEBT acknowledges incremental progress strict compliance, members companies gain recognition efforts compliance Ethical BioTrade Principles ( BioTrade Principles mentioned section 1). -party verification system assesses companies’ management systems supply chain practices, source. UEBT members evaluated verification system identification activities implemented, 5 years companies achieve full compliance. system applies UEBT member companies products, claim adhering Ethical BioTrade Principles company level UEBT membership logo corporate communications.64 Box 9. BioTrade experiences Appellation origin (AoO) UNCTAD, jointly BioTrade programmes Colombia, Ecuador Peru, prepared studies analyzed feasibil- ity obtaining AoO selected BioTrade products. BioTrade products analyzed maca (Lepidium meyenii) paiche (Arapaima gigas) Peru, cocoa “Arriba” (Theobroma cacao) Ecuador borojó (Borojoa patinoi) Colombia. capacity-building event organized UNCTAD BioTrade, jointly World Intellectual Property Orga- nization (WIPO), International Centre Trade Sustainable Development (ICTSD) SGCAN order discuss address feasibility results obtained studies, exchange information lessons learned, receive guidance steps needed obtain AoO. years work BioTrade programme Ecuador, jointly support producers’ associations (UNO CACE, FEDECADE), sector associations (ANECACAO representation producer members), Ecuadorian research organizations (INIAP) individual producers, Appellation Origin cocoa “Arriba” obtained 2008. issued country CORPEI/BioTrade Programme Ministry Agriculture, owner. Appellation built worldwide reputation product based unique combination geographical, historic human factors. Cocoa “Arriba” important product country’ economy generates significant export revenues, important source employment, contributes conservation biodiversity Ecuador produced environments favor biodiversity (agroforestry). , current support needed implement manage AoO (.. Regulatory council), including legal technical assistance, capacity-building activities government officials chain actors involved. Sources: UNCTAD, ICTSD, SPDA CAN, (November 2005); Pers. comm. Nancy ánchez Ana Carolina Benitez, Sustainable BioTrade Programe Ecuador; Luis Vayas, Mission Ecuador UN international organizations Geneva; Invitation speech Ricardo Estrada/CORPEI official hand- event AoO cocoa Arriba Ecuadorian Government/Ministry Agriculture, Livestock, Acuaculture Fisheries June 2008. 37V.II BioTrade Intellectual Property Rights (Distinctive Signs) 7.2 examples IPRs applied biodiversity-based products Latin America Caribbean (LAC) potential LAC IPRs instruments huge; countries benefited . general, studies reveal 90.4 cent (8,600) GIs registered developed countries, 9.6 cent (913) developing countries65. study commissioned ITC66 2007, LAC region Brazil, Chile, Colombia, Cuba, Dominican Republic, Guatemala, Mexico Peru established registers registered GIs. wine spirits, tobacco, coffee shown list: Brazil: 2 wine coffee Chile: 82 wines spirits Colombia: 1 coffee Cuba: 19 tobacco cigars Dominican Republic: 6 tobacco bananas Guatemala: 1 coffee Mexico: 11 (2 coffees, 4 spirits, 1 mineral water, 3 industrial 1 agricultural products) Peru: 1 agricultural product 1 spirit , interesting cases relevant BioTrade AoO Quinua Real Oruro Potosi Departments Plurinational State Bolivia obtained 2002; AoO Maiz Gigante de Cuzco Peru obtained 2005; cacao AoOs obtained Ecuador (cocoa “Arriba” 2008) Bolivarian Republic Venezuela (Chuao cocoa 2000 Cocuy Pecayero 2001). Andean region, Peru67 active actor GIs 23 products recognized potential candidates GI 6 registered process registered. main goal IPRs differentiate products international markets. relation trademarks, interesting cases trademark NATURA COSMETICOS /A68 collective trademark “Chirimoya Cumbe” Pueblo de Santo Toribo de Cumbe Peru includes 106 community members69. interesting product links biodiversity conservation organic production Café de Colombia obtained types trademarks GI recognized Community level EU. addition case Café de Colombia led private sector, examples green labels promoted support environmentally friendly socially responsible products Colombian public institutions. examples Ecological Food Label (Sello de Alimento Ecológico)70 Green Environmental Label (Sello Ambiental Colombia).71 created Ministry Agriculture Rural Development 2004, administration defined 2007. aim food label promote, differentiate position ecological products ( organic), consumers guaranteed quality characteristics product purchasing Ministry. 2006, regulation primary production, processing, packaging, storage, labeling, certification, import commercialization products adopted control system established. 45 thousand hectares ecological production (certified conversion) 2008 include products cocoa, coffee, infusions, honey derivates, cane, cereals, flowers, fruits, palm oil, . Green Environmental Label voluntary scheme differentiate environmental products services, eco-labeling schemes Latin America. launched 2005 MAVDT, Ministry Trade, Industry Tourism. MAVDT ICONTEC (national norms organization) developed technical norms implementation environmental label handicrafts ( cañ flecha, enea junco), natural fibers (fique) sustainable tourism. 7.3. Opportunities, challenges lessons learned BioTrade products differentiated market order recognize additional effort companies implement BioTrade Principles, socially, environmentally responsible. Distinctive signs purpose offer benefits : facilitates wider recognition BioTrade products targeted markets quality premium price; enables participation producers BioTrade chain supports benefit sharing recognition/revaluation traditional practices; promotes implementation biodiversity-friendly practices. , complementary business initiatives developed tourism benefit 38 Trade Biodiversity: BioTrade Experiences Latin America certification marks. consumers level benefits obtained guarantee quality, origin cases, environmental social sustainability product. GIs , differentiate products originating specific regions reasons () protect identification local unique/special/differentiated products BioTrade products; () improve product` quality standardization producers processors practices; () encourage horizontal vertical partnerships benefit sharing; () facilitate access target markets prefer unique products72. GIs AoO effective unique characteristic product recognized target consumers, significant costs needed position product, international markets. , recognition step process obtain GIs showed successful cases developing countries built long- standing popular products marketing implemented strong partners73. GIs applied intermediary products challenging standardization, marketing promotion needed implemented visible potential buyers consumers. main factors contribute success GIs identified ITC study 74 : () strong organizational institutional structures, () equitable participation producers companies GI region, () strength market partners support promotion commercialization GI long term, () effective legal protection strong national protection systems. important issues relevant effective GIs : good governance, delineation GI territory, relation quality reputation success origin, costs putting maintaining GI market (.. ongoing operational costs dissemination, marketing, monitoring management, including legal enforcement), market saturation, time required mount GI requires patient implementation sustained commitment resources differentiate GI consumers. LAC, distinctive signs (trademarks AoO) BioTrade products remains limited due costs involved develop, manage maintain -thought implementation promotion strategy AoO; institutional capacity, organization development chain actors. Andean region, regional legislation GIs, national institutional capacity limited, national strategies promote maintain GIs lacking, capacities generally -existent local level producers potential GI products75. Market incentives BioTrade accompanied instruments guarantee protection biodiversity traditional knowledge, compliance enforcement promote sustainable businesses sectors order generate expected benefits country chain actors, relation economic, environment social issues. IPRs instruments mechanisms regard. 39VIII. Conclusions Recommendations LAC region huge BioTrade potential rich biological resources ( 17 megadiverse countries region) traditional resources variety products. biodiversity managed sustainably transformed differentiated added products services, development engine region. National regional cooperation public private actors needed work goal. long term vision promotes conservation sustainable resources region position LAC power biodiversity. Mechanisms differentiate recognized effort region inhabitants maintain natural resources sought. , region seek strategic positioning LAC CBD negotiations COP 10 . , economic biodiversity recognized measured. important develop instruments generate economic premium biodiversity alternative link biodiversity existent consolidated markets. BioTrade general work developing BTIAS contribute addressing challenge. Biodiversity BioTrade recognized strategic development issue countries activities implemented. Examples Colombian National Technical Committee Biodiversity Competitiveness, Peruvian Regulation Conservation Sustainable Biodiversity (Supreme Decree ° 068-2001-PCM) national level; Regional Biodiversity Strategy Tropical Andean countries regional level; CBD Decisions IX/6 incentive measures IX/26 promoting business engagement international level. 8.1 Upscaling BioTrade LAC region BioTrade offers opportunity LAC region contributes sustainable development region, achievement MDGs MEAS objectives. progress region efforts national regional BioTrade counterparties UNCTAD developing BioTrade recognized strengthened. Policies, strategies resources needed upscale activities impacts countries regions (.. Central America). policy frameworks strategies upscale BioTrade activities needed order small niche markets include strong economic sectors highly contribute local national economies. IPR mechanisms institutions promote BioTrade protect biodiversity, reinforce BioTrade’ positive social, economic environmental contribution. South-South cooperation mechanism exchange knowledge experiences regional international levels strengthen broaden scope order develop institutional policy frameworks facilitate development BioTrade region. instance sharing experiences, methodologies information expand implementation BioTrade programmes LAC. , capacity-building activities important regard, UNCTAD launching -learning “BioTrade Chain development”. main challenges development BioTrade region relates limited resources implement BioTrade activities countries, including programmes strengthening training production, processing trading; limited current instruments protection IPRs ABS, limited/contradictory laws policy frameworks; lack clarity implementation norms protocols related sustainable / trade biodiversity-based products services. instance, lack funding implement Costa Rican BioTrade programme limited development strengthening priority sectors identified: community-based tourism, plants foliages, butterflies. Interest develop BioTrade programmes received Guatemala Nicaragua, funding needed prepare VIII. CONCLUSIONS AND RECOMMENDATIONS 40 Trade Biodiversity: BioTrade Experiences Latin America assessment country identify priority sectors activities foster development. , funding sources sought order implement BioTrade programmes Costa Rica countries region. 8.2 Policy frameworks Policy frameworks place provide transparent enabling environment development biodiversity-based sectors BioTrade. National, regional international action ensure international legal policy framework negative impacts BioTrade. , formulation incentive measures sustainable businesses native biodiversity, implementation IPRs instruments, clarity relation land tenure, laws determining access natural resources knowledge, requirements fair equitable sharing benefits, essential. Economic incentive measures important policy instruments conservation sustainable biodiversity. countries region embarked formulation implementation measures, lot research effectiveness measures compatibility international norms. incentive measure region links conservation trade adopted Ecuador preservation sustainable development Province Galapagos. measure ensures privileged participation local community development activities sustainable economic islands. specific economic incentives: () Incentives productive conservation activities granting preferential loans favorable interest rates making tax deductible, () Tax deductions private sector trainings, () Preferential lending conditions permanent residents province, () Tax deductions donations favor environmental sanitation activities. Policy instruments place compliance national international requirements issues quality, market access, conservation sustainable biodiversity coherent manner. Institutional infrastructure evaluate determine traditional knowledge involved sustainable biodiversity. Market barriers BioTrade products services identified documented, jointly list BioTrade products/ services, producers/companies involved.76 development scientific knowledge capacities local universities crucial provide key information fulfill documentation requirements access markets protect biodiversity-based products international level.77 Inter-sectoral multidisciplinary work essential country, regional international levels order coordinate actions, establish Box 10. Peruvian experience market access barriers biopiracy address market barriers biopiracy, Peru established technical groups: Technical Group Market Access instance, coordinates efforts share information relation NFR, National Committee Biopiracy effectively revoked patents referring traditional Peruvian biodiversity-products international level. patents requested involved sacha inchi, camu camu maca EU, Japanese, Republic Korea, / United States markets. Committee, Peruvian natural products knowledge international market limited require benefit country , related indigenous communities.78 Sources: speech Peruvian delegation UNCTAD/UNDP meeting BioTrade Potential Growth Sustainabilily, held 7 April 2010 Geneva, Switzerland, included meeting report. Note: BioTrade work genetic resources, considered relevant include Peruvian Committee Biopiracy, contribution prepared expert David Vivas (annex 4). 41VIII. Conclusions Recommendations transversal activities avoid duplication CBD, WIPO, FAO WTO. instance, framework WTO generate synergies environmental goods services (.. including BioTrade products) enhance competitiveness region. Coordinated efforts international level important, instance, overcome key issues -tariff barriers obtain differentiation biodiversity-friendly products BioTrade Harmonized System classification nomenclature. Peru, instance, created technical groups address market barriers biopiracy box 10. event BioTrade Potential Growth Sustainability organized April 2010, private standards considered major barrier region due current priority standards, generating diversity requirements producers developing countries. private standards involves additional challenges -tariff barriers, addition ongoing discussions WTO NFR trade environmental goods services. WTO discussions promote harmonization standards platforms foster exchange practical experiences countries. Latin American countries positive impact promoting enabling policy legal framework BioTrade activities strategies envisaged direction. develop initiatives aimed mitigate / overcome barriers, active participation countries region needed coordinating activities, documenting sharing information practical experiences, strengthening public-private links create spaces discussions countries involved. cases, regional international cooperation sought broaden scope impact activities. Existing institutions discussion platforms position region international arena. UNCTAD partners key actors facilitate South-South cooperation motivate regional international cooperation context. 8.3 Developing biodiversity-based sectors development sustainable competitive biodiversity-based sectors, strengthen institutional framework facilitates development BioTrade products services; strengthen business, production sustainable management capacities skills private public chain actors; enhance consumers’ awareness instance campaigns; differentiate products marketplace recognized effort companies complying BioTrade; facilitate access markets generate enabling policy environment. IPRs promoted limited knowledge implementation GIs challenge overcome. instance capacity- building activities coaching producers order foster instruments favour favour biodiversity. generate domino effect products actors develop implement instruments. important barrier development BioTrade products formalization biotrade products companies/associations. region, majority products informal access international markets sanitary, phytosanitary, packaging, standards requirements, . SMEs, micro, small producers supported technical assistance, training resources fulfill national international market requirements. Note access markets gradually local national international, specific characteristics company. companies learn deal requirements funding (liquidity working capital), formality, volume, language (English), management negotiation capacities, . , vertical horizontal integration chain actors overcome challenges related volume quality products international markets. 8.4 Private sector engagement private sector key stakeholder conservation sustainable biodiversity, actors implementing activities. engagement creation enabling environment development private initiatives crucial obtain impacts desired BioTrade. economic slowdown, special attention companies engaged 42 Trade Biodiversity: BioTrade Experiences Latin America conservation sustainable biodiversity assure support sustainable practices involvement. companies expanding competing exigent markets affected crisis, risk companies sacrifice engagement biodiversity conservation reduce costs generate additional incomes. , challenges motivations chain actors understood policymakers order define measures translated viable private sector practices. chains sectors selected, biodiversity-based products sectors promoted identified assess barriers relation production, commercialization distribution process. , identification selection priority products difficult, products limited information (.. market, scientific, biological). 8.5 Concrete policy recommendations summary, promote BioTrade development biodiversity-based sectors general, recommendations suggested. 1. Enable policy environment sustainable biodiversity-based businesses sectors, : Regulatory frameworks incentives promote sustainable trade biodiversity- based products BioTrade, including fiscal incentives companies implementing sustainable practices, adopt regulatory frameworks address existing gaps sustainable trade biodiversity-based products reform adverse regulatory frameworks incentives; Inclusion native species national regional strategies, related research development, technology transfer, export development; Strengthening capacities awareness government officials implementing regulations related sustainable / trade biodiversity-based products, local areas; Public investment infrastructure adequate basic services support development biodiversity-based companies; Establishing defining property rights land, knowledge natural resources, stable incomes long-term planning actors involve BioTrade (.. land tenure, benefit-sharing). 2. Facilitate access markets : Awareness raising campaigns promotion BioTrade products services local, national / international markets depending cost/benefits obtained, developed sector, region country include: - Differentiate products enabling environment development implementation distinctive signs; - Position sector, country / region target markets environmentally friendly socially responsible (BioTrade); - Support establishment platforms displaying BioTrade products services, instance trade fairs (.. Sala Andes Amazonia) virtual (.. Obio79 Colombia); - Support understanding GIs order differentiate BioTrade products market fostering involvement producers chain; Public procurement programmes sustainably socially produced products BioTrade; Facilitate removal mitigation market barriers, regional international cooperation crucial (.. South-South cooperation); Facilitate access updated reliable market information BioTrade products services business contacts. lead national promotion organizations establishing strategic alliance import promotion organizations programmes CBI, SIPPO ITC (UNCTAD/WTO). 3. Strengthen skills knowledge : Fostering broader cooperation public private actors, instance, public– private partnerships platforms coordinating activities BioTrade sectors/chains, sharing knowledge, information lessons learned. platforms include chain actors, producers/hunters/collectors, intermediaries, processors, distributors, retailers, traders, representatives government, business support organizations, NGOs, ; Strengthening developing business support services organizations, including sector associations; 43VIII. Conclusions Recommendations Establishing capacity-building programmes related business management, sustainable management wild collected species, GAPs, GMPs, commercialization, ., rural areas. 4. Facilitate access finance : Capacity-building awareness raising campaigns biodiversity-based sectors (including BioTrade) potential, representatives public / private financial institutions; Establishing green funds credit lines existing institutions adapted scale biodiversity-based businesses. 5. Enhance production facilities, equipment natural capital (biodiversity) : Facilitating development technology research native species development added products management plans. 6. Measure impact biodiversity : Developing systems measure, monitor report impact biodiversity-based sectors, instance development implementation BioTrade Impact Assessment System. 45Annexes UNCTAD - ACCRA ACCORD (2008) - 193 signatory States Policy Analyses 59. conservation sustainable biodiversity opportunities developing countries’ trade investment, small medium-sized enterprises dealing biodiversity products. Trade products services related biodiversity , countries, important tool preserving biodiversity enhancing development, acknowledging social, cultural, legal economic complexity issue. Policy Responses 84. conservation sustainable biodiversity provide opportunities trade, investment development developing countries. Strategies facilitate trade products services related biodiversity considered, , promote trade sustainable development. UNCTAD’ Contribution 102. UNCTAD continue build experience enhance BioTrade Initiative, support growing market biodiversity products services produced sustainable manner. BioTrade Initiative continue support creation enabling policy environment foster private sector engagement sustainable conservation biodiversity, acknowledging social, cultural, legal economic complexity issue. ANNEX 1. BIOTRADE AND UNCTAD ACCRA ACCORD 46 Trade Biodiversity: BioTrade Experiences Latin America CBD - 191 States party Convention COP 8, Curitiba 2006 DECISION VIII/17. Private-sector engagement Noting work ways means supporting small medium-sized enterprises environmentally sound products, developed UNCTAD BioTrade Initiative, promote good biodiversity practice business industry… DECISION VIII/23. Agricultural biodiversity Annex, Proposed framework cross-cutting initiative biodiversity food nutrition, . Elements, Element 3. Conserving promoting wider biodiversity food nutrition - Ways means … addition, opportunities cooperation BioTrade Initiative United Nations Conference Trade Development (UNCTAD) , inter alia, provide technical assistance create enabling policy environment. Planned activities tested pilot projects selected countries, order evaluate effectiveness develop approaches. DECISION VIII/26. Incentive measures: preparation -depth review programme work incentive measures Positive incentive measures 9. Invites United Nations Conference Trade Development, initiatives, including, BioTrade initiative, continue supporting programme work incentive measures Convention. COP 9, Bonn 2008 DECISION IX/26. Promoting Business Engagement Annex, Priority Area 1 – Build promote business case biodiversity 2. Continue compilation dissemination information business case biodiversity, including experiences generated framework UNCTAD BioTrade Initiative, clearing- house mechanism, CBD newsletter business, mainstream business forums. Annex, Priority Area 2 – Disseminate tools practices 6. Disseminate tools practice companies involved biotrade. DECISION IX/6. Incentive Measures (Article 11) Cooperation 13. Invites Biotrade Initiative United Nations Conference Trade Development continue work trade promotion biodiversity-based products produced sustainable manner compatible objectives Convention Biological Diversity, capacity- building, enhancing market access, promoting enabling environments engaging relevant public private actors; 15. Invites Food Agriculture Organization United Nations, United Nations Conference Trade Development, United Nations Environment Programme, Organisation Economic -operation Development, national, regional, international organizations initiatives undertake, requests Executive Secretary encourage, studies payments ecosystem services positive incentive measures local, national, regional international levels, advantages potential limitations risks, cost-effectiveness, potential implications biodiversity indigenous local communities, consistency international obligations. studies address designating indigenous local communities local authorities recipients payments address concerns equity consideration practical implementation payment schemes; 16. Invites relevant national, regional international organizations promote scientific technical cooperation Parties design implementation incentive measures, including ANNEX 2. BIOTRADE AND THE CONVENTION ON BIOLOGICAL DIVERSITY (CBD) 47Annexes international courses workshops exchange experiences, provide technical support, capacity-building training: ) valuation biodiversity ecosystem services; ) design implementation incentive measures national circumstances; ) promotion biodiversity-based products produced sustainable manner (“biotrade”). COP 10, Nagoya 2010 DECISION /6. Integration biodiversity poverty eradication development 12. Encourages synergies ongoing initiatives linking biodiversity, development poverty eradication, Equator Initiative, ABS Capacity Development Initiative Africa, LifeWeb Initiative, UNCTAD BioTrade Initiative, Poverty- Environment Initiative, Biodiversity Technology Initiative, Multi-Year Plan Action South- South Cooperation; Decision /20. Cooperation conventions international organizations initiatives 19. requests Executive Secretary continue cooperation biotrade trade- related matters , inter alia, United Nations Conference Trade Development Convention International Trade Endangered Species Wild Fauna Flora. Decision /21. Business engagement Recognizing relevance existing developments work processes forums, including relevant international organizations, Green Growth Initiative Organisation Economic -operation Development, proposed green economics theme 2012 United Nations Conference Sustainable Development, Marrakech Process Sustainable Consumption Production supported United Nations Environment Programme United Nations Secretariat, Biotrade Initiative United Nations Conference Trade Development, existing initiatives promote corporate social responsibility greening supply chains… 1. Invites Parties: ... () identify range options incorporating biodiversity business practices account existing developments forums, including relevant institutions governmental organizations, Business Biodiversity Offsets Programme, International Union Conservation Nature, United Nations Environment Programme, Biotrade Initiative United Nations Conference Trade Development, World Business Council Sustainable Development, Organisation Economic -operation Development, Nippon Keidanren, Business Biodiversity Initiative initiated ninth meeting Conference Parties; Decision /32. Sustainable biodiversity 3. Invites Parties, Governments, relevant international organizations : … () strengthen initiatives link biodiversity, development, poverty alleviation, BioTrade initiative United Nations Conference Trade Development; Decision /44. Incentive measures 13. recognizing methodological limitations existing approaches, existing valuation tools, welcomes work relevant international organizations, Food Agriculture Organization United Nations (FAO), United Nations Conference Trade Development (UNCTAD), United Nations Development Programme (UNDP), United Nations Environment Programme (UNEP) initiative Economics Ecosystems Biodiversity (TEEB), Organisation Economic operation Development (OECD), International Union Conservation Nature (IUCN), international organizations initiatives, support efforts global, regional national levels identifying removing mitigating perverse incentives, promoting positive incentives conservation sustainable biodiversity, assessing values biodiversity ecosystem services, invites continue intensify work view raising awareness , promoting common understanding , removal mitigation perverse incentives, promotion positive incentive measures, assessment values biodiversity ecosystem services; 48 Trade Biodiversity: BioTrade Experiences Latin America “Industrial property - registration required obtain protection basic characteristic industrial property. legal provision regulates legal figures: Patents - regulation protect inventions meeting innovation, eminent inventive industrial application requirements Distinctive signs - regulation protect signs distinguish products services trading arena, competition. include trademarks, collective trademarks, certification trademarks, commercial logos, geographic indications appellations origin Industrial designs - regulation protect aesthetic aspects inherent objects Utility models - regulation protect utility aspects inherent objects Trade secrets - regulation protect confidential information commercial “Rights plant varieties - case industrial property, registration required grant protection… “Copyrights related rights - protects authors artistic expressions (original works). meet registration formalities obtain protection. main copyrights: Works - main types works literary, musical, artistic, textile, technical plans drawings, photography, movies, computer programs databases Neighboring rights - include protection artists, singers, performers, phonogram producers, radio broadcasting organization, .” Source/authors: David Vivas Manuel Ruiz (2001). Handbook mechanism protect traditional knowledge Andean region indigenous communities. UNCTAD, . 5-6. ANNEX 3. CLASSIFICATION OF THE MAIN IPRS FIGURES 49Annexes numbers cases illegal access genetic resources traditional knowledge decades generated high concerns disappointment Intellectual Property (IP) system designed implemented. Biodiversity rich countries constantly pointing gaps terms specific measures international IP avoid biopiracy form mis- appropriation indigenous names traditional expressions. requests concerns led international negotiations discussions CBD, WTO WIPO. national level, countries incorporated specific measures avoid biopiracy practices IP, biodiversity land science technology legislation. interesting case Peru. Peru created years National Committee Biopiracy (Comité Nacional contra la Biopiraterí) objective monitoring, preventing avoid biopiracy acts order protect natural patrimony Peru. Commission proven effective monitoring action cases patents, incorporating Peruvian genetic resources traditional knowledge consent, granted examination. , types national experiences incipient phase. efforts establishment adequate measures regulatory frameworks mentioned international forums support international organizations UNCTAD UNDP provide coherent effective solutions. active stand monitoring avoiding biopiracy cases bring results case revocation Enola yellow bean patent (“Frijol Amarillo”) United States Court Appeals Federal Circuit 2009. case patent revoked lack fulfillment “-obviousness” criteria. Finally, case trademarks GIs, assistance providing additional evidence patent examiners state art related specific genetic resources traditional knowledge making clear wide historic commercialization. ANNEX 4. ADDRESSING BIOPIRACY THOUGHT IPRS (PREPARED BY DAVID VIVAS, ICTSD) 50 Trade Biodiversity: BioTrade Experiences Latin America “ , topic subject informal consultations chaired WTO director- general deputies. present debate focuses TRIPS Agreement relates Convention Biological Diversity ( topics listed ). ideas put include: “Disclosure TRIPS obligation: group represented Brazil India including Plurinational State Bolivia, Colombia, Cuba, Dominican Republic, Ecuador, Peru, Thailand, supported African group developing countries, amend TRIPS Agreement patent applicants required disclose country origin genetic resources traditional knowledge inventions, evidence received “prior informed consent” ( term Biological Diversity Convention), evidence “fair equitable” benefit sharing. “Disclosure WIPO: Switzerland proposed amendment regulations WIPO’ Patent Cooperation Treaty (, reference, WIPO’ Patent Law Treaty) domestic laws inventors disclose source genetic resources traditional knowledge apply patents. Failure meet requirement hold patent granted , fraudulent intent, entail granted patent invalidated. “Disclosure, patent law: EU’ position includes proposal examine requirement patent applicants disclose source origin genetic material, legal consequences meeting requirement lying scope patent law. “ national legislation, including contracts disclosure obligation: United States argued Convention Biological Diversity’ objectives access genetic resources, benefit sharing, achieved national legislation contractual arrangements based legislation, include commitments disclosing commercial application genetic resources traditional knowledge”. Source: WTO, www.wto.org/english/tratop_e/trips_e/ art27_3b_background_e.htm, 26 2010. ANNEX 5. ISSUES RELATED TO THE CBD UNDER DISCUSSION IN THE TRIPS COUNCIL, AS STATED BY WTO 51References Arcos . al (2009). álisis de las iniciativas empresariales de biocomercio en el sur de la Amazoní Colombiana. 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Sylvander, CIMS, RIMISP. www.dgiovannucci. net/docs/gi_key_points-.pdf. · BioExpo Colombia, www.bioexpo.gov.. · BioTrade Initiative, www.biotrade.org. · CBI News Bulletin 2006, www.cbi.eu/download/actualiteit/Breaking_down_the_novel_food_barrier.pdf. · CBD, www.cbd.int. · CITES, www.cites.org/eng/dec/valid14/14_42-47.shtml. · Corporació Biocomercio Sostenible - CBS, Colombia, www.biocomerciosostenible.org. · Cosmetic Valley, www.cosmetic-valley.. · Deloitte (2009). Natura Demonstrações Financieras - Natura Cosméticos ..- Demonstrações contábeis referentes aos exercícios findos em 31 de dezembro de 2008 de 2007 parecer dos auditores independentes www2.natura.net/Web/Br/relatorios_anuais/_PDF/Demonstracoes_Financeiras.pdf. · Fondo Biocomercio Colombia, www.fondobiocomercio.. · Les poles de compétitivité, www.competitivite.gouv.fr. · Observatorio Nacional de Biocomercio (Colombia), www.humboldt.org./obio. · Ordem dos Adrogados Brasil (OAB) - Maranhã (2009). OAB divulga Carta de Manaus. 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Personal communications : · Arcos , Corporació Biocomercio Sostenible (CBS), Colombia. · Aristide , Bejarano , Cendales Toscazo , Fondo Biocomercio Colombia. · Guamá , Jambi Kiwa, Ecuador. · ómez , Ministry Environment, Housing Territorial Development (MAVDT), Colombia. · Ingar , Promperu, Peru. · Larrea Escobar , Misió Ecuador United Nations international organizations Geneva. · Llobet Sassarini , Fundació Amigos de la Naturaleza (FAN), Plurinational State Bolivia. · Sanchez Benítez , Sustainable BioTrade Programme Ecuador. · Vayas , Mission Ecuador WTO Geneva. 55Notes Notes 1 Organic Trade Association Releases 2009 Organic Industry Survey, 2009-05-04, cited Jaramillo . Staubli . 2 Twenty Trends Sustainability 2009-10, Environmental Leader, cited Jaramillo Staubli . 3 information refer www.biotrade.org. 4 ú National BioTrade Promotion Programme (NBPP), brochure. 5 Union Ethical BioTrade (UEBT) sections 3 6. 6 UNCTAD (September 2007). 7 BioNativa created 2006. 8 CBD, www.cbd.int/iyb/doc/prints/factsheets/iyb-cbd-factsheet-poverty-en.pdf, 19 2010. 9 CBD, www.cbd.int/iyb/doc/prints/factsheets/iyb-cbd-factsheet-poverty-en.pdf, 19 2010. 10 speech Peruvian delegation UNCTAD/UNDP meeting BioTrade Potential Growth Sustainability, held 7 April 2010 Geneva, Switzerland. 11 íaz . Ibariez . (2004). 12 Lozada . ómez . (2005). 13 Based report Lozada, al (2005), SME 11 50 employees, micro-SME 1-10 employees. calculation total beneficiaries average figure considered. 14 Lozada . ómez . (2005). 15 Jaramillo al. (2006). 16 UNCTAD (September 2007). 17 Jaramillo . (2010, forthcoming). BioTrade Impact Assessment System (forthcoming). UNCTAD. 18 Bustamante . al. (2008). 19 Jaramillo . (2010, forthcoming). BioTrade Impact Assessment System (forthcoming). UNCTAD. 20 Extract “ potential biodiversity-friendly production practices, sector: overview” prepared Lorena Jaramillo BioTrade/UNCTAD Franziska Staubli osec/SIPPO. 21 Fondo Biocomercio. “Biodiversidad Competitividad”. Brochure Comité écnico Nacional de Biodiversidad Competitividad. study prepared reviewed information World Trade Organization (WTO), International Trade Centre (UNCTAD/WTO), Organic Monitor, BioFach, Forest Stewardship Council (FSC) Tropenbos. 22 Kline & Company (2009). 23 Twenty Trends Sustainability 2009-10, Environmental Leader, cited Jaramillo Staubli. 24 Gallup Organization/Hungary, cited Jaramillo Staubli. survey conducted 21 25 April 2009, randomly-selected citizenships 27 EU Member States Croatia, aged 15 . 25 Organic Trade Association Releases 2009 Organic Industry Survey, 2009-05-04, cited Jaramillo Staubli. 26 Organic Trade Association Releases 2009 Organic Industry Survey, 2009-05-04 cited Jaramillo Staubli. 27 Food & Drink Europe/ News Headlines Week 39, September 2009, cited Jaramillo Staubli. 28 Global Organic Market: Time Organic Strategies..., Organic Monitor, cited Jaramillo Staubli. 29 Profound (2009). 30 Union Ethical BioTrade (2009). Ethical BioTrade Barometer, www.ethicalbiotrade.org, accessed September 2009. surveyed developed 27 February 4 March 2009 IPSOS UEBT. included 4,000 consumers France, Germany, United Kingdom United States. 31 Natural cosmetic growing trend, BioFach – Vivaness Newsletter º 204, 21.9.2009, cited Jaramillo Staubli. 56 Trade Biodiversity: BioTrade Experiences Latin America 32 United Nations World Tourism Organisation (UN-WTO) cited Jaramillo Staubli (unpublished). 33 CBI (March 2009). Long Haul Tourism: EU market wildlife travel cited Jaramillo Staubli. 34 European Travel Commission (2009). Sustainable Tourism, cited Jaramillo Staubli. (unpublished). 35 Rodríguez (2004). 36 Lozada ómez (2007). Organizació de empresas comunitarias de Biocomercio: lecciones de la metodologí AyDM en Colombia, Adriana Arcos, . al, (2009). 37 Lozada ómez (2005). 38 Becerra (2009). 39 FAO’ Methodology Market Analysis Development. 40 ITC (UNCTAD/WTO) (2004). SHAPE - Develop sector strategy: Sector strategy development. Workbook. Version 4.0. 41 information, refer www.bioexpo.gov.. 42 Section based Jambi Kiwa Case Study prepared Lorena Jaramillo Marion Klein, BioTrade/UNCTAD; personal communication Rosa Guamá, President General Manager Jambi Kiwa, 4 November 2009; OAS (2008). Informe de Evaluació - Proyecto: Fortalecimiento consolidació de la gestió empresarial de la PYME comunitaria Jambi Kiwa. 43 Section based Fondo Biocomercio Case Study prepared Marion Klein Lorena Jaramillo BioTrade/ UNCTAD; personal communication John Bejarano, Marí Helena Cendales Edith Aristide Fondo Biocomercio Colombia, September November 2009. 44 SME Partners (June 2006). Informe Final: Mecanismos financieros para las iniciativas de la Biodiversidad, Santa Cruz, Plurinational State Bolivia. study prepared part Project Development Phase CAF-GEF-UNEP funded project “Facilitation financing biodiversity-based businesses support market development activities Andean Region”. 45 Fondo Biocomercio Brochure Fondo Biocomercio - Biodiversity, Finance, Development. 46 DTF (Fixed Term Deposit) rate main benchmark short term interest rate Colombia. calculated published weekly Colombian Central Bank. www.fondobiocomercio./contenido/int. phpdir=preguntas/&pag=acerca_svcs_financieros. 47 Section based Arnt (2008). Natura access genetic resources traditional knowledge. Prepared Marion Klein, Consultant BioTrade/UNCTAD. 48 Section based Partnership Cosmetic Valley Nativa Case Study prepared Marion Klein, Consultant BioTrade/UNCTAD. 49 Nativa member BioNativa. 50 Competitiveness clusters part French industrial policy. “ competitiveness cluster defined : association companies, research centers educational institutions, working partnership ( common development strategy), generate synergies execution innovative projects interest markets.” information, visit website: www.competitivite.gouv.fr/spip. phprubrique39&lang=en. 51 Cosmetic Valley, www.cosmetic-valley./en/developpement1.php. 52 Line action 5: Promote subregional trade investment, generate scientific technological adding capability competitiveness factor support conservation sustainable biodiversity. 53 TEEB - Economics Ecosystems Biodiversity National International Policymakers - Summary: Responding Nature 2009. 54 BioTrade tools guidelines , inter alia, BioTrade Principles Criteria, guidelines support BioTrade chains develop management plans wild-collected plant species. information, visit www.biotrade.org. BioTrade programmes, addition, established guidelines prepare BioTrade businesses plans, training modules business administration commercialization community-based initiatives related biodiversity-products sustainable tourism, sustainable- protocols specific species sectors, . 57Notes 55 speech Peruvian delegation UNCTAD/UNDP event BioTrade Potential Growth Sustainability held 7 April 2010, Geneva, Switzerland. 56 studies prepared part Project Development Phase CAF-GEF-UNEP funded project “Facilitation financing biodiversity-based businesses support market development activities Andean Region”. 57 Report UNCTAD/UNDP event BioTrade Potential Growth Sustainability held 7 April 2010, Geneva, Switzerland. 58 Pomareda Paz (March 2010) Giovannuci , al. (2009). 59 Pomareda Paz (March 2010). 60 Sergio Paulino de Carvalho (2010) Revisã bibliográfica. bibliographic revision note prepared contribution publication 61 Pomareda Paz (March 2010). 62 Pers. comm. Adriana Arcos, Corporació Biocomercio Sostenible - CBS Colombia, 5 November 2009. 63 Extracts section prepared Oliva MJ (2009). Union Ethical BioTrade, Marion Klein, al. (2009). Business BioTrade: resources sustainably responsibly. UNCTAD. 64 information, refer Box. 3 65 Note Geographical Indications, www.dgiovannucci.net/docs/gi_key_points-.pdf, 24 April 2010. 66 Giovannucci , al. (2009). 67 Pomareda Paz (March 2010). 68 Natura Cosmeticos (Brazil) biggest cosmetic companies world information section IV. 69 Garcia (2009). Mecanismos de Diferenciació en el Marco del Programa Regional de Biocomercio (draft). Internal document commissioned ACTO. 70 information, visit www.minagricultura.gov./02componentes/04san_03agroeco.aspx. 71 information, visit www.minambiente.gov./documentos/301_cartilla.pdf www.minambiente. gov./contenido/contenido.aspxcatID=151&conID=294. 72 Pomareda Paz (March 2010). 73 Note Geographical Indications, www.dgiovannucci.net, 24 April 2010 74 Giovannucci , al. (2009). 75 Pomareda Paz (March 2010). 76 Report UNCTAD/UNDP event BioTrade Potential Growth Sustainability held 7 April 2010, Geneva, Switzerland. 77 Report UNCTAD/UNDP event BioTrade Potential Growth Sustainability held 7 April 2010, Geneva, Switzerland. 78 Report UNCTAD/UNDP event BioTrade Potential Growth Sustainability held 7 April 2010, Geneva, Switzerland. 79 National BioTrade Observatory (Obio) aims promote BioTrade products services, place offer demand products . formulates market product-sector analyses, assist information technologies, track management competitiveness indicators BioTrade enterprises. created Colombian National BioTrade Programme export promotion agency Proexport Colombia, managed Fondo Biocomercio Colombia. information, visit www.obiocolombia..