Technical Fact Sheet - European Union Non-tariff measures applicable to biodiversity and BioTrade products: Personal care, food and phytopharma sectors

1 majority product groups studied faced sanitary phytosanitary measures (SPS), accounting 71 cent measures identifi ed, vegetable fats oils, oil seeds, gums resins edible vegetables. 26 cent measures technical barriers trade (TBT), affecting product categories oil seeds, vegetable alkaloids, miscellaneous edible preparations gums resins. burdensome NTMs identifi ed exporting importing companies, exporting governments, relate listing ingredients / substances (.. cosmetic ingredient database [CosIng], Foods), specifi regulations, European Regulation Registration, Evaluation, Authorisation Restriction Chemicals (REACH); European Union labelling health claims, certifi cation standards, . Specifi cally food sector, major concern refers Food regulation legislation maximum levels cadmium foodstuffs (EU 488/2014) cocoa sector. Understanding Convention International Trade Endangered Species Wild Fauna Flora (CITES) import export requirements limitation companies trading species, topics related border domestic requirements standards. address burdensome NTMs, actions include product standardization; human resources development company government level, including customs; contingency planning risk management; revision Harmonized System (HS) codes; product documentation traceability; inclusion native biodiversity ingredients products offi cial listing importing exporting markets. information Sections 6, 7 8. EUROPEAN UNION -tariff measures (NTMs) applicable biodiversity BioTrade products: Personal care, food phytopharma sectors AT 1. INTRODUCTION Key fi ndings European Union market Contents fact sheet developed support Swiss State Secretariat Economic Affairs SECO BioTrade Facilitation Programme III (BTFP III). 1. Introduction 2. Market information: European Union 3. Mapping NTMs HS codes 4. NTMs analysis: European Union 5. NTMs company survey 6. Challenging NTMs identifi ed workshops 7. Summary potential trade barriers export biodiversity BioTrade products European Union 8. Recommendations addressing NTMs identifi ed 9. Sources market NTMs information 10. Partners Acronyms References Acknowledgements TE CH IC AL AC SH EE JANUARY 2018 UNCTAD_EU_FACTSHEET_FINAL.indd 1 11/09/2018 16:01 2 BioTrade projects NTMs Identify HS codes Mapping NTMs Company survey National workshops NTMs fact sheets Online database: unctad.org/ntm 58 HS codes identified listed BioTrade products Colombia, Peru Viet Nam selected sectors (Section 3) 5 importing countries’ NTMs mapped 58 HS codes, collaboration UNCTAD Trade Analysis Branch (TAB) (Sections 3 4) 231 surveyed companies involved BioTrade biodiversity-based products selected exporting importing markets (Section 5) 3 national workshops (Colombia, Peru Viet Nam) sharing validating NTMs mapping company survey findings recommendations (Section 6) 4 fact sheets, import market, providing findings BioTrade NTMs project NTMs information UNCTAD TAB online databases: http://-tip.unctad.org/ Examples NTMs: Sanitary phytosanitary measures (SPS) Measures applied protect human animal life risks arising : additives, contaminants, toxins disease-causing organisms food. : • Geographical restrictions eligibility: Imports dairy products countries. • Registration requirements importers: Importers food items registered ministry health. • Irradiation: technology applied meat products, fresh fruits, spices dried vegetable seasonings. Technical barriers trade (TBT) Measures referring technical regulations procedures assess conformity technical regulations standards. : • Product identity requirements: product identified “chocolate”, minimum 30 cent cocoa. • Labelling requirements: facilitate comparison products packaging sizes, retain requirement mandatory nutrition declaration refer 100 100 ml amounts , , additional portion-based declarations. (European Union law food information consumers, Regulation EU . 1169/2011.) -tariff measures (NTMs) policy measures, ordinary customs tariffs, potentially economic effect international trade goods – changing quantities traded, prices, . (UNCTAD) Biodiversity variety life Earth, including wide range plants, animals microorganisms, genetic variety species, ecosystems. BioTrade Collection, production, transformation commercialization goods services derived native biodiversity (species ecosystems) environmental, social economic sustainability criteria. Sectors involved BioTrade activities: • Personal care • Pharmaceuticals/ phytopharma • Food • Fashion • Ornamental flora fauna • Handicrafts • Textiles natural fibres • Sustainable tourism • Forestry-based carbon credit activities. BioTrade impact figures €4.3 billion Sales BioTrade beneficiary companies associations (2015). significant increase $40 million 2003. 5 million Number beneficiaries* worldwide *Includes producers, farmers, collectors, hunters Source: Adapted Lojenga Oliva, 2016. Biodiversity BioTrade exporting countries • Colombia • Peru • Viet Nam importing countries/region • China • European Union • Japan • Switzerland • United States America UNCTAD_EU_FACTSHEET_FINAL.indd 2 11/09/2018 16:01 3 2. MARKET INFORMATION: EUROPEAN UNION Sources: (January 2018): 1 World Bank. http://databank.worldbank. org/data/reports. aspxsource=2&country=EUU. 2 Eurostat. http://ec.europa.eu/eurostat/ statistics-explained/index.php/ File:HICP_all-items,_annual_ average_inflation_rates,_2006- 2016_(%25)_YB17.png. 3 UNCTADSTAT. http://unctadstat.unctad.org/ wds/TableViewer/tableView. aspxReportId=117. Total merchandise trade ($ current princes millions) 2005 2010 2015 2016 Merchandise exports 4,074,385 5,183,905 5,387,844 5,375,795 Merchandise imports 4,151,828 5,325,169 5,239,413 5,253,105 Merchandise trade balance -77,443 -141,263 148,431 122,690 Export structure product group 2016 • Machinery transport equipment: 43% • manufactured goods: 23% • Chemicals related products: 18% • Mineral fuels, lubricants related materials: 4% • Food drinks: 7% • Crude materials: 2% • : 3% 3%2% 7% 4% 18% 23% 43% Share product group total extra-European Union exports, based trade . Machinery transport equipment manufactured goods Chemicals related products Mineral fuels, lubricants related materials Food drinks Crude materials Sources: European Commission. http://trade.ec.europa.eu/ doclib/docs/2006/september/ tradoc_122530.04.2018.pdf (1 August 2018). World Bank. https://data.worldbank.org/region/ european-union (1 August 2018). Region Overview 2016 General Information 2016 Population1 Exchange rate3 GDP1 511,360,932 million (2016) 0.90404€/$ $16.487 trillion Land area1 CPI growth2 GDP growth1 4.383 million km² 0.3% 1.9% EU28 top partners 2016 €0 €50,000 €100,000 €150,000 €200,000 €250,000 €300,000 €350,000 €400,000 Russia Turkey Switzerland China United States America merchandise trade, excluding intra-European Union trade. 362,043 20.7% 9.7% 8.2% 4.5% 4.1% 170,136 142,432 78,030 72,428 Million euro European Union exports International merchandise trade (EU28) UNCTAD_EU_FACTSHEET_FINAL.indd 3 11/09/2018 16:01 4 Market information sector Soaps extracts Essential oils oleoresins Vegetable oils (Processed) Fruits, seeds, nuts grains Herbs, spices, medicinal aromatic plants (MAPs) Source: Centre Promotion Imports developing countries (CBI) ProFound (2016). Trade segments, channels structures food, food Ingredients natural ingredients health products. CBI Expo Vitafoods 2016: Natural Ingredients Export Coaching Programme - Pakistan (adapted permission Klaus Duerbeck Consulting [KDC]). Quality assurance Buyer requirements Legislative requirements Certifi cation Food Food supplements Nutracosmetics Cosmeceuticals HealthCosmetics Natural ingredients imported European Union 2010 2015 Source: International Trade Centre (ITC) (2017). Trade statistics (http://www.intracen.org/itc/ market-info-tools/trade-statistics/). 2010 2015 Imports Colombia, Peru Viet Nam represent 1 cent European Union total imports, Vietnamese spices herbs (5.7 cent 2015). Colombia Viet Nam, double-digit growth exports categories period 2010 2015. period, Peruvian exports natural ingredients health products grew 20 cent vegetable oils fats 450 cent, decreased natural ingredients cosmetics (-33 cent), natural colours, fl avours thickeners (-51 cent) spices herbs (-95 cent). Note: percentage change 2010 2015 shown category. Products Segments US$ million 10 20 30 40 50 60 70 39% 10% 36% 3% 14% 0 Natural colours, fl avours thickeners Natural ingredients cosmetics Natural ingredients health products Spices herbs Vegetable oils fats Imports Colombia, Peru Viet Nam represent 1 cent European Union total imports, Vietnamese spices herbs (5.7 cent 2015). UNCTAD_EU_FACTSHEET_FINAL.indd 4 11/09/2018 16:01 5 Market trends European Union Trends sector Personal care sector Phyto- pharma sector Food sector Source: CBI ProFound (2015). Market information. Study. Oilseeds ( adapted permission KDC (2016) éronique Rossow (2017). Trends chain actor Company trends Consumer trends Supply chain trends Safe products Taste “” desire “” Market polarization – “affluence economizing” Time pressure stress Sustainability concerns Ageing population Smaller households Natural healthier lifestyle choices Inadequate quality brand management Local sourcing exotic Concentration (retail processing, importing) • Safe process • Safe terms supply • Safe terms sustainability • Safe terms proof efficiency • Safe terms transparency traceability • Documentation • mergers acquisitions • Increasing buying power players • Global compliance trading ingredients • Shorter distance buyers management • Preferred suppliers integrated supply chains based financial criteria Ecological standards Extended processing production countries • European Union regulation organic farming – organic certification • rules apply labelling marketing – food, cosmetics, health • () addition • Pressure resources Social standards responsibility resource management • Fair treatment/CSR: SA 8000, OHSAS 18001, ISO 26000 • Fair sharing benefits: BioTrade Principles Criteria, Fair trade • Safety users • Social acceptance, access benefit-sharing, fair treatment • Sustainable ensure availability species BioTrade • BioTrade verification certification: Union Ethical BioTrade (UEBT) Sustainable wild collection • Management certification standards: FairWild standard Source: KDC (2016) éronique Rossow (2017). Consumers demand convenience innovation food security debate Convergence health cosmetic ingredients () addition Pressure resources Health users Sustainable ensure availability species Sustainable sourcing Stricter legislation clarifying “grey areas” Traditional Herbal Medicine Product Directive Social acceptance, access benefit sharing, fair treatment Convergence food cosmetic ingredients Importance marketing stories Growing demand sustainably produced ingredients Multifunctional ingredients Biotechnology Increasing global demand cosmetics Industry-wide requirements global legislation Traceability Health wellness Ethnic cuisines driving consumption east – role China India commodity food ingredient growth ethical trading Pre-market authorization genetically modified ingredients UNCTAD_EU_FACTSHEET_FINAL.indd 5 11/09/2018 16:01 6 3. Mapping NTMs HS codes NTMs classification (TAB, UNCTAD) classification NTMs includes measures considered relevant international trade today, divided broad categories. • Import measures: applied government importing country imported goods. encompass technical measures (sanitary environmental protection measures) traditionally instruments commercial policy (.. quotas, price control). • Export measures: applied government exporting country exported goods. restrictions quantity goods exported specific country reasons shortage goods domestic market, regulating domestic prices export price-control measures, measures -export, . classification shown information UNCTAD’ International classification -tariff measures (Version 2012). Source: UNCTAD (2015). International classification -tariff measures (Version 2012). United Nations. (UNCTAD/DITC/TAB/2012/2/Rev.1). : http://unctad.org/en/PublicationsLibrary/ditctab20122_en.pdf Import measures Technical measures -technical measures Export measures : Sanitary phytosanitary (SPS) : Technical barriers trade (TBT) : Pre-shipment inspection formalities : Contingent trade-protective measures : -automatic licensing, quotas, prohibitions quantity control measures SPS TBT reasons : Price-control measures, including additional taxes charges : Financial measures : Measures affecting competition : Trade-related investment measures : Distribution restrictions : Restrictions post-sales services : Subsidies : Government procurement restrictions : Intellectual property : Rules origin : Export-related measures (.. export taxes, export quotas export prohibitions) HS codes analysed European Union Based information BioTrade partners Colombia, Peru Viet Nam Preparations cereal, flour, starch milk Preparations vegetables, fruits, nuts parts plants Miscellaneous edible preparations Beverages, spirits vinegar Vegetable alkaloids Oil seeds Gums resins, extracts Vegetable fats oils Tannins, dyes Essential oils 1904 2007 2106 2202 2939 1207 1301 1508 3201 3301 2009 1211 121190 1302 130231 1513 3203 1515 1212, 121220 121292 1404 1516 1521 UNCTAD_EU_FACTSHEET_FINAL.indd 6 11/09/2018 16:01 7 4. NTMs analysis: European Union Edible vegetables Edible fruits nuts Coffee, tea, maté spices Cocoa Cereals Products milling industry Sugar, syrups candies Beauty, -, . Odoriferous substan- ces mixtures Medica- ments .. 0709 0801 0902 1801 1001 1106 1702 3304, 330410, 330420, 330430, 330491 330499 3302 3004 3004900710 0802 0903 1803 1005 0712 0804 0909 1804 1008 0713 0810 0910 1805 0714 0811 1806 0813 Note: ... ( classified). Source: UNCTAD Trade Analysis Branch (2017). Mapping European Union NTMs (Excel sheets). frequently identified NTMs product groups Number distinct NTMs product selected product groups • Machinery transport equipment: 43% • manufactured goods: 23% • Chemicals related products: 18% • Mineral fuels, lubricants related materials: 4% • Food drinks: 7% • Crude materials: 2% • : 3% 2% 26% 71% 1% European Union market, exporters importers selected biodiversity BioTrade products commonly encounter technical measures: Related SPS Related TBT Total measures identified European Union: 309 0 5 10 15 20 25 30 35 Product groups Ed ib le ab le Ed ib le fr ui ts ut ffe , te , é sp ic es Ce al Pr od uc ts ill du st ry Oi ee ds Gu si ns , xt ra ct Ve ge ta bl fa ts ils Pr ep ar io ns er ea , flo ur , st ar ch ilk Pr ep ar io ns ab le , fr ui ts , nu ts er ar ts pl ts ce lla ne ou ed ib le pr ep ar io ns ve ra ge , pi rit vi ne ga Ve ge ta bl al ka lo id Ta nn , ye Es se nt ia ils Key Sanitary phytosanitary (SPS) Technical barriers trade (TBT) -automatic licensing, quotas, prohibitions quantity control measures SPS TBT reasons Finance measures majority product groups face SPS measures. measures highest vegetable fats oils, oil seeds, gums resins edible vegetables. products affected TBT, oil seeds, vegetable alkaloids, miscellaneous edible preparations gums resins. UNCTAD_EU_FACTSHEET_FINAL.indd 7 11/09/2018 16:01 8 NTMs identified product group information NTMs classification description measure (.. , , ), UNCTAD’ International classification -tariff measures (Version 2012). : http://unctad.org/en/PublicationsLibrary/ditctab20122_en.pdf. Sanitary phytosanitary (SPS) Technical barriers trade (TBT) -automatic licensing, quotas, prohibitions quantity control measures SPS TBT reasons Finance measures Highlights common NTMs SPS TBT, vegetable fats oils product group biggest number NTMs identified (20). Vegetable alkaloids TBT measures, making 80 cent total identified measures product category. common SPS measures : • A1: Prohibitions/restrictions imports SPS reasons, plants plant products protection Regulation (EC) . 1107/2009 European Parliament Council (OJ -309 24/11/2009) (CELEX 32009R1107) general foodstuffs hygiene rules contained Regulation (EC) . 852/2004 European Parliament Council. • A8: Conformity assessments related SPS, .. Foods (.. foods food ingredients human consumption significant degree European Union 15 1997) undergo safety assessment European Union market. information NTMs access full regulatory data, visit: TAB, UNCTAD www.unctad.org/ntm Ed ib le ab le Ed ib le fr ui ts ut ffe , te , é sp ic es Ce al Pr od uc ts ill du st ry Oi ee ds Gu si ns , tr ac ts Ve ge ta bl fa ts ils Pr ep ar io ns er ea ls , flo ur , ta rc ilk Pr ep ar io ns ve ge ta bl es , ru , ut er ar ts la nt ce lla ne ou ed ib le pr ep ar io ns ve ra ge , pi rit vi ne ga Ve ge ta bl al ka lo id Ta nn , ye Es se nt ia ils A12 A12 A12 A13 A12 A12 A12 A12 A12 A13 A13 A12 A13 A42 A42 B11 A13 A13 A13 A15 A13 A13 A13 A13 A13 A15 A15 A13 A15 B11 B11 B14 A14 A14 A14 A19 A14 A14 A14 A15 A14 A21 A21 A15 A21 B14 B14 B15 A15 A15 A15 A22 A15 A15 A15 A19 A15 A22 A22 A21 A22 B15 B15 B22 A19 A19 A19 A31 A19 A19 A19 A21 A21 A31 A31 A22 A31 B31 B31 B31 A21 A21 A21 A32 A21 A21 A21 A22 A22 A33 A33 A31 A33 B33 B33 B33 A22 A22 A22 A33 A22 A22 A22 A31 A31 A41 A41 A33 A41 B83 B84 B84 A31 A31 A31 A41 A31 A31 A31 A32 A33 A42 A42 A4 A42 B84 A32 A33 A33 A42 A32 A32 A32 A33 A41 A63 A63 A41 A63 B851 A33 A41 A41 A63 A33 A33 A33 A4 A42 A85 A83 A42 A85 E112 A41 A42 A42 A83 A41 A41 A41 A41 A63 A851 A85 A63 A851 A42 A63 A63 A84 A42 A42 A42 A42 A85 A852 A851 A82 A852 A63 A83 A83 A852 A63 A63 A63 A63 A851 A853 A852 A83 A853 A83 A84 A84 B14 A85 A83 A83 A82 A852 B14 A853 A84 B31 A84 A85 A85 B31 A851 A84 A84 A83 A853 B31 B14 A85 A85 A851 A851 B7 A852 A85 A85 A84 B14 B31 A851 A851 A852 A852 E1 A853 A851 A851 A85 B31 E1 A852 A852 A853 A853 G11 B14 A852 A852 A851 G11 A853 A853 B14 B14 B31 A853 A853 A852 B11 B14 B31 B31 B11 B11 A853 B14 B31 B32 B32 B14 B14 B11 B15 B32 B7 B7 B15 B15 B14 B31 B7 B84 B84 B21 B31 B15 B33 B84 B31 B33 B31 B81 E1 B32 B81 B33 B82 G11 B33 B82 B84 B84 B7 B84 E1 B81 G11 B82 B84 E1 UNCTAD_EU_FACTSHEET_FINAL.indd 8 11/09/2018 16:01 9 42% surveyed companies apply BioTrade principles 43% surveyed companies BioTrade 43% European companies surveyed apply BioTrade Principles Criteria 5. NTMs company survey General overview Participation sector Participation country Food 58% Personal care 17% Phytopharma 4%231= 100% <1% European Union 16% Japan 4% China 20% United States America 7% Colombia 17% Peru 18% Viet Nam 12% Switzerland 6% General information 231 surveyed companies surveyed companies Colombia, Peru Viet Nam exporters, companies European Union, Japan, Switzerland United States America importers exporters. Information European Union companies surveyed 47 cent European companies employ 20 250 employees 50 cent annual turnover $5 million. Number employees Turnover $ Trade experience chain actor • <20: 31.6% • 20–250: 44.6% • >250: 16.9% • /: 6.9% • < 1 million: 21.2% • 1 5 million: 11.3% • > 5 million: 29.9% • /: 37.7% • Importing: 4.3% • Exporting: 54.1% • Importing exporting: 37.2% • international experience: 4.3% • Producer: 27.4% • Processor: 27.4% • Manufacturer: 33.5% • Service provider: 11.8% Number employees Turnover $ Trade experience chain actor • <20: 12 • 20–250: 18 • >250: 6 • /: 2 • < 1 million: 3 • 1 5 million: 2 • > 5 million: 19 • /: 14 • Importing: 8 • Exporting: 5 • Importing exporting: 25 • international experience: 0 • Producer: 9 • Processor: 15 • Manufacturer: 21 • Service provider: 12 Source: UNCTAD BioTrade Initiative (2016). 50% annual turnover $5 million 10% 4% 5% 1% UNCTAD_EU_FACTSHEET_FINAL.indd 9 11/09/2018 16:01 10 Trade experience share biodiversity-based exports 0% 20% 40% 60% 80% 100% Vi Pe ru lo bi ite St es er ic Ch Ja pa Eu ro pe ni Sw itz er la 18% 4% 5% 6% 76% 22% 17% 10% 23% 22% 21% 8% 8% 15% 69% 13% 66% 60% 40% 78% 18% 23% 49%56% 73% Trade experience surveyed participants country (percentage) Percentage exports total sales Number share companies biodiversity-based exports  Exporting  Importing exporting  Importing  international trade experience 0 20 40 60 80 100 0% 10% 20% 30% 40% Nu om pa ni es Pe rc en ta ge om pa ni es pe 0 20 40 60 80 100 120 0% 10% 20% 30% 40% 50% Nu om pa ni es Pe rc en ta ge om pa ni es er ca te ry 20% 23% 0 – 30% 0 – 50% 30 – 60% 60 – 90% 50 – 100% 90 – 100% / / 12% 16% 35% 18% 34% 42% Share exports total sales  Number companies % Percentage companies category  Number companies % Percentage companies category NTMs markets analysed (China, Japan, Switzerland United States America) compared European Union market markets SPS measures () commonly identified surveyed participants. Category A1, deals prohibitions restrictions imports SPS subcategories, represents 16 cent identified NTMs. Peruvian companies identified NTMs Colombia Viet Nam. European Union market 100 cent NTMs identified finance measures () distribution restrictions () market, 92 cent price-control measures, including additional taxes charges (), 81 cent TBT measures (). 60% European Union companies analysed biodiversity- based products share 50 100% 79% European Union companies exporters, 13% importers UNCTAD_EU_FACTSHEET_FINAL.indd 10 11/09/2018 16:01 11 NTMs identified company surveys European Union market Challenging European Union NTMs identified selected HS codes 0 50 100 150 200 250 300 350 400 450 Number NTMs identified product group  Colombia  Peru  Viet Nam % Percentage NTMs relating European Union market  Total SPS ()  Total TBT ()  Total  Total  Total Nu TM en tio ne om pa ni es 0 5 10 15 20 25 30 35 40 45 NTM classification 69% 81% 31% 0% 0% 92% 100% 100% 0% Miscellaneous edible preparations Preparations cereals, flour, starch milk Oil seeds Essential oils Tannins, dyes Preparations vegetables, fruits, nuts, parts plants Vegetable fats oils Gums resins, extracts Cereals Coffee, tea, maté spices Edible vegetables Edible fruits nuts Total NTMs identified: 235  SPS (): 151  TBT (): 72  Pre-shipment inspection formalities (): 2  Price-control measures, including additional taxes charges (): 7  Finance measures (): 3 UNCTAD_EU_FACTSHEET_FINAL.indd 11 11/09/2018 16:01 12 SPS measures identified product group exporting country (percentage) TBT measures identified product group country (percentage)  Viet Nam (%)  Peru European Union (%)  Colombia European Union (%)  Viet Nam (%)  Peru European Union (%)  Colombia European Union (%) 0 0.1 0.2 0.3 0.4 0.5 0.6 0% 20% 40% 60% List HS codes identified survey • Edible vegetables: 0712 • Cereals: 1008 • Oil seeds: 1207; 1211 • Preparations cereals, flour, starch milk: 1904 • Tannins, dyes: 3201; 3203 • Essential oils: 3301 • Edible fruits nuts: 0801; 0804; 0810 • Coffee, tea, maté spices: 0902; 0903; 0909 • Gums resins, extracts: 1302 • Preparations vegetables, fruit, nuts parts plants: 2009 • Vegetable fats oils: 1513, 1515 • Miscellaneous edible preparations: 2016 Note: Accuracy related number interviewers. Note: Accuracy related number interviewers. Miscellaneous edible preparations Preparations cereals, flour, starch milk Oil seeds Essential oils Tannins, dyes Preparations vegetables, fruits, nuts, parts plants Vegetable fats oils Gums resins, extracts Cereals Coffee, tea, maté spices Edible vegetables Edible fruits nuts Miscellaneous edible preparations Preparations cereals, flour, starch milk Oil seeds Essential oils Tannins, dyes Preparations vegetables, fruits, nuts, parts plants Vegetable fats oils Gums resins, extracts Cereals Coffee, tea, maté spices Edible vegetables Edible fruits nuts NTMs frequently identified companies surveyed SPS A13: Systems approach A14: Special authorization requirement SPS reasons A15: Registration requirements importers A21: Tolerance limits residues contamination (- microbiological substances A31: Labelling requirements TBT B31: Labelling requirements B33: Packaging requirements UNCTAD_EU_FACTSHEET_FINAL.indd 12 11/09/2018 16:01 13 6. Challenging NTMs identified workshops Source: UNCTAD BioTrade Initiative (2016). workshops aimed increase understanding raise awareness policymakers private stakeholders main NTMs identified exporting BioTrade biodiversity-based products Colombia, Peru Viet Nam personal care, food phytopharma sectors China, European Union, Japan, Switzerland United States America. 151 participants 30% Colombia 38% Peru 31% Viet Nam 44% women Specific barriers identified workshop participants Colombia, Peru Viet Nam Personal care sector Legislation, NTMs barrier identified HS codes affected Participating countries European Union Regulation Registration, Evaluation, Authorisation Restriction Chemicals (REACH), EC 1907/2006 3201 3203 Colombia Peru Viet Nam Good manufacturing practices (GMP) good laboratory practices (GLP) 3304 Colombia Norms cosmetic ingredients (oils) 1515900090 Peru Personal Care Product Council ( substances included labelling list), registering ingredients 3301 1515 1302 Colombia Cosmetic ingredient database (CosIng) contained EC 1223/2009) substances included labelling list), registering ingredients 3301 1515 1302 Colombia Viet Nam Common criteria justification claims relation cosmetic products (EU Regulation 655/2013) Cosmetic products general Viet Nam Product certificate analysis ( certificate analysis) Viet Nam Limited knowledge understanding CITES Colombia Aquilaria crassna (agarwood) Viet Nam Sanitary registration importing country; understood “sales permit”, sanitary notifications Colombia Product traceability certification 3201 Colombia Sustainable sourcing – systems approach (FairWild, UEBT, HACCP, GACP – European Union GACP, GMP, Fair trade, access benefit-sharing) Viet Nam Personal care sector HS codes: 1302 (Vegetable saps extracts; pectic substances, pectinates pectates; agar-agar mucilages thickeners, modified, derived vegetable products) 1515 (Fixed vegetable fats oils [including jojoba oil] fractions, refined; chemically modified) 1515900090 (Oils cosmetic ) 3201 (Tanning extracts vegetable origin; tannins salts, ethers, esters derivatives) 3203 (Colouring matter vegetable animal origin [including dyeing extracts, animal black]; chemically defined; preparations based colouring matter vegetable animal origin) 3301 (Oils; essential [concretes, absolutes]; concentrates thereof fats, fixed oils, waxes [obtained enfleurage maceration] aqueous distillates, solutions terpenic -products thereof; resinoids; extracted oleoresins) 3304 (Cosmetic toilet preparations; beauty, - skin care preparations [excluding medicaments, including sunscreen sun tan preparations], manicure pedicure preparations) UNCTAD_EU_FACTSHEET_FINAL.indd 13 11/09/2018 16:01 14 Legislation, NTMs barrier identified HS codes affected Participating countries Codex Alimentarius, registration ingredients 0903 Colombia Automated Fingerprint Identification System (AFIS) 0903 0810 European Food Safety Authority (EFSA) standards 3201 3203 Certifications international standards. , laboratories GLP 0802 2101 Maximum residue limits (MRL) 0802 2101 Colombia 0910110000 Peru Certifications standards Peru Food Sacha inchi (Plukenetia volubilis .) (oil), algarrobo mezquite (Prosopis pallida), cañihua (Chenopodium pallidicaule) Peru REACH Legislation maximum levels cadmium foodstuffs (EU 488/2014) applicable ( mandatory 1 January 2019) 1801000000 European Union labelling health claims Viet Nam Technical difficulties, .. control microbiological organisms products irradiation allowed European Union Anti-dumping laws import markets Food sector Food sector HS codes: 0802 (Nuts [excluding coconuts, Brazils cashew nuts]; fresh dried, shelled peeled) 0810 (Fruit, fresh; ... chapter 08) 0903 (Maté), 0909 (Seeds anise, badian, fennel, coriander, cumin, caraway juniper), 0910 (Ginger, saffron, turmeric, thyme, bay leaves, curry spices) 0910110000 Ginger, saffron, turmeric [curcuma], thyme, bay leaves, curry spices, crushed ground 1801000000 (Cocoa) 2101 (Extracts, essences, concentrates coffee, tea maté; preparations basis products basis coffee, tea maté; roasted chicory roasted coffee substitutes extracts, essences concentrates thereof) 3201 (Tanning extracts vegetable origin; tannins salts, ethers, esters derivatives) 3203 Colouring matter vegetable animal origin [including dyeing extracts, animal black]; chemically defined; preparations based colouring matter vegetable animal origin) Legislation, NTMs barrier identified HS codes affected Participating countries Technical barriers (European Union GACP, food safety) Viet Nam Product certificate analysis ( certificate analysis) Limited knowledge understanding CITES Colombia Aquilaria crassna (agarwood) Viet Nam Sanitary registration importing country; understood “sales permit” Colombia Sustainable sourcing – systems approach (.. FairWild, UEBT, HACCP, GACP - European Union GACP, GMP, Fair trade, access benefit-sharing) Viet Nam Phytopharma sector UNCTAD_EU_FACTSHEET_FINAL.indd 14 11/09/2018 16:01 15 Export-related measures country Participating countries Product analysis required country level Colombia Clarity standardization natural ingredients line international standards Customs procedures inspections (drug-related inspections) Limited knowledge customs authorities biodiversity product exported (.. containers polluted frozen chain broken, HS codes included) P3 Export price-control measures P6 Export technical measures Ensure quality raw material production Viet Nam Certificate origin issued government institutes forms required buyer P5 Export taxes charges Colombia, Viet Nam Limited clarification HS codes Colombia, Peru Viet Nam Certifications permits products (.. phytosanitary delivered Servicio Forestal de Fauna Silvestre [SERFOR]) Peru Lack phytosanitary requirements products Identification species scientific technical information needed trade biodiversity-based products essential oils, vegetable oils, extracts, . (toxicology, nutritional values, .). Identified species : aguaymanto (Physalis peruviana), sacha inchi (Plukenetia volubilis .), cañihua (Chenopodium pallidicaule) algarrobo mezquite (Prosopis pallida) Harmonization national international requirements, regulations norms related biodiversity-based products (.. aguaymanto [Physalis peruviana]) issues (.. accredited laboratories accepted [European Union] importers) Limited knowledge/capacity customs authorities carry inspections Enhance statistics BioTrade products measures identified workshop participants Legislation, NTMs barrier identified HS codes products affected Participating countries Certification products (A83 B83) 3201 Colombia A85 Traceability requirements 3201 Colombia Viet Nam Certification origin () Colombia Sanitary permits country origin Colombia P62 Certification required exporting country Peru Limited understanding scope implement Nagoya Protocol, differences countries regions specific Peru* -sector specific information -sector specific information HS codes: 3201 (Tanning extracts vegetable origin; tannins salts, ethers, esters derivatives) * topic mentioned peer review process experts organizations, including SERFOR. UNCTAD_EU_FACTSHEET_FINAL.indd 15 11/09/2018 16:01 16 7. Summary potential trade barriers export biodiversity BioTrade products European Union Limitations trade – general specific European Union Standards General Sanitary phytosanitary conditions REACH European Union labelling health claims Process standards Understanding import export requirements: CITES Product standards Specific Corporate social responsibility European Union Foods Regulation (food sector) Packaging labelling Legislation maximum levels cadmium foodstuffs (EU 488/2014) cocoa sector Listing substances/ingredients (.. Codex Alimentarius Personal Care Products Council) Summary potential trade barriers export biodiversity BioTrade products European Union • Limitations trade – general specific European Union • Standards • Requirements – border () internal/domestic () Legislation, NTMs barrier identified HS codes products affected Participating countries A5 Treatment elimination plant animal pests disease-causing organisms final product (.. post- harvest treatment) A13 Systems approach A14 Special authorization requirement SPS reasons A15 Registration requirements importers A21 Tolerance limits residues contamination (-microbiological) substances A22 Restricted substances foods feeds contact materials A31 Labelling requirements A32 Marking requirements A33 Packaging requirements ( related food safety) A41 Microbiological criteria final product A42 Hygienic practices production A63 Food feed processing A82 Testing requirement A83 Certification requirement A84 Inspection requirement A86 Quarantine requirement B33 Packaging requirements C3 Requirement pass port customs Viet Nam Identification potential suppliers materials, outer carton, hygienic requirements, certified package , residuals materials package Viet Nam Market information Viet Nam -sector specific information HS codes: 3201 (Tanning extracts vegetable origin; tannins salts, ethers, esters derivatives) -sector specific information (continued) UNCTAD_EU_FACTSHEET_FINAL.indd 16 11/09/2018 16:01 17 Requirements – border () internal/domestic () Safety security () Consumer protection () Environmental health () Inadequate Infrastructure (/) Rules origin () Intellectual property (/) Lengthy customs procedures () Corruption (/) HS codes classification – avoid inconsistencies, overlap registration biodiversity products exported () Knowledge understanding trade policies affecting products sectors exported (/) Product classification, product identity classification essential export () Recommendations addressing NTMs identified: • Contingency plan risk management • Revision HS codes • Product documentation traceability certification • Training customs • Transport costs • infrastructure • Inclusion native biodiversity-based ingredients products official listings national international levels • Listing legal obligations HS code sector 8. Recommendations addressing NTMs identified Standardization Standardization processes documentation entire chain (production processes, harvesting, processing, sampling, documentation, .); standard operating procedures (SOPs), GMP, GACP (WHO), . standardization aligned international market requirements, including export market. Human resource development Raise awareness capacity-building -line leadership, regular training staff procedures, trade development, language, . Importantly, training refer NTMs identified sector, depending material traded, obligations vary. Training address gaps identified practitioners importers fulfil terms obligations. , pragmatic support , , listing obligations HS code (.. traded material), sectorial , information train categories stakeholders ( complement point, listing legal obligations point ). Additionally, enhance capacity public private stakeholders implement understand biodiversity-related agreements protocols, CITES Nagoya Protocol, implications biodiversity-based businesses. Contingency plan risk management Develop risk management tool, provide clear action plan indicating case outcome expected. , product qualities samples lots; company storage problems; disruptions production chain. Revision HS codes Consistency HS codes identify biodiversity BioTrade-related products; revision botanical identification. Product documentation traceability certification Carry extensive, -depth coherent compilation documents, studies information needed obtain maintain products’ traceability certification. Training customs Raise awareness, capacity-building regular updates policies customs authorities, differences countries products relation , , rules validity exit product country origin entry destination country. Transport costs Realistic cost calculation knowledge inter-/national packaging transportation requirements, documentation respective costs. infrastructure Improve infrastructure context – company, internal, national international. , establishing quality laboratories recognized international markets. UNCTAD_EU_FACTSHEET_FINAL.indd 17 11/09/2018 16:01 18 9. Sources market NTMs information • UNCTAD BioTrade Initiative: www.biotrade.org • UNCTAD Integrated Trade Intelligence Portal (-TIP): http://-tip.unctad.org • UNCTAD Integrated Trade Intelligence Portal (ASEAN): http://asean.-tip.org • World Integrated Trade Solutions (WITS): http://wits.worldbank.org • Organisation Economic -operation Development (OECD): www.oecd.org • European Commission (Trade): http://ec.europa.eu/trade • Centre Promotion Imports developing countries (CBI): www.cbi.eu • Swiss Import Promotion Programme (SIPPO): http://www.sippo.ch • Asociació Latinoamericana de Integració (ALADI): www.aladi.org • Comunidad Andina: www.comunidadandina.org • Sistema Integrado de Informació de Comercio Exterior (Peru): www.siicex.gob.pe • Ministry Health (Peru): www.digesa.minsa.gob.pe • Drug Administration Viet Nam: www.dav.gov.vn 10. Partners Colombia Peru Viet Nam Ministry Environment Sustainable Development (MADS) Ministry Foreign Trade Tourism (MINCETUR) BioTrade Implementation Group (BIG Viet Nam) Ministry Commerce, Industry Tourism (MinCIT) National Commission Promotion BioTrade Vietnam Trade Promotion Agency (VIETRADE) ProColombia Peru Export Tourism Promotion Agency (PROMPERU) Vietnam Society Medicinal Materials (VIMAMES) ámara de la Industria Cosmética de Aseo/Asociació Nacional de Empresarios de Colombia (ANDI) Ministry Environment (MINAM) HELVETAS Swiss Intercooperation - Viet Nam ámara de Comercio de Bogotá Country partners Global UNCTAD BioTrade Initiative Trade Analysis Branch (TAB) Klaus Duerbeck Consulting (KDC) Asociació Latinoamericana de Integració (ALADI) Union Ethical BioTrade (UEBT) Global partners Inclusion native biodiversity-based ingredients products official listings national international levels Adding standardization product documentation, exporting countries companies support include native biodiversity-based ingredients importing markets listings PCPC, Codex Alimentarus country-specific (.. Inventory Existing Chemical Substances Produced Imported China [IECSC]). applies domestic markets, .. Colombian approval process technical requirements include ingredients derived native biodiversity official listings cosmetic products challenging. Listing legal obligations HS code sector Mapping NTMs selected HS codes sector important, companies government representatives access list legal obligations. TAB (UNCTAD) HS codes, accessible : www.unctad.org/ ntm. , training online database envisaged BioTrade biodiversity-related companies, governments relevant stakeholders. Recommendations addressing NTMs identified (continued) UNCTAD_EU_FACTSHEET_FINAL.indd 18 11/09/2018 16:01 19 CBI ProFound (2015). Market information. Study. Oilseeds. Adapted KDC (2016) éronique Rossow (2017). CBI ProFound (2016). Trade segments, channels structures food, food ingredients natural ingredients health products. CBI Expo Vitafoods 2016: Natural Ingredients Export Coaching Programme - Pakistan. Commission Regulation (EU) 655/2013 10 July 2013 laying common criteria justification claims relation cosmetic products. Accessed 13 June 2018. : https://eur-lex.europa.eu/legal-content/EN/ TXT/uri=CELEX%3A32013R0655. Commission Regulation (EU) 488/2014 12 2014 amending Regulation (EC) 1881/2006 maximum levels cadmium foodstuffs. Accessed 13 June 2018. : https://eur-lex.europa.eu/ legal-content/EN/TXT/uri=celex:32014R0488. Council Directive 2001/29/EC 22 2001 harmonisation aspects copyright related rights information society. Accessed 13 June 2018. : https://eur-lex.europa.eu/legal-content/EN/ TXT/uri=celex%3A32001L0029. Council Regulation (EC) 1907/2006 18 December 2006 Registration, Evaluation, Authorisation Restriction Chemicals (REACH). Accessed 13 June 2018. : https://eur-lex.europa. eu/legal-content/EN/TXT/uri=CELEX:0200 6R1907-20140410. Council Regulation (EC) 1223/2009 European Parliament Council 30 November 2009 cosmetic products. Accessed 13 June 2018. : https://eur-lex.europa.eu/legal-content/EN/ ALL/uri=CELEX%3A32009R1223. Council Regulation (EU) 1169/2011 25 October 2011 provision food information consumers. Accessed 13 June 2018. : https://eur-lex.europa.eu/legal- content/EN/TXT/uri=CELEX:32011R1169. ro . : / / . ec.europa.eu/doclib/docs/2006/september/ tradoc_122530.02.2017.pdf. Eurostat . tp : / /ec.europa.eu/eurostat / documents/2995521/7958465/6-29032017- AP-EN.pdf/6ab52f0c-de18-42c3-aa65- 28e1a1675213. Eurostat. http://ec.europa.eu/eurostat/statistics- explained/index.php/File:HICP_all-items,_ annual_average_inflation_rates,_2006-2016_ (%25)_YB17.png. ITC (2017). Trade statistics (http://www.intracen. org/itc/market-info-tools/trade-statistics/). KDC (2016). Company survey information (internal documents). Lojenga RK, Oliva MJ (2016). Business engagement BioTrade: Contributing Sustainable Development Goals. Union Ethical BioTrade. Internal document. UNCTAD (2015). Internal document. International classification -tariff measures (Version 2012). United Nations. (UNCTAD/DITC/ TAB/2012/2/Rev.1). : http://unctad. org/en/PublicationsLibrary/ditctab20122_en.pdf. UNCTAD BioTrade Initiative (2016). NTMs workshop reports Colombia, Peru Viet Nam (prepared Lorena Jaramillo, inputs ALADI KDC). UNCTAD BioTrade Initiative (2016). UNCTAD Trade Analysis Branch (2017). Mapping European Union NTMs (Excel sheets). UNCTADSTAT. http://unctadstat.unctad.org/wds/ TableViewer/tableView.aspxReportId=117. World Bank. http://data.worldbank.org/region/ european-union. World Bank. http://databank.worldbank.org/data/ reports.aspxsource=2&country=EUU. References Acronyms AFIS Automated Fingerprint Identification System CBI Centre Promotion Imports developing countries CITES Convention International Trade Endangered Species Wild Fauna Flora CPI consumer price index EFSA European Food Safety Authority GLP good laboratory practices GMP good manufacturing practices HS Harmonized System IECSC Inventory Existing Chemical Substances Produced Imported China ITC International Trade Centre KDC Klaus Duerbeck Consulting MAPs medicinal aromatic plants MRL maximum residue limits NTMs -tariff measures REACH Registration, Evaluation, Authorisation Restriction Chemicals SERFOR Servicio Forestal de Fauna Silvestre (Peru) SOPs standard operating procedures SPS sanitary phytosanitary measures TAB Trade Analysis Branch (UNCTAD) TBT technical barriers trade UEBT Union Ethical BioTrade UNCTAD United Nations Conference Trade Development UNCTAD_EU_FACTSHEET_FINAL.indd 19 11/09/2018 16:01 20 TA / IT / ED /2 01 8/ 8 fact sheet developed UNCTAD (Lorena Jaramillo, Maria Durleva, Giovanni Mazzacani), KDC (Klaus Duerbeck, Teresa Duerbeck Stefan Lermer) éronique Rossow (PhytoTrade Africa). contributors Bonapas Onguglo, Christian Knebel, Denise Penello, Santiago Fernandez de Cordoba, Ralf Peters, David Vivas, Lalen Lleander, Chi Le Ngo Rafe Dent (UNCTAD), Ta Minh Son (BIG Viet Nam), Maria del Pilar Alarcó Ana Lucia Manco (PROMPERÚ), Ana Karina Quintero (MADS, Colombia), Soledad Villanueva (ALADI), Rik Kutsch Lojenga (UEBT), Mahesh Sugathan (Mahesh Sugathan & Associates Consulting, Switzerland), Alina Soto Obando (Fructus Terrum, Peru), Isela Arce (SERFOR, Peru), Mariana Quiroga Plazas (ProColombia, Colombia), Gustavo Ferro (ProFound, Netherlands), Juan Carlos Castro (ANDI, Colombia), Claudia Grajales (Del Alba, Colombia), Juan Carlos Valencia (Prebel .., Colombia), Vanessa Ingar (MINAM), José Quintero (MinCIT, Colombia), Juanita Melo (ámara de Comercio de Bogotá, Colombia), Gustavo Ferro (ProFound), participants national workshops company surveys. Editing Vivien Stone (United Kingdom Great Britain Northern Ireland) design layout Sarah Thompson (United Kingdom Great Britain Northern Ireland). fact sheet dedicated Klaus Duerbeck, Klaus Duerbeck Consulting. UNCTAD gratefully acknowledges support Swiss State Secretariat Economic Aff airs SECO development fact sheet BioTrade Facilitation Programme III (BTFP III). Acknowledgements BioTrade Initiative, UNCTAD biotrade@.org www.unctad.org/biotrade www.biotrade.org Contact fact sheet edited externally. TE CH IC AL AC SH EE © ot ol ia : fi lip ef ra za UNCTAD_EU_FACTSHEET_FINAL.indd 20 11/09/2018 16:01