Bridges Weekly Trade News Digest • Volume 7 • Number 36 • 30th October 2003

WTO LABELLING EVENT HIGHLIGHTS OPPORTUNITIES, PITFALLS IN STANDARD-SETTING

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WTO LABELLING EVENT HIGHLIGHTS OPPORTUNITIES, PITFALLS INSTANDARD-SETTING

Geneva-based WTO delegates and officials from capitals convened on 21- 22 October for a workshop on labelling, where countries explored a range of standards-related initiatives. Termed a ‘Learning Event’, the session was organised around presentations of ten case studies, with a focus on developing country programmes and concerns in this area. The meeting was an initiative forwarded by Canada, agreed to at a 2 July 2003 meeting of the WTO Committee on Technical Barriers to Trade (TBT).

According to the session background document (JOB(03)/196), the meeting aimed at providing Members with a better understanding of the preparation, adoption and application of labelling requirements in the context of the implementation of the TBT Agreement.

It was clear through the meeting that despite ongoing concerns around potential market access barriers, developing countries — at least those with the means to do so — are moving ahead with domestic labelling and certification schemes. According to Armando Mariante, President of Brazilian certification agency INMETRO, Brazil is adopting labelling initiatives in order to both move domestic production processes in a more environmentally and socially conscious direction and meet export-market criteria for sustainably-produced goods. "We try and adapt as much as we can to the international situation," said Mariante, who presented Brazil’s voluntary labelling schemes on wood, fruit and appliances.

Santiago Rojas, Former Vice Minister of Trade for Colombia, described the development of his country’s certification scheme for flower production (Florverde), which was developed partly in response to difficulties in accessing the European flower market, to which Colombia is a major exporter. Rojas said that European consumer perceptions were a major factor in leading Colombia to seek certification with an internationally-recognised certifying agency (in this instance, the Swiss-based firm SGS). He emphasised the importance of establishing mutual recognition agreements with third parties, but warned that it can be very expensive to meet importing countries’ individual requirements. "We came up against a lack of transparency in labels in importing countries, especially where these are mandatory," Rojas said.

Presentations were also made by Chinese Taipei, the EC, Mexico, Canada, China, Argentina and the US.

Responding to the presentations, a number of countries — both developed and developing — welcomed the opportunity to explore labelling schemes and the opportunities and challenges these presented. The EC, which provided funding to bring capital-based officials from developing countries to the event, took the opportunity to remind Members of its proposal aired before Cancun to hold three dedicated sessions of the Committee on Trade and Environment on labelling, and re- stated its enthusiasm for holding further such sessions.

Some smaller developing country Members voiced their worries around the difficulties in conforming to foreign standards. St. Lucia pointed in particular to a proliferation in the use of private standard-setting bodies, which they said complicates and retards the development of developing countries’ own national certification processes. The Dominican Republic stated its concerns over the lack of international labelling and traceability standards, reinforced by the fact that mutual recognition agreements with other countries’ standards can often be difficult to achieve. "There is inconsistency in how rules in the TBT Agreement are applied," the Dominican Republican said, "developed countries can develop their own criteria, but developing countries can’t, resulting in high costs to producers". Uruguay expressed interest in how to start up its own labelling framework, particularly for meat and other agricultural products; Rojas suggested starting with a national-based process that included integrating international standards, though he warned that it was not an easy job, as global standards are far from being harmonised.

It was not clear at the conclusion of the meeting whether or how the exercise would be repeated in future.

ICTSD reporting.

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