SPS and Intra-African Trade

question 1.

‘SPS’ ISSUE IN TANZANIA, PREPARATION OF AFRICAN COUNTRIES TOWARDS EMERGENCE OF AFCFTA

• Introduction

‘SPS’ is an acronym standing for Sanitary (human and animal health) and Phytosanitary (plant health). These are measures imposed by Governments to regulate and ensure food safety and animal and plant health for its consumers.

The Agreement on the Application of Sanitary and Phytosanitary Measures (the "SPS Agreement") entered into force with the establishment of the World Trade Organization (WTO) on 1 January 1995.

• Implementation;

The Agreement on the Application of Sanitary and Phytosanitary Measures allows countries to set their own standards which must be based of scientific reasons and to the extent necessary to protect human, animal or plant life or health without any arbitrary and unjustifiable discrimination between countries where identical or similar conditions prevail.

However, Member countries are encouraged to use international standards, guidelines and recommendations through the process called Harmonization. Further, members may use measures which result in higher standards if there is scientific justification. For example, they can set higher standards based on assessment of the extent of potential risks so long as the approach is consistent, not arbitrary.

• Forms of SPS;

As stated above, all countries maintain measures to ensure that food is safe for consumers and prevent spread of pests or diseases among animals and plants. These SPS measures can take many forms such as;

• Compliance with documentations
• Requiring products to come from a disease-free area
• Inspection of products
• Specific treatment or processing of products
• Setting of allowable maximum levels of pesticide residues or permitted use of only certain additives in food.

These requirements/Forms apply to both domestic produced food or local animal and plant as well as to products coming from other countries (imports).

• SPS in general vis-a-vis International Trade.

International Trade, means exchange of goods or services between one country and another. The main challenge with SPS arises on how to ensure country’s consumers are being supplied with food that is safe to eat for their health in the appropriate standards as considered by that country at the same time ensuring that strict health and safety regulations are not being used as an excuse for protecting domestic producers hence barrier to trade (International)

• Efforts by Tanzania Government to enhance business environment

Between 2013 and 2015, Tanzania Trade Development Authority (TanTrade), a Public Institution in Tanzania established by Act No. 4 of 2009, in collaboration with other Regulatory Bodies in Tanzania conducted capacity building program to 414 Traders, among them 357 being women doing Informal Cross Border Trade (ICBT). In the course, it was discovered that, most people in the Tanzania borders (i.e. Manyonvu-Tanzania/burundi, Kabanga-Tanzania/Burundi, Rusumo-Tanzania/Rwanda, Sirari-Tanzania/Kenya, holili-Tanzania/Kenya, Mutukura-tanzania/Uganda, Namanga-Tanzania/Kenya, Tarakea-Tanzania/Kenya, Tunduma-Tanzania/Zambia, Kasumulu-Tanzania/Malawi, mtambaswala-Tanzania/Mozambique and Horohoro-Tanzania/Kenya) lack basic knowledge about formal trade at the border. Most of them had no registered trade with the Authority, Tanzania Business Registration and Licensing Agency (BRELA), poor knowledge of the documentations for easy trading across the border, etc.

This challenge impedes trade development among citizens within the country when they want to cross border with goods (Export).

When it comes to foreigners to import products from their country, there are procedures to first be complied with. If they are not complied, importation of goods shall not be allowed and the vice versa.

However, the Government of Tanzania has been singing an endless song of creating friendly business and investment environment in the country as it fights against unnecessary bureaucracies. For example, during the Financial Year (2019/2020), the Government passed a Finance Act, 2019 which made amendments to nine laws, namely the Airport Service Charge Act (Cap 365), The Excise (Management and Tariff) Act, (Cap 147), The Income Tax Act (Cap. 332), The Port Service Charge Act (Cap. 264), The Road Traffic act (Cap. 168), The standards Act (Cap. 130), The Tanzania Food, Drugs and Cosmetics Act (Cap. 219), The Tax Administration Act (Cap. 438) and The Value Added Tax Act (Cap. 148).

The amendments above resulted to removal of a total of 54 fees and levies in different sectors, food products being among them. Another move by the Government is to develop a Blue Print whose aim is among others to remove unnecessary bureaucracies in delivery of services amongst public institutions to the public.

Currently, the Tanzania Business Registration and Licensing Agency (BRELA) is running an online platform which act as a single window system whereby information on different business processes to be complied with like registration of companies, business names and other permits can now be accessed through BRELA to avoid moving in more than one office for a paper to facilitate business. These among many other initiatives have improved to the great extent business environments in the country.

• Phytosanitary measures in Tanzania (The role of Plant Health Services in International Trade)

In Tanzania Phytosanitary measures are regulated under Ministry of Agriculture; Phytosanitary principles for the protection of plants and the application of phytosanitary measures in International Trade pprovide a principle that;

A refusal, prohibition or rejection of agricultural commodities involved in International Trade should be scientifically justified and that measures should not be applied in such a way as to constitute either a means of arbitrary or unjustified discrimination or a disguised restriction, particularly on international trade.

• Objectives of Phytosanitary Measures;
  • Prevention of the entry and spread of exotic diseases and pests from other countries.
  • Ensure a timely discovery of diseases and pests, their eradication, and supervision of the measures
  • Establishment of control on the implementation of quarantine rules in production, export/imports transportation, storage, processing and sale of agricultural goods. Through;
    • Conducting phytosanitary inspection and laboratory testing on the entry and exit for commodities subject to quarantine (inspection of plants, mail transactions, hand luggage)
    • Issuance of Phytosanitary Certificate and Import Permits for plant products subject to Phytosanitary Quarantine Control.
    • Conducting field Inspection and Auditing of the production system for the conformity to the International standards
    • Conducting Pest Risk Analysis -Making informed decision.
    • Establishing and Maintaining Pest Free Areas (Importing Country Requirement)

• Plant Import Regulations is based in three categories;
  • Imports that are permitted
    • Carry low risk of pest introduction (Subject to PRA results)
    • Only from specific parts of the Country/World (eg Pest free Areas or Areas of low prevalence)
    • Require phytosanitary certification (Subject to inspection and application of appropriate treatment measures)
  • Imports under quarantine
    • Importation carries risk of introducing dangerous organisms (Plant for planting)
    • Symptom-less plants carriers of pathogens; appear healthy-difficult to detect during active growth
    • Plants must be grown at quarantine station for a period of time before release to importer
    • Open quarantine arrangements depending on the risk associated. g. vegetative propagation material of Vanilla, Zantendeschia

• Imports that are prohibited

Under this category, importation carries very high risk of pest introduction and for that matter not allowed under any circumstances. E.g. timber with bark, Christmas trees, fruits from India, aquatic plants. An example of introduction of Pests into East Africa include;

• Bactrocera latifrons -2006 whereby, the first specimens were trapped early in 2006 in Morogoro Region.
• Batrocera invadens- 2003,
• East African Mangoes were rejected for by the US, EU Countries, South Africa
• Banana Xanthomas Wilt (BWX), First Reported in Bukoba in Kagera Region to have inflicted great loss of Bananas and threat to food security and Banana trade, e.t.c

• Export Certification System and processes in Tanzania.

This is guided by the plant Protection Act No. 13 of 1997 and its Regulations of 1998. The Act incorporates the International Plant Protection Convention of 1951 as amended in 1979

The basic elements of the phytosanitary certification process include;

• Ensuring the relevant phytosanitary requirements of the importing country (including import permits if required)
• Verifying that the consignment conforms to those requirements at the time of certification
• Issuing a phytosanitary certificate
• Phytosanitary measures have the authority to prevent the export of consignments which do not meet an importing country’s requirements.

• Challenges hindering International Trade
  • Lack of National Phytosanitary Database of each country including that of regulated pests of concern to importing countries along with their phytosanitary regulatory requirements, occurrence and distribution. And lack of up to date records of importers & exporters for easy verifications in case of conflict.
  • Difficulty in tracing the Pest free areas and areas of low pest prevalence
  • Inadequate of operational manuals and other documented procedures
  • Lack of a coherent diagnostic service for plant pest diagnosis for stakeholders within the Phytosanitary.
  • There is no system for traceability of consignments through the production to commercialization chain.
  • Inadequate facilities and lack the resources for conducting inspections at points of entry.
  • Globally and locally correct regulatory protocols, based on these insights, are our second.
• AFRICAN COUNTRIES AND EMERGENCE OF AfCFTA.

The emergence of AfCFTA, is a challenge to these countries as there is no uniformity in regulating the SPS measures. The above mentioned challenges are common to most African countries.

Much as we know, that SPS are measures allowed under the WTO Agreement, their application in most cases are interpreted to be trade barriers which in principle go against the purpose of establishment of AfCFTA.

African Continent Free Trade Area (AfCFTA) is the African Regional Trade arrangement which aims at creating a single domestic market for goods and services of more than 1.2 billion people. This is an opportunity for all African countries but also a challenge in one way or another. For this matter, I will use my country, Tanzania as an example here and there to buttress my points. The importance of AfCFTA, cannot be overstated.

At the moment only 28 countries out 54 which have signed it in exclusion of one to make a total of 55 countries in the continent, that is Eritrea, have ratified it. That means, the Treaty at the moment can only be enforced against 28 countries. However, Tanzania has not yet ratified it.

When AfCFTA comes into being, the intra Africa continent trade will be improved and the members GDP will increase. However, it will be the world’s largest free trade area since establishment of the World Trade Organization (WTO) and it is estimated that if successfully implemented, Africa will have a combined consumer and business spending of USD 6.7 trillion by 2030.

AfCFTA will have a big impact on manufacturing, tourism, intra-African cooperation and economic transformation. The International Monetary Fund reports that, under the AfCFTA, Africa’s expanded and more efficient goods and labour markets will increase the continent’s overall ranking on the global competitiveness index.

• Conclusion

Much as SPS issues are regulated by countries in different capacities, harmonization is needed if at at all the objective of AfCFTA is to be met. Otherwise, instead of them being used as a measure of regulation, will remain as an hindrance to free trade.

Author[1]

[1] Fikiri N. Mboya (Advocate/State Attorney), Tanzania Trade Development Authority under the Ministry of Trade and Industry, P.O Box 5402, Dar es Salaam-Tanzania

@fikiri that is an excellent expose on Tanzania. How about other countries?

@thokozanij

I would generally comment that, African countries do resemble in most cases as far as SPS and TBT issues by virtue of being members of WTO.

what is important here is that, for these SPS and TBT measures not to switch from measures meant for protectionism to become barriers to International trade, the following tests;

i. Are the measures transparent?

ii. Are they restrictive than necessary?

iii. Are they descriminative (Violating the Most favoured Nation and the National treatment Principle?).

When all these are in the affirmative, then they are not measures needed but have changed from regulatory measures to barriers.

I believe, these are common to all African Countries, with exception of few.

So long as we are many and from different African countries, I believe, each member in here will share experience from ones' country.

Thank you James!

@thokozanij

Within the context of the EAC, my view is that the EAC has endeavored to harmonize SPS measures and procedures for plants; mammals, birds and bees; fish and fishery products; and food safety. But there is in my view, challenges in the harmonization of their regimes on SPS-related measures, standards and technical regulations especially within the areas relating to mutual recognition of inspection certificates with this leading to increasing trade costs in the region

For Kenya as case study, Kenya's exports are predominantly composed of primary commodities, mainly tea, coffee and horticultural products, plus tourism. One of the Key challenges we face as a country is the traceability requirements with respect to the SPS measure that constrains Kenya's export. one of the most notable commodities for which SPS compliance has created problems in Kenya is fish and fishery products, and in particular Nile perch exports to the EU. 

Generally I would say the issue of Traceability, Compliance, Maximum Residue Levels, as factors that constraints to smallholder farmers in not only Kenya but Africa as a whole. 

There is an urgent need for increased scientific and technical capacity for Africa at large. So as to address the issue of risk analysis, there is need to strengthen the individual national capacities so as to conduct risk analysis. On information dissemination, there is an urgent need for farmers to update their knowledge with respect to use of pesticides and probably have in place an improved regional agricultural marketing system as a Regional

NECESSITY FOR A NATIONAL VISION TOWARDS “ZANZIBAR AGRICULTURAL TRANSFORMATION INITIATIVE
The “Zanzibar Agricultural Transformation Initiative” (ATI) is based on prioritizing agricultural development as crucial means for socio-economic transformation of the isles. The necessity for adopting the Zanzibar Green Revolution is evidenced in the government overarching policy frameworks, as articulated in the Zanzibar Development Vision 2020 and the Zanzibar Agricultural Sector Strategic Plan (SP) which advocate for commercialization and food self-sufficiency that necessitates transformation and modernization of the agriculture sector through intensification and production diversification. Moreover, development of the agriculture sector has been identified as a priority for poverty reduction in Zanzibar’s Strategy for Growth and Reduction of Poverty.

DESCRIPTION OF ZANZIBAR AGRICULTURAL TRANSFORMATION INITIATIVE

The Zanzibar Agricultural Transformation Initiative (ATI) attempts to address the root causes of the vicious circle of low agricultural productivity, inadequate food supplies, low income and perpetual poverty. The initiative is a crucial means for generating the drive for high and sustained growth rate of the isle’s economy. The main philosophy is built upon the following three main fundamentals:

Political will:

All levels of political and decision making in public, civil society organizations and private sector will be dedicated in prioritizing agriculture in
planning, resource allocation, and investment. The small-holder farmers, livestock keepers, fisher-folks, and micro-entrepreneurs in rural and urban Zanzibar, local and foreign investors will be encouraged and empowered to participate in the implementation of Zanzibar Agricultural Transformation initiative;

Professional commitment:

Public research and extension system ought to develop more active partnership with farmer organizations, private sector and NGO’s so as to
instigate enhanced adoption of technologies and product based development strategies; and that technology generation assessment, refinement and transfer can be undertaken in a more coordinated and effective manner to realize objectives of ATI.

Private-sector led transformation:

The emerging private sector should be enabled and empowered to take a leading role in partnership with public sector in transforming
agriculture into a dynamic economic sector that contribute towards meeting national food security, poverty reduction and improve socio-economic well-being. Specific objectives to ensure Agricultural transformation in Zanzibar as

(i) increase public investment in agricultural sector;
(ii) promote private sector investment in agricultural production;
(iii) enhance productivity and competitiveness of the sector;
(iv) promote export diversification;
(v) create employment and wealth; and
(vi) deepen linkages with other growth sectors of the economy

Progress on SPS Negotiations in the EAC

In line with article 37 of the Framework EPA, EAC and EC have embarked on negotiations for a comprehensive EPA. In March 2008, they adopted a broad road map to enable them conclude negotiations of the Comprehensive EPA as scheduled. It was agreed that the broad road map shall take into account the progress of the negotiations and can be adapted accordingly. Based on this road map, EAC and EC met at technical level in April 2008, and considered, among others, SPS and TBT measures.

In the area of SPS, the parties agreed to cooperate with the aim of safeguarding human, animal and plant health or life, ensuring transparency in application of SPS measures to trade, promoting technology transfer and more fundamentally establish and enhance the EAC member states’ capacity to implement and monitor SPS standards in accordance with international best practice. In this regard, the EAC and EC agreed to cooperate in helping and facilitating the compliance of EAC products with formal standards of the EU and other markets. This will include
support for harmonization of SPS standards, promoting capacity in both public and private sector for sanitary control through development and implementation of quality programmes, technical assistance, harmonizing appropriate regulatory frameworks and policies between and within the parties, training and information exchange. The EAC and EC have agreed to identify and prioritise the necessary technical infrastructure, but the issue of providing such infrastructure is still subject to further negotiations.

SPS Measures and the WTO
Sanitary and Phyto-Sanitary (SPS) measures are applied to protect human, animal and plant life or health from risks arising from the introduction and spread of pests and diseases and from risks arising from additives, toxins and contaminants in foods and feedstuffs.
SPS measures are subject to rules set under the World Trade Organization (WTO). In particular, the use of SPS measures is governed by the provisions of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (the SPS Agreement). Therefore all countries that are signatories of WTO1 ascribe to principles of the WTO and have to meet WTO requirements including SPS Measures. These requirements are basically on food safety and health standards also)2 as well as Codex Alimentarius 3 standards and Hazard and Critical Control Points (HACCP)4 standards. All the mentioned standards are strictly with respect to food safety and health and mostly product standards.