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Reducing the Transaction cost of goods traded by dealing adequately with sanitary and phytosanitary requirements by  Hesdie Grauwde, Policy officer,  FAO Sub-Regional Office, Barbados
Understanding transaction costs ,[object Object],[object Object],[object Object],[object Object]
In essence, trade facilitation endeavors aim at the reduction of transaction costs in trade.  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Trade facilitation is especially important because it encourages economic growth!  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The SPS Agreement – to facilitate trade - Origin of problem areas ,[object Object],[object Object],[object Object],[object Object],[object Object]
Basic principles of the SPS Agreement are : ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WTO SPS Agreement and IPPC ,[object Object],[object Object]
Complexity of agricultural trade -risk assessment ,[object Object],[object Object]
Complexity of agricultural trade - Private sector requirement – Private standards ,[object Object],[object Object],[object Object],[object Object]
Complexity of agricultural trade - principal issuers of COPs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Missing trade phenomenon ,[object Object],[object Object],[object Object]
Major issues in Trade Facilitation Negotiations: Costs and Delays ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Issues at play – Mandatory sanitary requirements encountered ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How to analyse sanitary requirements in trade 1. TRADE BARRIER 2. RESPONSE (short term) 3. SOLUTION (long term) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Best practice of exporting companies is to seek compliance  with whatever regulation put forward (keep trade going)
Economic impact of sanitary requirements Trade loss  Transaction cost “ Response” “ Solution” Cost for firm Detained shipment Markets restricted Volumes, prices drop Loss of market position Scan foreign regulations Compliance costs: products, labels, tests, certification Negotiation Second-best business solutions Cost for govern-ment, industry organization -- Prepare compliance, certificates Negotiations Inspections  Standard-setting Dispute settlement
What to do? - actions ,[object Object],[object Object],[object Object]
What to do? - actions ,[object Object],[object Object],[object Object]
Cost of complying with SPS Agreement ,[object Object],[object Object],[object Object],[object Object]
Transaction Costs to Agribusiness ,[object Object],[object Object],[object Object],[object Object],[object Object]
Issues impacting on agricultural trade and reduction of transactions costs ,[object Object],[object Object],[object Object],[object Object],[object Object]
Recommendations to reduce transaction cost in SPS ,[object Object],[object Object],[object Object],[object Object],[object Object]
Recommendations to reduce transaction cost in SPS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]

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Cafan Workshop Fao

  • 1. Reducing the Transaction cost of goods traded by dealing adequately with sanitary and phytosanitary requirements by Hesdie Grauwde, Policy officer, FAO Sub-Regional Office, Barbados
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  • 15. Economic impact of sanitary requirements Trade loss Transaction cost “ Response” “ Solution” Cost for firm Detained shipment Markets restricted Volumes, prices drop Loss of market position Scan foreign regulations Compliance costs: products, labels, tests, certification Negotiation Second-best business solutions Cost for govern-ment, industry organization -- Prepare compliance, certificates Negotiations Inspections Standard-setting Dispute settlement
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