Supplementary Ideas on Case Study of China
Presented at Sub-regional Workshop on the Trade and Environment Dimensions in the Food and Food Processing Industries in South-East and North-East Asia
Jakarta, Indonesia , 26-27 July 2006
By Mrs Zhao Yanxia & Mr. Qian Yongzhong
We’d like to take this opportunity to congratulate Prof. Congwen Lu, Zhejing University, for successfully completing the country case study of China. He and his team have surely done a lot of efforts to collect all the information and given their perception of the trade and environment dimension of food and food processing industry from their point of view and have drawn their own conclusions. For the benefit of the workshop, we would like to give some supplementary ideas on their paper and share with the participants our point of view.
A. A good illustration that trade and environment are mutually supportive
As mentioned in the case study, China has implemented three types of certification system to guarantee the safety of agricultural product, they are safe food (translated as pollution-free food in case study), Green Food and Organic Food Program. Each program has its own standards, like standard for the production site, standard for production process and standard for final product. Safe food aims at achieving minimum safety standard requirements to satisfy the ordinary consumers; green food aims at more strict safety and quality standards to satisfy the needs of requirements in the developed world and organic food aims at satisfying the maximum standards and focus on particular market and particular consumers and is mainly for export. Together the three types could be illustrated as a good example of trade and environment being mutually supportive.
Firstly, the three types have all required environmental standards for the production site. For example, the environmental standards for production site in Green Food Program covers standard of air quality, standard of water for irrigation, standard of water for animal husbandry and standard of soil environment. Experiences of implementing the three types of the programs have shown that they could not only greatly enhance the efficiency of ecological environment, protect ecological environment but also reduce pollution in the rural area by controlling waste discharge and using less chemical substances, promoting good cycle of development for ecological environment in rural and urban areas, hence achieving sustainable development of cities.
Secondly, after China’s accession into WTO, the competitive advantages of food derived from the green and organic programs have been increasingly emerging in the international food and agricultural trade, and market prospect becoming even brighter. By the end of the 2005, the export value of Green food has reached 1.62 billion US$, the export value of Organic food has reached 0.136 billion US$. In addition, the brand names of the programs have become ever known and brand values have been rising. This fact has greatly enhanced the initiative of the enterprises and the farmers engaged in producing green and organic food for export. Up to June 15 2006, totally, 3962 enterprises nationwide have obtained green food certification, covering 10708 food items and 483 enterprises have obtained organic certification, covering 1783 food items.
B. Green barriers impede export of China’s food export
The green barriers that China encountered in agro-products and food export have been comprehensive with all the key items affected, like peanut, tea and food items of animal origin just as cited in China’s case study.
Currently, China is facing challenges imposed by Japan’s “Positive List System for Agricultural Chemical Residues in Food” amended according to Japan’s Food Hygiene Law. The “Positive List System” which went into force on 29 May 2006 has greatly increased the testing requirements for maximum residues of agricultural chemicals in food. MRL Standards for 734 pesticides and veterinary drugs are established, with the testing MRL items coming to more than 50000. This will affect almost US$ 8 billion food and agro-product export based on China’s trade figures for 2005, accounting for one third of China’s total food and agro-product export. Taken rice as an example, the MRL testing items have been increased from the previous 130 to as high as 580, though a temporary 509 items are set because of technical reasons. Obviously Japan’s implementation of Positive List of System has greatly raised the risk for the exported food to be found exceeding the MRL standards and the cost for testing could reach very high. Thus, the significant impact on trade is obvious.
C. The information service provided by the Government in form of technical guidance
The survey conducted by Ministry of Commerce, as cited by the country case study indicates that the foreign technical barriers which affect China’s export covers two thirds of Chinese export enterprises and one third of export commodities, leading to losses of US$ 20 Billion each year. The difficulties cited by the affected enterprises include: lack of technical information, absence of effective ways for solution and lack of fund to enhance the technical level.
Starting from year 2003, as a form of providing information service by the government to the enterprises, Ministry of Commerce working together with other 14 government agencies, 40 industrial associations, 6 import and export chamber of commerce, 50 scientific research institutions and 10 local governments and also together with experts, initiated a program entitled “Technical Guidance for Export Commodities”. The guidance contains introduction of technical regulations, standards, conformity assessment procedures of the targeted market; their difference compared with the Chinese market; and aspects that should be taken into consideration while trying to overcome the difficulties as well as recommendations and possible solutions suggested by the experts. The first batch of 10 guidance has been issued, among them are those for honey, eels and packaging requirements in the EU market. By the end of 2006, 100 technical guidance are expected to be issued.
D. Work Related to the Revision of China’s Food standards
The case study of China has mentioned the problems existed in China’s food standard system. As a matter of fact, China has started from year 2004 work related to the clearance of all existing food standards, with the aim to form a more improved, scientific and rational food standard system, enhancing China’s food standard level comprehensively. In the future, the technical requirements for food hygiene standards will cover mainly the following aspects as maximum residue level for pesticide and veterinary drugs, undesirable heavy mental maximum level, undesirable microorganism, undesirable mycotoxin and food additives limitations.
In addition, China has getting more involved in the activities of international standard setting bodies, esp. in Codex Alimentarius Commission (CAC). Recently, China has been nominated as host for Food Additive Committee and Pesticide Residues Committee, which could facilitate more participation by China in international standards setting process.
|
