In a meeting of the Committee on Sanitary and Phytosanitary (SPS) Measures on 18-19 July 2019, WTO members discussed eight new specific trade concerns regarding food safety, animal and plant health and 16 previously raised concerns. Members elected Daniel Arboleda of Colombia as the new chair of the committee. At an earlier workshop, members also discussed ways to improve the transparency of import measuresMembers highlighted a range of measures regarding food safety and animal and plant health, with many exporting countries saying that import requirements are too stringent. This is especially detrimental to the export opportunities of farmers in developing countries, they said. Eight new specific trade concerns (STCs) and 16 previously raised concerns were addressed at the committee meeting and a large number of WTO members and observers contributed to the discussions.The European Union provided information regarding the resolution of an STC about the Russian's Federation import restrictions on certain animal products from Germany, first raised in the committee in June 2016.New specific trade concerns (STCs)EU amendments of MRLsColombia, Costa Rica, the Dominican Republic and Ecuador voiced concerns about the European Union amendments to maximum residue levels (MRLs) for imazalil - a widely used fungicide used in the cultivation of citrus fruit and bananas. These members said that the amendments are a matter of great concern to many producers, particularly to producers of bananas, as no efficient alternatives to imazalil are currently available. They criticized the EU for following a precautionary stance in taking its decisions and for disregarding scientific evidence presented by relevant international organizations recognized by the SPS Agreement.The European Union, in its response, said that its studies did not exclude that residues of imazalil posed a risk to some consumers and informed members that the new MRLs were expected to be applicable from April 2020 onwards, allowing food business operators time to prepare for the new requirements that will result from the modification of the existing standards.EU maximum levels for certain contaminantsColombia raised concerns about the EU regulatory process for determining maximum levels of certain contaminants (such as glycidyl fatty acid esters, 3-monochloropropanediol) in foods or food ingredients, such as refined oils and refined oil products including palm oil. Several members noted that the EU has not notified the measure for comments despite the repercussions this could have on the international palm oil market. They also referred to the ongoing work on risk management through the elaboration of a code of good practices within the framework of the Codex Alimentarius to reduce these contaminants.The EU replied that discussions on the appropriate regulatory measures for these contaminants are ongoing and indicated that draft measures will be notified under the SPS Agreement and would take into account comments by WTO members before finalizing the proposal.EU MRLs for tea pesticideChina raised concerns regarding the new EU proposed MRLs for the pesticide lambda-cyhalothrin in tea and other products, lowering it from 1mg/kg to 0.01 mg/kg. According to China, this measure is not based on risk assessment results but on an alleged lack of relevant data. China asked the EU to further evaluate the potential health risk to consumers and to consider a transition period of at least one year for Chinese tea producers to adjust if the EU finally decides to implement a new limit standard.The European Union responded that the legislation setting MRLs for lambda-cyhalothrin in tea and other herbal infusion at the level of determination (LOD) of 0.01 mg/kg is based on available scientific data. The new regulation grants a transitional period that would allow keeping products already on the market, the EU said, but without prejudice to the obligation of ensuring a high level of consumer protection.China's restrictions on beefThe United States voiced concerns regarding China's restrictions on imports of US beef, recalling that the US was recognized as a territory with negligible risk for Bovine Spongiform Encephalopathy (BSE) or "mad cow disease" by the World Organization for Animal Health (OIE). Current conditions of beef trade with China fall short of full alignment with OIE recommendations for negligible risk countries, the US said.In its reply, China said it resumed importing deboned and boned beef under 30 months of age from the United States in June 2017 after carrying out a risk assessment. However, China noted that in order to ensure the safety of its cattle industry and public health, it has not imported beef over 30 months of age from members with a record of BSE.Turkey's restrictions on live cattleArgentina raised a new STC regarding Turkey's foot-and-mouth-disease (FMD) related import restrictions on live cattle, saying that there is no scientific evidence to justify this measure and recalling that the OIE has recognized Argentina as an FMD-free zone area, with and without vaccination. Argentina indicated that Turkey allows for the importation of live cattle from other territories with similar sanitary conditions and requested the country to eliminate what it considered a "non-equitable and discriminatory" measure.In its response, Turkey stressed that following the detection of new FMD cases in Turkey as a result of animal imports, and in view of its candidate country status to join the European Union, it has updated its regulation on the importation of live cattle. Negotiations with Argentina are ongoing to find a solution to re-initiate trade, but the Argentinian alternatives proposed so far fail to meet FMD requirements established in the new national legislation, Turkey said.Viet Nam's general restriction on importsBrazil took the floor to voice concerns about Viet Nam's general restrictions on several products such as melons, live cattle, beef, and meat and bone meal through undue delays in the process of negotiating International Sanitary Certificates and requests for more information than what is scientifically needed in order to perform risk analysis. In Brazil's view, the procedures undertaken by Viet Nam illustrate how disregard for the SPS Agreement can raise unnecessary and unjustified barriers to trade.Viet Nam responded that as a result of the fast increase in agricultural imports in recent years it has had to adjust its legislation to ensure an appropriate level of protection of human, animal or plant life and health. All these changes have been duly notified to the WTO, Viet Nam said, and the new measures are not discriminatory and follow the guidelines set by international standard setting bodies.Ukraine's restrictions on swine productsBrazil raised concerns about Ukraine's restrictions on swine products. According to Brazil, Ukraine is the only member that has imposed an embargo on all Brazilian swine products following a case of classical swine fever in October 2018 after one decade of no records of the disease in the country. Moreover, Brazil added, the case happened in an area which does not export and all the technical explanations and bilateral efforts with Ukraine to resolve the issue have not yielded results.Ukraine took the floor to regret that despite several requests at bilateral meeting as well as official letters, Brazil has not submitted the requested information in order to carry out a proper assessment of the situation. Ukraine said its actions were based on international standards and regulations and pointed out that new cases of the disease in Brazil were registered in July 2019. Ukraine said it is ready to engage in a more effective dialogue with the Brazilian authorities on this issue.Japan's restrictions on avocadosBrazil raised this STC on what it considers Japan's undue delay in concluding a pest risk analysis before opening its market to Brazilian avocados. Brazil noted that all the requisites of Japan's risk assessment process have been fulfilled, and that it has provided all the scientific information needed to assure Japan of the high sanitary standards of Brazilian avocado exports. Therefore, there are neither technical nor legal reasons that justify Japan not opening its market to Brazilian avocado.In its response, Japan noted that based on the scientific knowledge that avocados can be infested with the Mediterranean fruit fly, Japan has held constructive consultations with many countries, including Brazil, lifting import bans in some cases. However, Brazil has not provided sufficient information on the phytosanitary measures applied to avoid the spread of this pest. Japan said it is ready to have constructive discussions with Brazil to find a mutually agreeable solution.Issues previously raisedSTCs previously brought up in the SPS Committee included six EU SPS-related policies: maximum residue levels of certain pesticides; legislation on endocrine disruptors; France's dimethoate-related restrictions; transitional periods for MRLs and international consultations; the new definition of the fungicide folpet; and the EU Commission Decision on animal products.The EU also raised previously addressed issues, including the Russian Federation's import restrictions on processed fishery products from Estonia; South Africa's import restrictions on poultry due to highly pathogenic avian influenza; Indonesia's approval procedures for animal and plant products; US import restrictions on apples and pears; and general import restrictions due to BSE.In addition, the Committee heard concerns regarding China's import restrictions due to highly pathogenic avian influenza; Guatemala's restrictions on egg products; Indonesia's food safety measures affecting horticultural products and animal products; China's official certification requirements for food imports; and China's proposed amendments to the implementation regulations on safety assessment of agricultural genetically modified organisms (GMOs).Transparency and coordinationAs part of the Fifth Review of the SPS Agreement, a Workshop on Transparency and Coordination took place on 15-16 July with the funded participation of over 40 government officials from developing country members and observers. The objective of the workshop was to bring together officials, as well as experts from regional and international organizations, to exchange experiences with transparency-related coordination, and with broader domestic coordination mechanisms. An area of focus was on the difference in scope between the SPS Agreement and the Technical Barriers to Trade (TBT) Agreement, and on notification of measures containing both SPS and TBT elements.Members shared experiences in handling and coordinating SPS/TBT notifications and institutional arrangements, including having separate SPS and TBT agencies or one "single window" covering both matters. The WTO Secretariat provided an overview of SPS/TBT sources of information, including: WTO Documents Online and the e-Subscription service for delegates to receive WTO official documents; the SPS/TBT gateways on the WTO website; and the SPS/TBT Information Management Systems for searches and reports on notifications, STCs, and contact details of enquiry points and notification authorities. In addition, the Secretariat provided an update on the ePing system, which includes two main functionalities: an email alert mechanism to track relevant notifications and a communication platform to facilitate domestic and international discussion and coordination on distributed notifications.Participants also discussed how to incorporate experiences from the trade facilitation area, recalling that unlike the Trade Facilitation Agreement (TFA), the SPS Agreement does not require the establishment of national committees. However, many members found it useful saying that they could play a role in facilitating the implementation of the SPS Agreement, by creating awareness and promotion of reporting requirements.The workshop also benefited from presentations about domestic coordination mechanisms for purposes broader than transparency, such as coordinating positions to prevent and resolve specific trade concerns.Next meetingThe next meeting is scheduled for the week of 4 November 2019, with a Thematic Session on Approval Procedures on 5 November, an informal meeting on 6 November, and the regular Committee meeting on 7 and 8 November.Source: WTO
Kenya has launched Africa's largest wind power farm in a bid to boost electricity generating capacity and to meet the country's ambitious goal of 100% green energy by 2020.The farm, known as the Lake Turkana Wind Power (LTWP) will generate around 310 megawatts of power to the national grid and will increase the country's electricity supply by 13%, President Uhuru Kenyatta said at the launch of the project on Friday."Today, we again raised the bar for the continent as we unveil Africa's single largest wind farm," Kenyatta said. "Kenya is without doubt on course to be a global leader in renewable energy."The project is powered by the Turkana corridor wind, a low level jet stream originating from the Indian Ocean and blows all year round, according to a government statement.An international consortium of lenders and producers, which includes the African Development Bank, came together to install the 365 wind turbines, which cost around $700m, the largest private investment in Kenya's history, President Kenyatta said.The 52-meter blade span windmills will take advantage of high winds in the remote area.In the past years, Kenya has made progress in investing in clean sources of energy. According to the Renewables 2018 Global Status Report, the country is 9th in the world for its geothermal power generating capacity of up to 700 megawatts.Around 70% of Kenya's national electricity comes from renewable sources like hydro power and geothermal.State-owned power company KenGen produces approximately 80% of electricity consumed in Kenya, and of that, 65% comes from hydro-power sources, which it sells to Kenya Power, the country's main electricity transmission company,
Kenya's LTWP is not the only existing wind power project on the continent. Africa has fully operational wind farms in Morocco, Ethiopia, and South Africa providing sustainable energy.
In South Africa, wind energy is already boosting electricity. With five wind farms in place, the country has added a collective 645.71 MW to the national grid.And in Ethiopia, two of its wind farms account for 324 MW of the country's total electricity output of 4180 MW.While these projects will help build energy supply on the continent, the International Energy Agency has said sub-Saharan Africa needs to invest $300 billion in order to achieve universal electricity access by 2030.Source: CNN
Kenya is the fifth largest coffee-producing country in Africa, but that might change. Coffee farmers in the East African nation are turning to other crops because of drought and low prices on the international market.Joseph Wainaina, 71, started farming coffee a year after Kenya gained independence. As a teenager, he loved to farm, and for years he enjoyed good returns. But recently, global coffee prices kept dropping, and coffee trees became expensive to maintain.“I want to cut down coffee trees and forget about it. So that I can I continue with other projects like dairy farming, pig farming, and even poultry farming, these days even chicken makes good returns,” said Wainaina.In recent years more small-scale coffee farmers in Kenya have been uprooting their coffee trees. Those who have a sentimental attachment to coffee and want to continue farming it must incorporate other crops to make a decent living.Morris Ikonya is still growing coffee, but to make ends meet for his family, he is forced to grow other crops. “I cannot live off coffee right now. I have to diversify and do other things, and that’s how I went into mushroom farming, and I went into pumpkin farming to try and diversify the source of income,” he said.Ikonya says he is continuously battling tree diseases and he spends $200 a month to maintain his coffee farm. The price of coffee on the global market has dropped up to 30 cents a kilo. If they are lucky, farmers get 70 cents per kilogram.Joseph Kieyah of Kenya's Coffee Task Committee, a body charged with policy formulation in the sector, says they are trying to help farmers increase production and coffee tree yields.“We also proposed a three-year subsidy program again with the intention of trying to assist the farmer to reduce the production cost. Increased production such a way that, we are talking about increasing production from two kilos cherry per tree about eight,” he said.The reforms in the coffee sector may have come too late for some farmers. Some, like Wainaina, say only an increase in global prices could convince them to continue producing coffee.Source: Allafrica.com
At a time when a large section of local Small and Medium Enterprises (SMEs) and start-ups have been found to be facing issues that make them ineligible to credit from financial institutions, Bank of Kigali is seeking to help reverse the trend.The bank is one of the four subsidiaries of BK Group, which last week announced a profit after tax of Rwf 7.5 billion in the first quarter of 2019, as well as surpassed the $1 billion valuation in assets becoming the first Rwandan company to reach the mark.At the moment, its large corporations operating in the local market that are eligible to access to credit with the local financial institutions 'fighting' for the attention of the firms.To change status quo, bank's officials said that they are seeking to expand the percentage of firms that are eligible to credit by working with the emerging Small and Medium Enterprises.Multiple studies on the local SME sector have shown that emerging firms continue to face challenges such as lack of adequate governance, poor bookkeeping practices, little market research and poor business plans among others.Its challenges that have driven up SMEs risk perception and often blamed for non-performing loans. For instance, Bank of Kigali's non-performing loans grew by 16.5 in the first quarter compared to the same period last year to Rwf 39.2 billion.Among the approaches by Bank of Kigali include working alongside the SMEs to point out common challenges and ways to address the challenges such as bookkeeping practices among others.The bank's Chief Executive Officer Diane Karusisi said that they also have incentives for well managed SMEs by giving them subsidized loans in a bid to encourage improved management practices."The main problem has been governance, these are typically managed by one person and when there is a small problem with that person, the whole company starts struggling. We are making sure that adopt ideal business practices such as record their financials, this is something that will work on for the next couple of years. Most SMEs do not understand the importance of having an accountant to look into their books," she said.She added that they were making gradual process with the intervention. "We are making progress. With the new credit approach that give subsidies to well managed SMEs, we are telling our customer that if you show us that you are managing your business better, you will get better rates," she added.The bank's Head of Business, Barnabas Kalenzi, said that other persistent challenges observed in the local market which they are seeking to address include challenges around security and collateral when SMEs seek credit.With most of the start-ups and SMEs having little if any assets to deposit as collateral when seeking loans, the risk perception often leads to loan rejection.To address the challenge, Kalenzi said that they are working with guarantee funds such as the Business Development Fund, among others, as well as partnered with business trainers to build capacity in the problematic areas."There are also challenges around security, collateralisation of loans. Many loans are rejected because of security, we are partnering with several guarantee funds to be able to increase the collateralisation of these facilities. We have also partnered with firms like Inkomoko and BPN to be able to do some training on management of these companies," he said.Commenting on the performance of the interventions so far, he said that there was some notable improvement saying that they are likely to scale up the intervention to a bigger level."We are already seeing some progress in firms that have undergone this training and hopefully we can scale it to a bigger level," Kalenzi said.Such interventions, he said are aligned to supporting government priorities such as support to local producers under the Made In Rwanda initiative, boosting job creation and support emergence of competitive local enterprises among others.Bank of Kigali is currently the market leader in regards to lending with 32.9 per cent market share.Source: Allafrica.com
Dar es Salaam — Tanzania will sell Zimbabwe a total of 700,000 tonnes of maize following food shortage challenges that the latter has been experiencing in recent years.President John Magufuli made the commitment yesterday to his Zimbabwean counterpart, President Emmerson Mnangagwa, when the two met at the Harare State House during Magufuli's official visit.Dr Magufuli told his host that Tanzania had a total of 3.3 million tonnes of surplus food after harvesting 16.8 million tonnes while the country's needs do not exceed 13.5 million tonnes.Tanzania's Head of State advised Mr. Mnangagwa to consider introducing a National Service programme in his country, saying Tanzania was a good example as the army unit did not only inculcate discipline among the youth but toughened them to cope with various situations and had the potential of making economic contributions.During their talks, President Magufuli also expressed his disappointment over what he described as the absence of meetings under the Joint Permanent Commission (JPC) since 1998, something he said weakened bilateral relations between the two countries.He directed cabinet ministers in Tanzania to hold JPC meetings with their Zimbabwean counterparts in the next two months to discuss areas of further cooperation.Source: allafrica.com
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