Sanitary and Phytosanitary (SPS) issues in exports from the EU to Russia What will Russia s accession to the WTO change?

Sanitary and Phytosanitary (SPS) issues in exports from the EU to Russia What will Russia s accession to the WTO change?

Introduction SANCO Russia-SPS page: http://ec.europa.eu/food/international/trade/eurussia_spsissues_en.htm Contact points for Russia: Lorenzo Terzi (HoU) Catherine Chapoux Viktoriya Krasteva Lucie Carrouée

Big picture Russia = 2 nd EU export market for agricultural products; Since 2004, difficulties; WTO negotiations.

An unprecedented negotiation process Trilateral EU-US-RF informal negotiations (Georgia s veto prevented formal negotiations) RF/CU legislation developed as parts of WTO commitments

An unprecedented negotiation process Content Date of application Legal framework New Table on the list of goods specifying the types of measures for each line - Punctual amendments to some of the 38 chapters and recast of chapters 15 and 16 (pets and zoo animals) Deletion of the 6 lines for the 3 CU partners of the list of goods subject to veterinary control Amendments to 2 common certificates: form 9 (slaughter pigs) and 31 (egg powder and albumin) of the common forms. Mutual recognition of equivalence of official inspection systems within the CU members, and as a consequence no joint inspections are needed to list CU establishments in the register WTO accession for the list of goods, one month after publication for the rest. Enters into force on 21 November 2011, one month after publication Enters into force on 21 November 2011, one month after publication Enters into force on 21 November 2011, one month after publication CU Decision 830 of 18 October 2011 on amendments to the CU common veterinary requirements (contained in Decision 317) CU Decision 831 of 18 October 2011 on amendments to the List of goods subject to veterinary controls (contained in Decision 317). CU Decision 832 of 18 October 2011 on amendments to the common forms of certificates for import into the territory of the CU (contained in Decision 607). CU Decision 833 of 18 October 2011 on equivalence of objects of control subject to veterinary supervision.

An unprecedented negotiation process Recast of regulation on joint inspections. Introduction of an audit framework, rules for inspections, not applicable to CU establishments except precise circumstances Implementation of equivalence recognition and risk assessment Principles of harmonisation upon request with international OIE Codex and IPPC 60 days public consultation period for CU Decisions in the SPS field. Enters into force on 21 November 2011, one month after publication, except for the audit framework : upon WTO accession WTO accession Entered into force on 26 May 2011, one month after publication. Entered into force on 26 May 2011, one month after publication. CU Decision 834 of 18 October 2011 on the Regulation on joint inspections of facilities and sampling of goods subject to veterinary controls CU Decision 835 of 18 October 2011 on equivalence of SPS measures and risk assessment CU Decision 625 of 7 April 2011 + CU Decision 722 of 22 June 2011 amending CU 625 (excludes words «(for an exception of documents establishing measures that are applied in emergency situations)».) Annex to CU Decision 625 of 7 April 2011

An unprecedented negotiation process International standards supersede conflicting CU standards in absence of scientific justification; International standards are to be applied in the absence of CU or national SPS norms. Extension of the transitional period for listing of establishments to gelatine and composite products ; change in the condition to obtain a transit permit Extension of transitional period of validity 01/01/2013 for bilateral certificates, and after in case of negotiation of bilateral CU certificates, possibility to diverge from CU common veterinary requirements Delayed to WTO accession by specific CU Decision 773 on enforcement of 721 Entered into force one month after publication, i.e. on 3 September 2011 Entered into force one month after publication, i.e. on 17 September 2011 CU Decision 721 of 22 June 2011 On application of international standards, recommendations and guidance. CU Decision 724 o f 22 June 2011 On Amendments to the Regulation on a common procedure of veterinary control at the customs border of the Customs Union and the customs territory of the Customs Union (317) CU Decision 726 of 15 July 2011 On veterinary measures.

An unprecedented negotiation process Administrative procedure for implementation of 625 Exclusion of a number of lines (among which, feed of plant origin) in the list of goods subject to veterinary controls for Russia only Implementation rules for the conditions of request, delivery, suspension and cancellation of import, transit and export permits Amendment to the rules of prenotification Enters into force one month after publication, i.e. on 29 October 2011 CU Decision 801 of 23 September 2011 On the Regulation on uniform procedure of carrying out examination of legal acts of the Customs Union in the sphere of implementation of sanitary, veterinary and phytosanitary measures. WTO accession CU Decision 810 of 23 September 2011 Adopted on 7 November 2011; Registered at the Ministry of Justice on 16/12/2011; Published on 18 January 2012; EIF on 28 January 2012. Not yet adopted RF Administrative Regulation No 404 of 7 November 2011 on import and transit and export permits CU Decision amending the CU Regulation on veterinary checks at the customs border of the CU territory

Harmonisation of SPS standards Difficulties. WTO commitments: RF process of harmonisation on request: RF Decree 761 (September 2009) CU process of harmonisation on request: CUC Decision 625 Implementing measure: CUC Decision 801 automatic harmonisation : CUC Decision 721 (EIF: accession)

Harmonisation of SPS standards In particular commitments for : Pesticides, Antibiotics, Nitrates, Microbiological criteria, Radio-nucleid levels. Tetracyclines

List of goods subject to veterinary controls RF forms of veterinary controls: Veterinary certificates Import permits Listing of establishments In additional to sanitary control Before vs. after the Customs Union Problems

List of goods subject to veterinary controls WTO negotiations: trilateral revision of the list of goods. Outcome: CUC Decision 830, Annex 4 (EIF: accession)

List of goods subject to veterinary controls Main changes: no list for live animals, milk and milk products, eggs, honey, animal by-products, guts, bladders and intestines, casings, animal fats, composite products, feed of animal origin and gelatine; No veterinary measures for feed of plant origin and other plant products; No veterinary certificates for composite products containing less than 50% of products of animal origin other than meat; No import permit for composite products and animal fats.

Veterinary certificates 1. - 25 existing EU-RF veterinary certificates. - 40 CU common forms of import certificates. - Lack of conformity with OIE standards. - Transitional period.

Veterinary certificates WTO commitments: Alignment with OIE standards CUC Decision 726: Transitional period prolonged Possibility to negotiate specific certificates Possibility to prolong if negotiations requested

Import permits Problems WTO commitments: import permits remain but: Compliance with OIE rules and principles of proportionality and necessity; Minor documentation errors not a basis for refusal; Transparency: Ministerial Order 404 of 7.11.11; Possibility to appeal.

Inspections/audits One of the main trade irritants Problems: transparency of norms reports de-listing of establishments corrective actions Since 2010: no listing without inspections for several MS RF claim for re-balancing trade

Inspections/audits WTO commitments: CUC Decision 834 3 options: audit/pre-listing. Equivalence assessment; listing based on guarantees / occasional inspections; listing based on systematic inspections.

Inspections/audits Equivalence; Corrective actions; Comments; Notion of proportionality; Inspection guidelines.

Plant health Current problem: nurseries. WTO commitments: Possibility to import plants with soil attached based on PFA recognition, following IPPC standards; Russia to allow non-dormant plants; No routine RF inspections in nurseries. Russia s continued request for a MoU.

Human health: Conformity confirmation schemes Currently several layers: veterinary certificates, listing of establishments, state registration, certificates of conformity, declaration of conformity. WTO commitments: from 1/7/13, either veterinary certificate or declaration of conformity. E.g. only declaration of conformity or State Registration certificate for animal products that have undergone a treatment which, based on scientific evidence, eliminates contamination.

Monitoring of residues Problem: focus on end-products testing WTO commitment: implementation of Codex guideline CAC/GL/71-2009, i.e. recognition of monitoring done at national level.

Equivalence and Risk Assessment Risk assessment. Equivalence = trade facilitation tool. With few trade partners. EU requested to RF for milk: not conclusive. CU milk TR.

Equivalence and Risk Assessment WTO commitments: CUC Decision 835 on Equivalence and Risk Assessment RF commitment to review EU request.

Transparency Recurrent «non-compliance» RF norms incomplete and scattered. CU legislation under development.

Transparency WTO commitments: Annex to CUC Decision 625 Similar obligations for TRs SPS enquiry point: Russian Information Centre on Standardization, Certification and to Overcoming of Technical Barriers in Trade (RIC WTO TBT/SPS); enpoint@gostinfo.ru; www.gostinfo.ru SPS notification authority Website

Transparency Possibility to comment already in force. EU commented 7 TRs 4 CU TRs already adopted.

Proportionality E.g. of problems WTO commitments: Russia to respect principles of proportionality, necessity and reasonableness. E.g.: Safety certificates; De-listing; Suspension.

Conclusions Solid framework on paper; Real test will be implementation; Actual accession to occur at the latest end of August 2012 Dispute Settlement Mechanism will be available.

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