USAID/EGAT Announces New Global Effort in Trade Capacity Building Focusing on Sanitary and Phytosanitary (SPS) Measures
Under the "Rural and Agricultural Incomes with a Sustainable Environment (RAISE)" IQC, EGAT has recently launched a three year, $5.6 million Task Order entitled "Assistance for Trade Capacity Building in Relation to the Application of Sanitary and Phytosanitary Measures (SPS)".
What are SPS measures? The SPS Agreement is comprised of 14 Articles and three Annexes that form the rules of international trade concerning sanitary and phytosanitary measures as they appear in the Final Act of the Uruguay Round of Multilateral Trade Negotiations (Marrakesh 1994). These measures are designed to protect each Member country from hazards associated with food safety and plant/animal health.
With the decline in traditional barriers to trade such as tariffs, there has been heightened interest in the impact of SPS measures and other technical requirements (e.g. quality grades, standards and labeling requirements) on the trade of food and agricultural products. Whilst not having the restriction of trade as their primary objective, there is evidence that such measures can act as a significant barrier to trade, particularly for developing countries.
The recognition that SPS and other technical measures can impede agricultural trade has focused attention on the SPS capacity of developing countries. There are concerns that many developing countries, and in particular the least-developed countries, lack the capability to comply with SPS requirements in their export markets. In turn, this undermines any competitive advantage and may prevent the benefits of trade reforms from being realized.
Key SPS-related questions to be considered by USAID Missions and their clients would be:
- What is the status of SPS management capacity in the public and private sector?
- What is the impact of SPS measures on the most important food and agricultural product exports?
- How are imports affecting SPS compliance issues for exports?
- What is the impact of SPS measures on the structure and function of the agribusiness supply chains?
- What national and firm strategies are in place to manage SPS compliance? How effective are these strategies?
- What are the development assistance activities that must be added, dropped, or modified in order to strengthen overall SPS management capacity?
- What are the key differences in SPS management capacity intra-regionally and inter-regionally?
Implementation of this project will support and enhance U.S. agricultural assistance projects by:
- Providing technical analysis and development strategies that increase the capacity of selected partner countries' agricultural producers to meet international SPS standards and expand agricultural exports;
- Strengthening the capacity of selected partner countries' regulatory bodies and scientific and technical institutions to maintain the safety of human food supplies, protect the health of agricultural plant and animal populations, and preserve natural ecosystems.
This project will allow USAID and other implementing agencies to respond rapidly and flexibly to increasing developing country requests for SPS-related assistance. In order to be responsive the wide range of potential needs, the project will provide a range of support services, including:
- Global Research Studies
- Regional/Sub-Regional Analytical Reports
- Project Evaluations
- Country Specific Diagnostic Reports
- Customized Project Designs
EGAT would implore regional and country Missions to begin scheduling collaborative work with RAISE SPS as soon as possible. Already, global research studies are commencing in the following technical areas:
- Inventory of current SPS-related projects and assistance efforts
- Role of third party certification in agrifood supply chains
- Impact of supermarkets and private agrifood standards on SPS capacity building
For further information on RAISE SPS please contact Dave Soroko, RAISE SPS Cognizant Technical Officer, EGAT. The prime contractor is Development Alternatives Inc. (DAI) which provides overall project management. Technical leadership is provided by Michigan State University (MSU), in partnership with DAI, Abt Associates, Fintrac Inc., and Winrock International.
