Agro export: Fault of a single exporter punishes the country

Bangladesh exported $616 million worth of agro products in FY2014. Export target for FY2015 is set at $7676m. Strategic target for the first four months of the current fiscal was $213m of which achievement was $230m, showing an increase of 8.35 per cent over the target. Export of the same period of the last fiscal was $189m. The percentage of increase of export between July-Oct of FY2014 and FY 2015 was about 22 per cent, which is a brilliant performance. Export products include tea, fruits and vegetables, cut flower and foliage, dry food, spices etc.
Bangladesh is obliged to adhere to the TBT (Technical Barriers to Trade) and SPS (Sanitary Phyto-sanitary Standards) agreements and needs to maintain the standard of the country concerned. In this respect, countries are free to set their own standards following international practices. Any food product exporter thus intending to enter into the export market, especially into the European market, will have to abide by the rules of the European Union (EU).
WTO (World Trade Organisation) members have the right to take recourse to Technical Barriers to Trade (TBT) to ensure technical regulations, standards and conformity assessment procedures. Regulatory measures would be taken in such a manner that it does not create any unnecessary barriers to trade. For security interest, environment protection and protection from deceiving practices, appropriate measures can be taken by the member countries.
European Union maintains a very strict policy, which states, "EU policy stipulates that no plant or plant products will enter any of its 28 states without Phytosanitary Certificate from National Plant Protection wing, stating that the consignments contained no pest, bacteria, virus, substances harmful for the environment & health". Like the EU, many other developed and developing countries lave been maintaining their standards for exporting food products and at the same time importing products into the country.
One of the advanced developing countries, Thailand has been maintaining these standards issues strictly.  In Thailand, the Thai Industrial Standard Institution (TISI) is working as TBT National Enquiry Point (NEP), responsible for quality assurance for all industrial products. TISI develops national standards, undertakes laboratory accreditation and provides information to the stakeholders in regard to any new notification that comes up and other related information. Also, the National Bureau of Agricultural Commodity and Food Standard (ACFS) works as the NEP for agricultural and food products. As of 2009, Thailand has 25 accredited laboratories, 95 mandatory and 2500 voluntary standards.
To elaborate further on the Thai situation, the Thai Food Processors' Association (TFPA) is working hard at increasing agro processing exports since 1970. TFPA has been authorised by the Department of Foreign Trade, Thailand, to regulate the export of food products. TFPA also helps the government in negotiating with importing countries in terms of standards regulations, trade barriers and also provides technical support for members for Good Manufacturing Practice (GMP), Hazard Analysis and Critical Control Points (HACCAP).
In case of Bangladesh, the National Enquiry Point for SPS is the Ministry of Commerce (MOC) and for TBT the Bangladesh Standards and Testing Institution (BSTI). Action plans for both TBT and SPS have been finalised and the Ministry of Commerce is supposed to work as the Notification Authority for both TBT and SPS. In addition, a national committee has been formed at the MOC on SPS where all related Ministries and private stakeholders have been included. However, response from the private sector to utilise the services of these committees is not very promising. The committees have been formed long ago. There is a need to educate the public about their responsibilities in regard to these two important issues.
As per EU regulation, countries must have safe food policy so that traded food and feed is safe and meet the necessary SPS measures. As tariff  barriers for agricultural and fishery products will be progressively reduced in the years to come, barriers related to SPS and TBT are likely to become even more common.
Infrastructure and institutional development for addressing these issue is of utmost importance to Bangladesh. In order to fully utilise its capabilities, Bangladesh needs to work harder to establish linkage with other associations and committees formed in the government on each export sectors, such as horticulture, agro-processed food, natural ingredients, herbs and herbal Medicine so that sectoral strategies can be formulated based on the needs of the products.
Looking at some of the initiatives that can be taken for improving product standards, firstly, a national survey on required standards for exporters and importers may be conducted. Secondly, extension-service-type infrastructure to deliver services and train producers to obtain market information and access international distribution channels is highly important.
An SPS & TBT database can also be developed in the country. Moreover, it is important to provide support to product/business associations who may have interactive programmes with more advanced countries. Also, training sessions and workshops to create awareness about TBT and SPS about the steps taken by some advanced developing countries and how IT can be used effectively as a tool to build capacities on TBT and SPS have to be planned. Bangladesh would be wise to utilise regional cooperation for addressing SPS and TBT and other standards related issues.
Considering the importance of the issue, BUILD (Business Initiative Leading Development) has prepared a small case to discuss these in its Trade and Investment working Committee co-chaired by the Secretary, Ministry of Commerce and the President, Metropolitan Chamber of Commerce & Industry.  BUILD raised some proposals for considerations of the concerned Ministry/Office for implementation.
Bangladesh exports betel leaves along with a number of flowers and vegetables to some developed countries, including the EU. Certificates for exporting products, including betel leaves, have to be collected from the Plant Protection Wing of Bangladesh. The Plant Quarantine Act 2011 was formulated to empower the government to turn the existing Plant Protection Wing into the National Quarantine Authority.
Since 2011, EU Member States have notified over 140 cases of microbiological contamination in betel leaves from Bangladesh through the Food and Feed Safety Alerts (RASFF). In 2012, the European Commission opted instead for giving an opportunity to the competent authorities of the exporting country so that the safety concerns associated with their exports could be addressed despite the high number of contamination cases. As a result, Bangladesh established an Action Plan to ensure a pathogen-free production chain in November 2012. In February 2013, the Food and Veterinary Office (FVO) of the European Commission visited Bangladesh for auditing the national control system for plants and plant products intended for export but they found that the authorities were yet to fully implement the Action Plan and that the export surveillance system for fruits and vegetables presented significant deficiencies.
Despite a national ban on exports in place, consignments containing betel leaves from Bangladesh were still arriving at EU borders and often reported as non-compliant. On February 13, 2014, the Commission decided to go for import ban on betel leaves originating from or consigned by Bangladesh. The ban was applicable temporarily until July 31, 2014 (Article 4) and could be reviewed in the light of assurances that Bangladesh may provide in the meantime.
In view of the above, and in case of withdrawing export ban on betel leaves, the capacity of the Plant Quarantine Wings will have to be increased. Lack of awareness among the exporters is also a problem. Fault of a single exporter can punish the whole community and the image of the country will be at risk.
Given the adverse effect of contamination on Bangladesh's agro product exports, the following can also be seriously considered. Firstly, the national SPS Enquiry Point in the Ministry of Commerce should be strengthened. Plant Quarantine Authority should be made functional soon. As such, the Plant Quarantine Rules and Regulations under Plant Quarantine Act 2011 should be framed soon. Moreover, the wing should be equipped with all testing facilities so that any type of bacteria/pest can be identified prior to exporting. Establishing e-Phytosanitary Certificate system can be planned for future implementation. The Bangladesh Food Safety Authority, incorporated in the Food Safety Act 2013, is currently being set up by the Ministry of Food with technical assistance from FAO.

The writer is CEO BUILD.
ceo@buildbd.org