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Economic sciences / 2. International activity

Master of Economics, PhD- Candidate  Natalia Lashkevich

the University “G. D’Annunzio” Chieti-Pescara, Italy.

Convergence of international trade and food safety

 

Summary

Globalisation is one of the major world trends. In the context of globalisation the role of export-import transactions is increasing. However, the extension and growth of trade relations are interrelated with such important international problem as ensuring of food safety. That is why the one of strategical goals is the strengthening of international food control system.

 

The world economy is increasingly integrated and the trading system is more liberalized. This trend will continue in the coming years, in view of the increasing globalisation.

The EC common policy aims to the harmonious, balanced and sustainable development of economic activities. Therefore international trade is one of the orientations of economic policy to provide growth, employment and investment in the EU.

The analysis of the EU international trade activity showed that the EC is the world's leading exporter and the second-largest importer of goods.[1]

Table 1. Share of national export in world export (%)

Year

European Union (27)

United States

China (except Hong Kong)

2005

18

12,4

10,5

2006

17,3

12,3

11,5

2007

17,4

11,9

12,5

2008

16,7

11,2

12,4

2009

17,2

11,8

13,5

Average share

17,32

11,92

12,08

Source of Data: Eurostat [2]

Table 2. Share of national import in world import (%)

Year

European Union (27)

United States

China (except Hong Kong)

2005

19,0

22,5

8,6

2006

19,1

21,6

8,9

2007

19,1

19,6

9,3

2008

19,1

17,9

9,4

2009

18,0

17,1

10,8

Average share

18,86

19,74

9,4

Source of Data: Eurostat [3]

During 2005 - 2009 the EU’s share of export is about 17%, share of import is about 19%. That is why the EU is the biggest trading bloc in the world.

Recognizing that the EU is one of the trade partners of many countries and economic blocs in food commodities and taking into consideration that policy of business relations is changing between business-operators (extension of business-communications, appearance of new cooperation and collaboration business forms) it is necessary to analyse tendencies in food trade.

Table 3. International trade of food commodities between the EU and "World"

Indexes

imports

exports

Total all products

All food items

Total all products

All food items

qnt

qnt

share

qnt

qnt

share

2005

4046797537

318684967,8

7,87

3968076537

300253507,6

7,57

2006

4681350302

348503053,1

7,44

4507426139

329256362,5

7,30

2007

5419029394

420442947,4

7,76

5240795642

393765317,9

7,51

2008

6082831182

494766315,2

8,13

5806445367

464183902,6

7,99

2009

4535002483

423762494

9,34

4474401339

406342901,8

9,08

Source: Unctadstat [4]

Table 3 shows that level of the EU’s international trade in foodstuffs constantly increased since 2005 till 2008. Economic crisis has resulted in a large loss in economic activity of Europe's exports and imports.

That is why the European Council adopted the Europe 2020 strategy in June 2010 with ambitious targets for a new growth path. A new strategy based on enhanced coordination of economic policies and focused on three key priorities:

-                     Smart growth - developing an economy based on knowledge and innovation.

-                     Sustainable growth - promoting a more resource efficient, greener and more competitive economy.

-                     Inclusive growth - fostering a high-employment economy delivering economic, social and territorial cohesion. [5], [6]

The Europe 2020 strategies require well functioning and well-connected markets with fair competitiveness for business operators and a free consumer access. That is why, single market policy is the key to ensure a level playing field within the EU, guaranteeing fair competition conditions and offering major opportunities for sustainable growth. The EC pursues these objectives at the multilateral, bilateral, and unilateral levels:

-                     At the multilateral level the Doha Development Agenda (DDA) is the important  approach to reduce restrictions on international trade and to promote open and rules-based global trade.

-                     The bilateral cooperation aims to ensure reducing of barriers to international flows of trade.

-                     At the unilateral level Member States should improve the support of domestic entrepreneurship, consumption and employment.

In the context of globalisation the value of the Single Market is constantly increased. Entrepreneurship and business want to receive an improving access (the more free and fair) to raw materials, markets and investments, etc. Consumers want to receive wide consumer choice of quality, safety commodities on fair prices.

However, the integration and consolidation of food industries and the globalization of the food trade are changing the patterns of food production and distribution. It is necessary to recognize that with growth of international trade in foodstuffs and of globalisation of food production the new food-borne diseases will rapidly spread and the likelihood of contaminated food will increase. As a result of these trends is increased consumer demand on food safety worldwide. Consumers expect protection from hazards occurring along the entire food chain, from primary producer through consumer.[7], [8], [9]

With a view to provide food safety the EC laid down such main regulations as 178/2002, 882/2004, 852/2004, 1881/2006 and others. [10], [11], [12], [13] According to these law acts the Community general require is that food imported into the Community for placing on the market within the Community shall comply with the relevant requirements of food law or conditions recognised by the Community to be at least equivalent thereto or, where a specific agreement exits between the Community and the exporting country, with requirements contained therein. However, there are many cases of infringements and failures to carry out food safety requirements in the international trade practice. For example, the EU Rapid Alert System for Food and Feed (RASFF) notified infringements with legal limits for pesticide residues in imported produce to the EU from third countries between 2004 and 2010.[14] In order to ensure confidence of European citizens in safety of imported products and to find ways to rising food safety the Food and Veterinary Office (FVO) of the Directorate General for Health and Consumers of the European Commission  carries out inspection checks on products from countries where the risk of contamination is considered greater. Usually in countries where the food control infrastructure and systems for investigation of food-borne disease are weak or non-existent, industrially produced foods may be contaminated or even adulterated. Despite all efforts at good agricultural practice in many countries the raw foodstuffs may be contaminated. Modern farming systems, food processing and marketing do not always provide completely adequate safeguards for public health. Consumer protection will only occur if all sectors in the chain operate in an integrated way.

During inspection missions the FVO evaluates special issues of control system (import control, food hygiene control) or the implementation of some items of food legislation. [15]  Factors which contribute to potential hazards in foods include improper agricultural practices; poor hygiene at all stages of the food chain; lack of preventive controls in food processing and preparation operations; misuse of chemicals; contaminated raw materials, ingredients and water; inadequate or improper storage, etc. [16]

In order to achieve effectiveness of international check systems and to improve the system of food safety assurances it is necessary to implement the evaluation of international foodstuffs chain and existent food control systems should be built into scientific-based approach. Risk assessment is a science-based process. Risk assessments play an important role in international trade by ensuring that countries establish food safety requirements that are scientifically sound and by providing a means for determining equivalent levels of public health protection between countries. Without systematic assessment of risk assessment, countries may set requirements that are not related to food safety, and could create artificial barriers to trade. Using risk assessment in international food control practice will allow to identify likelihoods of food contaminations along international food chain with a view to improve and strengthen international and local food control systems.[17]

Recognizing the EU’s striving for sustainable growth the major orientation will be the convergence of well-functioning fair competitiveness markets with well-connected and risk-based food control systems.

 

References

1.            Trade Policy Review WT/TPR/S/214/Rev.1 8 June 2009 (09-2701) // WORLD TRADE ORGANIZATION

2.            http://epp.eurostat.ec.europa.eu/tgm/refreshTableAction.do;jsessionid=9ea7974b30da18f0eef83bcd445fb755fae373fbfb52.e34SbxiPb3uSb40Lb34LaxqRb3iQe0?tab=table&plugin=1&pcode=tet00018&language=en

3.            http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tet00018&plugin=1

4.            http://unctadstat.unctad.org/ReportFolders/reportFolders.aspx

5.            COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Annual Growth Survey: advancing the EU's comprehensive response to the crisis /* COM(2011) 11 final*/‘© European Union, http://eur-lex.europa.eu/’

6.            COMMUNICATION FROM THE COMMISSION EUROPE 2020 A strategy for smart, sustainable and inclusive growth / *COM(2010) 2020*/‘© European Union, http://eur-lex.europa.eu/’

7.            Recommendation for a  COUNCIL RECOMMENDATION of 27.4.2010 on broad guidelines for the economic policies of the Member States and of the Union Part I of the Europe 2020 Integrated Guidelines /*COM(2010) 193 final*/ SEC(2010) 488 final/ ‘© European Union, http://eur-lex.europa.eu/’

8.            Report of the EVALUATION OF THE CODEX ALIMENTARIUS AND OTHER FAO AND WHO FOOD STANDARDS WORK // World Health Organization, Food and Agriculture Organization of the United Nations, 15 November 2002

9.             Trade Policy Review WT/TPR/S/214 2 March 2009 (09-1000) // WORLD TRADE ORGANIZATION RESTRICTED

10.         Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety. //  OJ L 31, 1.02.2002, p. 01. ‘© European Union, http://eur-lex.europa.eu/’

11.        Regulation (EC) No 882/2004 of the European Parliament and of the Council of 29 April 2004 on official controls performed to ensure the verification of compliance with feed and food law, animal health an animal welfare rules. //  OJ L 165, 30.04.2004.  Corrected and re-published in OJ L 191, 28.05.2004 p. 01. ‘© European Union, http://eur-lex.europa.eu/’

12.        Regulation (EC) No 852/2004  OJ L 139, 30.04.2004. Corrected and re-published in OJ L 226, 25.06.2004 p. 03.  Regulation (EC) No 852/2004 of the European Parliament and of the Council of 29 April 2004 on the hygiene of foodstuffs.  ‘© European Union, http://eur-lex.europa.eu/’

13.        Commission Regulation (EC) No 1881/2006 of 19 December 2006 setting maximum levels for certain contaminants in foodstuffs.  Commission Regulation (EC) No 1881/2006. OJ L 364, 20.12.2006, p. 05. ‘© European Union, http://eur-lex.europa.eu/’

14.        Overview report of a series of missions carried out in third countries between 2004 and 2010 to evaluate controls of pesticides in food of plant origin intended for export to the European Union. // http://ec.europa.eu/food/fvo/ir_search_en.cfm  - No  2010-6140-OR

15.        http://ec.europa.eu/food/fvo/specialreports/index_en.htm

16.        ASSURING FOOD SAFETY AND QUALITY: GUIDELINES FOR STRENGTHENING NATIONAL FOOD CONTROL SYSTEMS / Joint FAO/WHO Publication

17.        Food Quality and Safety Systems - A Training Manual on Food Hygiene and the Hazard Analysis and Critical Control Point (HACCP) System // FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS, Rome, 1998 © FAO 1998