New US and EU Policies Threaten Philippine Food Exports
Tuesday, 04 August 2009
Anytime soon the
U.S. will be preparing to sign into law the proposed FDA Food Safety Modernization Act. If things turnout as expected, the new
US law will take effect on January 2, 2010. On the other hand, the European Union is also set to implement its Fishing Regulation: Catch-Certification Scheme that will cover all export of fishery products to the EU. This new EU requirement will take effect on January 1, 2010. These new non-tariff trade barriers of the
US and the EU are expected to put added pressured on the food export industry of the
Philippines.
The proposed FDA Food Safety Modernization Act of the
US contains provisions that will make exporting of food, drugs and cosmetic products to the
US more difficult. The new US law will require (a) Foreign Supplier Verification Program, (b) Authority to require import certification for food and (c) Prior notice of imported food shipments, just to name a few.
In the case of the EU, the Fishing Regulation: Catch-Certification Scheme will require product traceability at all stages of production from catching, to processing, to transporting and marketing of all fishery products exported to the EU. Fishing companies in every country will be required to issue such certification while the concerned government authority in the respective countries are required to validate the certificates in accordance with the requirements of EU.
The
U.S. and E.U. are the top two (2) largest food importers in the world. Both are also the top two (2) markets for food products of the
Philippines. The total food exports of the
Philippines averaged averaged around $ 1.7 Billion per year in 2005 and 2006. About 60% to 70% of these food exports are comprised of fresh fruits, processed fruits, frozen marine and processed marine products.
Sometime in May 2009, a national newspaper reported that 15 containers of food exports to the
US from the
Philippines were denied entry for various violations on quality and safety standards. Two weeks ago, Philexport National reported that the Bureau of Fisheries and Aquatic Resources (BFAR) sounded off the alarm that they will have difficulties in the implementation of EU’s Catch-Certification Scheme by January 1, 2010. Food exports to US and EU are expected to decline further if no bold and drastic measures are taken by the industry to address these issues .
Luckily for Cebu-based foodcompanies, Philexport Cebu is now looking for ways to help food exporterscomply with these strict requirements and standards. Philexport’s Local Export Experts are now being engaged to help Food Export Sector create a Sectoral Export Marketing Plan (SEMP) which will set the road map on how to penetrate and facilitate the entry of our food products to difficult markets like the
US and the EU.
Philexport Cebu also partnered withMr. Vincent Duncan, an American expert on food, drug and cosmetic exports to the
US.He is a former United States Food & Drug Administration Certified Investigator, having served the
US agency for more than 18 years. Mr. Duncan opened a consultancy firm here in Talisay,
Cebu. Mr. Duncan’s services were endorsed by the Department of Trade & Industry. While he was still employed with the USFDA, Mr. Duncan observed the high incidence of “refusals” of products from the
Philippines by the USFDA resulting in millions of financial losses for the exporters.
Mr. Duncan plans to help facilitate the entry of
Philippines food products to the
USA by ensuring that these products are in compliance with USFDA regulations. Mr.Duncan also conducts trainings for the food industry on FDA regulation and food safety standards. He is also a certified HACCP inspector as well as as HACCP trainer. He also conducts GMP Inspections on exporters’ facilities for GMP compliance. Philiexport is pleased to have Mr. Duncan as one of its “local” experts for food safety and standards.
