_SWEEE20.02.

09 QUESTIONNAIRE ON SPS-RELATED PRIVATE STANDARDS PARAGUAY

PRODUCT-SPECIFIC INFORMATION Question 1. Product of export interest affected by private standards HS number (4-6-8 digit) Reply Sesame (seeds), groundnut (seeds), cotton (fibre), soybean (seeds), organic sugar, refined or raw. 1202.20.90 (GROUNDNUTS, SHELLED, COMMON GRAIN); 1201.00.90 (SOYBEAN, SEEDS); 1701.10.00 (SOYBEAN OIL, CRUDE); 15.07.90.00 (SOYBEAN OIL, REFINED); 1204.40.90 (SESAME, SEEDS); 5201.00.20 (COTTON, GINNED); 5203.00.00 (COTTON, CARDED OR COMBED); 1701.11.00 (SUGAR, RAW); 1701.99.00 (SUGAR, REFINED) Sesame seeds (organic); groundnut seeds (organic); cotton fibre (organic); organic sugar; soybean seeds, soybean oil Products under Good Agricultural and Good Manufacturing Practices. Chiefly Japan and the European Union. United States. Company/private trader Production cooperatives Production businesses Domestic-owned for the most part.

Full description (incl. raw or processed) Commodity scope (e.g. fresh produce, integrated, etc.)

2. 3. 4.

Identify the product's (main) export market(s) Retailer/company/private trader/entity imposing the private standard Identify the type of your domestic businesses whose exports need to meet the private standards (e.g. small, medium, large, national, foreign or multinational, private traders, farmers, etc.)

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PRODUCT-SPECIFIC INFORMATION Question 5. Description of the relevant private standard(s) applied in each of the product's export markets (See examples in Annex I) Reply

Collective international schemes (e.g., some schemes are applied in a number of countries)

ISO 22.000, adjustment in process European ecosocial standards (for sesame and soybeans), SA 8000, social accountability ANEC 41 and 71, commercial quality FOSFA 51, commercial quality No data.

Collective national schemes (e.g., some schemes are applied in one Member country in a particular market segment such as retailers of fresh fruits and vegetables) Individual firm schemes (e.g., particular manufacturer or retailer schemes operating at a company/firm level)

Some firms apply certification.

6.

Content of the private standard

Scope1 (e.g. food safety, environmental, etc.) SPS-related provisions included/ excluded in the private scheme2

Food safety, also encompassing environmental, commercial and labour quality aspects at different levels of development. Some private standards require more restrictive maximum residue limits (MRLs) for pesticides than those established by the WTO reference organizations (in this case the Codex Alimentarius). Our countries have difficulty meeting the requirement of microbiological and chemical analysis in ISO 17025certified laboratories, because we do not have such laboratories and samples have to be sent for analysis abroad, with the costs that this entails.

Date of entry into force/application

2007-2008, at national level.

The focus of this questionnaire is on those requirements relating to food safety and animal and plant

health.
2 It is important to note that in addition to private standards, some countries apply stricter standards than those recommended by the WTO reference organizations to exporting countries. Many such requirements have no sound scientific justification, such as the MRLs established by Russia.

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PRODUCT-SPECIFIC INFORMATION Question 7. Relevant Codex, IPPC or OIE standards (if any) for the product in question Codex documents: CODEX STAN 229 Analysis of Pesticide Residues: Recommended Methods 1993 1 2003 CODEX STAN 193 General Standard for Contaminants and Toxins in Foods CODEX STAN 200 Standard for Peanuts CAC/RCP 22 Recommended International Code of Hygienic Practice for Groundnuts (Peanuts) CAC/RCP 55 Code of Practice for the Prevention and Reduction of Aflatoxin Contamination in Peanuts Reply

Codex documents relevant to question 6: CAC/MRL 1 Maximum Residue Limits (MRLs) for Pesticides 2001 CAC/MRL 3 Extraneous Maximum Residue Limits (EMRLs) 2001 CAC/GL 65 1997 Harmonized Guidelines for Internal Quality Control in Analytical Chemistry Laboratories CODEX STAN 228 2001 General Methods of Analysis for Contaminants 1 2004 CODEX STAN 234 1999 Recommended Methods of Analysis and Sampling 2 2007 CAC/GL 40 1993 Guidelines on Good Laboratory Practice in Pesticide Residue Analysis 1 2003 CAC/GL 41 Analysis of Pesticide Residues: Portion of Commodities to which Codex MRLs Apply and which is Analyzed 1993 CAC/GL 27 1997 Guidelines for the Assessment of the Competence of Testing Laboratories Involved in the Import and Export Control of Foods CAC/GL 28 1995 International Harmonized Protocol for the Proficiency Testing of (Chemical) Analytical Laboratories

8.

Do the private standard(s) requirements for the product in question correspond to the relevant Codex, IPPC and OIE standards for that same product? Exceed the international standards SPS requirements are similar to those of the reference bodies but they cover other aspects such as management (ISO 22.000).

Do not exceed the international standards Specific differences/contradictions with the international standard Requirements go beyond the scope of SPS standards.

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PRODUCT-SPECIFIC INFORMATION Question 9. Do the private standard(s) requirements for the product in question correspond to the relevant official import requirements for that same product? Exceed the official requirements Most private standards exceed official requirements (some of which are already very demanding, such as those of the European Union and the United States). Reply

Do not exceed the official requirements Specific differences/contradictions with the official requirements

10. Do the private standard(s) requirements for the product in question correspond to official national regulatory requirements for that same product? Exceed the official regulatory requirements Do not exceed the official regulatory requirements Specific differences/contradictions with the official regulatory requirements Yes.

11. Negative (trade inhibiting) effects of the private standard(s) on the export of the product Difficulties/impediments to trade Data on trade impact (qualitative or quantitative) Cost of compliance with the standard(s) (if any) Cost of certification (if any) The main negative effects relate to local implementation and maintenance capacity, and the associated costs. No concrete data. The costs are related to implementation (infrastructure, equipment, training, etc.) Certification (inspection, analysis) Testing in ISO 17025-certified laboratories is very costly, as Paraguay has no such laboratories. The cost is high/very high for firms in Paraguay.

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PRODUCT-SPECIFIC INFORMATION Question Reply Paraguay has no ISO 17025-certified laboratories for SPS. The National Plant and Seed Quality and Health Service and National Animal Health Service laboratories are in the process of being accredited. The large number and range of private standards covering areas other than SPS (quality, labour, social accountability, etc.) at various stages of the chain, and for different customers and markets, pose difficulties for the countries concerned. Yes, there is an exclusionary effect on smallholders. Private standards do not facilitate market access for them, given the difficulties that arise in terms of access to information and the above-mentioned costs. In some cases, smallholders even have difficulty complying with official standards. Other specific/quantifiable examples of negative impact ANEP 41 weight and quality certification costs the seller around US$1/tonne.

Concerns related to accredited laboratories for certification (if any) Multiplication of different standards for the same product

Development impact (exclusionary effect of smallholders from supply chain)

12. Positive (trade creating) effects of the private standard(s) on the export of the product Additional market opportunity (if any) Market access and greater trust on the part of qualified suppliers. In the developing countries, they impede trade in agricultural products. Data on trade impact (qualitative or quantitative) Other specific examples of positive impact (e.g. premium prices) Benefits obtained from compliance with the private standards Do the private standards facilitate compliance with the international standards? Specific examples of where this has occurred/is occurring? No data. Yes. Application of the standards does lead to premium prices. Market access and selection as qualified suppliers. Not always.

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PRODUCT-SPECIFIC INFORMATION Question Do the private standards facilitate compliance with official SPS requirements (national requirements and/or the international standards)? Specific examples of where this has occurred/is occurring? Help in meeting development objectives No. Reply

No.

13. Information on recognition of compliance with the private standard(s) for the export product Recognition of exporters' certification or of available certification capacity (e.g., national certification available or certification by international body used) Benchmarking mechanism with other standards Identification/categorization of domestic businesses that meet the private standards (e.g. small, medium, large, national, foreign or multinational) There are internationally accredited certification bodies in Paraguay.

No data. Production cooperatives Production businesses Domestic-owned for the most part. Yes, international cooperation for the implementation of ISO standards.

14. Any technical/financial assistance received to assist compliance with the private standard(s); and from who (government, standard setter, NGO, etc.)? 15. What is the main concern at issue regarding the private standard(s) faced by your export product(s)? Transparency

Access to the standards involves payment; the protocols are not available to the public and are known to companies only once these have signed up for certification. Most private standards do not allow those who have to comply with them to take part in their preparation. Every new version of a private standard produces changes that generally add to the difficulties of compliance.

Inclusiveness Predictability

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PRODUCT-SPECIFIC INFORMATION Question Harmonization Reply Not only private standards need to be harmonized but also the requirements imposed on suppliers by the various importing countries, e.g. regarding maximum residue limits. If we take the example of ISO 22.000 mentioned above, we have found no contradiction in the area of SPS with the standards laid down by the international reference bodies. However, we know that there are private standards which are a great deal more restrictive than the reference bodies' standards and that they are not based on scientific evidence. Companies have to comply with many standards of identical scope. Costs are related to compliance (infrastructure, equipment, training, etc.) and certification (inspection, analysis). Testing by ISO 17025-certified laboratories is very expensive, as Paraguay has no such laboratories. The cost is high/very high for firms in Paraguay. Possibilities to challenge the decisions of the standard setter or of the certification body There are no or we are not aware of any procedures for challenging non-conformity of any kind with the terms established by the buyers, meaning that exporters simply meet the requirements imposed in order to hold on to their markets. WTO Agreement on the Application of Sanitary and Phytosanitary Measures Paragraph 1 of Article 1 "General Provisions" Article 3 "Harmonization" Article 4 "Equivalence" Article 5 "Risk assessment and ALP" Article 7 "Transparency" Article 8 "Control, inspection and approval" Article 9 "Technical Assistance" Article 10 "Special and Differential Treatment" Article 13 "Implementation" Paragraph 1 of Annex A.1 "Definitions"

Scientific justification

Number of standards faced Cost of compliance/availability of compliance certification

16. Identify which, if any, provisions of the SPS Agreement are relevant with regard to the difficulties arising from the requirements of the private standard(s)?

17. For each product, describe what practical steps, if any, have been/are taken (or will be taken) with the export market to resolve the trade concerns posed by the private standard(s)? At the government level Government initiatives have been taken to upgrade laboratories and inspection bodies for certification. Efforts are also being made in the regulatory and capacity-building fields.

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PRODUCT-SPECIFIC INFORMATION Question At the private trader/businesses level Reply The private sector is adjusting in order to comply with private standards so as to gain and maintain market access. Many finished products fail to reflect the effort and high costs involved in implementing standards.

18. What other issues does your product face on export markets in relation to the requirements established by private standards in those markets? 19. Are you aware of any private standards imposed by your domestic businesses, private traders, etc.? For which products? For what reasons? Which country(ies) are affected? Any concerns raised by foreign exporters?

No.

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