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CHALLENGES FACED BY CHALLENGES FACED BY DEVELOPING COUNTRIES DEVELOPING COUNTRIES

AND PRACTICAL AND PRACTICAL APPROACHES TO ACHIEVE APPROACHES TO ACHIEVE FISH SAFETY AND QUALITY FISH SAFETY AND QUALITY TO BE ABLE TO COMPETE IN TO BE ABLE TO COMPETE IN THE LIBERALIZED GLOBAL THE LIBERALIZED GLOBAL

MARKET:MARKET:

N. K. Gitonga (Mrs.)N. K. Gitonga (Mrs.)FISHAFRICAFISHAFRICA

n.gitonga@fishafrica.co.ken.gitonga@fishafrica.co.kewww.fishafrica.co.kewww.fishafrica.co.ke

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Developing Countries’ Developing Countries’ Contribution to global fish tradeContribution to global fish trade•• Developing countries contribute over Developing countries contribute over

50% of the world fish trade. 50% of the world fish trade.

•• Net earnings of foreign exchange from Net earnings of foreign exchange from fish trade, in developing countries have fish trade, in developing countries have continued to rise contributing more continued to rise contributing more than meat, tea, bananas and coffee put than meat, tea, bananas and coffee put together. together.

•• About 58% of fish consumed in the EU About 58% of fish consumed in the EU come from noncome from non--EU waters, mainly from EU waters, mainly from developing countriesdeveloping countries

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Major Challenges with respect to Major Challenges with respect to Fisheries GlobalizationFisheries Globalization

•• International Regulatory Framework for International Regulatory Framework for Fish Safety and Quality.Fish Safety and Quality.

–– WTO AgreementsWTO Agreements•• Sanitary and Phytosanitary (SPS) Sanitary and Phytosanitary (SPS)

AgreementAgreement

•• Technical Barrier to Trade (TBT) Technical Barrier to Trade (TBT) AgreementAgreement

•• Fish Safety and Quality Assurance and Fish Safety and Quality Assurance and the Global Perspectivethe Global Perspective

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SPS Agreement challenges for SPS Agreement challenges for Developing CountriesDeveloping Countries

•• Inability to participate effectively in the Inability to participate effectively in the dispute settlement proceduresdispute settlement procedures

•• Failure to demonstrate that domestic Failure to demonstrate that domestic measures are equivalent to developed measures are equivalent to developed countries requirements due to a poor scientific countries requirements due to a poor scientific and technical infrastructure in many and technical infrastructure in many developing countries. developing countries.

•• Lack of financial or technical resources to Lack of financial or technical resources to implement stringent requirements. implement stringent requirements.

•• Lack of capacity to take a significant role in Lack of capacity to take a significant role in the standard setting process the standard setting process

•• Weak position of developing countries to Weak position of developing countries to mitigate the application of unjustified SPS mitigate the application of unjustified SPS measuresmeasures

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Effects of application of SPS Effects of application of SPS Measures on fish tradeMeasures on fish trade

• Embargo of fish trade with Kenya by Spain for alleged salmonella presence in fish.

• Lengthy and unfair EU fish bans

• Slow harmonization (equivalency) process.

• Application of SPS measures to bar trade without sufficient Scientific evidence (case of cholera ban).

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Technical Barrier to Trade (TBT) Technical Barrier to Trade (TBT) AgreementAgreement

•• The TBT Agreement includes measures The TBT Agreement includes measures designed to protect consumer against designed to protect consumer against deception and economic fraud. deception and economic fraud.

•• The Agreement covers standards relating to The Agreement covers standards relating to all types of products including industrial all types of products including industrial products and quality requirement for foods, products and quality requirement for foods, except those covered by SPS measures.except those covered by SPS measures.

•• The objective of TBT The objective of TBT Agreement isAgreement is to prevent to prevent use of national and regional technical use of national and regional technical requirements or standards in general, as requirements or standards in general, as unjustified technical barriers to trade. unjustified technical barriers to trade.

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Interventions to ensure fair trade in Interventions to ensure fair trade in Fish and Fish ProductsFish and Fish Products

•• Both SPS and TBT Agreements require Both SPS and TBT Agreements require member countries to provide technical member countries to provide technical assistance to developing countriesassistance to developing countries

•• Special and differential treatment provisions Special and differential treatment provisions call for consideration of needs of developing call for consideration of needs of developing countries when preparing and implementing countries when preparing and implementing SPS measures. SPS measures.

•• Longer time frames for compliance on Longer time frames for compliance on products of interest to developing countries. products of interest to developing countries. (This consideration in the agreements is (This consideration in the agreements is however, hardly ever applied even though the however, hardly ever applied even though the fish industry in most African countries play an fish industry in most African countries play an important role in the economies of developing important role in the economies of developing countries.)countries.)

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How to overcome the unfair trade How to overcome the unfair trade barriers. (1) barriers. (1)

•• Capacity building Capacity building –– Training of Trainers (TOT) on various fields relevant Training of Trainers (TOT) on various fields relevant

to trade and food safety, to trade and food safety, –– Building capacity ( human resources and equipment) Building capacity ( human resources and equipment)

for an effective quality and safety assurance for an effective quality and safety assurance systemssystems

–– Negotiations skills, Negotiations skills, –– Improvement of infrastructure, especially the cold Improvement of infrastructure, especially the cold

chain.chain.–– Establishment of testing and referral laboratories,Establishment of testing and referral laboratories,–– Building of good and credible scientific database, Building of good and credible scientific database,

through regular sampling and analysis of samples, through regular sampling and analysis of samples, to counter any false claims. to counter any false claims.

–– Development of bankable project proposals to help in Development of bankable project proposals to help in accessing financial resourcesaccessing financial resources..

–– Participation in standard setting committeesParticipation in standard setting committees

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How to overcome the unfair trade How to overcome the unfair trade barriers. (2)barriers. (2)

•• Financial resourcesFinancial resources–– Establish a sustainable funding mechanism; Establish a sustainable funding mechanism; –– Mobilisation of funds from governments and Mobilisation of funds from governments and

development partnersdevelopment partners, , •• Policies Policies –– Development of sound policies and strategies for Development of sound policies and strategies for

food safety and quality.food safety and quality.–– Development of an effective and relevant legal Development of an effective and relevant legal

framework to facilitate good hygiene practices. framework to facilitate good hygiene practices.

•• Co ordination and harmonisation of Co ordination and harmonisation of important requirementsimportant requirements–– Given the complexity of SPS issues and other Given the complexity of SPS issues and other

requirements by importing countries, harmonization requirements by importing countries, harmonization or equivalent standards and not sameness would be or equivalent standards and not sameness would be the best option. the best option.

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Fish inspection and quality control Fish inspection and quality control systems challengesystems challenge

•• The major challenges the region developing The major challenges the region developing countries face in the development of Fish countries face in the development of Fish Inspection and Quality Control Systems Inspection and Quality Control Systems include:include:--–– Insufficient financial resources, Insufficient financial resources, –– poor infrastructure, poor infrastructure, –– inadequate technical and scientific expertise, inadequate technical and scientific expertise, –– poor understanding of regulations and therefore poor poor understanding of regulations and therefore poor

application, insufficient awareness of fish inspection application, insufficient awareness of fish inspection and quality Assurance by policy makers, and quality Assurance by policy makers,

–– inadequate harmonization at the regional and subinadequate harmonization at the regional and sub--regional levels, regional levels,

–– inadequate capacity for Fish Inspection Quality inadequate capacity for Fish Inspection Quality Assurance, and Assurance, and

–– poor communication and networking within and poor communication and networking within and between countries.between countries.

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How to overcome Fish inspection and How to overcome Fish inspection and quality control systems challenge (1)quality control systems challenge (1)•• In order to address these challenges, it In order to address these challenges, it

will be necessary to: will be necessary to: --

–– Explore possibilities to mobilize national Explore possibilities to mobilize national resources, e.g. Fish Levy for Fisheries resources, e.g. Fish Levy for Fisheries development and biodiversity conservation.development and biodiversity conservation.

–– Build national and regional capacities to Build national and regional capacities to address emerging challenges such as risk address emerging challenges such as risk analysis, HACCP etc. Technical assistance analysis, HACCP etc. Technical assistance could be solicited from FAO and the EU.could be solicited from FAO and the EU.

–– Build fish inspection and quality and safety Build fish inspection and quality and safety assurance capacity at national level assurance capacity at national level through training of trainers and improving through training of trainers and improving on infrastructure.on infrastructure.

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How to overcome Fish inspection and How to overcome Fish inspection and quality control systems challenge (2)quality control systems challenge (2)–– Upgrade analytical capabilities at national Upgrade analytical capabilities at national

and regional level to include training and regional level to include training equipment, and analytical skills.equipment, and analytical skills.

–– Develop and strengthen coDevelop and strengthen co--operation and operation and exchange of information with other regional exchange of information with other regional and international institutions. and international institutions.

–– Create databases on fish inspection and Create databases on fish inspection and Quality Assurance e.g. Standard Operating Quality Assurance e.g. Standard Operating Procedures, Codes of Practice etc. This Procedures, Codes of Practice etc. This would assist in the harmonization of fishing would assist in the harmonization of fishing inspection and Qualityinspection and Quality

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Other ChallengesOther Challenges

•• Frequent changes in the importing countries Frequent changes in the importing countries requirements; requirements;

–– Compliance in new food laws and requirements of Compliance in new food laws and requirements of importing countries e.g. the new EU importing countries e.g. the new EU Regulation Regulation 178/2002, which has h178/2002, which has hharmonized hygiene harmonized hygiene requirements currently scattered over 17 EU requirements currently scattered over 17 EU Regulations and three DirectivesRegulations and three Directives,,

•• Product Certification Product Certification –– Origin; Origin; The marketing of fish requires that the The marketing of fish requires that the

country of origin of the marketed fish guarantee its country of origin of the marketed fish guarantee its quality and safety. quality and safety.

–– EcoEco--labelling;labelling;

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Other ChallengesOther Challenges

•• Traceability Traceability This is another phenomenon that the developing This is another phenomenon that the developing countries have to comply with, though ill equipped.countries have to comply with, though ill equipped.

•• Rapid Alert System for Food and Feed (RASFF)Rapid Alert System for Food and Feed (RASFF)The European Commission publishes weekly alert and The European Commission publishes weekly alert and information notification. Though this is meant to information notification. Though this is meant to protect consumers and advise them on choices it also protect consumers and advise them on choices it also impacts negatively on the developing countries’ fish impacts negatively on the developing countries’ fish exports. exports.

•• Precautionary Principle:Precautionary Principle:Although this principle is meant to guide the decision Although this principle is meant to guide the decision makers and or risk managers and though the regulation makers and or risk managers and though the regulation stipulates that such decision must comply with the stipulates that such decision must comply with the principles on nonprinciples on non--discrimination, it opens avenues for discrimination, it opens avenues for application of unfair trade barriers. application of unfair trade barriers.

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Effects of Trade LiberalizationEffects of Trade Liberalization

•• AdvantagesAdvantages–– Trade Liberalization has affected Fisheries subTrade Liberalization has affected Fisheries sub--

sector positively. The East African fish products can sector positively. The East African fish products can compete with any other fish products globally for compete with any other fish products globally for international markets with respect to quality and international markets with respect to quality and safetysafety..

–– Economic empowerment for fishers.Economic empowerment for fishers. Better prices are Better prices are realised by fishers due to high demand for fish as realised by fishers due to high demand for fish as raw materialraw material

–– Development of auxiliary activities, such as net Development of auxiliary activities, such as net making, boat building, fish transportationmaking, boat building, fish transportation

•• Disadvantages Disadvantages –– Uncertainty and vulnerability of the export market Uncertainty and vulnerability of the export market

and therefore income uncertainty for small scale and therefore income uncertainty for small scale fishersfishers

–– Shortage of fish for domestic consumptionShortage of fish for domestic consumption–– Overexploitation of natural fishery resourcesOverexploitation of natural fishery resources

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THE EAST AFRICAN COMMUNITY THE EAST AFRICAN COMMUNITY (EAC) STATES PERSPECTIVE (EAC) STATES PERSPECTIVE •• The Fish Industry in East AfricaThe Fish Industry in East Africa–– Fish is also an important source of Government Fish is also an important source of Government

revenue and as an export commodity, fish earns the revenue and as an export commodity, fish earns the three countries substantial foreign exchange; US$ three countries substantial foreign exchange; US$ 55 million for Kenya, US$ 85 million for Uganda and 55 million for Kenya, US$ 85 million for Uganda and over US$ 100 million for Tanzania.over US$ 100 million for Tanzania.

–– The fisheries subThe fisheries sub--sector contributes about 3% to the sector contributes about 3% to the GDPs of Uganda and Tanzania and about 0.4% to GDPs of Uganda and Tanzania and about 0.4% to Kenya’s GDP. Kenya’s GDP.

–– Most of the fish landed in Uganda, Kenya and Most of the fish landed in Uganda, Kenya and Tanzania are fished from L. Victoria. Tanzania are fished from L. Victoria.

–– Lake Victoria, therefore, contributes approximately Lake Victoria, therefore, contributes approximately 49 % of the total fish landed in Uganda, 92 % of the 49 % of the total fish landed in Uganda, 92 % of the total fish landed in Kenya and 61% of the total fish total fish landed in Kenya and 61% of the total fish landed in Tanzania.landed in Tanzania.

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Map of East AfricaMap of East Africa

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Lake VictoriaLake Victoria

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Fisheries resources in East AfricaFisheries resources in East Africa

•• Lake Victoria is the major economic fisheries resource of Lake Victoria is the major economic fisheries resource of the three countries, from which the world traded fish the three countries, from which the world traded fish commodity (Nile perch) is harvested. international commodity (Nile perch) is harvested. international markets.markets.

•• The marine fisheries are underThe marine fisheries are under--exploited by both exploited by both Tanzania and Kenya. Tanzania and Kenya.

•• The marine fish trade commodity in these two countries The marine fish trade commodity in these two countries includes prawns, lobsters, octopus and assorted fin includes prawns, lobsters, octopus and assorted fin fish. fish.

•• Most of tuna resources are exploited and processed by Most of tuna resources are exploited and processed by Distant Waters Fishing Nations.Distant Waters Fishing Nations.

•• Kenya processes and exports tuna loins. Kenya processes and exports tuna loins. •• There is no other established landThere is no other established land--based industry for based industry for

tuna, despite its abundance in both Kenyan and tuna, despite its abundance in both Kenyan and Tanzanian EEZs. Tanzanian EEZs.

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The Nile Perch IndustryThe Nile Perch Industry

•• The Nile perch is an exotic fish introduced into The Nile perch is an exotic fish introduced into the L. Victoria in the 1960s and again early the L. Victoria in the 1960s and again early 1970s. The Nile perch fishery has gained so 1970s. The Nile perch fishery has gained so much economic importance in the past 10 much economic importance in the past 10 years that it is now the most important fish years that it is now the most important fish export commodity in the East African region.export commodity in the East African region.

•• Nile perch accounts for about 53% of the total Nile perch accounts for about 53% of the total fish production in Kenya and over 80% of fish production in Kenya and over 80% of Kenyan fish exports. It provides direct Kenyan fish exports. It provides direct employment to over 200,000 Kenyans.employment to over 200,000 Kenyans.

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THE NILE PERCHTHE NILE PERCH

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Nile perch Exports ProductsNile perch Exports Products

Nile perch filletNile perch fillet Nile perch loinsNile perch loins

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Nile perch Exports ProductsNile perch Exports Products

Fish MawsFish Maws Nile Perch SteaksNile Perch Steaks

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Nile perch By productsNile perch By products

Nile Perch Skins for high quality leatherNile Perch Skins for high quality leather

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Fish MarketingFish Marketing•• The East African countries have been able to The East African countries have been able to

penetrate the international market for fishery penetrate the international market for fishery products and compete well in a liberalized products and compete well in a liberalized economy because of their advancement in economy because of their advancement in implementation of fish quality and safety implementation of fish quality and safety standards,standards,

•• Fish exports which are mainly NileFish exports which are mainly Nile--perchperch--based products, earn the three countries based products, earn the three countries approximately US $ 350 million in Foreign approximately US $ 350 million in Foreign exchange.exchange.

•• There is huge fisheries potential in the Kenyan There is huge fisheries potential in the Kenyan and Tanzanian EEZs.and Tanzanian EEZs.

•• EEZ resources are currently exploited by EEZ resources are currently exploited by Distant Waters Fishing Nations (DWFN), Distant Waters Fishing Nations (DWFN), without commensurate benefits to these without commensurate benefits to these countriescountries

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Other Fish export productsOther Fish export products

OctopusOctopus

•• Tilapia Tilapia

•• Shrimps Shrimps ------------------------------

•• Tuna Tuna --------

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Fish Marketing Fish Marketing Challenges in EACChallenges in EAC

•• Unfair application of nonUnfair application of non--tariff trade barriers such as tariff trade barriers such as SPS measures by importing countries.SPS measures by importing countries.

•• Lack of capacity in trade agreements skills,Lack of capacity in trade agreements skills,

•• Lack of capacity to mitigate against unfair trade barriers Lack of capacity to mitigate against unfair trade barriers e.g. cholera bane.g. cholera ban

•• Lack of an effective Monitoring Control and Surveillance Lack of an effective Monitoring Control and Surveillance System to ensure the DWFN operating in Kenya’s and System to ensure the DWFN operating in Kenya’s and Tanzania’s EEZs are monitored to realize more benefits Tanzania’s EEZs are monitored to realize more benefits for the countries. for the countries.

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SPS Measures challenges SPS Measures challenges

•• EU Bans on Fish Exports from EAEU Bans on Fish Exports from EA–– 1997: Claims of contamination with 1997: Claims of contamination with Salmonella Salmonella by by

Spain and ItalySpain and Italy

–– 1998: As a result of cholera outbreak in East Africa 1998: As a result of cholera outbreak in East Africa and Mozambiqueand Mozambique

–– 1999: Suspicion of presence of pesticides in L. 1999: Suspicion of presence of pesticides in L. Victoria.Victoria.

–– The last ban was lifted in April 2000 for Tanzania, The last ban was lifted in April 2000 for Tanzania, August 2000 for Uganda and November 2000 for August 2000 for Uganda and November 2000 for Kenya.Kenya.

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Harmonization with EU Regulations Harmonization with EU Regulations ChallengeChallenge

•• The harmonization process with EU Regulations The harmonization process with EU Regulations were slow and tedious and yet EAC had to were slow and tedious and yet EAC had to comply since the EU is their major market. This comply since the EU is their major market. This was eventually achieved and all the three East was eventually achieved and all the three East African States are now on list I of the EU fish African States are now on list I of the EU fish exporters categories :exporters categories :

–– Tanzania was upgraded to List I in 1997, Tanzania was upgraded to List I in 1997, downgraded and later upgraded in 2002downgraded and later upgraded in 2002

–– Uganda in 2003 and Uganda in 2003 and

–– Kenya in 2004Kenya in 2004

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EAC Major Impediments to EAC Major Impediments to Achieving Fish Safety and Achieving Fish Safety and

Quality Standards.Quality Standards.•• Unclear roles of CAsUnclear roles of CAs

•• Multiplicity of certifying agencies.Multiplicity of certifying agencies.

•• Inconsistent safety and quality Inconsistent safety and quality monitoring systems.monitoring systems.

•• Inadequate analytical laboratories. Inadequate analytical laboratories.

•• Poor upstream cold chain Poor upstream cold chain infrastructure. infrastructure.

•• Inadequate data on sampling and Inadequate data on sampling and AnalysisAnalysis

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Competent Authorities (CA) in Competent Authorities (CA) in EACEAC

•• In order to access EU markets, it was In order to access EU markets, it was mandatory to establish Competent mandatory to establish Competent Authorities and EAC achieved this by :Authorities and EAC achieved this by :–– Legislating Fisheries Departments of the Legislating Fisheries Departments of the

Ministry responsible for fisheries as CAsMinistry responsible for fisheries as CAs–– Enacting Fish Safety and Safety Enacting Fish Safety and Safety

Legislations Legislations –– Training fish inspectors in HACCPTraining fish inspectors in HACCP-- based based

inspections.inspections.–– Putting in place effective and professional Putting in place effective and professional

procedures for fish inspections and procedures for fish inspections and certification of quality and safety of fish certification of quality and safety of fish and fish productsand fish products..

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Sampling and AnalysisSampling and Analysis

•• Sampling for pesticide residue analysis is Sampling for pesticide residue analysis is still onstill on--going going

•• Samples of water, fish and sediments are Samples of water, fish and sediments are regularly analyzed for pesticide residues.regularly analyzed for pesticide residues.

•• Results of analysis have been satisfactory Results of analysis have been satisfactory as they have shown no detection of as they have shown no detection of pesticides at the level of Detection (LOD)pesticides at the level of Detection (LOD)

•• Routine analysis of fish and swab samples Routine analysis of fish and swab samples in fish processing establishmentsin fish processing establishments

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Private Sector Fish Processing and Private Sector Fish Processing and Export AssociationsExport Associations

Fish Processors and Exporters member driven Fish Processors and Exporters member driven Associations have assisted to maintain own Associations have assisted to maintain own fish safety and quality controls through code fish safety and quality controls through code of practices:of practices:

•• Association of Fish Processors and Association of Fish Processors and Exporters of Kenya (AFIPEK)Exporters of Kenya (AFIPEK)

•• Uganda Fish Processors and Exporters Uganda Fish Processors and Exporters Association (UFPEA)Association (UFPEA)

•• Lake Victoria Fish Processors and Exporters Lake Victoria Fish Processors and Exporters Association of Tanzania (LVFPAT)Association of Tanzania (LVFPAT)

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The Regional Association(EAPA)The Regional Association(EAPA)

•• The three Associations are members of The three Associations are members of the East African Processors Associationthe East African Processors Association

•• The role of EAPA:The role of EAPA:–– To ensure the three associations To ensure the three associations

develop and adhere to their Codes of develop and adhere to their Codes of practice practice –– To collaborate with the governments To collaborate with the governments

to ensure sustainable utilization of to ensure sustainable utilization of Nile perch, their major role material.Nile perch, their major role material.–– Regulate conduct of members of Regulate conduct of members of

Associations. Associations.

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Recent Fish Trade Developments Recent Fish Trade Developments and Challengesand Challenges

•• TradeTrade--MarkMark: The Nile perch is now registered : The Nile perch is now registered as “L. Victoria Perch” through LVFO. as “L. Victoria Perch” through LVFO.

•• Value additionValue addition: To maximize revenues on fish : To maximize revenues on fish products and enhance sustainable products and enhance sustainable management of resource.management of resource.

•• Value Chain ReductionValue Chain Reduction: To bridge the gap : To bridge the gap between FOB value and Retail prices.between FOB value and Retail prices.

•• Slot SizeSlot Size implementationimplementation•• SPSSPS issueissue•• Harmonisation Harmonisation of of Fish Inspection and Quality Fish Inspection and Quality

Assurance Standards and CertificationAssurance Standards and Certification in EA in EA is onis on--goinggoing

•• EcolabellingEcolabelling processes have been initiatedprocesses have been initiated