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International Standards and International

Agencies – Why Should We Care?

Päivi JulkunenThe Coca-Cola Company

Atlanta, GA, USA

Outline

t International agencies and international food standards (WTO, WHO, FAO, CODEX)

t Current issues

t Trends

t How do we address these issues as an industry?

WHY SHOULD WE CARE?

t International standards influence national regulations and vice versa

t If industry is not participating in standards development, governments and consumer advocacy groups will set them for us

t Harmonized standards create cost savings for international companies (food additives, flavors, export)

t International standards and guidelines promote consumer safety and fair trade practices, especially in developing countries - a growing market for beverage companies

THE PLAYERS

t World Trade Organization (WTO)

t SPS and TBT Agreements

t World Health Organization (WHO)

t Expert panels, health policies

t Food and Agriculture Organization (FAO)

t Food Standards Programme

t Codex Alimentarius Commission (CAC)

t International standards and guidelines

World Trade Organization (WTO)

t To promote fair competition

t To promote trade without discrimination

t Established: January 1, 1995

www.wto.org

ObjectivesObjectives

Food Safety and WTO

t WTO agreements provide the legal ground-rules for international commerce – they are contracts binding governments to keep their trade policies within agreed limits

t Sanitary Phytosanitary Measures Agreement (SPS)

t Technical Barriers to Trade Agreement (TBT)

SPS Agreement

t Control of Veterinary Drugs

t Pesticide Evaluation

t Food Additives

t Food Contaminants

Covers all Food Hygiene Measures and Food Safety IssuesCovers all Food Hygiene Measures and Food Safety Issues

National SPS Measurest Must be scientifically justified (Art. 2.2)

t Do not arbitrarily or unjustifiably discriminate between members (Art. 2.2)

t Shall not be applied in a manner which would constitute a disguised restriction on international trade (Art. 2.3)

t Are not more restrictive to trade than is necessary to provide the chosen appropriate level of protection (Art. 3.3)

t Established and maintained in an open and transparent manner (Annex B)

SPS Measures – International Link

t Sanitary and phytosanitary (SPS) measures should be harmonized on as wide a basis as possible (SPS Art. 3.1)

t SPS measures should be based on international standards, guidelines or recommendations (SPS Art. 3.1)

t International standards, guidelines and recommendations are defined for food safety as those established by Codex AlimentariusCommission (Annex A)

If there is scientific justification, members may introduce or maintain SPS measures which may result in a higher level of SPS protection than would be achieved by measures based on Codex. (SPS Art. 3.3)

EXCEPTION

Technical Barriers to Trade (TBT)

To prevent use of national or regional technical requirements or standards as unjustified barriers to trade.

Encourages countries to

tuse international standards where appropriate

trecognize each other’s testing procedures

ObjectiveObjective

The Codex Alimentarius

A collection of international food standards

www.codexalimentarius.net

Codex Alimentarius Commission

t Founded 1963

t United Nations Organization (parents: FAO and WHO)

t 168 Member Countries and one member organization (EC)

Codex Alimentarius Commission

t Protecting health of consumers

t Ensuring fair trade practices

t Promoting coordination of all food standards work

t Determining priorities and initiating/guiding preparation of standards

PurposePurpose

Codex Alimentarius CommissionCODEX ALIMENTARIUSCODEX ALIMENTARIUS

COMMISSIONCOMMISSIONFAO/WHO

SECRETARIATEXECUTIVECOMMITTEE

SUBSIDIARY BODIES OF THE

COMMISSION

WORLD WIDECOMMODITY CODEX

COMMITTEES

AD HOC INTERGOVERNMENTALTASK FORCES

REGIONALCOORDINATING

COMMITTEES

WORLD WIDEGENERAL SUBJECT

CODEX COMMITTEES

IMPORT/EXPORTINSPECTION ANDCERTIFICATION

(Australia)

RESIDUES OFVETERINARY

DRUGS IN FOOD(USA)

GENERALPRINCIPLES

(France)

FOODADDITIVES ANDCONTAMINANTS

(Netherlands)

FOODLABELING(Canada)

PESTICIDERESIDUES

(Netherlands)

FOODHYGIENE

(USA)

ANALYSIS ANDSAMPLING(Hungary)

COCOA PRODUCTSAND CHOCOLATE

(Switzerland)

FISH AND FISHERYPRODUCTS

(Norway)

SUGARS(United Kingdom)

VEGETABLEPROTEINS(Canada)

PROCESSEDFRUITS AND VEGETABLES

(USA)MEAT HYGIENE(New Zealand)

FATS AND OILS(United Kingdom)

FOODSDERIVED FROM

BIOTECHNOLOGY(Japan)

AFRICA

NATURALMINERAL WATERS

(Switzerland)

CEREALS, PULSESAND LEGUMES

(USA)

SOUPS ANDBROTHS

(Switzerland)

MILK AND MILKPRODUCTS

(New Zealand)

TROPICAL FRESHFRUITS & VEGETABLES

(Mexico)

ASIA

EUROPE

LATIN AMERICAAND THE

CARIBBEAN

NUTRITION & FOODS FOR SPECIAL

DIETARY USES(Germany)

NEAR EASTANIMALFEEDING(Denmark)

FRUIT &VEGETABLE

JUICES(Brazil)

NORTH AMERICAAND THE

SOUTH-WESTPACIFIC

Codex “Sanitary” StandardsAre Based On:

t Joint FAO/WHO Expert Committee on Food Additives (JECFA)

t Joint FAO/WHO Meeting on Pesticide Residues (JMPR)

t Joint FAO/WHO Meetings on Microbial Risk Assessment (JEMRA)

t FAO and WHO ad hoc Technical and Expert Consultations (e.g., food allergens)

Codex - Current Issues

t General Standards for Food Additives and Contaminants

t Biotech Labeling Guidelines

t Traceability/Product tracing rules

t Nutrition Labeling Guidelines

t Guidelines for the Use of Nutrition and Health Claims

t Advertising and Codex

t Quantitative Ingredient Declaration

t Country of Origin Labeling

Biotech Labeling

t EC vs. other trading blocks (e.g., Argentina, Australia, Canada, USA)

t In product vs. method of production

t Mandatory and/or optional

t Systematic and sequential approach vs. advance both regimes at the same time

TRACEABILITY/PRODUCT TRACING

Definition:

Traceability/product tracing: The ability to follow the movement of a food through specified stage(s) of production, processing and distribution.

(by the CCGP May 3-7, 2004)

BUT THE DEVIL WILL BE IN THE DETAILS

TRACEABILITY/PRODUCT TRACING

t Preliminary Set of Principles on Traceability/ Product Tracing prepared by Australia (April 2004)

t Australia will host a Codex meeting in December 2005 (Codex Committee on Food Import and Export Certification and Inspection Systems)

Nutrition & Health Claims

t Guidelines for Use of Health and Nutrition Claims (May 2004)

- Scope includes both food labeling and advertising(where required by authorities having jurisdiction)

- Definitions for nutrient function claims, enhanced function claims and reduction of risk claims

- Conditions for permitting health claims

- Labeling information (quantity, target group, how to use, advice to vulnerable groups, maximum safe intake, full nutrition labeling)

CODEX AND ADVERTISING

t Codex mandate in advertising?

t Not in the statutes of CAC but authorized to deal with matters that are “necessarily incidental and ancillary”

t In the context of claims (Yes)

t Advertising not defined by Codex

t How should Codex deal with advertising through global media, e.g., Internet and satellite?

QUID – FOR QUALITY OR PERCEPTION?

t Proposed amendment to the general labeling standard to expand quantitative ingredient declaration provisions (%-labeling)

t Universal or only for characterizing ingredients

t Include ingredients with health implications (added sugars or free sugars, grains, milk, juice, fruits, vegetables, etc.)

t A trade barrier to developing countries

QUID FOR “FREE SUGARS”?

CCFL May 2004 (A proposal by Norway)

t “Quantitative Ingredient Declaration of free sugars should be mandatory.”

t “Free sugars refer to all monosaccharidesand disaccharides added to foods by the manufacturer, plus sugars naturally present in honey, syrups and fruit juices.”

QUID FOR “FREE SUGARS”?, cont.

t Report of the Joint WHO/FAO Expert Consultation cited as a basis:

"One of the recognized issues in developing chronic diseases is the high intake of free sugars. To reduce the risk of such diseases, there should be a lower consumption of free sugars worldwide."

t "A mandatory declaration of the ingoing percentage of "free sugars" would be an alternative source of information and could thereby increase consumer understanding of the foods nature, and help them made informed choice."

COUNTRY OF ORIGIN LABELING

t Products only or also for ingredients?

t Significant cost issue (in the U.S., estimated $1.92 billion for meats, seafood, fruits and vegetables)

t Supplier liability (in the U.S. retailers stated that suppliers will be liable and a number of suppliers would have to be limited to ease record keeping)

t No consensus at Codex

t Other players: WTO (Rules of Origin Agreement) and World Customs Organization

Codex Committee on Nutrition and Foodsfor Special Dietary Uses (CCNFSDU)

t Proposed Draft Recommendations on the Scientific Basis of Health Claims

t Definitions for trans fatty acids and fiber

t Provisions for Vitamins and Minerals (Nutrient Reference Values, NRVs)

TRENDS

t Codex is being used as a vehicle to promote wider acceptance of regional standards and national policies

t EC is increasingly unwilling to compromise and has a power of 25 member countries and the chairmanship of the Commission

t Developing countries are realizing their potential to block vote but are hampered by lack of funds and continuity of representatives

t Consumer groups are more organized and vocal

TRENDS, cont.

t Nutrition content labeling requirements are increasing and may become mandatory

t Initiatives to use labels as vehicles for nutrition education – sugar (WHO and consumer advocates)

t The role of Codex in food advertising being discussed (Codes for Advertising?)

t Farm to table – the food chain approach

t More emphasis on horizontal food standards

International Soft Drinks Council

t Members

- International beverage companies (Cadbury-Schweppes, Coca-Cola Pepsi-Cola)

- 10 national and international soft drink associations (Australasia, Brazil, Canada, Europe, Hong Kong, Japan, Mexico, South Africa, Taiwan and USA)

t Official status as NGO at Codex: speaks for soft drinks industry

t Secretariat: rotates between USA, Europe and Japan

Summary

t International food standards create a framework for food trade and national regulations

t National and regional standards and advocacy positions are promoted internationally with an indirect impact throughout the world

t International agencies such as FAO and WHO provide scientific advice for Codex standard setting but also influence in national policies

t If industry is not involved others will fill the vacuum