EDC to address non-tariff barriers

MANILA, Philippines - The public-private Export Development Council (EDC) plans to address non-tariff barriers currently affecting close to three-quarters of exporters and importers in the Philippines.

According to the technical working group is working on ways to increase the export competitiveness of micro, small, and medium-sized enterprises (MSMEs) stymied by burdensome non-tariff measures.

Non-tariff measures are policy tools outside ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing prices and quantities traded.

EDC said it is initially looking to address non-tariff measures concerning sanitary and phytosanitary standards (SPS), fumigation testing, and labeling requirements.

The group cited the scarcity of fumigation firms in the Philippines as one of the causes of high fumigation costs that makes it difficult for exporters to comply with the SPS.

“To solve the problem, the technical working group agreed to make fumigation a more viable business in the country. The Fertilizer and Pesticide Authority, which regulates fumigation operations in the country, will asked to map all fumigation establishments to identify gaps and spread out their presence, particularly in the countryside,” the EDC said.

As for labeling concerns, particularly on the varied requirements over language, font size, and text location, EDC said it would promote greater access to information on labeling requirements of market destinations.

“Other recommendations include enhancing training and guidance programs for MSMEs on correct labeling, setting up an institution to help in compliance with labeling requirements and adoption of the single-entry concept, and improving exporters’ access to official and technical translations,” the EDC said.

“There is also a need to review national technical and SPS legislations and align them with international standards,” it added.

To assist MSMEs with product testing and certification, meanwhile, the EDC said it plans to ask the government to fast-track negotiations on Mutual Recognition Agreements (MRAs), such as the ongoing talks on food, cosmetics, and drugs within the ASEAN, and ensure their effective implementation.

MRAs are international pacts by which two or more countries agree to recognize one another’s conformity assessments.

In addition, the EDC also wants to increase training and coaching sessions for MSMEs on product quality and certification requirements, including Hazard Analysis and Critical Control Point, an internationally recognized system for reducing the risk of safety hazards in food.

In June this year, the International Trade Center released a survey indicating that close to three-quarters of exporters and importers in the Philippines complained that non-tariff measures were a key trade barrier, with the agri-food and low-tech sectors the most affected by such regulations.