ETHIOPIA: SANITARY AND PHYTOSANITARY AND STANDARDS-RELATED

UNCLAS SECTION 01 OF 02 ADDIS ABABA 002618 SENSITIVE SIPDIS DEPARTMENT FOR AF/EPS - ABREITER AND GMALLORY; EEB/IFD/OMA - JWINKLER AND EEB/CBA - DWINSTEAD; EEB/TPP/BTA DEPARTMENT PASS TO USTR FOR PATRICK COLEMAN, BARBARA GRYNIEWWICZ, GLORIA BLUE, JANE DOHERTY, AND JEFF WEISS DEPT OF COMMERCE FOR ITA MARIA RIVERO DEPT OF TREASURY FOR REBECCA KLEIN USAID FOR AFR/EA - HELLYER, DALTON, AFR/SD - CURTIS E.O. 12958: N/A TAGS: ETRD ECON EFIN EINV BEXP AF ET SUBJECT: ETHIOPIA: SANITARY AND PHYTOSANITARY AND STANDARDS-RELATED FOREIGN TRADE BARRIERS REPORT FOR 2010 NATIONAL TRADE ESTIMATE REPORT REF: STATE 106353 ADDIS ABAB 00002618 001.2 OF 002 ¶1. (U) This cable is a response to reftel request for reports on Sanitary and Phytosanitary (SPS) and Standard-Related foreign trade barriers. Sanitary and Phytosanitary (SPS) -------------- ¶2. (U) On September 9, 2009, the Ethiopian Government enacted Proclamation No. 655/2009, establishing a regulatory framework for biosafety in Ethiopia. The stated objective of the proclamation is to protect biodiversity, as well as human and animal health, from the "adverse effects of modified organisms." This law places a significant regulatory burden on those who seek to import food commodities containing "modified organisms" (MO) and is both more expansive and comprehensive than internationally accepted norms on biosafety outlined in the Cartagena Protocol on Biosafety. For example, it makes no distinction between viable (i.e., able to reproduce in the environment) and non-viable organisms, as outlined in the Cartagena Protocol. As a result, the proclamation may result in a significant barrier to trade in both processed and raw food products, as well as a variety of agricultural products. Corn, soy, and cotton derivative products are among the potentially affected products. The estimated impact of this trade barrier ranges from USD 100-500 million. ¶3. (U) The biosafety law grants the Ethiopian Environmental Protection Authority (EPA) the power to regulate the making or use of any MOs in "teaching, research, production, import, export, transit, release, contained production, transport, placing on the market, or use as pharmaceutical, as food, as feed, or for processing." According to the law and directives, an Advanced Informed Agreement (AIA) must be obtained before a viable or non-viable MO may enter Ethiopia. The AIA application process includes submission of product characterization information, environmental and human health risk assessments, social and economic impact assessments, and risk management plans. By contrast, the Cartagena Protocol only requires an AIA for living modified organisms intended for direct release into the environment, not for those intended for food, feed, or processing. Standards, Testing, Labeling, and Certification -------------- -- ¶4. (U) The Quality and Standards Authority of Ethiopia regulates all exports and imports that are subject to Ethiopian standards. Certification is required for foodstuffs, construction materials, chemicals, textiles, and pharmaceuticals. Outside of the new biosafety legislation affecting food and agricultural products, the standards appear to be consistent with international norms. Pharmaceuticals that have been extensively tested and licensed in other countries are allowed to enter the Ethiopian market without further testing. Industry sources have reported instances in which burdensome regulatory or licensing requirements have prevented the import and/or local sale of products from the United States and other countries, particularly personal hygiene and health care products. ¶5. (U) Ethiopia established a National Codex Committee (NCC) in 2003, which advises the Ethiopian Government on food standard issues. The NCC is a member of the Food and Agricultural Organization of the United Nations (FAO)/World Health Organization (WHO) Coordinating Committee for Africa (CCAFRICA),which participates in Codex (the WTO-recognized body for setting international food safety standards). ¶6. (U) The new biosafety law imposes rigorous examination and burdensome labeling requirements for MO-related food and agricultural products. The EPA must be notified before any MO is transported into Ethiopia and MOs must be declared at points of entry. MO-related products must be labeled, in English and the local language (Amharic),with the words "contains modified ADDIS ABAB 00002618 002.2 OF 002 organism." Customs officers have the authority to examine, sample, and detain loads if they are thought to contain unauthorized MOs. Transporters must obtain a special license to bring viable MO products into Ethiopia. USG Action -------------- ¶7. (SBU) CDA Meece and various USAID officials have held several meetings with Government of Ethiopia (GoE) officials to discuss our concerns regarding the restrictive biosafety legislation. USAID has also submitted written comments to the GoE requesting clarification of the language to be used in the law's implementing directives. It seems unclear at this point how the GoE will define the broad-based language used in the law and corresponding directives or whether GoE officials have the capacity to implement the new legislation. Notably, this law could restrict the importation of the vegetable oil and rice portions of USAID's food aid. USAID currently has approximately 31,000 metric tons of food aid en route to Ethiopia that contains corn and soy processed commodities. ¶8. (U) FAS and the US Codex Office are implementing a comprehensive program to enable members of CCAFRICA to participate more effectively in Codex and to adopt Codex and other internationally recognized standards related to agricultural trade. In July 2009, the Foreign Agricultural Service (FAS) hosted a week-long Codex seminar in Ethiopia. The focus of the training activity carried out in Ethiopia was on helping the NCC better understand its respective role and responsibilities and to provide it with tools with which to achieve more effective participation in the standards-setting activity of Codex. As a result of the training, FAS plans to follow-up with Ethiopia on its regional coordination activities and monitor its planned evaluation and development of its national food control system. [Note: The Foreign Agricultural Service (FAS) has not yet studied Ethiopian SPS regulations and non-tariff barriers. FAS will appoint an Agricultural Attache to begin work in AmEmbassy Addis Ababa during FY10. End Note.] ¶9. (U) As requested, Post will forward electronic copies of the biosafety legislation as well as meeting report summaries to stated reftel USTR points of contact in addition to a Word version of the reports contained in this cable. MUSHINGI