ICTSD - BRIDGES Trade BioRes

BIOSAFETY PROTOCOL ENTERS INTO FORCE

On September 11, the Cartagena Protocol on Biosafety, established under the Convention on Biological Diversity (CBD), entered into force. Based on a precautionary approach, the Protocol regulates the transboundary movement of living modified organisms (LMOs) that may have adverse effects on biodiversity and human health. It establishes an advance informed agreement procedure for import of LMOs for environmental release, as well as a Biosafety Clearinghouse, which will be used by Parties to exchange information. European Environment Commissioner Margot Wallström described the Protocol as a "fundamental step towards better global governance" in the area of biotechnology. "If we want to promote free trade on a global scale we must also ensure that protecting the environment and human health is taken into account by finding multilateral solutions for global problems," she added. The first meeting of the Parties to the Protocol is scheduled for 23-27 February 2004 in Malaysia, back-to-back with COP-7 of the CBD. Parties will need to address a number of trade-related issues that remained unresolved during the Protocol's negotiation, including requirements for identifying shipments of LMO commodities and standards for identification, handling, packaging and transport practices (see BRIDGES Trade BioRes, 2 May 2002).

103 Parties have signed and 57 have ratified the Cartagena Protocol. A number of major exporting countries of genetically modified crops have not ratified the Protocol, including the US, Canada, Argentina and Australia.

"Better Biosafe than Sorry," GRIST MAGAZINE, 11 September 2003; "Safe Management of GMOs: The Cartagena Protocol on Biosafety Becomes Law," EU, 11 September 2003; "Cartagena Protocol on Biosafety takes effect" CBD, 11 September 2003.

PROCTER & GAMBLE ENGAGES IN FAIR COFFEE TRADE

Procter and Gamble (P&G) -- the largest US seller of coffee -- launched a new coffee product that holds a fair trade certificate. The company announced that it would sell fair trade certified coffee produced by smallholder farmers from co-operatives in Southern Mexico, Brazil and Central America and offer them USD 2.77 per kilo, which is about twice the average of current world prices. To start with, P&G said it would buy 1 million kilos of fair trade coffee per year. The new initiative is the outcome of a long dialogue between P&G and a range of non-governmental organisations and shareowner activists, which urged the company to address the global coffee crises. Welcoming the project a representative from an international human rights group said that ''By establishing a floor price, Fair Trade enables farmers to make a dignified living while providing new opportunities to cultivate high-quality, environmentally sustainable coffee.''However, the initiative also evoked criticism from other companies selling fair trade coffee. "If the likes of P&G, with their massive resources, can't commit to Fair Trade for even one percent of their coffee, their announcement appears more driven by marketing than substance," said a representative from a US based fair trade company, noting that P&G imported around 250 million kilo of coffee annually. Oxfam International, however, was pleased with the P&G move and challenged other large companies such as Kraft and Nestle to also engage in fair trade. Over the past three years world coffee prices have declined by almost 50 percent and are now below production costs with enormous consequences for the livelihoods of coffee farmers all around the world.

For more information on the world coffee crisis see the Oxfam website.

ICTSD reporting, "Activists Toast as Food Giant Pours Fair Trade Coffee," TERRAVIVA, Tuesday, 16 September 2003; "Advocacy Groups and Shareholders Persuade Procter & Gamble to Offer Fair Trade Coffee" OXFAM; 15 September 2003.

EU CHEMICALS REVIEW CARRIES ON

The proposed revision of the EU's chemical policy aimed at improving the testing of chemical substances before release on the market has come under great pressure. German and French governments have emerged as the main critics, while American NGOs have called on their government not to undermine the reform process. On 21 August the German government together with the German chemical industry and the chemical workers' union voiced there concern over the proposed EU legislation warning that it would harm the competitiveness and innovation of the chemicals industry (see BRIDGES Trade BioRes, 11 July 2003). Subsequently, the German Industry federation BDI has put forward several proposals for how the system of registering, evaluating and authorising new chemicals could be improved. The BDI would like the new REACH to focus only on a limited number of substances, improved communication between producers and users of chemical substances, and pilot projects conducted by the Commission to test the major elements of its proposal. This new German proposal supports the stance taken by the French government, which has demanded that the number of chemicals covered should be limited; the testing requirements be rationalised; obligatory chemical safety reports be dropped; the responsibility between producers and users of chemicals be revised; and a proportionate sanction system be developed.

In contrast, American NGOs have urged their government not to undermine the review of the EU chemicals policy. During the revision process, the US administration stated that the draft regulation was costly, burdensome and too complex an approach, which would be unworkable in its implementation, adversely impact innovation and disrupt global trade. As a reaction to the US administration efforts 70 American NGOs sent a letter to President Bush urging him to recognise the potential benefits of the EU reform to American consumers and industry as well as to cease all efforts to undermine the policy reform and recognise the regulatory process of sovereign nations.

The final legislative proposal to reform the chemicals policy is expected from the EU Commission between October and November and would have to be presented to the European Parliament for first reading. Many review the policy reform as a litmus test for the sustainable development strategy of the EU.

"American NGOs blast Bush Administration For Obstructing EU's Chemical Review," EURACTIV, 12 September 2003; "French Government Takes Strong Stand Against Chemicals Review," EURACTIV, 16 September 2003; "Chemicals Review: German Industry Asks For New Reach," EURACTIV, 17 September 2003.

FARMERS' RIGHTS NETWORK LAUNCHED IN CANCUN

On the sidelines of the WTO Ministerial meeting in Cancun, like-minded international civil society organisations from Asia, Africa, Latin America, Europe and North America formed the Farmers' Rights Advocacy Network (FRANK). The Network will be used as a tool to launch effective advocacy programmes across the globe and put pressure on agencies concerned with farmers rights. The Secretariat will be housed at the South Asia Watch on Trade, Economics & Environment (SAWTEE) in Kathmandu, Nepal. For further information, contact Kamalesh Adhikari, SAWTEE.

"International Network Formed to Protect Farmers' Rights," SAWTEE PRESS RELEASE, 11 September 2003.