TRADE & HUMANITARIAN EMERGENCIES A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION GFDRR Global Facility for Disaster Reduction and Recovery Cover picture Credit: The Solomon Islands Red Cross Solomon Islands, 2014 Non-food items and relief supplies being offloaded by Solomon Islands Red Cross volunteers at the Honiara airport following the recent flash floods The World Bank Group (WBG) Geneva Office, in collaboration with the WBG Trade & Competitiveness Global Practice and the Global Facility for Disaster Reduction and Recovery (GFDRR) TRADE & HUMANITARIAN EMERGENCIES Table of Contents Acronyms & abbreviations 05 Executive summary 09 Chapter 1 - Border management & trade facilitation 13 - International standards & guidelines relating to humanitarian goods 16 - Focus on the WTO Trade Facilitation Agreement 19 Chapter 2 - Trade policies in specific areas affecting humanitarian response: food, medicine, relief goods & equipment 29 - Trade policies affecting food trade 29 - Trade policies affecting medicines 37 - Trade policies affecting goods & equipment used by relief personnel 41 Chapter 3 - The role of trade in recovery & reconstruction 47 TRADE & HUMANITARIAN EMERGENCIES Acronyms & Abbreviations ASYCUDA Automated System for Customs Data EC European Commission ECOWAS Economic Community of West African States EU European Union FAO Food and Agriculture Organization GATS General Agreement on Trade in Services GATT General Agreement on Tariffs and Trade GM Genetically modified GSP Generalised System of preferences ICT Information and communications technology IDRL Guidelines Guidelines for the Domestic Facilitation and Regulation of International Disaster Relief and Initial Recovery Assistance IFRC International Federation of the Red Cross and Red Crescent Societies IOM International Organization for Migration Kyoto Customs Convention International Convention on the Simplification and Harmonization of Customs Procedures LDC Least Developed Country MRE Meal Ready-to-Eat OSS One-stop shop ITU International Telecommunication Union OCHA UN Office for the Coordination of Humanitarian Affairs OECD Organisation for Economic Cooperation and Development SPS Sanitary and phytosanitary standards TBT Agreement Agreement on Technical Barriers to Trade TFA Trade Facilitation Agreement UN United Nations UNCTAD UN Conference on Trade and Development UNDP UN Development Programme USDA United States Department of Agriculture WAAPP West Africa Agricultural Productivity Program WCO World Customs Organization WFP World Food Programme WHO World Health Organization WTO World Trade Organization 5 TRADE & HUMANITARIAN EMERGENCIES Acknowledgements This report was prepared by the World Bank Group (WBG) Geneva Office under the guidance of Selina Jackson, WBG Special Representative to the UN and WTO. Research and drafting was led by Darshika Bandaranayake (Consultant), working with Marcus Bartley Johns (Trade Specialist) and Daniel Kull (Senior Disaster Risk Management Specialist). The team is grateful for the expert guidance and reviews provided by Paul Brenton, Shaun Mann, Hannah Messerli, Gerard McLinden, Ivan Rossignol, Michele Ruta and Sebastian Saez, WBG; Michael Roberts, World Trade Organization (WTO); David Fisher and Paulo Cavaleri, International Federation of Red Cross and Red Crescent Societies (IFRC); Virginie Bohl, United Nations Office for the Coordination of Humanitarian Affairs (OCHA); Arif Hussain, World Food Programme (WFP); Chadia Wannous, United Nations Office for Disaster Risk Reduction (UNISDR); Ian Norton and Guillaume Simonian, World Health Organization (WHO); Vladimir Gjorgiev, International Organization for Migration (IOM); the companies involved in the Logistics Emergency Team (LET) of the World Economic Forum, including Agility, Maersk and UPS, as well as the many people interviewed for the report. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 7 TRADE & HUMANITARIAN EMERGENCIES 2011. Jakarta, Indonesia Photo: Farhana Asnap / World Bank 8 TRADE & HUMANITARIAN EMERGENCIES Executive Summary The initial hours and days after a humanitarian range of agencies, ministries and authorities emergency are generally seen as the most that aid organisations often deal with to important. Because they affect the rapid get relief and related items into a disaster- deployment of relief to people in need, affected country, TFA measures which international trade policies, and the way in enhance cooperation amongst border which they are implemented, can make an agencies could also yield positive benefits enormous difference to the effectiveness of for disaster relief operations. The TFA builds the humanitarian response – in many cases, on existing agreements and guidelines. the difference between life and death. The Beyond the TFA, the private sector is playing same issues that affect trade on a daily an increasingly prominent role in supporting basis, such as costly, inefficient and onerous the response to humanitarian emergencies, borders procedures, are magnified in times especially in the area of logistics. of humanitarian emergencies where speed and reliability of delivery are so critical. Other trade policies affecting humanitarian Trade also plays a key role in recovery and response. A wide range of other trade reconstruction well beyond the initial phase policies also have an impact on humanitarian of an emergency. response. Three areas are surveyed. First, policies that affect food trade are directly The report surveys three main areas at the relevant, with the ability of humanitarian intersection of trade-related policies and actors to address food needs sometimes humanitarian emergencies: undermined by inefficiencies in the supply chain and by various trade policies that Border procedures and trade facilitation. distort agricultural markets. Subsidies, high Challenges related to border clearance tariff protection, import/export restriction and procedures are among the most important a range of other policies distort international in international disaster response. The new markets and lead to significant costs for World Trade Organisation (WTO) Trade the poor. These trade policies also present Facilitation Agreement (TFA), which seeks challenges to humanitarian actors by to expedite the movement, release and adding costs to food procurement and their clearance of goods, has the potential to transportation, as well as causing delays in alleviate some of these border bottlenecks. the delivery of food to affected communities. Beyond customs procedures, the TFA also Second, a range of trade policies affect sets out measures for effective cooperation medicine. Third, relief equipment and goods between the many agencies involved in are subject to a range of trade policies. moving goods across borders. Given the w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 9 TRADE & HUMANITARIAN EMERGENCIES Trade and disaster recovery and The issues canvassed in the report emerged reconstruction. Moving from initial relief to the through an in-depth literature review and recovery and reconstruction phase, trade can detailed interviews with representatives of play an important role in helping countries the International Federation of Red Cross and restore economic growth and livelihoods after Red Crescent Societies (IFRC), International the immediate emergencies have passed. Organisation for Migration (IOM), the UN Office for the Coordination of Humanitarian The focus of the study is on natural disasters Activities (OCHA), the United Nations Office but some of the issues and principles for Disaster Risk Reduction (UNSIDR), the are equally applicable to responding to World Food Programme (WFP), the World humanitarian emergencies caused by conflict. Health Organisation (WHO) and the World Trade Organisation (WTO). For confidentiality As it is aimed at both a trade and humanitarian reasons, anecdotes provided by interviewees audience, the report does not explore any issue were deliberately left anonymous. The in depth from either of those perspectives; issues identified as regulatory barriers were nor is it exhaustive in terms of the trade largely drawn from IFRC’s previous work, in measures which could affect humanitarian particular, Law and legal issues international operations. Rather, the report serves to raise disaster response: a desk study 2007. They key issues or points of convergence between were then mapped against trade rules and international trade and disaster response policies to identify any potential synergies and recovery, aiming to add to the existing or areas of tension, and complemented body of experience in this area, without with lessons from the World Bank’s work at offering a detailed cost-benefit analysis of the intersection of trade and humanitarian specific policy choices, which can ultimately emergencies. only be done on a country-by-country basis backed up by technical advice to the different The study is intended to complement various actors involved in humanitarian emergencies. initiatives by IFRC to better understand Accordingly, the purpose of this study is not the legal and administrative issues that to deliver static recommendations, but to act obstruct disaster response, and find practical as an impetus for a fruitful dialogue between solutions to address these issues. They the trade and humanitarian community about include spearheading the negotiations these issues, and more detailed follow- for the development of the Guidelines for up at the country level to ensure that in the Domestic Facilitation and Regulation future disasters, trade-related policies and of International Disaster Relief and Initial procedures facilitate effective response, Recovery Assistance (IDRL Guidelines), recovery and reconstruction. which was adopted by the state parties to the A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 10 Geneva Conventions at the 30th International Assistance, finalized in 2013 and based on Conference of the Red Cross and Red the IDRL Guidelines, is a well-recognized Crescent in 2007. The Guidelines encapsulate reference tool and example to law-makers a set of recommendations to governments on as they develop legislation on managing how to prepare their laws and procedures in a outside aid in a manner appropriate to their way that facilitates international disaster relief national circumstances. This study should be operations. Similarly, the Model Act for the seen as building on this work, and focusing Facilitation and Regulation of International more specifically on trade policies and their Disaster Relief and Initial Recovery implementation. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 11 TRADE & HUMANITARIAN EMERGENCIES 2013. Sudan Photo: Salahaldeen Nadir / World Bank 12 TRADE & HUMANITARIAN EMERGENCIES Border Management 1 & Trade Facilitation Following the onset of a disaster the imperative Trade facilitation seeks to reduce transaction is to provide humanitarian assistance as costs incurred as a result of importing and quickly as possible to address critical needs, exporting goods, through the streamlining, which depending on the national context, harmonising and modernising of trade may require international assistance. In procedures associated with border clearance. such contexts, customs and other border The importance of trade facilitation to economic authorities play an important role in facilitating development and national competitiveness the entry of international relief personnel and is now widely acknowledged. Countries with their equipment, and relief consignments so better logistics can become more competitive that assistance reaches affected persons in a and increase their participation in international timely manner. trade and their capacity to attract investment. According to a joint study by the World Bank, Operating in the specific context of a World Economic Forum and Bain & Company, disaster can bring added challenges for if every country improved just two key supply border agencies. The influx of incoming chain barriers even halfway to the world’s relief consignments arriving in a short period best practices, global GDP could increase of time can overwhelm authorities. The by US$ 2.6 trillion (4.7%) and exports by crisis can serve to magnify shortcomings US$ 1.6 trillion (14.5%). Improving supply encountered by traders on a day-to-day basis chain barriers include implementing trade in regular commercial trade, such as lengthy facilitation measures. 2 clearance procedures, opaque and confusing regulations, and administrative complexity. Reducing border bottlenecks is not just Border agencies may also be directly impacted a concern for the trade community; the where custom personnel are themselves humanitarian community also sees it as affected by the disaster. In an extreme necessary objective to speed up the delivery example - in the aftermath of Cyclone Pam of international humanitarian assistance. in Vanuatu in March 2015 - it was reported Indeed, in a 2007 survey conducted by the that only one customs official was available to IFRC on legal issues in international disaster process incoming shipments of humanitarian response, customs issues were among the aid as the rest of the staff were attending to most widely cited regulatory obstacles. 3 their own personal circumstances. 1 w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 13 1 - BORDER MANAGEMENT & TRADE FACILITATION While the exceptional circumstances of a entry of relief goods and personnel into an humanitarian emergency present an array affected country. Delays in clearance can be of challenges, there are specific border due to a range of reasons, including: 4 management issues that obstruct the rapid • Differences in standards among the sending, receiving and transit countries; • Lack of capacity to modify standard operating procedures to cope with the particular demands of emergency situations including massive increases in arriving cargo; • Imposition of taxes, duties, fees and charges including on humanitarian consignments; • Complex and opaque bureaucratic or administrative requirements, which sometimes change without notice; • Excessive documentary requirements and the need for documents to be translated before submission; • The necessity to deal with numerous government entities to obtain necessary clearances and exemptions; • Excessive physical inspections and testing of relief consignments; • Inflexible working hours of border authorities; • Delays in receiving information concerning applicable requirements and lack of awareness of customs procedures; and • Burdensome processes for obtaining particular exemptions for humanitarian shipments (where such exemptions are possible at all) from applicable measures (where exemptions are possible at all). Supply-side issues often compound the to include required customs documentation; challenge of quickly bringing in relief items into or left out the details of the consignee. Large disaster-affected countries.5 Senders of relief volumes of unneeded or inappropriate items consignments have sometimes mislabelled have also been reported such as expired consignments or marked them in languages food or medicine and clothing ill-suited to the not understood in the receiving country; failed disaster affected country. A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 14 The experience of logistics companies in humanitarian operations Logistics companies have also played an With any small errors in declarations and important role in supporting humanitarian other paperwork, humanitarian cargo was at operations. In recent years, new forms of risk for delay in either neighboring countries or engagement between the private sector and at destination in Myanmar. One of the highest the humanitarian community have also come priority LET tasks during this emergency was about in this sector. The Logistics Emergency the coordination of dialogue between the Team (LET) provides such an example. Thai airport administration and Customs agency and the Logistics Cluster coordination Facilitated by the World Economic Forum, the team. This resulted in clear understanding LET brings together three of the largest global of processes, paperwork requirements and logistics and transportation companies - other issues that were rapidly shared with the Agility, UPS and Maersk – alongside the UN broader humanitarian community to enable Global Logistics Cluster, led by the World cargo to move without delay to the disaster Food Programme (WFP) to provide pro area. Due to customs bond requirements, bono support to humanitarian operations humanitarian organizations were required during emergency response to large-scale to store in-transit cargo in bonded facilities natural disasters. During large-scale natural only, and this added unnecessary costs to disasters, the LET companies provide pro- their operating budgets. On top of this, all bono services and assets at the request of humanitarian cargo arriving in Yangon was the Global Logistics Cluster. The LET has been required to be manually inspected at the deployed to a number of natural disasters. package level. This required all released cargo to be manually unpacked, inspected and In every disaster in which the LET has reloaded before being moved to the Cluster responded, customs administration and warehouse. It also required manual offloading clearance has proven to be a significant at the warehouse, which created onerous challenge for humanitarian and commercial requirements for labor, transportation and logistics professionals alike. An example of warehouse resources. this is the first LET deployment in Myanmar & Thailand in 2008 in response to Cyclone Similar scenarios have been recorded by Nargis. In that emergency, the LET learned the LET in Haiti, Pakistan, Indonesia, Nepal, that the humanitarian community was the Philippines and other locations. More confronted by significant challenges related information can be found at: www.logcluster. to the administrative processing of cargo. org/logistics-emergency-teams w w w. w o r l d b a n k . o r g / t r a d e 15 1 - BORDER MANAGEMENT & TRADE FACILITATION These challenges have sometimes led to were not being applied in practice. As was months-long delays where, for example in the case in Vanuatu, described above, Indonesia and Sri Lanka in the wake of the this was compounded by the personal 2004 Indian Ocean Tsunami, “perishable items circumstances of many customs officials that rotted, medicines expired and emergency were themselves affected by the emergency; items relief items like clothes, tents, blankets for example, the key Customs building in and surgical equipment, which were essential Kathmandu was one of the buildings heavily at the start of the relief effort, were redundant damaged by the earthquake. by the time they were cleared months later”. 6 Customs delays also increase costs Relief consignments or goods used for for humanitarian actors as relief consignments relief operations may be subject to customs awaiting clearance can accumulate storage duties and other charges at the border. This costs.7 More recently in Nepal in May 2015 can add significant costs and delay to relief in the aftermath of the initial earthquake, operations. These are discussed in more there were reports that streamlined customs detail in subsequent sections. procedures intended for such emergencies INTERNATIONAL STANDARDS & GUIDELINES 8 RELATING TO HUMANITARIAN GOODS Several existing legal instruments address WCO in 1999, are also relevant to disaster the importation of relief items during times relief. In particular, specific annex B.3 provides of emergency. First, the Recommendations as a “recommended practice” that contracting of the World Customs Organization (WCO) parties grant provide relief from import duties to Expedite the Forwarding of Relief and taxes and from economic prohibitions Consignments in the Event of Disasters and restrictions to “goods such as foodstuffs, 1970, is a non-binding instrument that calls medicaments, clothing and blankets sent as on countries to adopt a number of measures gifts to an approved charitable or philanthropic to facilitate relief consignments. It includes: organization for distribution free of charge to the waiver of restrictions on the export or needy persons by the organization or under import of relief consignments; simplification its control”. In addition, annex J.5 provides of associated documentation; waiver of for a mixture of binding and recommended duties, taxes and fees on consignments to steps in order to speed up the clearance approved organizations; and the authorization of relief consignments, such as requiring of customs clearance outside normally priority clearance, the conduct of inspections prescribed hours and locations. outside business hours, exemptions from examination under exceptional circumstances Second, the special annexes of the revised and simplified documentation procedures. At International Convention on the Simplification the time of writing, there were 99 contracting and Harmonization of Customs Procedures parties to the Convention. (Revised Kyoto Convention) adopted by the 16 2012. Jordan. Al Zaatari Refugee Camp Photo: William Stebbins / World Bank The WCO Convention on Temporary paper also suggested several amendments to Admission 1990 is yet another important rectify these issues, but in accordance with instrument which facilitate disaster assistance the rules of the Convention, amendments by way of import and duty and tax exemption must be proposed by a contracting party. for humanitarian goods. However, the IFRC, OCHA and WHO are continuing to Convention is limited to items intended for pursue discussions with committee members. re-exportation, and does not include those goods brought in by relief personnel which The OCHA and WCO have also developed are critical for humanitarian operations but not a Model Agreement between the United provided as aid to disaster victims, such as Nations and a State concerning measures ICT equipment. In 2014, the IFRC, OCHA and to expedite the import, export and transit WCO submitted an information paper to the of relief consignments and possessions of administrative committee of the Convention to relief personnel in the event of disasters and shed light on these deficiencies, including the emergencies. So far OCHA has signed the fact that the majority of goods and equipment customs agreement with the governments imported for humanitarian purposes are not of Belarus, Bhutan, Dominican Republic, re-exported, but distributed as aid, or donated Honduras, Liberia, Mali, Moldova, Nepal and to local authorities and other actors.9 The Uzbekistan.10 w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 17 1 - BORDER MANAGEMENT & TRADE FACILITATION Similarly, the Guidelines for the domestic the various regulatory questions at issue facilitation and regulation of international in international operations. To date, 18 disaster relief and initial recovery assistance countries have adopted legal frameworks for adopted in 2007 by the state parties to the facilitation of international disaster relief the Geneva Conventions at the 30th assistance drawing on the Model Act, and 20 International Conference of the Red Cross more are currently discussing related legal and Red Crescent Societies, also provides drafts in parliament. some guidance to states on how laws and procedures could be amended to ensure the Individual countries have introduced expedited movement of relief items. On the customs laws and procedures to facilitate issue of customs, the Guidelines call for: relief the expeditious clearance of relief items. goods and equipment to be exempted from all In 2012, Namibia adopted the Disaster duties and charges; simplified documentation Risk Management Act, which provides that procedures; waiver or reduction of inspections, the Prime Minister in consultation with the or as an alternative, rapid clearance through Finance Minister, “must facilitate reduced and preclearance processes; and inspection simplified customs procedures, exemption and release outside business hours and/ from duties, taxes and charges for donations or at a place other than a customs office as of equipment and materials, including food, necessary to minimize delay. made during disaster situations”.11 Nepal is now working to establish procedures for its Built upon the IDRL Guidelines, the Model border agencies during future disasters, so Act for the Facilitation and Regulation of that clear guidelines exist for officials to follow International Disaster Relief and Initial – this can be an important way of building Recovery Assistance was developed over a preparedness for disasters. two-year period as a collaboration between the IFRC, OCHA and the Inter-Parliamentary Other countries have introduced ad-hoc custom Union (IPU) and launched in 2013. Bearing measures following the onset of disaster. in mind that legal and disaster management In 2013, following the Sichuan earthquake systems vary significantly from country to in China, special custom procedures were country, the Model Act is intended to serve as established to enable 24-hour clearance, a reference tool and example to law-makers where emergency goods were allowed to as they develop legislation on managing pass customs without inspection provided external aid in a manner appropriate to their all required documentation was submitted at national circumstances. The Model Act can a later date.12 In other circumstances it was serve as the basis of a stand-alone act or the good relationships between humanitarian as the basis for amendments and additions actors and government authorities that to existing laws or regulations addressing allowed for rapid clearance of relief items.13 A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 18 FOCUS ON THE WTO TRADE FACILITATION AGREEMENT The WTO Trade Facilitation Agreement explained the relevance of the TFA procedures does not explicitly address humanitarian to humanitarian emergencies, and focuses emergencies, but its provisions and their on three specific aspects: transparency; implementation are central to the capacity to coordinated border management; and risk respond to these emergencies. This section management. Context Concluded at the WTO Bali Ministerial improvements for international disaster Conference in 2013, the TFA contains response. Humanitarian operations should provisions to simplify and harmonise also benefit from the enhanced transparency, international trade procedures. The simplified processes, reduced documentation Agreement extends beyond reforming and increased co-operation amongst border customs procedures to capture the agencies that implementation of the TFA will activities of other border agencies. When achieve. Not only will it serve to complement implemented, the TFA promises significant other international instruments and national economic efficiency gains. For business, regulations that specifically seek to expedite trade facilitation enhances predictability and relief items, but it will also provide a binding reduces the delay and costs of moving goods legal framework within which international across borders. Governments can also expect relief organisations can operate with to see benefit including improved compliance, greater certainty and confidence. Where increased revenue and reduced corruption. special procedures for relief organisations/ Trade facilitation holds particular promise for consignments are limited in application – many developing countries, where at present, by time, jurisdiction, or to specific items border clearance processes are particularly or organisations – general improvements cumbersome – imports to these countries to border procedures brought about by require nearly twice as many documents trade facilitation could serve to mitigate the and six times as many signatures 14 as more limitations of those special procedures. For developed economies. example, some countries may introduce streamlined procedures for the emergency In addition to reducing the cost of international phase of operations, but terminate them prior trade, implementation of the TFA could yield to or during the recovery and reconstruction w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 19 1 - BORDER MANAGEMENT & TRADE FACILITATION phase. While the level of urgency naturally shipped by sea will involve transit through declines from the immediate, emergency a third country, potentially encountering response phase, significant delays arising additional delay and expense. from inefficiencies in border management in the later phases can also lead to unnecessarily A unique feature of the TFA among WTO high costs for humanitarian operations. Agreements is that it links implementation by Moreover, it may undermine efforts to return to developing countries to assistance provided past levels of economic activity and increase by other WTO Members and by international the total cost of reconstruction efforts. organizations like the World Bank Group. Assistance is available to help prioritize and Finally, through streamlining ordinary sequence reforms, as well as for their actual customs processes in unaffected countries, implementation. As such, not only does the TFA implementation can also contribute to TFA entail significant benefits for trade and improved humanitarian logistics where those for humanitarian relief, but there are strong countries are part of the supply chain for relief incentives for providing the necessary support items – transit/export countries – but do not for its implementation by all WTO Members. have any special procedures for expediting movement of relief consignments when are Although the text of the TFA was finalized not themselves subject to an emergency. in December 2013, the Agreement will For instance, during the famine in the Horn only enter into force when two-thirds of of Africa, food aid destined for Somalia was WTO Members notify their ratification of 15 delayed in Kenyan customs. In the Dominican the Agreement. Only at this stage will the Republic, which played an important role in Agreement acquire legal force – one of the response to the 2010 earthquake in Haiti, key benefits of having the standards set by customs control and related documentation the TFA incorporated into a WTO agreement. requirements was reduced to a minimum, Ratification of the Agreement would increase and operating hours were increased, the confidence of humanitarian actors that to facilitate rapid entry of humanitarian its provisions will be fully implemented and relief. 16 Customs procedures of transit that the associated benefits for humanitarian countries are particularly relevant for disaster- relief and reconstruction would be realized. affected landlocked countries as relief items A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 20 Transparency Uncertainty about relevant import, export and it requires Members to make available, and transit requirements amongst customs and update, information on the Internet and border management officials, relief providers publish - to the extent possible - information and other senders of relief consignments has in one of the official languages of the WTO contributed to unnecessary delays during (English, French and Spanish). relief operations. Inexperienced actors, in particular, have omitted required documents, Across many countries, such trade-related failed to mark or label consignments correctly information is often available on websites or have completed them in languages of government authorities responsible for a not understood by those in the receiving particular aspect of trade. This information country.17 Moreover, certain items, such as is, however, often difficult to find and not ICT equipment, vehicles, food and medicine presented in a user friendly manner. To can be especially challenging to import overcome this problem some countries have as the sender is required to navigate the developed consolidated information on a many regulatory requirements that are often single website – a Trade Information Portal attached to the importation of such items. or National Trade Repository – as a means of Therefore increasing transparency around facilitating trade and increasing transparency. the relevant customs and other border However, in many countries, such websites management agency requirements and do not exist and even when they do, they are procedures has the potential to tackle some often incomplete, out of date, or do not cover of these challenges. all the necessary import, export or transit requirements. In a recent UN Conference Under Article 1 of the TFA, WTO Members on Trade and Development (UNCTAD) study are required to ‘promptly’ make available which examined, amongst other things, the specific information related to procedures implementation status of the trade facilitation for clearing goods for import or export. This measure “information through internet” in includes providing information regarding: 26 developing countries, only two countries applied rates of duties and taxes, rules of reported a full level of implementation, origin, transit restrictions and procedures, while 22 (84 per cent) reported fees and charges and forms and documents, partial implementation.18 in an easily accessible manner. In particular, w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 21 1 - BORDER MANAGEMENT & TRADE FACILITATION The additional transparency requirements having a single authoritative reference point, should assist humanitarian actors to conflicts could be avoided and the discretion better plan and manage their operations available to border officials clarified to through obtaining up-to-date information reduce misunderstandings and ensure rapid regarding all requirements around import clearance of consignments. and export procedures. Changes in processes or situations – e.g. opening up The provision of such information on a of previously inaccessible ports – could consolidated website would also make it also be disseminated quickly through Trade easier for relief operators to obtain clear Information Portals or other consolidated guidance on what duties apply to imported web-based platforms. Even before a disaster relief goods. The duties paid can often be strikes, the availability of such information significant. During the response to the Indian could be used to inform disaster preparedness Ocean Tsunami, Oxfam was required to pay activities, so that humanitarian actors could over USD 1 million in duties for the importation work with governments to obtain exemptions of 25 vehicles in Sri Lanka.19 More recently, or look to pre-position highly regulated items, one relief worker reported that UN vehicles before a disaster strikes. sent as part of the response to avian flu were subject to significant customs duties by the The requirement would also extend to recipient country.20 As a result, the vehicles publishing information regarding laws or remained in storage for many months until special procedures – including updated a solution was reached between the UN and procedures – for relief items or organisations, the government. Clear guidance prepared in which may ease some of the confusion advance of an emergency situation and made that can arise around such procedures publically available on a single website would particularly during the initial period after ensure donated equipment could be deployed a humanitarian emergency. Further, by immediately. Coordinated Border Management Aside from Customs, many government bringing in goods into a country may be agencies, ministries and agencies play a required to provide the same information to role in approving or controlling the import or different government agencies. Indeed, relief export of goods and are entitled to examine organisations have expressed frustrations goods entering the territory – often ten or over the multitude of border authorities that more agencies are involved in clearing sometimes need to be consulted.21 Multiple goods for import. Due to lack of information inspections may also be undertaken by these sharing among these agencies, those agencies at different points in time. Under A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 22 these circumstances, controls are not often trade. A frequently cited complaint by relief based on the full data set provided with workers is the volume of documents that respect to a consignment, but rather, based need to be submitted as part of transporting on agency specific data. Clearances can be relief consignments. In the aftermath of expedited if the inspections take place in a disaster, when time is of the essence, coordination with competent authorities. completing multiple documents, sometimes repeatedly for different border authorities, Apart from stifling the flow of commercial further strains relief efforts. While close trade, obtaining clearance from multiple coordination between government agencies agencies, and the lack of information sharing is always important, it is absolutely critical has also led to delays to the entry of relief during humanitarian emergencies. items. During the recent outbreak of Ebola, for example, lab samples sent to a regional Simplifying documentation procedures for facility for diagnosis were delayed at the export, transit and import is a key objective border until customs authorities could clarify of the TFA. For example, the TFA requires from other border agencies how they should Members to review their formalities and be treated.22 documentation requirements to ensure they are oriented towards rapid release and Article 8 of the TFA recognises the importance clearance of goods, and reducing trade of better collaboration, requiring national transaction costs. For many countries, the border authorities/agencies to cooperate and consolidation of multiple documents and coordinate border controls and procedures to their simplification can deliver important facilitate trade. It also obliges WTO Members, efficiencies, even without the implementation to the extent possible and practicable, to of more technology-intensive systems like coordinate procedures with neighbouring national single windows. countries at border crossings to eliminate or at least reduce duplication of processes/ The TFA – Article 10.4 – encourages members procedures. Additionally, the Agreement to establish a “single window” to allow for requires all Members to establish National a single submission of all documents and/ Trade Facilitation Committees. Although or date required by Customs and all other these are already at the centre of any border or licensing authorities and to simplify successful trade facilitation reform program, procedures. It also provides that information the TFA gives a clear acknowledgement that has already been supplied should not be of their importance. The collaborative requested again, other than in exceptional behaviour that such Committees foster circumstances. Member states are required, between government agencies, and between to the extent possible and where practical, to government, the private sector, and other establish electronic single windows. stakeholders, is an important condition for successful implementation of many of the The impact of coordinated border provisions of the TFA that would benefit management in disaster in speeding up humanitarian actors. clearance times was clearly demonstrated by the use of a ‘One-stop Shop’ established One common task for National Trade in the Philippines during the response to Facilitation Committees is the simplification Typhoon Yolanda (see case study below). and consolidation of documents required for w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 23 1 - BORDER MANAGEMENT & TRADE FACILITATION Case Study – Typhoon Yolanda & ‘One-stop Shops’ Adapted from Disaster Response Dialogue (2014) ‘Learning Review of the cooperation between the Government of the Philippines and humanitarian actors in their response to Typhoon Yolanda’. Typhoon Yolanda (internationally known “One-stop Shops” (OSS) in points of entry. as Haiyan) of early November 2013 was the The purpose of the OSS was to bring together strongest typhoon ever to hit the Philippines. the different national and local departments The humanitarian impact of the typhoon was and agencies with oversight and authority for enormous, with approximately 16 million the entry of humanitarian goods, equipment people directly affected by the typhoon and transport in order to expedite the entry of across 44 provinces in 591 municipalities and such items. The OSS included representatives 57 cities. Given the scale of the disaster and from the Department of Social Welfare and the corresponding intervention required, the Development, the Department of Health, President of the Philippines declared a state The Bureau of Food and Drugs, the Ministry of emergency. of Finance, and the Department of Foreign Affairs (DFA). To further expedite the process, A massive emergency operation by the organizations bringing goods into the authorities and international partners Philippines were encouraged to notify the ensued. In Cebu, the main entry point for OSS so they could begin proceedings prior to international relief assistance, the Bureau of the arrival of the goods into the country. Customs reported that the volume of relief flights and ships received during the disaster Largely thanks to the OSS, the entry of included some 710 aerial shipment and 33 personnel, goods and equipment in response ships - almost ten times the normal volumes. to Typhoon were generally reported to be extremely rapid. Notwithstanding the In an attempt to streamline customs significant volume of relief items that arrived, procedures for humanitarian organizations OSS was able to clear most shipments within bringing relief items to the disaster zones, the several hours.  Government of the Philippines established A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 24 Risk Management Border agencies are responsible for customs procedures, including during managing a broad range of risks in areas disaster contexts, is a legitimate concern. such as security, sanitary and phytosanitary This was demonstrated in Guatemala after (SPS) standards and revenue collection, Tropical Storm Stan in 2005, when arms and to name but a few. A priority for trade narcotics were discovered hidden among facilitation reform is balancing the legitimate food shipments, causing officials to increase government objectives of protecting human inspections.23 and animal health, food safety, national security, and other concerns, with the costs To achieve a balance between the legitimate to trade generated by excessive inspection need for agencies to both control and facilitate regimes where all shipments are stopped trade, the TFA (Article 7) advocates the use of and physically examined causing significant risk management systems, whereby customs delays at the border. Risk-based approaches controls would be focused on the highest- allow governments to more effectively risk consignments, thus allowing low-risk balance these objectives. consignments to enjoy faster release. In the context of disasters, when the needs Risk management could be enhanced of the population are highest, and the through information sharing amongst border capacity of border agencies are already agencies to create more complete risk stretched with the arrival of an abundance profiles of importers and imported goods, and of relief consignments in a short period of streamlined through the use of pre-arrival time, burdensome inspection processes processing for early identification of goods or can cause operational delays for relief persons that may pose a health or security actors. Nevertheless, managing security risk to the country. and safety risks when using simplified w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 25 1 - BORDER MANAGEMENT & TRADE FACILITATION Other features of the TFA relevant to disaster response PRE-ARRIVAL PROCESSING “Authorized Economic Operator” program in The TFA requires members to operate the European Union and the WCO’s SAFE procedures that would allow documentation, Framework. Humanitarian organisations including in electronic format, to be dealt with could work with customs authorities and the prior to the arrival of imported goods in order private sector to see how they may benefit to speed their release once they have arrived. from such programs, including through the Humanitarian actors could also use pre- use of certified Authorized Operator service arrival processing in anticipation of the providers (e.g. logistics firms) which – where goods arriving. Issues could be identified and AO schemes exist - may be able to operate at resolved early, reducing the time (and thereby lower cost and higher speed than other firms. the costs) that relief items spend in storage. The use of pre-arrival processing formed part PERISHABLE GOODS of the special customs procedures, or ‘one- The agreement obliges member to provide stop shops’, in the Philippines to facilitate the for the release of perishable goods within expedited entry of relief goods after Typhoon the shortest possible time, giving them Yolanda. appropriate priority when scheduling examinations and allowing proper storage AUTHORIZED OPERATORS prior to their release. As food and medicine The TFA provides for ‘Authorized Operators’ often comprise an important part of relief schemes that would allow certain traders efforts (as discussed in more detail in to benefit from additional trade facilitation subsequent sections), priority examination measures, such as further reduction and proper storage would facilitate faster in documentation requirements, rapid delivery of those goods, while ensuring they release and fewer inspections. These are remain suitable for consumption. based on existing schemes, such as the A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 26 Conclusion Policies relating to trade facilitation, and the customs and border management regime. manner in which they are implemented, has The implementation of the WTO Trade very significant impacts on humanitarian Facilitation Agreement would make a new responses. This is an area in which a number contribution by providing a legally-binding of international guidelines exist to help instrument that would help address many of governments and other humanitarian actors the challenges related to border management balance the various priorities involved – for during humanitarian emergencies, including example, between facilitating the entry of transparency, coordination among border relief goods and personnel as rapidly as agencies, and better targeting of border possible, and maintaining the integrity of the clearance procedures based on risk. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 27 2015. Liberia Photo: Dominic Chavez / World Bank TRADE & HUMANITARIAN EMERGENCIES 2 Trade policies in specific areas affecting humanitarian response: food, medicine, relief goods & equipment Aside from trade facilitation, which can play section briefly surveys three issues: policies an important role in meeting the immediate affecting food trade; technical standards needs of affected people after a humanitarian affecting humanitarian shipments; and the emergency, there are a number of wider trade long-term, indirect role of services trade policy issues that impact on both delivery of policies in affecting the capacity to respond relief supplies and longer term recovery. This to emergencies. TRADE POLICIES AFFECTING FOOD TRADE Shortages of food are a central characteristic While long-term efforts to address this of many humanitarian emergencies. Meeting challenge involve policies to improve the food needs of those affected is among the agricultural productivity and resilience, in leading priorities for the affected government the short-term, food aid is essential for and for humanitarian actors. meeting the needs of affected people. With w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 29 2 - TRADE POLICIES IN SPECIFIC AREAS AFFECTING HUMANITARIAN RESPONSE: FOOD, MEDICINE, RELIEF GOODS & EQUIPMENTS more donors opting to provide cash – as to humanitarian actors by adding costs to opposed to in-kind assistance – to the food procurement and their transportation, as World Food Programme (WFP) and other well as causing delays in the delivery of food actors, food is increasingly purchased locally to affected communities. so as to minimise distortions to the local economy and support local producers, but Procurement planning of humanitarian trade continues to be important. In 2013, organizations takes into consideration the WFP procured 2.1million metric tons such factors as price, the accessibility of food, valued at USD1.6 billion from 91 of the product to the taste of receiving countries, with over 50 per cent purchased beneficiaries, as well as the location of the within the countries and regions where it most advantageous places to buy, relative 24 operated. The remainder, including wheat, to the area of need.27 However, conditions vegetable oil, pulses (grain legumes) and placed by donors, recipients and source specialized nutritional products continue countries, including restrictions on origin to be sourced primarily from global and destination, quality, and the movement markets, given their production deficit in of goods, often limit flexibility in the effective local markets.25 and efficient procurement of food. Trade costs in agriculture are significantly In this section we focus on a subset of the higher than in other goods trade, and the sources of agricultural trade costs that are poorest countries (which are most vulnerable to most relevant for humanitarian emergencies. 26 disasters) have the highest costs. Subsidies, These are: policies to lower the costs of high tariff protection, export restrictions, and transporting food to those affected by a range of other policies distort international humanitarian emergencies; the impact of markets and lead to significant costs for the export restrictions; and the impact of food poor. These trade policies present challenges quality standards. Reducing food trade costs The timely and unrestricted delivery of, and stored in appropriate facilities to ensure access to, humanitarian food aid is often a they remain safe for human consumption. critical aspect of responding to a humanitarian However, as described above, the efficient emergency. Especially in the case of sudden- delivery of food aid is sometimes hindered by impact disasters – such as floods, tsunamis, burdensome border procedures. For example, and earthquakes – food needs are usually food shipments, among over 400 containers extremely urgent, although temporary. The of relief items, sat rotting in customs over perishable nature of food also requires that a year after the Indian Ocean Tsunami they are delivered expeditiously, or otherwise struck Indonesia. 28 A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 30 2008. Nigeria Photo: Arne Hoel / World Bank The efforts to streamline customs procedures outside the business hours of Customs detailed in the preceding section are and other relevant authorities. Moreover, it therefore especially relevant for food aid. requires WTO Members to give perishable In this regard, Article 9 of the TFA seeks to items appropriate priority when scheduling provide rapid release for perishable goods, examinations, and facilitate movement to including, under exceptional circumstances, proper storage prior to their release. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 31 2 - TRADE POLICIES IN SPECIFIC AREAS AFFECTING HUMANITARIAN RESPONSE: FOOD, MEDICINE, RELIEF GOODS & EQUIPMENTS Export restrictions Distortion of international markets through the into poverty as food deficit countries saw an use of trade policies such as export restrictions increase in consumer prices and farmers in has an impact on food security by increasing food surplus countries received lower prices the cost of food for vulnerable net food buyers. for their produce. Therefore, the adverse For a number of staple food commodities, effects of export restrictions also affect the some governments adopt export restrictions capacity of communities to respond and – in the form of bans/embargoes, licences, ensure their own food security. This presents quotas and taxes – with the objective of challenges to relief organizations as they are addressing domestic food security concerns. required to respond to increased food needs. Although such measures may be justified as a rational response for individual countries Export restrictions can place additional wanting to ensure adequate food supply for hurdles for relief organizations in efficiently their domestic markets, they have direct and and effectively managing food supply chains, indirect impacts on world food prices. causing delays in the delivery of food to affected persons. When global food prices According to one study, trade restrictions increase, organizations are able to purchase implemented during the 2007-2008 less food, despite increased needs. This may food crisis to insulate domestic prices be further compounded by the imposition accounted for 45 per cent of the increase of taxes on humanitarian purchases of in international rice prices, while 30 percent food items. of the price change of wheat was attributed to changes in border protection rates during WFP and other organisations need to be able 29 2005-2008. As the prices of certain to rely on a strong supply chain of reliable substitutable food commodities – rice, wheat and reputable suppliers. Yet, as evident in the and maize – share a positive correlation, case study on Afghanistan below, suppliers price changes in one as result of production are sometimes unable to export humanitarian or export disruptions also has possible effects food due to export restrictions. If imposed by on the prices of other substitutes. The overall a source country, export restrictions prevent impact of this can be significant. The Food the purchase and physical shipping/transport and Agricultural Organisation (FAO) reported of food out of that country; and if imposed by that the 2007-2008 food crisis increased the a transit country, they prevent the shipping/ undernourished population from 850 million transport of food through that country to 30 in 2006 to more than one billion in 2009. An another country where people affected by a estimated 100 million people were pushed disaster are located.31 A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 32 During the 2007–2008 food crisis, twenty six operations, a group of 14 WTO Members net food exporting countries, among others, submitted a proposal in 2011, based on an maintained or introduced export restrictions earlier decision by G20 Agriculture Ministers, and extraordinary taxes, making it difficult to “remove food export restrictions or to acquire and ship food for humanitarian extraordinary taxes for food purchased for operations.32 For example, for the WFP, non-commercial humanitarian purposes by China’s restrictions negatively impacted the World Food Programme (WFP)” and not a number of its operations; restrictions in to impose them in the future. WTO Members Pakistan, Kazakhstan and Iran affected its did not agree to the proposal. 35 Afghanistan procurement chain; and in West Africa, Burkina Faso’s control measures While the WFP supplies almost half of the affected purchases for Ghana and Niger food needs in humanitarian emergencies, operations.33 Under such circumstances, the percentage of food purchased for its relief organisations have to negotiate with programs is negligible compared in terms of governments for exemptions to export and global trade. Thus the impact of exempting transport food for humanitarian purposes, or food aid procurement should have a minimal look outside of usual markets to procure the effect on exporting countries in terms of both necessary supplies.34 Both these scenarios revenue and supplies. A number of countries increase transportation costs and lead to have exempted WFP humanitarian food aid delays in the delivery of food to the hungry. from restrictions ‘on a case-by-case basis’. However, ‘case-by-case’ exemptions are not The challenge presented for humanitarian always sustainable solutions and can cause emergencies through the imposition of export delays and additional transaction costs. The and other trade restrictions on food is clear. costs in terms of time and effort required to It is a challenge that can only be effectively negotiate and formalize exemptions, and addressed through international cooperation to obtain the necessary export permits, – by acting individually, countries believe are barriers to providing timely aid. A they are acting to remedy their own national general or universal exemption from export challenge in the short term, while they are in restrictions, applicable to food and food fact exacerbating the larger problem. components purchased for humanitarian purposes, obtainable through a clear and Export restrictions are only lightly regulated efficient process should be considered. Such under current WTO disciplines. Therefore, in regulatory preparedness will save time and an attempt to mitigate some of the adverse money, and ultimately lives and livelihoods. of effects export restrictions on WFP’s w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 33 2 - TRADE POLICIES IN SPECIFIC AREAS AFFECTING HUMANITARIAN RESPONSE: FOOD, MEDICINE, RELIEF GOODS & EQUIPMENTS Case Study – Afghanistan Adapted from ‘AFGHANISTAN: Export restrictions, insecurity delay food aid delivery’ IRIN During the global food crisis in 2007-2008, While donors provided over 90 percent of the food prices, particularly wheat and wheat requested funds, WFP faced procurement and flour (staples of the Afghan diet), increased by logistical hurdles during its operation. 60-80 percent across Afghanistan. This steep rise in staple food prices pushed at least 1.41 Initially, WFP had planned to procure wheat million people in rural and 1.14 million urban and other food items from neighboring areas into high-risk food-insecurity. countries, in particular Pakistan – the traditional supplier of food products to The crisis prompted the Government of Afghanistan. However, rising international Afghanistan and the UN to launch the Joint food prices prompted the Pakistani Appeal for the Humanitarian Consequences Government to introduce export restrictions of the Rise in Food Prices so as to provide on wheat, in the form of an export tax and an emergency ‘safety net’ for the most quota. Consequently, WFP was forced to vulnerable parts of the population until procure food supplies from other parts of the harvest season in August. The appeal the world at higher cost and with longer included a request from the WFP of USD77 delivery times. million to deliver 89,000 metric tons of food. Food safety & quality standards The importation of food for humanitarian Relief consignments may include non-staple purposes can be further complicated by the foodstuffs i.e. food items that are not part of need to meet safety and quality requirements the usual diet in the disaster-affected country. of the receiving country, such as those In these cases, complicated approval maintained for animal and plant life or health. systems may be invoked by that country, such Such laws may prevent food consignments as import risk assessments and laboratory from entering the affected country’s territory testing for the presence of contaminants in the event of an emergency. and toxins. These processes can be time- 34 consuming, complex and expensive. Where of the residual presence of GMOs export staple food products are being imported products e.g. livestock and meat products. as part of relief consignments, inspections for pest or disease presence may still be With respect to health concerns, WHO, conducted and accompanying certification WFP and FAO have expressed the view that of freedom required. There may also be consumption of GM foods are not likely to additional regulatory requirements placed present human health risk.36 However, WFP on certain types of food. As the case study have adopted the position that it would below on British MREs demonstrates, where respect national legal standards, including the food does not meet the requisite rules and any bans on GM foods.37 regulations of the disaster-affected country, they may be prevented from being distributed Divergent sanitary and phytosanitary to affected persons even if they are donated standards (SPS) rules and regulations can from countries with comparable regulatory also complicate regional procurement and requirements. distribution of food aid. Across Sub-Saharan Africa, food safety and quality standards The complexities around balancing the need for food staples vary despite many having to meet national requirements of disaster- similar agro-ecological conditions for pests affected countries, and meeting the food needs and diseases, and similar demands on food of affected populations are well illustrated in safety.38 As a result, food imports must often donated food containing genetically modified meet different food safety and SPS standards organisms (GMO). Several countries have between importing countries, thereby resisted accepting GMOs in food aid to restricting regional export of food supplies. varying degrees. Some, like Zambia, have In East Africa, food-producing companies banned genetically modified maize food aid in Kenya sometimes find it easier to meet in any form even during periods of severe the strict regulations for exporting to the food shortages; while other countries like Japanese, European, or Singapore markets, Zimbabwe, Malawi and Mozambique, allow than the widely diverging regulations in other imports of maize in its milled form. Resistance African countries.39 In the context of food to receiving GM food aid is twofold: first, aid, such measures can frustrate attempts there are concerns around possible threats made by relief organisations moving towards of biotechnology to human, animal and plant local and regional procurement so as to life and health. Second, there are fears that minimize transportation costs and delivery inclusion of GMOs in the agricultural supply time, and support local markets. Moreover, chains (e.g. animal feed) could risk action by SPS measures can also raise food prices of third countries to ban their produce as a result staples, reducing the cost effectiveness of w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 35 2 - TRADE POLICIES IN SPECIFIC AREAS AFFECTING HUMANITARIAN RESPONSE: FOOD, MEDICINE, RELIEF GOODS & EQUIPMENTS purchasing locally or regionally. According food is safe for consumers, and to prevent to one study by Organisation for Economic the spread of pests or disease. However, as Cooperation and Development (OECD), SPS provided under the WTO SPS Agreement, regulations were found to increase rice import such measures should be based on the prices in Kenya by up to 42 per cent, and by analysis and assessment of objective and up to 29 per cent on edible oil import prices accurate scientific data. Furthermore, in Uganda. 40 depending on the nature and scale of the disaster a balance needs to be found between States may well have legitimate reasons for responding to the immediate need for relief resorting to SPS measures to ensure that and other longer term policy objectives. Case Study – British MREs in response to Hurricane Katrina Adapted from IFRC desk study In 2005, in the wake of Hurricane Katrina, As result of the decision, the MREs were the United States requested international left in storage for nearly a year, amassing – assistance in obtaining relief items, including according to one media report - US$16,000 a emergency rations packs or “MREs”. In month in storage fees. response, the British government delivered 500,000 MREs to New Orleans. This case illustrates some of the challenges that arise between the application of food By the time the United States Department of standards and the supply of food aid in Agriculture reached New Orleans to inspect emergency situations; chiefly, the extent the consignments, however, some of the to which food safety standards should be meal packs had already been distributed. A relaxed to meet the needs of persons affected decision was made by the USDA to halt the by disasters. At least in this instance, the distribution because the MREs were deemed MREs arrived when the urgent need for food to have violated import restrictions on food was highest but were available for distribution containing British beef. Since 1997, the only after the need had subsided. It also United States has banned beef products from highlights the importance of co-ordination Britain and several other European countries between the different departments within that have been affected by bovine spongiform a disaster-affected country – in this encephalopathy - otherwise known as “mad case, there were no fewer than six federal cow disease” - with little flexibility when food agencies or departments who had role needs arise in the event of a disaster. in accepting, distributing and rejecting the food – and between the sending and beneficiary countries. 36 TRADE POLICIES AFFECTING MEDICINES Health emergencies, such as the ongoing types of emergencies, beyond epidemics West African Ebola outbreak that started in or pandemics. Nonetheless, as medicines 2013, highlight the importance of ensuring that and medical equipment are highly regulated legal, regulatory and other measures support under domestic law, it is not then surprising innovative activity in the pharmaceutical that humanitarian actors have frequently cited sector and do not obstruct access to medical problems with the importation of medication technologies, including vaccines, medicines and medical devices to disaster-affected and medical devices. Access to medicine countries. is also a vital aspect of responding to other Tariffs Medicine or medical devices imported by of a crisis or where purchases are made by humanitarian organisations for pre-positioning certain organization, such as international purposes, or even for immediate use in a organizations. However, this is not always disaster-affected country, may be subject to the case. Moreover, exemptions may not tariffs or customs duties. The global trend, apply when humanitarian organizations are however, is to reduce or eliminate tariffs. prepositioning such goods in anticipation According to a joint study between WTO, of a crisis in the countries where it is being WHO and WIPO, since 2000, developed stored, or elsewhere. Although the collection countries have applied tariffs on medicines of these duties may well be within country’s of less than 0.1 per cent ad valorem; while legal framework, revenue collection should developing countries have lowered their be considered against the costs to relief applied tariff rates from 6.7 per cent to 4.2 organizations, especially considering per cent, on average.41 amounts raised by governments from tariffs applied on medicines are generally not A country may also grant tariff exemptions significant. 42 for medicine and medical devices in times Non-tariff measures Many countries maintain specific registration Maintaining regulatory oversight over the or approval processes that must be satisfied importation and use of medicines and before medication can be imported and medical devices fulfils legitimate policy consumed in that country. Similarly, the objectives: ensuring the quality, safety and importations of medical devices are subject to effectiveness of medicines; and the safety, compliance with administrative rules, specific effectiveness and performances of medical standards and authorisations. devices.43 Indeed, during humanitarian w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 37 TRADE & HUMANITARIAN EMERGENCIES 2015. Liberia Photo: Dominic Chavez / World Bank 2 - TRADE POLICIES IN SPECIFIC AREAS AFFECTING HUMANITARIAN RESPONSE: FOOD, MEDICINE, RELIEF GOODS & EQUIPMENTS emergencies, an oft-cited issue with respect such a balance. While recognising that to medicine is the arrival of inappropriate countries’ right to introduce standards - to donations, including expired medicines and achieve national security requirements, the medicine labelled in foreign languages. prevention of deceptive practices, protection of human health or safety, animal or plant Nonetheless, bureaucratic procedures, life or health, or the environment – it seeks coupled with lack of transparency in regulatory to ensure that regulations, standards, testing processes, can also delay the arrival of and certification procedures do not create urgently needed medicine and medical unnecessary obstacles. The TBT Agreement devices. Following the 2007 earthquake in also strives to streamline procedures, avoid Peru, for example, the delivery of replacement duplication through, for example, encouraging x-ray machines was delayed for a month, as countries to recognize each other’s product their release was subject to the granting of assessment procedures where possible. The permission from both the Ministry of Health SPS Agreement includes a similar balance, and the Institute of Nuclear Energy. 44 through promoting measures that are based on international standards, science-based The importation of new medication and and no more trade restrictive than necessary equipment can be especially problematic to meet the country’s appropriate level where the local laws require testing of of protection. products and the introduction of new regulation to allow for their importation. In Convergence of national regulatory emergency contexts, when time is of the approaches, harmonization of technical essence, lengthy administrative processes requirements, along with increasing trust can have severe consequences for those in decisions made by competent foreign requiring immediate medical attention. authorities, can help facilitate faster entry of Consider, for instance, a situation where new medicine and medical devices through shorter diagnostic equipment is brought in by relief regulatory processes. This would be beneficial organisations in response to an outbreak of for both trade in these goods, as well their a rapidly spreading epidemic. Despite the importation during times of emergency. To this immediate need, the equipment cannot be end, there are several international, regional released until such time it is authorized for and interregional initiatives to promote use in the affected country. regulatory collaboration.45 At the international level, the World Health Organisation (WHO) As with food safety standards, a balance convenes the International Conference needs to be struck between ensuring of Drug Regulatory Authorities to build adequate oversight, and facilitating the rapid collaboration amongst national regulators, entry of medication and medical devices in to promote harmonization and exchange emergency situations. information regarding best practice and to seek common approaches to challenges The WTO’s Agreement on Technical Barriers faced by medical regulatory authorities. Other to Trade (TBT Agreement) attempts to strike international fora with similar objectives w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 39 2 - TRADE POLICIES IN SPECIFIC AREAS AFFECTING HUMANITARIAN RESPONSE: FOOD, MEDICINE, RELIEF GOODS & EQUIPMENTS include the International Conference on with the objective of achieving rapid access Harmonisation of Technical Requirements for to medicine through the harmonisation of Registration of Pharmaceutical for Human technical requirements and registration. Use, the Global Harmonisation Task Force The EAC project also attempts to enhance (for medical devices) and the International collaboration amongst authorities, resulting Medical Device Regulators Forums. At the in joint assessments, mutual recognition and regional level, the East African Community the avoidance of duplication. (EAC), for example, has launched a project Trade restrictions based on national or international security Trade-restrictive measures instituted on the compelled to negotiate with the Ukrainian basis of national or international security can Government for four months to introduce a also compromise the provision of emergency new law that would allow the importation, for healthcare. The problem arises when the list humanitarian purposes, of all medicine pre- of restricted goods includes medicines and qualified by WHO. Similarly, in the aftermath medical equipment used by humanitarian of severe floods in 2010 in Pakistan, relief actors during relief or recovery efforts. In organizations were prevented from bringing the event of an emergency, obtaining an in antimalarial medicine from neighbouring authorisation from governments to import or India.47 Instead, production was increased export banned products is often a lengthy in Thailand and China to meet the needs of process, interrupting the timely delivery relief efforts in Pakistan. of humanitarian assistance. Negotiating a resolution in this context can be especially The WTO Agreements give Members broad challenging given the sensitive nature of scope to impose trade restrictions for security issues. For instance, following security reasons. However, it is important the emergence of the conflict in Ukraine for policymakers to carefully weigh the in 2014, the Government introduced a security motivations of trade restrictions ban on several products, including WHO with their potential impact on humanitarian pre-qualified medicine to be brought into emergencies. More targeted approach that Ukraine originating from Russia.46 To facilitate meets security concerns while facilitating the entry of those medicines, the WHO, the movement of humanitarian goods like along with other humanitarian actors, were medicines should be considered. A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 40 TRADE POLICIES AFFECTING GOODS & EQUIPMENT USED BY RELIEF PERSONNEL Goods and equipment brought in for Non-tariff measures in the form of import/ emergency relief and reconstruction are export licensing requirements, import/export often subject to customs duties, adding costs restrictions, sanitary measures, technical to already stretched aid budgets. Negotiating regulations and other taxes, have constituted with government authorities for exemptions formidable barriers to the entry of relief items can be a lengthy process and not always and equipment critical for humanitarian successful. During the response to the Indian operations. These measures are sometimes Ocean Tsunami, Oxfam was required to pay introduced to encourage or force international over USD 1 million in duties for the importation actors to procure equipment locally. 50 of 25 vehicles in Sri Lanka.48 More recently, one relief worker reported that UN vehicles The importation of goods such as ICT sent as part of the response to avian flu were equipment and vehicles are subject subject to significant customs duties by the to compliance with various technical recipient country.49 As a result, the vehicles requirements related to their (intrinsic and remained in storage for many months until extrinsic) characteristics or their related a solution was reached between the UN and processes and production methods. the government. Accordingly, humanitarian organizations may have to fulfil an array of administrative Although the collection of duties may well be procedures to be able to bring them into within the country’s legal framework – e.g. disaster-affected states. tariffs on motor vehicles in the example given above – the collection of revenue should The issue is further compounded by the be weighed against the negative impact of divergence of regulatory requirements imposing duties on legitimate humanitarian between different countries. Vehicles made goods during crisis situations. Likewise, according to the specification in one country provisions for re-export after the emergency maybe very different to the specifications can be pursued, alleviating concerns of required in another. In addition to importing revenue risk to governments. goods that comply with local standards, humanitarian organizations may also be w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 41 TRADE & HUMANITARIAN EMERGENCIES 2010. Cambodia/Vietnam Border Photo: Marcus Bartley Johns / World Bank 2 - TRADE POLICIES IN SPECIFIC AREAS AFFECTING HUMANITARIAN RESPONSE: FOOD, MEDICINE, RELIEF GOODS & EQUIPMENTS required to obtain import and/or export In the case of ICT equipment, the licences to move certain goods; processes Tampere Convention on the Provision of which in themselves can be lengthy. Telecommunication Resources for Disaster Mitigation and Relief Operations that came Local procurement is one way in which these into force 8 January 2005 attempts to facilitate issues may be overcome. However, this is the rapid deployment of telecommunication not always possible. This is because relief assistance in an emergency. The and reconstruction operations often require Convention requires countries to reduce specialized equipment not available in or remove regulatory barriers to the use of sufficient quantity and quality in the affected telecommunication resources for disaster state, or otherwise available at inflated mitigation and relief, including restrictions on prices. 51 Additionally, relief workers are the import/export and use of such equipment. not always trained to use locally available The Convention goes on to list ways in alternatives. In those circumstances, the more which regulatory barriers maybe reduced practical solution is to deploy the equipment or eliminated, for example: exempting that relief workers are already trained equipment used in disaster mitigation and to use. 52 relief; pre-clearance of telecommunication resources for use in disaster mitigation and For at least one humanitarian actor, the relief; recognition of foreign type-approvals; various administrative hurdles attached to expedited processes; and temporary waiver importing certain equipment have informed of regulations. their prepositioning activities. 53 So, for example, ICT equipment was prepositioned It is not just relief equipment that is subject to in Myanmar as part of disaster preparedness sometimes burdensome procedures. Rescue activities due to significant difficulties attached dogs used by search and rescue teams to the importation of ICT equipment in to the to locate trapped persons or bodies, have country. These difficulties could have acted sometimes been subject to animal health to frustrate operations if the organisation controls to control the spread of rabies and were to import the equipment at the time of other illnesses.54 Dogs brought in after the relief efforts. Kobe earthquake in Japan, for example, were stuck in quarantine for several days while their The harmonization or mutual recognition of rabies vaccinations and disease status were applicable standards across countries, as verified. Rescue dogs returning from a rescue advocated for under WTO agreements, can mission, may also be subject to quarantine certainly allay some of these issues. One measures upon return to their country of option to consider is basing national standards origin, particularly if they have been deployed and procedures on international standards. in countries in which rabies is endemic. As described in section 3.2 above, mutual recognition of decisions made by competent foreign authorities, where appropriate, could also allay some of these challenges. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 43 2 - TRADE POLICIES IN SPECIFIC AREAS AFFECTING HUMANITARIAN RESPONSE: FOOD, MEDICINE, RELIEF GOODS & EQUIPMENTS Conclusion A wide range of trade-related policies can to relief goods and equipment. In each of these affect the effectiveness of humanitarian areas, it is not a simple question of whether response. Policies have an important role policies are “good” or “bad”. Policy-makers in pushing agricultural trade costs up, and need to weigh the various effects that they access to food – often through trade – is have, not just on the trading environment or an important feature of many humanitarian on public policy objectives like food security emergencies. Trade-related policies can or public health, but also in terms of the also affect access to medicines during impact they have on humanitarian response. humanitarian emergencies, as well as access w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 44 2008. Nigeria Photo: Arne Hoel / World Bank TRADE & HUMANITARIAN EMERGENCIES 3 The Role of Trade in Recovery & Reconstruction Disasters can cause significant damage to Guinea – with these countries experiencing a country’s economy. Critical infrastructure flat or negative income growth since may be damaged, and systems upon which mid-2014.55 All major production sectors – society and the economy depend (health agriculture, mining, and tourism – have been care, telecommunications, transport, energy affected. Border closures and lack of general supply) severely disrupted. Moreover, mobility have cut off trade and disrupted disasters can cause disruptions to production, business activities and livelihoods. Foreign trade, investment and travel. investors have scaled back operations and suspended new investment. Tourist and Illustrative of such impacts is the recent Ebola other visitors – with the exception of relief crisis in West Africa. At the time of writing the providers – have avoided the region for fear of World Bank expects around US$1.6 billion of contamination, resulting in reduced demand lost economic growth in the crisis for the worst for hotels, airlines and service providers affected nations – Sierra Leone, Liberia and linked to the tourism sector. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 47 3 - THE ROLE OF TRADE IN RECOVERY & RECONSTRUCTION REBUILDING THE CAPACITY TO PARTICIPATE IN TRADE In the aftermath of a disaster, a focus on The importance of re-building the tourism rebuilding the capacity to participate in industry to long-term economic recovery has international trade can make an important been recognized by many policy-makers. contribution to economic recovery. For When thousands of would-be visitors example, reviving the tourism sector in an cancelled their holidays to Peru following affected country has enormous potential to floods in 2010 – forcing the closure of stimulate recovery and restore livelihoods. Machu Picchu – the Peruvian government Tourism is an important source of economic launched a campaign of half-priced hotels development in developing countries. In the and airfares in an attempt to lure tourists, majority of developing countries, tourism is as well as other measures to diversify the one of the top three exports; and in at least tourist industry. Japan, which saw an annual 11 least developing countries, it is the lead decline in tourism of over 3 million people export.56 For example in Vanuatu, affected or US$6 billion following the March 2011 by a devastating cyclone in 2015, travel and tsunami and the Fukushima nuclear disaster, tourism contributed 23.2 per cent of total GDP sought to revitalise tourism by offering in 2013.57 The tourism sector also provides a 10,000 visitors free airline tickets to Japan, wide range of employment opportunities, and provided they spread positive remarks on has linkages to other sectors. media platforms.59 The tourism sector is especially vulnerable Similarly, measures introduced to revive to sudden-onset natural disasters. Recent other export sectors can also be an important epidemics and pandemics have also shown feature of economic recovery following a to significantly affect tourism and travel. humanitarian emergency (see Ebola case The SARS outbreak in 2003, for instance, study below). However, it is important to note had a major economic impact on the travel that there are important capacity constraints in industry around the world. In Malaysia, countries’ exports, particularly in developing which only had a few recorded cases and countries, that would be exponentially deaths, tourism arrivals dropped by 30 per magnified in the case of a natural disaster. cent, hotel occupancy countrywide fell to Addressing these constraints through aid 30-50% and airline bookings were reportedly (rather than trade policy) may therefore down by 40%. 58 remain a priority. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 48 Case Study – Ebola & West African agricultural sectors Source: World Bank Group http://www.worldbank.org/en/topic/agriculture/brief/reviving-agriculture-in-ebola-hit-guinea- liberia-and-sierra-leone Disasters can have a devastating impact Program (WAAPP) that spans 13 West on the agricultural sector, with significant African countries, including the three Ebola- losses in the production of crops, livestock hit countries. and fisheries. Livelihoods of farmers and those involved in agricultural-dependent Arrangements had to be made to ensure manufacturing, such as textiles and food the timely delivery of the seeds from seed processing industries, are also affected. A suppliers in neighboring countries. To enable recent study by the FAO also demonstrates free movement of seed-laden trucks, travel that disasters can also cause drastic changes routes have been pre-arranged and the to agricultural trade flows. According to the Economic Community of West African States study, disaster-affected countries analyzed (ECOWAS) requested customs and border between 2003 and 2013, the value of control authorities to let the trucks pass agricultural imports increased by US18.9 without difficulty. billion and the value of exports decreased by $14.9 billion. It is countries that are Depending on the nature of the disaster, most reliant on agriculture that are most the provision of inputs such as seeds and susceptible to these adverse consequences. fertilizer can be a key aspect of stimulating Reviving the agricultural sector therefore, recovery of agricultural production systems could contribute to economic growth, poverty following a disaster. The basic rationale alleviation and food security. is that, in emergency situations, affected farming households many have lost their seed Agriculture, the lifeline of the economies of and, hence, their capacity for production. By Guinea, Liberia and Sierra Leone, has been supplying good quality seed of appropriate hit hard as a result of the Ebola epidemic. varieties, they can resume and increase In Guinea, for example, rice production is agricultural production. estimated to have fallen by 20 percent in 2014, coffee by half, cocoa by a third, and This case study also highlights the importance corn by a quarter. of trade facilitation to ensure timely delivery of agricultural inputs to disaster-affected In an attempt to revive this sector, the regions, including coordination amongst World Bank mobilized up to US$15 million border authorities. Similarly, it is important in emergency financing to provide a record to ensure that non-tariff measures do not 10,500 tons of maize and rice seed to over obstruct this movement. Indeed, a recent 200,000 famers in the worst affected World Bank study indicated that SPS countries in time for the April 2015 planting measures could act to prevent seeds from season. The project is part of an ongoing moving quickly across borders when a seed w w w. w West o r l d b a Agricultural Africa nk.org/trade Productivity deficit occurs due to a disaster. 49 3 - THE ROLE OF TRADE IN RECOVERY & RECONSTRUCTION Governments should also align recovery telecommunication networks to connect plans with long-term development objectives, domestic markets to the global economy; or including building their trade-related building productive capacity to, for example, capacity. This could involve building better assist export-driven economic recovery (see infrastructure such as roads, ports and Haiti case study below). A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 50 Case Study – Trade facilitation in Haiti Successive natural disasters, most notably The first phase involved a comprehensive the devastating earthquake in 2010, have assessment of the trade facilitation badly impacted the Haitian economy. Poor environment in Haiti including: a customs infrastructure and ineffective policy have audit, a review of the port and maritime also hindered economic development. industry, a national survey of Haiti’s trucking industry, and an analysis of Haiti’s The World Bank is assisting the Haitian ability to integrate with formal supply Government in its efforts to overcome chains concerning key agricultural and these challenges by reducing trade textile products. and transportation costs, boosting competitiveness, and increasing regional integration. The second phase of the project is currently ongoing, and seeks to implement: • trade facilitation activities with the Dominican Republic; • creating an online trade information portal; • developing a modernization plan for customs administration; and • capacity building for small-scale traders, including through the training of at least 60 Haitians Small and Medium-sized Enterprises and agriculture cooperatives. The World Bank has also held discussions with The Government is implementing a customs private and public stakeholders, including the modernization plan to do just this. It will begin Ministry of Commerce and Industry, in order to with an audit of procedures at ports and inland discuss ways to strengthen the Haitian Trade frontiers. Infrastructure will be strengthened, Facilitation program. The recommendations and the capacity of customs officers will be presented to the Government were based improved. They will be aided by the further on the findings from the first phase of roll out and increased use of an Automated the program, and many centered on key System for Customs Data (ASYCUDA) agricultural products – avocado, mango, across institutions. The Government is also coffee, and rice – as well as textiles. Part of finalizing plans for the implementation of this phased approach will require related a trade information portal, similar to those process reforms, to make customs clearance implemented by the World Bank in Lao PDR w w w. w o rmore procedures n k . o r g /and l d b aeffective de t r a efficient. and Lesotho. 51 3 - THE ROLE OF TRADE IN RECOVERY & RECONSTRUCTION POLICIES ADOPTED BY TRADING PARTNERS THAT AFFECT RECOVERY Trading partners’ policies can also have originating from designated countries. The a wide range of effects on recovering in underlying rationale is that facilitating greater disaster-affected countries. This section market access promotes increased exports considers two types of policy: trade from beneficiary countries, export earnings, preference schemes intended to aid recovery; domestic consumption, and contributes and trade restrictions put in place that can to economic development in developing negatively affect recovery. countries. Additionally, under the Decision on Measures in Favour of Least Developed Using trade preferences to promote export- Countries, adopted at the 2005 Hong Kong driven growth is not a novel idea. The Ministerial Conference, developed countries, WTO’s enabling clause, for instance, allows and developing-country members declaring developed countries to institute schemes themselves in a position to do so, agreed to under domestic legislation – called the general implement duty-free and quota-free market system of preferences (GSP) – that provide access for products originating from LDCs. differential and more favourable treatment to developing country members, without So while the provision of trade preferences violating the Most-Favoured Nation provision is not an innovative idea, the case study – the cornerstone of the international trade provides one example of how exceptional, system. Under such schemes, developed temporary preferences can be used to countries offer unilateral non-reciprocal promote the economic recovery of countries preferential treatment in the form of reduced affected by disaster. or duty-free access to selected products w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 52 Case Study – EU trade preferences in response to floods in Pakistan Adapted from ‘The battle of the EU’s proposed humanitarian trade preferences for Pakistan: a case study in multifaceted protectionism’ (2012), published in the Journal of World Trade, Issue 1 and 2015 European commission report on the operation and effect of Regulation (EU) No 1029/2012 introducing emergency autonomous trade preferences for Pakistan, available at https://ec.europa.eu/transparency/regdoc/rep/1/2015/EN/1-2015-591-EN-F1-1. PDF (accessed 14 April 2016) Following the floods in Pakistan in July 2010, United States, China, Saudi Arabia, Kuwait, the EU put forward a proposal of temporary Oman, Qatar, the United Arab Emirates, trade concessions to promote economic Chile, Turkey, Uganda, Colombia, Norway, recovery in the north and northwestern Mauritius and Zambia. Some others however, regions of Pakistan. According to the World primarily textile and clothing exporting Bank and the Asian Development Bank, the countries, raised objections concerning the total losses associated with the disaster were possible implications of such a waiver for the USD9.7 billion. multilateral trading system and the effects on exports from other developing countries The EU is Pakistan’s largest and most with interests in the same tariff lines. important trading partner, accounting for 19 percent (or EUR6.9 billion) of Pakistan’s Nearly a year after the proposal, and following total trade. Pakistan also benefitted from the consultations with those who objected, a EU’s GSP scheme, which allowed Pakistan to fresh waiver request was put forward. The export to the EU more than 3,000 product new waiver was for a revised package that types duty free and a further 3000 product reflected consultations with members that types at reduced duties. Trade relations were had expressed concerns about the EU request. further strengthened through an existing The EU reiterated that it was asking for a Cooperation Agreement that entered into waiver for an exceptional measure being taken force in September 2004, with the objective in the light of exceptional circumstances, to increase and develop trade between them. and would not be a precedent in the WTO. It added that the measures would only be in The ‘emergency’ proposal went further than effect from 1 January 2012 to 31 December those concessions offered under the EU GSP 2013. The waiver was ultimately granted. schemes. The initial concessions package comprised a list of 75 product types – mainly A 2015 assessment of the trade preferences textiles – which were to receive preferential by the EU found that, while isolating the access. However, the package had to be effect of the preferences from other support diluted due to opposition from within the EU. measures was not possible, there had been an increase in imports from Pakistan into the EU To ensure compliance with WTO disciplines of products covered by the scheme. As part on non-discrimination, the EU tabled a of the wider program of support for Pakistan request for a waiver in November 2010. from the EU, the preferences were judged to Many countries expressed full support to have fulfilled their objective of supporting w w w. the worldb granting an of k . owaiver, the rg/trad e including the Pakistan’s economic recovery. 3 - THE ROLE OF TRADE IN RECOVERY & RECONSTRUCTION Policies adopted by trading partners of a Although governments may well have disaster-affected country can also have legitimate reasons for resorting to SPS negative effects on their recovery prospects. measures to ensure that food is safe for Consider, for example, a situation where a consumers, and to prevent the spread of country suffers an outbreak of a disease or pests or disease. However, as mentioned an industrial accident. In response, other previously, such measures should be founded countries may impose import restrictions on a risk assessment, based on objective and or require additional safeguards for accurate scientific data. Countries should products coming from those regions out also consider the economic impact a measure of contamination fears. Such events have may have on the affected country, explore materialized in the case of Tanzania and alternative ways an acceptable level of risk Japan, as described below. More recently, can be achieved and select those which are in response to the Ebola outbreak in West not more trade restrictive than required to Africa, some regional ports (such as Dakar – meet their health objective. Where measures Senegal; Banjul – Gambia; Bissau – Guinea- are introduced, governments should continue Bissau; Douala – Cameroon; Pointe-Noire to monitor the situation to ensure that any – Republic of Congo) began implementing restriction only last as long as it is necessary protective measures and even refusing to achieve the purported objective. entry to vessels and/or crews that have first stopped in an affected country port. 60 A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 54 Case Study – Tanzania & the European Commission Source: WTO SPS Information Management System http://spsims.wto.org/web/pages/search/stc/Search.aspx In 1998, the European Commission introduced with it other than by applying an embargo safeguard measures with respect to imports on importation”. of fruit, vegetables and fish products following a cholera outbreak in Tanzania, In June 1998, Tanzania reported that Kenya, Uganda and Mozambique. the European Commission continued to prohibit the importation of fresh, frozen In a meeting of the WTO’s SPS Committee, and processed fishery products from the technical experts from the WHO did not four African countries, although tests had consider the import ban necessary, especially not found the bacteria concerned. Tanzania on fish products, which were not consumed stressed that the EC ban was having severe in raw form in Europe. Reference was made economic effects on its economy, and that to the WHO Guidance on Foundation of according to the SPS Agreement, Members National Policy and Control of Cholera, and should help developing countries comply particularly the conclusion in Chapter IX with their SPS measures. The European that: “Although there is a theoretical risk of Commission responded that it was satisfied Cholera transmission associated with some the necessary guarantees were in place, and food commodities moving in international that a new measure restoring trade with the trade, this has rarely proved significant and four African countries would enter into force authorities should seek means of dealing on 1 July 1998. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 55 3 - THE ROLE OF TRADE IN RECOVERY & RECONSTRUCTION Case Study – Japan & China Source: WTO SPS Information Management System http://spsims.wto.org/web/pages/search/stc/Search.aspx Following the 2011 Fukushima nuclear Chinese Taipei explained that although incident, which was a “cascading disaster” Japanese food exports contained acceptable caused by the Great East Japan Earthquake trace levels of radionuclides, those levels and subsequent tsunami, many countries still raised concern for Chinese Taipei and imposed restriction on Japanese food its consumers, consumer protection groups, products. Japan closely monitored food and legislators. In order to assuage these products for the presence of radionuclides concerns, Chinese Taipei requested further and, as of April 2012, had imposed a food information from Japan, including about intervention exemption level of 1mSv/year - its surveillance methodology and control equivalent to the Codex standard. However, measures. Chinese Taipei also requested the dietary exposure estimates from total that foods exported from the five restricted diet studies were far below 1 mSv/year across prefectures be accompanied by a certificate all studies - including those completed in of origin and a pre-export laboratory Fukushima. Based on this scientific data, report certifying that they had been tested Japan requested all Members to lift any import for radioactivity. restrictions on Japanese exports. While many already lifted most or all measures, Hong Kong-China based its import China, Hong Kong-China and Chinese Taipei restrictions were based on public health continued to maintain import bans on many concerns over food imported from the five Japanese food exports. affected prefectures in Japan. The measures A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 56 would be adjusted according to any updates As of March 2014, China continued to ban on Hong Kong-China receives from Japan and all types of food and feed from 10 prefectures relevant international organizations. in Japan and requested the submission of an official pre-test certificate for fruits, China responded that it only restricted the vegetables, milk products, medicinal import of products produced in seriously plants and fishery products from all other nuclear-contaminated areas and those prefectures. China maintained that the products seen as high-risk. At the time, the restrictions were based on risk assessments detection of nuclear contamination in food in compliance with international standards. and agricultural products in Japan had been It also stated that it had already adjusted ongoing. China requested that Japan urge the inspection and quarantine measures for its relevant departments and enterprises to Japanese food and agricultural products, and take measures that would ensure all food and continued to apply restrictions only for high- agricultural exports were uncontaminated by risk products from seriously polluted regions. nuclear matter and could satisfy the Chinese Following Japan’s request, China is continuing national standards. to analyze the technical data provided and agreed to review the measures accordingly. w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 57 3 - THE ROLE OF TRADE IN RECOVERY & RECONSTRUCTION CONCLUSION Trade is an important feature of recovery emergencies – are another tool available to and reconstruction following humanitarian governments, as part of their wider support emergencies. Export-oriented sectors like programs following emergencies. Policies tourism are often among the most important that governments adopt that restrict trade for the disaster-affected economy, and with emergency-affected countries can recovery in these sectors helps restore have significant economic impacts – as livelihoods, both in those firms directly demonstrated during the West African Ebola involved in export, but also in those indirectly crisis. In these cases, governments need to connected to them, like suppliers. Policies take the impact of measures on the disaster- adopted by trading partners are also relevant affected country into account, weighing up to disaster recovery. Trade preferences – whether restrictions or bans on trade are the although not widely used with the specific most appropriate response. objective of aiding recovery from humanitarian A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 58 w w w. w o r l d b a n k . o r g / t r a d e 3 - THE ROLE OF TRADE IN RECOVERY & RE CONSTRUCTION 2013. Photo: Mali / World Bank A SURVEY OF TRADE POLICY ISSUES AFFECTING DISASTER RESPONSE, RECOVERY & RECONSTRUCTION 60 TRADE & HUMANITARIAN EMERGENCIES Notes 1. Interview with a humanitarian personnel. 2. World Economic Forum, World Bank and Bain & Company (2013), ‘Enabling Trade Valuing Growth Opportunties’, 4. < http://www3.weforum.org/docs/WEF_SCT_ EnablingTrade_Report_2013.pdf > 3. IFRC (2007) ‘Law and legal issues international disaster response: a desk study’, (‘IFRC Desk Study’), 98. 4. IFRC, WCO and OCHA (2012), ‘Regional Forum on Customs and Disaster Response May 8-10, 2012 Seminar Report’, 2. 5. For a full discussion on supply-side issues, see IFRC desk study 98-114. 6. IFRC desk study, above n 4, 99. 7. Ibid, 101. 8. For a full discussion, refer to IFRC desk study 2007. 9. IFRC (28 April 2014), ‘Global Customs Body Considers New Rules for Humanitarian Relief‘. https://www.ifrc.org/en/what-we-do/disaster-law/news/international/global- customs-body-considers-new-rules-for-humanitarian-relief-65765/#sthash.8TiDtzZi.dpuf. 10. OCHA, ‘Logistics Support:Customs Facilitation’, http://www.unocha.org/what-we-do/ coordination-tools/logistics-support/customs-facilitation 11. HERE-GENEVA (2015), ’ The Impact Of Regulatory Problems And The Gains From Legal Preparedness In Recent Response Operations’, 9. 12. Ibid. 13. Ibid. 14. World Bank Group (2012), ‘Doing Business Report’. 15. Devex (28 July 2011), ‘Stuck in Customs: Aid to East African Drought Victims’, < https://www.devex.com/news/stuck-in-customs-aid-to-east-african-drought- victims-75485 > w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 61 TRADE & HUMANITARIAN EMERGENCIES 16. IFRC, WCO and OCHA (2012), ‘Report:Regional Seminar on the Role of Customs in Natural Disaster Relief Santo Domingo, Dominican Republic 13-15 November 2012’, 10. 17. IFRC Desk Study, above n 4, 99. 18. UNCTAD (2014) ‘WTO Agreement on Trade Facilitation UNCTAD Trade Facilitation Technical Note No. 11: ARTICLE 1.2: Information Available Through Internet’ , 3. 19. IFRC desk study, above n 4, 111. 20. Interview with humanitarian personnel. 21. IFRC Desk Study, above n 4, 106. 22. Interview with humanitarian personnel. 23. IFRC Desk Study, above n4, 100. 24. WFP, ‘Food Procurement Annual Report 2013’ < http://documents.wfp.org/stellent/ groups/public/documents/communications/wfp264134.pdf > 25. Sanogo I, (28 October 2014), ‘Do export restrictions affect food security and humanitarian food assistance in Africa? < http://www.ictsd.org/bridges-news/bridges- africa/news/do-export-restrictions-affect-food-security-and-humanitarian-food 26. Arvis, Shepherd and Bartley Johns (2015). “How are Trade Costs Evolving and Why”, Chapter 2 in WTO-OECD Aid for Trade at a Glance, OECD, Paris. 27. WFP, above n 22. 28. Fisher, D (2007)’Fast Food: Regulating Emergency Food Aid in Sudden-Impact Disasters’ 40 Vand. J. Transnat’l L. 1127, 1140. 29. Martin, W. and K. Anderson (2012). “Export Restrictions and Price Insulation During Commodity Price Booms”. American Journal of Agricultural Economics. 94 (2): 422-427. 30. FAO ‘High food prices: the food security crisis of 2007-2008 and recent food price increases – Facts and lessons’, < http://www.fao.org/fileadmin/user_upload/ISFP/High_ food_prices.pdf > 31. WFP (2011) ‘Background Paper on Export Restrictions’. 32. Ibid. 33. Ibid. 34. Sanogo, above n 23. 35. See https://www.wto.org/english/thewto_e/minist_e/min11_e/briefingfoodsec_e.htm for a description of the negotiating process on this proposal (accessed 27 April 2016) 36. UN statement on the use of GM foods as food aid in Southern Africa (27 August 2002) < http://www.fao.org/english/newsroom/news/2002/8660-en.html > 37. Ibid. 38. World Bank Group, ‘Africa Can Help Feed Africa: Regulatory barriers to trade undermine Africa’s potential in regional food trade’. 62 39. Moïsé E, Delpeuch C, Sorescu S, Bottini N, Foch A (2013) ‘Estimating the Constraints to Agricultural Trade of Developing Countries’ OECD Trade Policy Papers, No. 142, 13. 40. Ibid. 41. WTO, WHO and WIPO, (2013) ‘ Promoting Access to Medical Technologies and Innovation’, 77. 42. Ibid. 43. Ibid, 47. 44. Fisher D, (2010) ‘Regulating the Helping Hand: Improving Legal Preparedness for Cross-Border Disaster Medicine’ Prehospital and Disaster Medicine Vol 25 Issue 03 pp 208-212 45. WTO, WHO and WIPO, above n 37, 49. 46. Interview with humanitarian personnel. 47. Interview with humanitarian personnel. 48. IFRC desk study, above n 4, 111. 49. Interview with humanitarian personnel. 50. IFRC Desk Study, above n 4, 110. 51. Ibid. 52. Ibid. 53. Interview with humanitarian personnel. 54. IFRC Desk Study, above n4, 113. 55. Thomas, M R; Smith, G; Ferreira, F H. G.; Evans, D; Maliszewska, M; Cruz, M; Himelein, K; Over, M,(2015) The economic impact of Ebola on sub-Saharan Africa : updated estimates for 2015. World Bank Group. 56. Jansen, M (2013) ‘Aid For Trade And Value Chains In Tourism’, OECD, UNWTO and WTO, 9 < http://www.oecd.org/dac/aft/aidfortradeandvaluechains.htm > 57. World Travel & Tourism Council (2014) ’ The Economic Impact of Travel & Tourism 2014: Vanuatu’ 1. < http://www.wttc.org/-/media/files/reports/economic%20impact%20research/ country%20reports/vanuatu2014.pdf > 58. Robertson D, Kean I, Moore S (2004) ‘Tourism Risk Management – An Authoritative Guide to Managing Crises in Tourism’ APEC International Centre for Sustainable Tourism, 11-12.< http://www.sustainabletourismonline.com/awms/Upload/Resource/ AICST_Risk_mgmt.pdf > 59. Beirman D (3 January 2012) ‘Danger in paradise: resurrecting tourism after natural disasters’ , The Conversation < http://theconversation.com/danger-in-paradise- resurrecting-tourism-after-natural-disasters-3827 > 60. Logistics Cluster (11 September 2014) ‘Ebola Outbreak: Situation Update, 11 September 2014, 2, http://www.logcluster.org/document/situation-update-11-september-2014 w w w. w o r l d b a n k g r o u p . o r g / e u r o p e / g e n e v a 63