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					            UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

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                       UN Inter-Agency Workshop on Capacity
                                Building/Development
                                      Geneva, 20-22 November 2002

                UNIDO’S ACTIVITIES RELATED TO
              CAPACITY BUILDING IN THE FIELD OF
                       MARKET ACCESS


                             Presented by Mr. Bernardo Calzadilla-Sarmiento
                                Senior Advisor - UNIDO Office at Geneva
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                                     UNIDO’S ACTIVITIES RELATED TO
                                       CAPACITY BUILDING IN THE
                                       FIELD OF MARKET ACCESS


        • UNIDOs Integrated programme approach

        • UNIDOs Market AccessConceptual framework: the 3 Cs
          approach

        • SPS related case Study: Lake Victoria Project
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                THE INTEGRATED PROGRAMME APPROACH


            UNIDO INTEGRATED PROGRAMMES (IPs) aim at improving
            industrial competitiveness and thereby contribute to poverty
            reduction. To optimise the chances of achieving this, the focus
            of integration is at the level of the UNIDO Service Modules
            selected for the programme, as well as at the level of donor
            mechanisms, national counterparts and other development
            activities in the country or region.
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                                            Service Module Approach

                Industrial Governance and statistics
              Investment and technology promotion
                                  Quality and productivity
                           Small business development
                                              Agro-industries
                Industrial energy and Kyoto Protocol
                                           Montreal Protocol
                            Environmental Management
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The 8 Service Modules                                   …..grouped in “3Es”:

                                                                                                         ECONOMY

 “Competitive Economy” - or
  Making Industry more Efficient


 “Sound Environment” - or
  Environmentally Friendly Industry                                                                         SID

 “Productive Employment” - or
  Promoting Employment in Industry
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                                                  COMPETITIVE                              SOUND                          PRODUCTIVE
         Integrated                                                                     ENVIRONMENT                       EMPLOYMENT
                                                   ECONOMY
          Packages                            Making industry more
                                                                                         Environmentally                    Promoting
                                                                                         friendly industry                 employment in
         of Services                                efficient                                                                industry

L
E
V                                         Industrial Governance &                     Industrial Energy &             Small Business
E
               POLICY                     Statistics                                  Kyoto Protocol                  Development
L
OF
I
                                          Quality & Productivity
N
T
                                                                                      Environmental
E        INSTITUTIONAL                                                                Management                      Agro-Industries
R                                         Investment & Technology
V                                         Promotion
E
N
T
I
O         ENTERPRISE                                                                  Montreal Protocol
N
            UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

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                                     UNIDO’S ACTIVITIES RELATED TO
                                       CAPACITY BUILDING IN THE
                                       FIELD OF MARKET ACCESS


        • UNIDOs Integrated programme approach

        • UNIDOs Market Access conceptual framework:
          the 3 Cs approach

        • SPS related case Study: Lake Victoria Project
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              DEVELOPING COUNTRIES ARE
             TAKING LIMITED ADVANTAGE OF
             IMPROVED ACCESS CONDITIONS
                       BECAUSE:
         They have serious shortfalls in capabilities

         They face major non-tariff barriers to trade


They have to adapt to the multilateral trading system
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                              CAPACITY SHORTFALLS
         Supply unable to produce goods of
                competitive quality and quantity.

Standards often incompatible with international standards.

 Metrology no recognized laboratory capacities.
and testing

             Trade little say in international trade agreements

 Marketing
and export unable to identify and attract target consumers
promotion
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                                                                            NON-TARIFF BARRIERS AFFECTING MARKET ACCESS


                                                                                        Sanitary and
           Registration,                                                           Phytosanitary measures
        documentation and                                                                  (SPS)                                                                   Technical Barries to
         customs issues                                                                                                                                               Trade (TBT)

                                                                                                           ITC
                                                                                                                         domestic                certification                                UNIDO
                                                                                                                       requirements                                   ITC                                         product
                                                 licences                     International                                                       (systems)                                    ITC
                                                                                                                                                                                               FAO              development
                                                                            Plant Protection
                                                                                                                      National Enquiry                  process
   custom                                                                      Convention                   ITC                                                             UNIDO                           National Enquiry
                                                                                                                            Point                     inspection                               ITC
 clearance
                 UNCTAD                                                        standards                                                                                                                          Point
                                                                                  (IPPC)                                                                     packaging                                UNIDO
                                                                                                                                                                                ITC                                  IEC
                                                                                                                     WHO         health                     and labelling                              ISO
                                                                                                                                                                                                                              international
                                           UNCTAD
                                             -                custom                                                                                                                                   ITC
                                                                                                                                                                                                                    OIML
                                                                                                                                                                                                                                standards
                                            WTO                                                                                                                                                                      ITU
                                                             valuation
 w arehousing                                                                                                                      standards from                tests and                              UNIDO       measurement
                                                                                     Intl. Office of                  FAO                                                           UNIDO
                                                                                    Epizootics (IOE)                  WHO         Codex Alimentarius             calibration                             BIPM        standards
                                                                 prohibitiions         standards                                  Commission (CAC)                                                          UNIDO       storage
                                                                                                                                                                 environmental             UNIDO
         domestic                                                                                                                                                  systems                 UNEP
                                                                                                                                                                                                               UNIDO       accreditation of
        taxation of                                                                     TBT related                                                                                                              IAF         conformity
                                                                       quotas,                                                              biosafety                          local           UNIDO
          goods                                                                           issues                                                                                                                ILAC
                                                                                                                                                                                                                            assessment
                                                                        prices                                                          standards (GMO)                       content           ISO
                                                                                                                                                                                                ITC
                                                                                                                                                                             schemes                                                       Market
                                                                                                                                                                                                                                           Access
                                                                                                                                                                                                                                          Facilitation
                                                                                                                                                             enterprises'           UNIDO
                                                                                                      DFI          IMF                     services
                                                                                                                                                           competitiveness           ITC                          WTO agreement for
                    registry                  IMO                                                 regulations     UNIDO                                                                               ITC
                                                                                                                                                                                                                       trade
                  procedures                 ICAO                             airport
                                                                ICAO
                                                                             services                                          WB
                                                                                                                                            banking
                                                                                                                                                          trade                                              products and market
                                                                                                                                                                                               ITC
                                                                                           foreign                                                    negotiations        UNCTAD                                 development
               taxes                                                                      exchange                                  subisidies         techniques
                                                                                          measures                                                                                          WTO
                                                                                                                                                                                                               trade
                                                                                                                                                                                                             disputes
                                                                 harbour
                                                      IMO
                                                                 services             foreign                                                  trade              WTO
                                                                                                                               profit       agreements           UNCTAD                                dumping
             inspection                                                             investment                                                                                        WTO
                                                                                                                            repatriation                                                              practices
                                                                                       taxes
                                                                                                                               limits
                                                                                                                                                                                    WIPO
                                                                                                                                                                                                   intellectual
                                                                                                                                                                                                     property
                        Transportation                                                            Investment and                                           International rules
                          and transit                                                            financial related                                              for trade
                                                                                                      matters



             Graphic 1 - Means-End diagram for market access facilitation                                                                                                                                            UNIDO - 22/Apr/02
NON – TARIFF BARRIERS AFFECTING MARKET ACCESS




         MARKET ACCESS FACILITATION
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                            Pre-conditions for Market Access –
                                 The Main Problem Areas

                           “Countries must have
                            marketable products to sell”


                           “Products must
                            meet market/client requirements”

                           “Rules for trade, customs
                            must be harmonized”
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P                                     Products to Market
R                                                                                                                                             M
O                                                                                                                                             A
                Develop
D             Competitive
                                                    Prove Conformity
                                                                                                      Connect to
                                                                                                                                              R
                                                       with Market                                                                            K
             Manufacturing                                                                            the Market
U              Capability
                                                      Requirements
C                                                                                                                                             E
T                                                                                                                                             T
S                                                                                                                                             S
              Compete                                  Conform                                   Connect

    ….by upgrading supply capacities and
          standards infrastructures
A CONCERTED INTER-AGENCY STRATEGY FACILITATES MARKET ACCESS




     Compete              Conform              Connect
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                                     UNIDO’S ACTIVITIES RELATED TO
                                       CAPACITY BUILDING IN THE
                                       FIELD OF MARKET ACCESS


        • UNIDOs Integrated programme approach

        • UNIDOs Market AccessConceptual framework: the 3 Cs
          approach

        • Capacity Building: Lake Victoria Project
            UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

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                                      Case of Victorian Lake
                                          Fish industry
                                        Situation Before

• Major fish industry (Nile perch) developed around Lake Victoria,
  shared by Tanzania 51%, Uganda 43% and Kenya 6%

• Revenues from exports exceeded USD 200 million/year

• Employment for almost 500.000 people

• Favorable ground for local suppliers and complementary industries.
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                                 Case of Victorian Lake
                                      Fish industry
                             Effect of Lake Fish Poisoning

• EU export ban imposed in 1999

• Fish exports dropped by 50% in Tanzania and Uganda

• 30% of workers lost their jobs

• Most of the fish factories closed or worked far below capacity
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                              Case of Victorian Lake
                                   Fish industry
                           Challenge – Project Objectives



• Identify immediate and structural deficiencies

• Establish solid foundation for fish safety system

• Lift the ban imposed by EU
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                            THE CHALLENGES – LAKE VICTORIA
Appropriate strategy for risk
analysis, management and
communication
Appropriate food control                                                GOVERNMENT (GENERAL) LEVEL
legislation (FAO)
Coordination and monitoring
mechanisms involving all the                                       INSTITUTIONAL FRAMEWORK LEVEL
stakeholders

                                                                       ENTERPRISE LEVEL (OPERATORS)


                                                                           CONSUMER LEVEL (MARKET)
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                           THE CHALLENGES – LAKE VICTORIA


Inspection (regulations
enforcement, system auditing
and product certification,                                             GOVERNMENT (GENERAL) LEVEL
hazard identification and
analysis)
                                                                  INSTITUTIONAL FRAMEWORK LEVEL
Support services: Testing
analyses (GLP-accredit.
ISO17025), standardization,                                           ENTERPRISE LEVEL (OPERATORS)
metrology, training and
certification bodies; etc.
                                                                          CONSUMER LEVEL (MARKET)
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                            THE CHALLENGES – LAKE VICTORIA




                                                                        GOVERNMENT (GENERAL) LEVEL
Strengthening individual and
collective awareness and skills
of personal                                                        INSTITUTIONAL FRAMEWORK LEVEL

Implementing GHP and HACCP
based programs with                                                    ENTERPRISE LEVEL (OPERATORS)
benchmarking mechanisms

Implementing quality                                                       CONSUMER LEVEL (MARKET)
management systems
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                            THE CHALLENGES – LAKE VICTORIA




                                                                        GOVERNMENT (GENERAL) LEVEL


                                                                   INSTITUTIONAL FRAMEWORK LEVEL

Collective awareness through
the media                                                              ENTERPRISE LEVEL (OPERATORS)

Education focusing on young
generation through school                                                  CONSUMER LEVEL (MARKET)
programs
Strengthening capacity of
consumers organizations
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                                      Case of Victorian Lake
                                           Fish industry
                                      Project Implementation

•       Integrated corrective actions taken by UNIDO in partnership with

        1.     Uganda National Bureau of Standards
        2.     Tanzania Bureau of Standards
        3.     Federation of Kenya Employers
        4.     Lake Victoria Fishers Cooperative
        5.     UNDP, WHO, FAO, DFID

•       3 years, USD 4.6 million

•       Sources of funds: Austria, Denmark, Germany, Italy, Japan, UK, UNDP,
        UNIDO
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                                      Case of Victorian Lake
                                          Fish industry
                                        Results achieved

• Organizational and regulatory framework for fish industry improved, service
  capacity for fish inspection strengthened

• Testing laboratories locally available and internationally recognized

• In-plant group training carried out in 17 factories for 950 staff and critical
  mass of expertise provided to processing plants in GHP, HACCP, ISO 9000

• Quality control upgraded at all levels

• EU ban lifted by the end of 2000 and new market in US opened
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                                      Case of Victorian Lake
                                          Fish industry
                                        Lessons learned

• Building up the competent authority and establishing QMS and
  HACCP systems was essential for restarting fish exports.

• Strengthening simultanuoesly local support institutions such as
  standardization bodies and testing houses, inspection and
  certification bodies was decisive to regain the EU market and get
  access to new markets.

A CONCERTED INTER-AGENCY STRATEGY INVOLVING ALL
  STAKEHOLDERS WAS INDISPENSABLE TO ACHIEVE IMPACT
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