Food and agricultural products dominate the merchandise exports of many poor countries. For small countries in particular, wider participation in international trade is one of the important opportunities for economic growth, yet many developing countries lack the public and private capacity for managing food safety and agricultural health6. This lack of capacity forms a serious constraint not only to protecting human and agricultural health domestically but to accessing foreign markets. Efforts to ensure food safety and agricultural health require a range of investments aimed at protecting human health and enhancing economic growth. Measures to build or strengthen a country’s overall capacity to manage food safety and agricultural health may include institutional and legal reforms, raising awareness and promoting the use of “good” agricultural and postharvest practices, and/or investing in physical facilities, equipment, and other kinds of infrastructure. Because the particular mix of actions will depend on the conditions prevailing in a given country, project identification will require comprehensive analysis of a specific sector or product and an assessment of costs, benefits, risks, and opportunities. Background and Context for Investment Under the WTO Sanitary and Phytosanitary (SPS) Agreement, countries can restrict imports of agricultural and food products if necessary to protect human, plant, and/or animal health (box 7.28). Box 7.28 The 1994 SPS Agreement The SPS Agreement covers both food safety regulations and agricultural standards for animal and plant health, and it contains provisions for control, inspection, and approval procedures. It recognizes that member governments have the sovereign right to protect their citizens, but it also specifies that measures should be applied only to the extent necessary and should not arbitrarily nor unjustifiably discriminate against other WTO countries where identical or similar conditions prevail. A member country’s food safety and agricultural health regime must be published and thus transparent, and notice of any changes must be given in writing to WTO. Members are encouraged to base their measures on international standards, guidelines, and recommendations, where they exist. The WTO recommends that members harmonize their requirements by using standards formulated by three international standard-setting bodies: the CODEX Alimentarius for food safety, the Office International des Epizooties (OIE) for animal diseases, and the International Plant Protection Convention (IPPC) for plant pests and diseases. Countries may use other standards, but they must provide a scientific justification for doing so. Source: WTO Sanitary and Phytosanitary Measures Agreement 1994 |
6 Food safety hazards include: foodborne microbial pathogens (such as Salmonella spp., E. coli, and Listeria monocytogenes) that occur naturally in the environment and may contaminate food through improper handling; animal diseases; parasites; mycotoxins; antibiotic or pesticide residues; and adulterants (such as dirt, glass, or heavy metals). Food additives, allergies, and the commercialization of biotechnology products—which are also raising questions for regulators—are not covered in this investment note. Agricultural health hazards include animal and plant pests and diseases that cause economic damage to crops or livestock or form a threat to human beings or the environment.   
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