Green goods, blue goods: for whom and on what terms?
Geneva, 11 November 2008 -- Companies are under pressure all over the world from customers, NGOs and the media to provide quality goods produced in a sustainable manner. Companies want to be seen to put “green” products on the market, with the minimum use of pesticides and dangerous chemicals. They also want to be perceived as a fair employer, one that respects a code of conduct with all those employed on their premises and on those of their suppliers – such codes are often dubbed “blue standards”.
However, can all these requirements be called standards? The UNECE Working Parties on Regulatory Cooperation and Standardization Policies (WP.6) and on Agricultural Quality Standards (WP.7) last week discussed these “green and blue” issues, in particular the implications for SMEs and developing country exporters, in a joint meeting held in Geneva. This reflects their increasing importance, not only for food and food products, but also for a number of other products including textiles, clothing and footwear.
The International Organization for Standardization (ISO) defines standards as those developed through a multi-stakeholder dialogue and adopted by consensus by a recognized body for general and repeated use. Specifications on the other hand are set by large buyers – supermarket chains or large producers of consumer goods – and imposed on suppliers. Abuse of a dominant position to impose unfair terms is, however, prohibited by law in some countries.
Voluntary Sustainable Specifications (VSS) are developed by consortia, associations or NGOs. Globally, VSS represent only 2 to 3 per cent of conventional food markets, but their market share is growing steadily – up to 10 to 15 per cent annually for organic products. VSS have the potential to yield general developmental benefits such as more efficient resource use, lower pollution, and increased safety for workers and consumers, although compliance and certification costs can be as high as 50 to 80 per cent of total product costs.
It is for this reason that Governments in developed and developing countries need to exercise surveillance in order to avoid the misuse of VSS for purely commercial interests. Governments also need to ensure that technical assistance focuses on building technical and institutional capacity and infrastructure, but is not geared to favour one private specification, potentially distorting competition. Experts at the Geneva meeting last week agreed that more information on the subject is required. A number of projects were presented that aim to assist developing country manufacturers respond to the growing importance of compliance with private standards.
So what practical help exists today or is being developed? The United Nations Industrial Development Organization (UNIDO) is developing a guidebook, particularly focused on the textiles and clothing sector; the United Nations Conference on Trade and Development (UNCTAD) has set up a Task Force on Environmental Requirements and Market Access for Developing Countries, and the Dutch Centre for the Promotion of Imports from developing countries (CBI) maintains a database that covers both legislative and non-legislative requirements, including private standards, for a number of products.
The outcome of the Geneva discussions should lead to a more transparent and predictable source of information, readily available to exporters, and to shape a better understanding and consensus of the role of Governments in this “green and blue” area.
For further information, please contact:
Ms. Lorenza Jachia
Acting Chief, Regulatory Cooperation and Standardization Policies Unit
Acting Secretary to the UNECE Working Party on Regulatory Cooperation and Standardization Policies (WP.6)
UNECE Trade Division
Palais des Nations
CH-1211, Geneva 10, Switzerland
Phone: +41 (0) 22 917 5593
Fax: +41 (0) 22 917 00 37
E-mail: [email protected]
Website: http://www.unece.org/trade/wp6/welcome.htm
Ref: ECE/TRADE/08/P05