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  • 8/7/2019 ESCAP 28 January 2011

    1/2

    United Nations Information Centre Jakarta

    Menara Thamrin, 3A floor, Jalan M.H. Thamrin kav.3

    Jakarta 10250

    Tel. (6221) 3983-1011, 3983-1013, Fax. (6221) 3983-1014

    Email: [email protected] ; Twitter: @unic_jakarta

    28 January 2011

    Press Release No: G/01/2011

    Facilitating Agricultural Trade is Key to Poverty Reduction and FoodSecurity in Asia and the Pacific

    Make food products more accessible and affordable, says high level regional

    forum

    Bangkok (UN ESCAP Information Services) -- Concerned over the sharp rise in

    food prices and the impact of export barriers on food safety, participants in

    a meeting organized by the UN Economic and Social Commission for Asia and the

    Pacific (ESCAP) stressed the need for facilitating intraregional agricultural

    trade. This will help ensure accessibility and affordability of food

    products.

    Dr. Ravi Ratnayake, Director of the Trade and Investment Division of ESCAP,said that promoting agricultural trade in the Asia-Pacific region is

    important for addressing poverty in Asia and the Pacific, where over 70

    percent of the poor live in rural areas and have agriculture as their main

    livelihood.

    With rising populations and the emergence of relatively affluent population

    segments seeking dietary diversity, the demand for food products in general,

    and high-value processed food in particular, has been rising. He noted there

    is a great potential for agricultural exports in the region.

    Analyzing constraints to agricultural exports, senior policy makers,

    academics, exporters, logistics providers, and UN and Asian Development Bank

    (ADB) experts at the High-level Consultation on Facilitating Agricultural

    Trade in Asia and the Pacific organized in Bangkok by ESCAP this week notedthat the rapid emergence of stringent private standards for food products in

    the West has become a major challenge. There are significant gaps in quality

    infrastructure and technical know-how that prevent developing countries to

    meet these standards. They emphasized the need for regional cooperation in

    building capacity and developing mechanisms for accreditation of testing

    facilities.

    It was noted that trade procedures related to agricultural products were much

    more complex and cumbersome than those of manufacturing products. In some

    South Asian countries it could take up to 41 days to prepare paperwork for a

    single transaction for the export of agricultural products. Inefficient trade

    procedures could result in loss of the entire consignment due to spoilage.

    Participants pointed out that simplified transport procedures and adequateborder infrastructure facilities are crucial for fast passage of agro-export

    products.

    Exporters highlighted that it is extremely difficult for agro-exporters to

    obtain trade finance due to price, weather, and collateral risks attached to

  • 8/7/2019 ESCAP 28 January 2011

    2/2

    United Nations Information Centre Jakarta

    Menara Thamrin, 3A floor, Jalan M.H. Thamrin kav.3

    Jakarta 10250

    Tel. (6221) 3983-1011, 3983-1013, Fax. (6221) 3983-1014

    Email: [email protected] ; Twitter: @unic_jakarta

    agricultural products. Participants stressed the need for innovative trade

    financing for agro-exports. They stressed that international financial

    institutions need to provide credit enhancement and direct support for trade

    finance.

    A number of good practices and success stories in trade facilitation for

    agricultural products were showcased at the meeting. Cambodian experience

    showed the effectiveness of efforts to streamline rice export processes,

    integrate producers into the sub-regional value chain, diversify into new

    products, and engage the private sector in these processes. UN and ADB

    experts shared successful initiatives on trade facilitation for agricultural

    products in the region. Senior policy makers from Bangladesh, Lao PDR and

    Nepal presented country status and priorities in this area.

    Participants put forward recommendations to directly help promote

    agricultural exports in the regions low-income countries. These include

    regional cooperation mechanisms to develop food safety and qualityinfrastructure in low-income countries; exploring innovative ways to solve

    trade finance bottlenecks for agro-exports; and helping countries apply

    paperless trading in the agro-export sector with the help of the UN Network

    of Experts on Paperless Trade in Asia and the Pacific (UNNExT). It was noted

    that the Asia Pacific Trade Agreement (APTA) could be used to initiate pilot

    projects for trade facilitation capacity building.

    For more information, please contact:

    Ms. Shamika Sirimanne,

    Chief, Trade Facilitation Section

    Trade and Investment Division, UNESCAP

    Tel: +66-2-288-1638 +66-2-288-1638

    E-mail: [email protected]

    Ms. Thawadi Pachariyangkun,

    UN ESCAP Information Services,

    Tel: +66-2 288-1861 +66-2 288-1861,

    Mobile: +66-81 634-3876 +66-81 634-3876

    Email: [email protected] and [email protected]