A memorandum of understanding on the mutual recognition of organic agricultural production systems, which allows the harmonization of regulations and standards for the commercial exchange of this type of product, was signed between the Paraguay and the Republic of China (Taiwan), through their representatives the National Plant and Seed Quality and Health Service (SENAVE), and the Agriculture and Food Agency under the Taiwan Council of Agriculture.
The Minister of the MIC, Louis Castiglioni, He highlighted the four years of effort and shared work, which led to the signing of a memorandum of understanding. The highest authority of the MIC indicated that it is a system that will significantly improve the trade of both Paraguay and Taiwan, of organic products.
“It will allow us to provide opportunities for prosperity to our compatriots, such as Taiwan, through legal, legitimate and controlled trade with the highest standards. It will allow us to considerably increase our trade in organic products, because an agreement has been reached to have a unified system of certification equivalence. Fundamentally, in our case, accessing a market that pays very well, and in this case they are going to enter with a tariff zero, organic sugar, chia, sesame, and many other seedsand organic products produced by small producers, such as, for example, the burrito, medicinal herbs”, he indicated.
He stressed that the signing of the document is very significant because of the impact it will have, as it is very inclusive. “It is about the products that farm families produce. That is why we are happy; It is an agreement that will allow thousands of families to benefit in Paraguay”, he reiterated.
Regarding the export potential of organic products, he mentioned that it is currently available with Taiwan.about 100 million dollars. “We are going to think that there is a tariff of 15% or 20%, there we are talking about a saving of 15 to 20 million dollars. With the zero tariff, we are talking about a very considerable and important saving, which makes the competitiveness of our products. They are much more competitive, because they do not pay taxes when entering this market”, he reaffirmed.
instrument of vital importance
He President of SENAVE, Rodrigo González, He pointed out that the memorandum of understanding between Paraguay and Taiwan is an important step in international collaboration in the field of trade in differentiated agricultural products, such as organic production; at the same time, to collaborate mutually and transversally to fulfill the goals of Sustainable Development Goals No. 15 on Responsible Production and Consumption.
“Organic production is a sector of great importance in agriculture, and its impact on food security and the environment cannot be underestimated. According to the FAO, the trade in organic products is growing at a rate of 15 to 20% per year. However, the multitude of standards, regulations and conformity assessment systems make the export process difficult. With the signing of this document, the equivalence of the organic production requirements, and of the control systems used in this area, is achieved,” he pointed out, emphasizing that organic food produced in Paraguay can be sold in Taiwan, without having to undergo new controls and vice versa. “It is an example of good regulatory practice,” she added.
ORGANIC ITEMS, OF GREAT VALUE
He Taiwanese Ambassador, José Chih-Cheng Han, He referred to the signed document as a vitally important instrument to increase and strengthen trade between the two countries. “For Taiwan, organic products are considered highly valuable, which is why we believe that with this tool we can promote greater exports, since many Paraguayan products enjoy free tax, an example of which is organic sugar, yerba mate and sesame seed,” he said.
“Our estimate is that, in a very short time, we can increase up to 100 million dollars in exports to Taiwan in this area,” the diplomat estimated, mentioning that, in January of this year, for example, after granting access According to SENACSA, pork from Paraguay to the Taiwan market saw a significant increase in exports, because the price of Paraguayan pork is 33% higher than other countries.
In turn, the Vice Minister of Agriculture, Juan Andrés Alvarenga, said that this agreement is the door that opens to organic production, demonstrating its profitability. “We give a much more important added value to our products, and today we have very attractive international markets, which will generate a lot of income for our products. The hand that the Government of Taiwan gives us is very important for the growth of organic production, and to add more to our products”, he added.
23 PRODUCTS
It should be noted that the signed document eliminates barriers to trade by reducing the need for additional or duplicate certifications, which directly reduces costs and shortens procedures for producers, processors and exporters.
Paraguay, in the last 3 years, exported 23 different organic products, in a volume of 231 thousand tons worth more than 225 million dollars.
Organic production in our country constitutes an economic and viable alternative for the sustainability of agricultural production. In addition to organic sugar, which in recent years has managed to position our country among the main producers and exporters of it worldwide, there are items in frank growth such as sesame, yerba mate and medicinal herbs, among others with sufficient export potential. .
The process of mutual recognition of organic production systems began in June 2019, through a letter of intent signed by the Ministers of Industry and Commerce of Paraguay and Taiwan, within the framework of the II Meeting of the Joint Committee of the Cooperation Agreement. economy between the two countries.
