FUND FOR RESEARCH INTO INDUSTRIAL DEVELOPMENT, GROWTH
& EQUITY
ISO Type 1 Eco-Labels
Global Review of Eco-Labels: Implications for South
Africa
PHASE TWO REPORT
January 2003
Trade Implications for South Africa of Foreign
Eco-Labelling Schemes: A Socio-Economic Assessment
1. Introduction
The objective of the second report is to assess the trade
implications for South African exporters of foreign eco-labelling
schemes, with the aim of providing clear strategic directions for
consideration by FRIDGE. This report has been developed on the
basis of the initial work that has been undertaken in developing
Report I, as well as on the outcome of discussions with the FRIDGE
Counterpart Group.
The second phase of the study is based on the assumption that
the overriding objective of any eco-labelling initiative in South
Africa is to facilitate access to foreign markets. On this basis,
and building on the findings of Report I, the principal focus of
Report II is on identifying the implications of facilitating
certification in terms of foreign schemes (focussing on the EU
Flower), rather than on developing a uniquely South African
labelling initiative. A key issue here is that of market access.
With regard to using product labels as a means of stimulating
improved environmental performance in the domestic market, the
study briefly examines the potential of further developing the
environmental component within the Proudly South African
campaign.
In achieving its objectives, the Phase Two Report:
- Provides a brief review of key issues relating to international
trade and eco-labelling;
- Describes the make-up of South Africa's trade by beneficiation
over the past five years;
- Analyses trade flows between South Africa and its five most
important EU trade partners using data based on the internationally
accepted Harmonised System (HS) nomenclature. The report examines
each of the product categories covered by the EU flower, and
quantifies South Africa's export performance for these categories
in the country's five most important EU trade partners: Germany,
the United Kingdom, Italy, the Netherlands and France. On the basis
of the trade analysis, the report identifies those manufacturing
sectors where eco-labelling could be of greatest potential
relevance in South Africa in terms of increasing market
competitiveness;
- Undertakes a comprehensive review of the labelling criteria for
each product category covered by the EU Flower, and assesses the
implications at a general level for local producers / manufacturers
seeking to comply with the criteria, focussing in particular on the
data that companies may need to collect to ensure compliance.
- On the basis of this review, the report assesses the general
implications for government in fostering an enabling environment
for South African companies wishing to comply with the eco-label
criteria. In doing so, the report provides a very brief overview of
product-based policy options aimed at reducing the environmental
impact of production and consumption patterns, including in
particular assessing the potential and implications of further
developing the environmental component within the existing Proudly
South African campaign
- Identifies areas for future research.