The Impact of EU Regulation 848/2018 and Strengthening Organic Enforcement by USDA NOP on Imports from Third Countries to EU and USA

In recent years, both the European Union (EU) and the United States have taken significant steps to strengthen regulations governing organic agriculture. The EU introduced Regulation 848/2018, aimed at enhancing consumer trust and ensuring the integrity of organic products within its market. Similarly, the United States Department of Agriculture (USDA) implemented measures to strengthen the enforcement of the National Organic Program (NOP), further solidifying organic regulations. The combined impact of these regulatory changes on imports from third countries to the EU and USA is substantial, shaping the global organic trade landscape.

The new Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May 2018 on organic production and labelling of organic products and repealing Council Regulation (EC) No 834/2007 and USDA's Strengthening Organic Enforcement in force starting from March 19, 2024, share common goals:

1. Enhanced regulations: Both regulatory frameworks aim to enhance the regulations and integrity of organic products. This includes stringent requirements for certification, production practices, and supply chain traceability to ensure that organic products meet consumers' expectations for authenticity and integrity.
2. Increased Transparency: Transparency and traceability are paramount under both regulatory regimes. Importers are required to maintain detailed records of the organic production process, including the origin of inputs and processing methods, to enable effective verification and enforcement of organic standards.
3. Strengthened Enforcement: Both the EU and USDA have ramped up enforcement measures to combat fraud and ensure the integrity of organic certification. This includes increased inspections, audits, and penalties for non-compliance to deter fraudulent practices and safeguard consumer trust in the organic label.
4. OID (Organic Integrity Database) for NOP USDA Strengthening Organic Enforcement and TRACES (Trade Control and Expert System) for EU Organic Regulation 848/2018 serve as crucial tools in ensuring the integrity and traceability of organic products within their respective regulatory frameworks. While both systems share similar objectives of enhancing transparency and enforcing organic standards, they differ in their scope, functionalities, and implementation. Let's explore the key differences between OID and TRACES:

• OID: The Organic Integrity Database (OID) is a centralized electronic system developed by the United States Department of Agriculture (USDA) as part of the Strengthening Organic Enforcement (SOE) rule. It serves as a comprehensive platform for tracking and verifying organic certificates, operations, and compliance with USDA organic regulations.
• TRACES: TRACES (Trade Control and Expert System) is a web-based platform established by the European Commission to facilitate the exchange of information and ensure the traceability of agricultural goods, including organic products, imported into the European Union. TRACES covers a wide range of products and regulatory requirements beyond organic certification.

Impact on Imports from Third Countries: The convergence of Regulation 848/2018 and strengthened organic enforcement by the USDA has several implications for imports from third countries:

1. Compliance Challenges: Third-country exporters face increased compliance burdens and certification costs to meet the stringent requirements of both the EU and USDA. This may disproportionately affect small-scale producers in developing countries, who may struggle to access the EU and US markets due to limited resources and technical expertise.
2. Market Access Barriers: Stricter enforcement and certification requirements may pose barriers to market access for third-country exporters, particularly those from regions with less developed organic sectors. Access to the EU and US markets may become more challenging for exporters who fail to meet the rigorous standards set forth by Regulation 848/2018 and the USDA.
3. Collaboration Opportunities: Despite the challenges, there are opportunities for collaboration between the EU, USDA, and third countries to facilitate trade in organic products. Capacity-building initiatives, technical assistance programs, and mutual recognition agreements can help third-country producers improve their organic certification systems and enhance market access to the EU and US.

The implementation of Regulation 848/2018 in the EU and strengthened organic enforcement by the USDA signal a renewed commitment to ensuring the integrity and credibility of the organic label. While these regulatory changes present challenges for imports from third countries, they also underscore the importance of collaboration and partnership in fostering a global organic sector that prioritizes sustainability, transparency, and consumer trust. By working together, stakeholders can overcome barriers to trade and promote the growth of a vibrant and sustainable organic market on a global scale.