ALINORM 03/26/12

Agenda Item 11

JOINT FAO/WHO FOOD STANDARDS PROGRAMME

CODEX ALIMENTARIUS COMMISSION

FAO/WHO PROJECT AND FUND FOR PARTICIPATION IN CODEX

Progress report

INTRODUCTION

1. At its Twenty-fifth (Extraordinary) Session in February 2003, the Commission considered a first Progress Report concerning the FAO/WHO Project and Fund for Enhanced Participation in Codex, and noted the importance of ongoing involvement in its activities by Member Nations, the Executive Committee and the Commission itself. The Chairman of the Consultative Group for the Project and Fund, on behalf of the Group, welcomed regular opportunities to receive input from these sources and undertook to report regularly to the Executive Committee and the Commission, and to provide another progress report in June/July 2003.

2. The Consultative Group, which met on 12-13 May 2003 in Geneva, reviewed all the comments made by the Executive Committee at its 51^st and the Commission at its 25^th Session, as well as those made at an informal meeting held with interested parties on the occasion of the latter session of the Commission in February 2003. Fundraising and advocacy were also discussed. A second Progress Report which takes into account the main concerns expressed, and submits revised and more detailed criteria, is presented here as requested.

CRITERIA FOR SELECTION OF BENEFICIARIES

3. The use of the World Bank economic classification of countries for the year 2003 was reconsidered in light of other existing comparable lists (such as OECD’s DAC List of Aid Recipients). It was considered that these two lists did not differ substantially, and that the World Bank list was more appropriate for use in the context of the UN system. Any changes made by the World Bank in its list FY2004 will be kept under review. An updated list including new Codex members is attached as Annex 1.

4. It was recognized that most donors wish both to increase the participation of low-income countries and to reinforce Codex as a representative international institution. Hence all three categories of countries (low income, lower middle income and upper middle income) were retained, on the understanding that the criteria for selection outlined below are designed to be weighted in favour of the low income countries, while not wishing to completely exclude other developing countries from the process.

Output levels

5. Three levels of output from the Project and Fund have been discerned. When considering requests for support according to the desired output, preference would be given to activities described below for each of these categories.

1. Output level I – Widening participation would be directed towards increasing general-level participation and basic training to support it.
2. Output level II – Strengthening overall participation would give emphasis to institutional/consultation aspects, preparation for specific meetings where items of special interest are to be discussed, and training in preparation of country positions.
3. Output level III – Enhancing scientific/technical participation would focus on the preparation of scientific positions and be designed to meet targeted technical needs, thus being more oriented towards participation of technical experts in the Codex process.

6. In recognition of the difficulty for some countries who have never participated in Codex to even meet the criteria for eligibility described below, it is proposed to also finance from the Fund, on an ad hoc basis, activities which would help countries to meet the basic criteria for participation, e.g. facilitation of the designation of a Codex contact point, or a consultancy visit by an appropriate expert from a neighbouring country within the framework of technical cooperation between developing countries (TCDC).

7. An indicative proposed distribution of the Fund’s financial resources according to outputs is outlined in Table 1. Its purpose is to demonstrate how the largest proportion of funds would be directed towards support to low-income countries. It is proposed to formulate the Project’s budget and to report expenditure according to these output categories.

Table 1. Indicative distribution of financial resources according to outputs

* Also includes activities designed to help countries to meet the basic criteria for participation (see para. 6).

8. As stated in paragraph 14 of its Terms of Reference, the Consultative Group will keep under review the geographical balance between countries from the various Codex regions.

Criteria for eligibility of countries

9. The Consultative Group, after reviewing the comments made by the Commission and other interested parties, has adapted the criteria outlined in its first Progress Report, and any comments and suggestions made by the Commission at its 26^th Session will similarly be taken into account when finalizing the criteria prior to the issuance of the first call for applications.

10. The following basic criteria would be used to establish whether a country is eligible for support according to one of the three output categories mentioned above. The distinction between the three categories would be made on the basis of the workplan mentioned below, which would be expected to differ with respect to the level of previous involvement of countries in Codex matters. Workplans submitted for consideration under outputs II and III, for example, would be expected to provide more details such as a rationale for specific requests and the existence of a consultative process with stakeholders.

1. The country should be a Member of the Codex Alimentarius Commission.
2. The country has an identified Codex contact point.
3. A workplan is presented, which relates to one of the identified output groups mentioned above.
4. Coordination between governmental entities is demonstrated.

11. An additional criterion would be applied to requests for continued funding (on an annual basis), namely:

1. Presentation of reports and evaluation of progress towards the objectives described in the workplan described in (3) above.

12. With respect to funding of activities designed to help countries to meet the basic criteria for participation (see para. 6), the only mandatory criterion would be (1).

Matching requirements

13. As outlined in the concept paper presented to the 51^st Session of the Executive Committee in 2002, and in accordance with paragraph 13 of its Terms of Reference, the Consultative Group discussed the issue of financial matching requirements by eligible countries depending on their level of economic development. Such a requirement is considered to be of critical importance, especially with regard to ensuring the sustainability of the Project and Fund and of its outputs.

14. Countries would be expected to cover all costs of participation after a set number of years, indicatively as follows:

1. Low-income countries 8 years
2. Lower middle-income countries 6 years
3. Upper middle-income countries 4 years

15. Upper midde-income countries would be expected to participate in costs already in the first year. A gradual increase in the financial participation of countries would take place according to a sliding scale established in consultation with the country on acceptance of a request for funding.

Monitoring and evaluation

16. As already stated in the first Progress Report, it is anticipated that countries would be expected to provide regular reports on their national situation with reference to the workplan submitted with the request for funding, and that broad independent evaluation of the impact of the Project and Fund and its sustainability might be carried out as appropriate.

OTHER MATTERS

Level of funding

17. In view of the level of funding received to date, the Consultative Group recommended to FAO and WHO that a call for applications from eligible recipient countries should not be issued until a total amount of for example US$ 500,000 has been pledged by donors to the Trust Fund. The Consultative Group was of the opinion that disbursements from the Trust Fund at less than this level of capital would render the Fund financially unstable and possibly unsustainable

Funding from the private sector

18. At the 25^th Session of the Commission, concern was expressed on the subject of potential contributions from the private sector, which might constitute a conflict of interest. The WHO Committee on Private Sector Collaboration has made the following recommendation, which was endorsed by WHO Senior Management:

“The Committee agreed that it would not recommend at this stage any company funding for the Trust Fund. It was necessary to determine the extent of government support for the Fund and only then address whether any means could be considered for some relatively minor percentage of total assets to be of company origin.”

19. It should be understood that “of company origin” would under no circumstances be from companies which would represent a conflict of interest with the objectives of Codex. Hence the Consultative Group reiterates its position stated at the 25^th Session of the Commission, namely that private sector funding is at this stage neither being sought nor accepted. In order to avoid any potential conflict-of-interest situations, it is hoped that sufficient funding will be forthcoming from multilateral institutions and governmental aid agencies.

Fundraising and advocacy

20. An informal meeting for interested parties was held at the time of the 25^th Session of the Commission in Geneva, and another is planned during the 26^th Session in Rome in June 2003. Information on the Project and Fund was provided to delegations at the World Health Assembly in May 2003, and would also be available at the FAO Conference in November 2003. Letters co-signed by the directors-general of FAO and WHO, or by senior managers, are being sent to potential donor countries, enclosing documents relating to the Project and Fund.

NEXT STEPS

21. Following consideration by the Commission of the criteria outlined above and discussions with interested parties, the Consultative Group will be in a position to finalize the detailed modalities for implementation of the Project, including the finalization of a call of applications.

Annex 1

Countries eligible to seek funding from the

FAO/WHO Trust Fund for Participation in Codex, by Codex Region¹

Africa

¹ Based on the World Bank classification. All least developed countries (LDCs) according to the United Nations are categorized under “low income countries” for the purpose of the Trust Fund, irrespective of their classification by the World Bank.

Asia

Europe

Latin America and the Caribbean

Near East

Southwest Pacific