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Implementing food-based dietary guidelines for - United Nations ...

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Trade, development, and regulatory issues<br />

Product attributes: Harmonization and trade<br />

Nutrition labeling<br />

Labeling is a classic case within in<strong>for</strong>mation economics<br />

of the problems that firms confront in a marketplace:<br />

what product in<strong>for</strong>mation to convey, and how to make<br />

that in<strong>for</strong>mation credible. With the rise in diet-related<br />

disease patterns around the world and the increase in<br />

consumption of processed and packaged <strong>food</strong>, nutrition<br />

labeling is increasingly demanded. Nutrition labeling is<br />

supposed to assist consumers in making an in<strong>for</strong>med<br />

decision about the content of the product. It is now<br />

customary <strong>for</strong> the governments in several developed<br />

countries such as Canada and the <strong>United</strong> States and<br />

also in newly industrialized countries such as Malaysia<br />

to have mandatory labeling norms. For the manufacturers,<br />

on the one hand, this makes them aware of the<br />

nutritional content of their product, thereby giving<br />

them an edge in selling the products, and on the other<br />

hand it instills an element of social responsibility to<br />

produce and promote healthy <strong>food</strong> among consumers.<br />

Of course, possibilities of misleading the consumers<br />

<strong>based</strong> on health claims are also likely to arise if this is<br />

to be used as a strategy to increase sales. Consequently,<br />

regulation of labeling <strong>for</strong>mat (what to label, how to<br />

label, and where to label) is considered important.<br />

Several countries follow the Codex labeling pattern,<br />

whereas others have their own regional versions and<br />

hence tend to vary from one country to another. With<br />

the rise in trade in processed <strong>food</strong>, a common approach<br />

to labeling is becoming important, leading to calls <strong>for</strong><br />

harmonization.<br />

Recently, the issue of harmonization in labeling of<br />

trans fatty acids (TFA)* in <strong>food</strong> products emerged as<br />

a point of contention in trade between Canada and<br />

the <strong>United</strong> States [26, 27]. The differences in labeling<br />

<strong>for</strong>mat include the following: trans fat is to be<br />

declared separately, with a minimum daily value <strong>for</strong><br />

both saturated and unsaturated fats in the Canadian<br />

proposal, whereas the US <strong>for</strong>mat requires that trans<br />

fat be declared separately from saturated fats, but only<br />

the saturated fat is accompanied by a minimum daily<br />

value; the minimum threshold of trans fat declaration<br />

is lower in Canada (0.2 g) than in the <strong>United</strong> States<br />

(0.5 g or more); and Canada requires that the label be<br />

printed in English and French. Consequently, there is a<br />

request <strong>for</strong> mutual recognition rather than harmoniza-<br />

* TFAs are polyunsaturated fats that are harmful to health,<br />

particularly those from partial hydrogenation of vegetable<br />

oils. Addition of TFA increases the shelf-life of a product with<br />

a stable flavor but also increases the cholesterol level, causing<br />

a higher risk of coronary artery disease. Consequently, some<br />

countries in the European Union, the <strong>United</strong> States, and<br />

Canada have imposed regulations on the permitted use of<br />

such oils and hence have mandatory labeling requirements<br />

whose <strong>for</strong>mat varies among the countries. In Australia and<br />

New Zealand voluntary labeling is practiced.<br />

S133<br />

tion by the US manufacturers, who seem to have a less<br />

stringent labeling <strong>for</strong>mat. The welfare impacts of the<br />

nutrition labeling have been a significant increase in<br />

sales of products marked “no trans fat” and increased<br />

research on and availability of oils with lower or no<br />

trans fat content (partly driven by the nutrition labeling<br />

deadline set by NAFTA <strong>for</strong> January 2006).<br />

Similar issues could emerge in trade between two<br />

groups of nations, as the countries vary in terms of<br />

what they deem necessary to be cited on the label about<br />

nutrient content and how it is explained. For instance,<br />

Food Standards Australia New Zealand (ANZFA), the<br />

joint <strong>food</strong> code <strong>for</strong> Australia and New Zealand, has<br />

mandatory nutrition labeling, whereas the European<br />

Union considers mandatory labeling only <strong>for</strong> <strong>food</strong> with<br />

nutritional or health claims. It expects the in<strong>for</strong>mation<br />

to be given both per 100 g and per 100 mL and in<br />

terms of an average serving, whereas the latter is not an<br />

essential requirement in the European Union [28, 29]<br />

Similarly, countries in the Southeast Asia region have<br />

varying standards, and attempts have been made to<br />

bring the countries together <strong>for</strong> a harmonized nutrition<br />

labeling due to increased demand by the consumers as<br />

well as their regional trading partners [30].<br />

Although it is widely accepted that nutritional claims<br />

cannot be the only approach to change <strong>dietary</strong> habits,<br />

they could have significant impacts on some consumers,<br />

and there<strong>for</strong>e restricting trade on the basis of a<br />

different labeling <strong>for</strong>mat does not seem to be justified<br />

[31]. Thus, <strong>guidelines</strong> such as those of the Codex Alimentarius<br />

Commission may be necessary to increase<br />

harmony in the labeling <strong>for</strong>mat. Within the Codex<br />

Alimentarius Commission, the Codex Committee on<br />

Food Labeling gives <strong>guidelines</strong> <strong>for</strong> label texts that have<br />

four subcategories dealing with prepackaged <strong>food</strong>,<br />

nutritional claims, and nutritional labeling (see Van<br />

den Wijngaart [31] <strong>for</strong> a brief explanation of these<br />

<strong>guidelines</strong>). The important feature of these <strong>guidelines</strong><br />

seems to be that they allow <strong>for</strong> flexibility in national<br />

policy <strong>for</strong>mulation so that local needs are taken care<br />

of. This and the emerging scientific evidence on nutrient<br />

content result in variation in labeling <strong>for</strong>mats and<br />

regulations around the world, which has an impact on<br />

harmony. Greater consistency or harmonization can<br />

only be achieved by discussions among trading partners<br />

and discussions in the Codex meetings, leading to<br />

fewer barriers to international trade with benefits to the<br />

consumers and producers.<br />

Process controls: HACCP<br />

and harmonization<br />

The monitoring and en<strong>for</strong>cement of per<strong>for</strong>mance<br />

standards <strong>for</strong> microbial pathogens is costly. There is a<br />

WHO/FAO protocol that is recognized and <strong>for</strong>ms the<br />

basis <strong>for</strong> the protocol used in the <strong>United</strong> States and

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