World Trade Organization SPS and TBT Agreements

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World Trade OrganizationSPS and TBT Agreements

• Prepared by
• Dr Lahsen Ababouch
• Chief, Fish Utilization and Marketing Service
• Food and Agriculture Organization of United
  Nations
• Rome, Italy

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World trade OrganizationSPS/TBT agreements

• Liberalization of trade

Challenges

• Maximal food safety and quality

• Minimal Technical Obstacles to trade

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World Trade organizationSPS/TBT Agreements

• Fair trade practices

Scope

• Animal health and plant protection

• Safe and quality food

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SPS/TBT Agreements

• Necessary to achieve an ALOP but should not use
  SPS and technical standards to shield domestic
  producers from foreign competition

Protection vs. Protectionism

• Pressure to do so is high as other trade barriers
  (tariffs and quotas) are reduced

• Their technical complexity makes SPS measures and
  standards a particularly deceptive and difficult
  barrier to challenge

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SPS/TBT Agreements

• SPS cover health (human, animal and plant)
  protection measures

SPS vs. TBT

• The TBT Agreement covers all technical
  requirements, voluntary standards and the
  procedures (Conformity assessment procedures) to
  ensure that these are met, except when these are
  SPS measures as defined by the SPS Agreement

• TBT measures can cover any subject, from car
  safety to energy saving devices to food packaging

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Technical Barriers to Trade Agreement (TBT)

• Revised Agreement from Tokyo Round (1973-1979)

• Purpose of Agreement
• -To encourage the development and use of
  international standards and conformity
  assessment systems
• -To prevent the use of technical requirements as
  unjustifiable trade barriers
• -To prevent deceptive trade practices

• Product (1979) vs. product, process and
  production methods (1995)

• SPS measures for agriculture and foods dealt with
  separately under SPS

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SPS/TBT AgreementsGeneral Principles

• Sovereignty
• Harmonization
• Equivalency
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

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Implications of the SPS and TBT agreements in
Fisheries

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SPS AGREEMENTAnnex ADefinitions
Sanitary/Phytosanitary Measures

• Any measure applied to Protect Human and Animal
  Life or Health from Risks from
• improper use of food additives
• contaminants
• toxins
• disease causing organisms in foods, beverages or
  feedstuffs

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SPS AGREEMENTAnnex A - DefinitionsSanitary/Phyto
sanitary Measures include all laws, decrees,
regulations, requirements and procedures related
to

• end product criteria
• processes
• production methods
• testing
• inspection
• certification
• approval procedures

• quarantine treatments
• statistical methods
• sampling procedures
• risk assessment
• packaging
• labelling

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Technical Barriers to Trade Agreement
(TBT)Annex 1. Definitions

• Technical regulation
• Document which lays down product characteristics
  or their related processes and production
  methods, including the applicable administrative
  provisions, with which compliance is mandatory.
  It may also include or deal exclusively with
  terminology, symbols, packaging, marking or
  labelling requirements as they apply to a
  product, process or production method.

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Technical Barriers to Trade Agreement
(TBT)Annex 1. Definitions

• Standard
• Document approved by a recognized body, that
  provides, for common and repeated use, rules,
  guidelines or characteristics for products or
  related processes and production methods, with
  which compliance is not mandatory. It may also
  include or deal exclusively with terminology,
  symbols, packaging, marking or labelling
  requirements as they apply to a product, process
  or production method.

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Technical Barriers to Trade Agreement
(TBT)Annex 1. Definitions

• Conformity assessment procedures
• Any procedure used, directly or indirectly, to
  determine that relevant requirements in technical
  regulations or standards are fulfilled.

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SPS/TBT AgreementsGeneral Principles

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

SPS AGREEMENTAnnex A Definitions Appropriate
Level of Protection

• Each country is sovereign to establish SPS
  measures it terms necessary to protect human and
  animal health and plants

• The level of protection deemed appropriate by the
  Member to protect human, animal or plant life or
  health
• Acceptable Level of Risk

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTArticle 2 Basic Rights

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Recognizes the rights of Members to establish
  appropriate levels of protection

• Outlines the application of scientific evidence
  in establishing sanitary/phytosanitary measures

• Prohibits discriminatory, disguised or
  unnecessary restrictive trade measures

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SPS/TBT AgreementsGeneral Principles

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

The TBT Agreement establishes rights of Members

• to ensure the quality of its exports,

• to protect human, animal or plant life or health

• to protect the environment

• or for the prevention of deceptive practices, at
  the levels considered appropriate

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTAnnex ADefinitionsHarmonization

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Establishment, Recognition and Application of
  Common Sanitary/Phytosanitary Measures by Members

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTAnnex ADefinitions
Harmonization Codex Alimentarius Commission

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

Standards, Guidelines, and Recommendations for
Food Safety

• Food Additives

• Veterinary Drug and Pesticide
• Residues

• Contaminants

• Methods of Analysis and Sampling

• Codes /Guidelines of Hygienic Practices

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTAnnex ADefinitions Harmonization

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Standards, Guidelines, and Recommendations for
  Animal Health and Zoonoses
• International Office of Epizootic

• Standards, Guidelines, and Recommendations for
  Plant Health International Plant Protection
  Convention

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTAnnex ADefinitions Harmonization

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

For matters not covered by the
identified Organizations Standards, guidelines,
and recommendations promulgated by other
international organizations, open for membership
to All WTO members, as identified by the SPS
Committee may be applied
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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTArticle 3Harmonization

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Members shall base Sanitary and Phytosanitary
  Measures on international standards, guidelines
  and recommendations

• Measures which conform to international
• standards are consistent with Agreement

• Higher level of protection may be used

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SPS/TBT AgreementsGeneral Principles

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

SPS AGREEMENTArticle 3Harmonization

• Members are to fully participate in relevant
  international organizations

• WTO to monitor progress of international
  harmonization

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTArticle 4Equivalence

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Members shall accept other Member measures as
• equivalent, if final results are the same

• Members shall consult to achieve bilateral and
  multilateral agreement (Mutual Recognition
  Agreements)

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTArticle 5Risk Assessment

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Risk Assessment should take into account
• available scientific evidence
• relevant processes and production methods
• inspection/sampling/testing methods
• prevalence of specific diseases or pests
• existence of pest/disease free areas
• ecological/environmental conditions
• quarantine or other treatment

SPS Measures are to be based on an assessment of
the risks to Human, Animal and Plant life and
health using internationally accepted Risk
Assessment Techniques
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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTArticle 5 Risk Assessment

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• SPS Measures should minimize negative trade
  effects

• Arbitrary or unjustified measures shall not be
  considered

• Members may provisionally adopt international
  Standards

• Protection level shall not be trade restrictive

• Explanations may be requested by Members

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTArticle 7 Transparency

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Publication of regulations and provide lead time
  for comment
• Establish Enquiry Point
• Establish Notification Procedures
• General Reservations (related to Confidential
  information)

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SPS/TBT AgreementsGeneral Principles

• SPS AGREEMENTArticle 7 Transparency
• Emergency circumstances

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Bypass publication
• Immediately notify Members through SPS Committee
  Secretariat
• Allow Members to comment and take comments into
  account

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTArticle 7 Transparency
Notification Procedures

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Prompt publication

• Provide information on effected products,
  objectives and rational

• Provide copies of regulation on request

• Allow Members to comment and take comments into
  account

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENTArticle 9Technical Assistance

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Members agree to facilitate technical
• assistance, especially to developing countries

• If substantial investment is needed, technical
  assistance should be provided

(WTO is not a funding organization)
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SPS/TBT AgreementsGeneral Principles

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

SPS AGREEMENT Article 10
Special and Differential Treatment

• Members are to consider needs of other Member
  countries

• Time limit exception (granted by SPS Committee
  upon request)

• Longer time frames for compliance with this
  agreement

• Developing countries should actively participate
  in international organizations

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SPS/TBT AgreementsGeneral Principles
SPS AGREEMENT
Article 11Consultations and Dispute Settlement

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Rules established by GATT (Article XXII and
  XXIII)
• Technical/Scientific - advise from experts,
  advisory panels or relevant international
  organizations
• Other existing international agreements may be
  used

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SPS/TBT AgreementsGeneral Principles

• SPS AGREEMENTArticle 11
• Administration
• The SPS Committee was established to

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• encourage the use of International Standards

• maintain contact with international organizations

• develop procedures to monitor harmonization

• monitor for duplication of procedures

• examine specific standards

• review operational procedures after3 years

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SPS/TBT AgreementsGeneral Principles
TBT AGREEMENT The Committee on TBT

• Sovereignty
• Harmonization
• Equivalence
• Scientific basis
• Transparency
• Technical Assistance
• Special and differential treatment
• Consultation and dispute settlement

• Meets as necessary, at least once a year
• To enable members to consult on the operations of
  the agreement
• Committee can establish working parties or other
  bodies as appropriate
• Committee to ensure duplication with other
  technical bodies is prevented

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Achievements and Challenges

• Harmonization
• Equivalence
• Scientific basis
• Special and differential treatment/Technical
  assistance

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Achievements and Challenges

• Achievements
• HACCP-based systems widely accepted
• Codex Alimentarius Commission accepted as the
  international standards setting body

• Harmonization
• Equivalence
• Scientific basis
• Special and differential treatment/
• Technical assistance

• Shortcomings
• Different inspection and control schemes
• Different fish standards applied
• High rates of detentions/rejections

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Achievements and Challenges

• Harmonization
• Equivalence
• Scientific basis
• Special and differential treatment/
• Technical assistance

• Achievements
• Food chain and Control at source approaches
• Cost-effectiveness of these approaches

• Shortcomings
• Very few agreements
• Obligation of means vs. obligation of results

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Achievements and Challenges
Achievements

• Harmonization
• Equivalence
• Scientific basis
• Special and differential treatment/
• Technical assistance

• Risk analysis widely accepted

• National and International work undertaken

• Shortcomings
• Needs exceed by far activities undertaken
• Lack of resources in developing countries
• Many standards not scientifically based

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Achievements and Challenges

• Harmonization
• Equivalence
• Scientific basis
• Special and differential treatment/
• Technical assistance

• Achievements
• Regional and national initiatives (SIDA, EC-ACP)
• STDF (Standard and Trade Development Fund)
• Trust Fund for CAC

• Shortcomings
• Developing countries obliged to meet market
  requirements
• Needs exceed by far initiatives
• Lack of resources in developing countries
• Many standards not scientifically based