Overview of the WTO and SPS Agreements

Overview of the WTO and SPS AgreementsOverview of the WTO and SPS Agreements

Gretchen H. Stanton

Senior Counsellor

Agriculture and Commodities Division

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Location: Geneva, Switzerland

Established: 1 January 1995

   Membership:

153 countries (July 2008)

Budget: 182m Swiss francs, 2007

Secretariat staff: ~650

Head: Pascal Lamy (director-general)

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WTO Members 2008(153)

WTO Members 2008(153)

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• Negotiate trade rules

• Implement trade agreements

• Resolve trade disputes

• Review national trade policies

What is the WTO?

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The basic principlesThe basic principles

• No discrimination– Most favoured nation principle (MFN)

– National treatment principle

• Predictability– Respect of tariff “bindings” (goods and services)

– Transparency (notification, TPR)

• Freer trade (suppression of barriers through negotiations)

– Tariff reductions

– Prohibition of using quantitative restrictions (quotas)

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The structureThe structure

Ministerial Conference

Dispute Settlement Body

General Council

Trade Policy Review Body

Council - Services Council - TRIPSCouncil - Goods

SPS Committee

TBT Committee

Agriculture Committee

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Overall, import weighted tariff on industrial products≈ 40%

> 4%

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%

20071947

?NTBstariffs

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Non-tariff measuresNon-tariff measures

Technical barriers to trade

Sanitary and phytosanitarymeasures

Trade in services

Government purchase

Quantitative restrictions

Subsidies

Trade-related intellectualProperty rights

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Agreement on Technical Barriers to TradeAgreement on Technical Barriers to Trade

It applies to all goods .... – technical regulations (mandatory)– standards (voluntary)– conformity assessment procedures

TBTTBTSPS

But: its provisions do not apply to sanitary or phytosanitary (SPS) measures

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The right to protecthuman, animal or plant life or health

Avoiding unnecessary barriers to trade

Agreement on the Application of Sanitary and Phytosanitary

Measures

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“Members have the right to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life or health, provided that such measures are not inconsistent with the provisions of this Agreement”

SPS Agreement - Basic RightArticle 2.1

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SPS MeasuresDefinition - Annex ASPS MeasuresDefinition - Annex A

Human or risks arising from additives,

animal health contaminants, toxins or disease

organisms in food, drink, feedstuff

A measure taken to protect:

Human life plant- or animal-carried diseases

Animal or pests, diseases, disease-causing

plant life organisms

A country other damage caused by entry,

establishment or spread of pests

from

from

from

from

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SPS measures: laws, decrees, regulations… including:SPS measures: laws, decrees, regulations… including:

• end product criteria• processes and production methods• testing, inspection, certification approval

procedures, etc.• quarantine treatments• animal transport• packaging and labelling requirements directly

related to food safety

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Key Provisions of the SPS AgreementKey Provisions of the SPS Agreement

1. Non-discrimination

2. Scientific justification • harmonization

• risk assessment

• consistency

• least trade-restrictiveness

3. Equivalence

4. Regionalization

5. Transparency

6. Technical assistance/special treatment

7. Control, inspection and approval procedures

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No unjustifiable discrimination– between Members with similar conditions– between own territory and other Members

Non-discriminationArticle 2.3

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Members shall

ensure that any

SPS measure

is:

Scientific justification Article 2.2

applied only to the extent necessary to protect human, animal or plant life or health (least trade restrictive)

based on scientific principles

not maintained without sufficient scientific evidence

except as provided for in Article 5.7

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Scientific Justification Articles 3 & 5Scientific Justification Articles 3 & 5

OR

International standards

Risk assessment

Measures must be based on

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Standard-setting organizations

food safetyCODEX

plant healthIPPC

animal healthOIE

Codex = Joint FAO/WHO Codex Alimentarius CommissionOIE = World Organization for Animal HealthIPPC = International Plant Protection Convention (FAO)

Scientific justification HarmonizationArticle 3

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Members shall ensure that their SPS measures are based on

– an assessment, as appropriate, of the risks to human, animal or plant life or health,

– taking into account risk assessment techniques developed by the relevant international organizations.

Scientific justification Risk AssessmentArticle 5.1

Scientific justification Risk AssessmentArticle 5.1

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Scientific justification ConsistencyArticle 5.5

Scientific justification ConsistencyArticle 5.5

Members shall

avoid arbitrary distinctions

in appropriate level of SPS protection (ALOP) considered in different situations

if distinctions result in discrimination or disguised restrictions on trade

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Scientific justification Least trade restrictiveArticle 5.6

Scientific justification Least trade restrictiveArticle 5.6

Once have determined the NEED for

an SPS measureAND

Have determined the LEVEL of protection needed

must select

Least-trade restrictive measure

(technically and economically feasible)

to achieve level of health protection

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Members may provisionally adopt SPS measureswhen relevant scientific information is insufficienton the basis of available information

In such circumstances, Members shallseeks to obtain additional information to assess riskreview the measure within a reasonable period of

time

Scientific justification Exception: Provisional measuresArticle 5.7

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EquivalenceArticle 4EquivalenceArticle 4

Members shall

accept SPS measures of other Members as equivalent

If the exporting country objectively demonstrates that its measures achieve the ALOP of the importing country

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Pest- or disease-free areas Article 6 (Regionalization)Pest- or disease-free areas Article 6 (Regionalization)

Members shall ensure that their SPS measures are adapted o the SPS characteristics of an

“area”

all of a country part of a country all or parts of several countries

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TransparencyArticle 7 & Annex BTransparencyArticle 7 & Annex B

Members shallestablish an Enquiry Point

ANDdesignate a Notification Authority

notify other Members of new or changed SPS regulations when

no international standard exists OR

the new regulation is different than the international standard

regulation may have significant effect on trade

AND

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Special & Differential Treatment and Technical Assistance Articles 9 & 10

Members...

• ...shall take account of the special needs of developing countries

• ...should accord longer time frames for compliance

• ...agree to facilitate provision of Technical Assistance