Agreement on

Application of Sanitary and Phytosanitary Measures

(SPS)
Technical Barriers to Trade (TBT)

Sudhir Kumar Soam

soam@naarm.ernet.in
 Historical perspectives
• GATT- 1948- XX(b)- protection of health and life
• Tokyo round-73-79- in 1980, 47 countries sign
‘standard code’ on technical regulations &
standards
• Uruguay rounds-86-92
• Brussels draft-1990- SPS-AOA
• Dunkel draft-1991- SPS & TBT- AOA
• WTO
 Agreement on Application of Sanitary and
Phytosanitary Measures

• 14 Articles and 03 Annexures

• Pest, disease, disease causing/ carrying
organisms
• Risks-additives, toxins, contaminants,
others
• SPS measures for protection-human,
plant, animal- life or health
 SPS Measures

• Consistent with SPS Agreement

– Based on scientific principles, not maintained without
sufficient scientific evidences
• Risk Assessment
– method, technique, evidences; appropriate level of
protection-trade restriction, appropriate to
circumstances
• NTB, arbitrary, unjustifiable

• Plant quarantine?
 Harmonization of SPS Measures

• Int.standards, guidelines, recommendation

– Codex Alimentarius Commission
– International Office of Epizootics
– International Plant Protection Convention
• Vienna Convention
• National regulations?
• Roles? PRA, Diseases free zones
 Agreement on Barriers to Trade- TBT

• 15 Articles & 03 annexures

• Technical regulations
– Product- characteristics, process & method of
production
– If ineffective & inappropriate for legitimate objectives
• Relevant International standards
– International organisation for Standardisation (ISO)
– International Electrotechnical Commission (IEC)
 SPS-TBT

• Obscure boundaries-similar textual lang.

• Objective rationale
– risk- legitimate objectives (SPS+)
– products-labeling
• Nondiscrimination (MFN & NT)
– like situation- like product
• International bodies
 Technical Regulations- India

• Livestock Importation Act 1898

• AGMARK Act 1937
• Prevention of Food Adulteration Act 1954
• Export (Quality Control and Inspection) Act, 1963
• Meat Food Product Order 1973
• Standards On Weight And Measurement Act 1976
• Milk And Milk Product Order 1992
• Bureau Of Indian Standards Act, 1986
• Energy Conservation Act, 2001
• Plant Quarantine (Regulation of Import into India) Order, 2003
• The Infant Milk Substitutes, Feeding Bottles & Infant Foods Act
• Essential commodities Act
• Indian Explosives Act
 TBT-notifications (Art 2.9 & 5.6)

• When standard is not available

• Measures not in accordance with standard
• Measures have significant effect on trade
with other countries
• 2006- 875 notifications
– 47%- human health and safety, 17% deceptive
practice, 15% environment, 7% consumer
information, 1% animal & plant
 Dispute settlement rules & procedures
Annex-2 (27 Art-4 annex)

• Consultations-2
• Panel establishment (TOR, interim review)
• Reports-parties-6, DSB-9 Appellate rev-3
• Adoptions –DSB-2/ 9-12
• Implementation-reasonable time Disputes ?
• Compliance panel
Non-implementation
– Mutual acceptable compensation
– Retaliation (authorization to suspend concessions
• Arbitration -2
 EC-meat & meat products
April96-July99-WTO panel Chairman- Thomas Cottier
• US, Canada; Australia, Norway
• EC ban meat containing hormones-
– Oestradiol 17β, progestrone, testosterone, trenbolone,
zernol, Melengestrol Acetate-SPS+TBT
• EC-measures are sanitary measures
– Not based on risk assessment
– Not “based on” International std
• SPS agreement prevail over EC regulations
• Panel report and AB report
 EC-meat & meat products
• Implementation
• No mutual agreement
– Arbitration panel-reasonable period of time, EC-39
months, US/Can-10 months
• Authorization of suspension of concessions
– Can-$75million/yr, US-$202 m/yr
• EC challenge
– Level of suspension, principle of retaliation, TP rights
• Tune of final suspension
– US/Can to submit methodology paper
– Can-$11m/yr, US 116m/yr
 Japan-Apple (May 2002-continue)

• Fire blight (Erwinia amylovora)

– Method of spread-Symptoms
– Non-pathogenic relationship-endophytic/epiphytic
• Japan regulations-10 conditions
• US submissions
• Single measure-systems approach
– Mature symptomless apples; Infection-Infestation
– Scientific evidences, PRA?
– Irrational relationships (Buffer zone, 3 times
inspection, Transmission pathway?)
 Japan-Apple
• Panel and AB rulings
– Measures as a whole is maintained without
sufficient scientific evidences
– Some regulations no rational relationship
– Not based on risk assessment
• Appropriate to circumstances
• Dev by relevant Int. Organization
• More trade restrictive than required to
achieve appropriate level of protection
 Japan-Apple-Implementations

• Adoption of report-Dec, 2003

• Reasonable period of time-June, 2004
• Confirmed procedures-July04
• US- compliance panel
• US-suspension of concessions
– US$143m/yr-sector-agreement-AOA,GATT
• Japan request-Arbitration panel
– Level-covered agreement
 EC-Sardines (July01-Sept02)-TBT
• Marketing of preserved sardines
• Sardina pilchardus
– Coasts of East North Atlantic, Meditarranean,
Black sea
• Sardinops sagax & 21 spp. With prefix-X
– Eastern Pacific along coast of Peru/Chile
• Morphological diff- Similar characteristics
• EC-regulation 1989-Name on container
 EC-Sardines

• TBT-?-technical regulation-name
• Codex stan 94- Sardines; X-Sardines
• EC-regulation-applicability
– Before Jan-95-VCLT (ceased or continue)
– Relevant Int std not basis of regulation
• Burden of proof
– Relevant Int Std exist-Peru
– Relevant Int Std ineffective and inappropriate to fulfill
legitimate objectives-EC
– Relevant Int Std effective and appropriate to fulfill
legitimate objectives-Peru-AB
– New evidences?
 EC-Butter- (Nov97- Nov99)

• New Zealand butter ban by EC

• Butter manufacturing by Ammix butter
making process and spreadable butter
making process does not qualify for entry
under country specific tariff quota because
it is not manufactured directly from milk or
cream as required by the term of tariff quota
• Sorted out through consultations
 GMO/ LMO’s
• US-EU perceptions
• Precautionary principles
• European Food Authority
• Directive 2001/18
• Multi-functionality concept
• Measures:protective-protectionist-leg concerns
• Scientific evidences
– Enough is not known about outcome of modified genes in triggering-
allergies-poisonous substances-new diseases
– How to assess and manage risks that science is not yet able to evaluate
fully
• Cartagena protocol-Biosafety regulations-Clearing House Mechanism
Pilatus- Luzern