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International legal instruments governing agricultural trade

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International legal instruments governing agricultural trade

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"Dr Kenza Le Mentec
World Trade Organization

Materials of the Regional workshop:
WTO Trade Facilitation Agreement impact on agrifood trade organized by FAO in Odessa, Ukraine, 30.05 - 31.05.2017
http://www.fao.org/europe/events/detail-events/en/c/882093/"

"Dr Kenza Le Mentec
World Trade Organization

Materials of the Regional workshop:
WTO Trade Facilitation Agreement impact on agrifood trade organized by FAO in Odessa, Ukraine, 30.05 - 31.05.2017
http://www.fao.org/europe/events/detail-events/en/c/882093/"

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International legal instruments governing agricultural trade

  1. 1. Regional workshop: WTO Trade Facilitation Agreement impact on agrifood trade Odessa, Ukraine, 30.05 - 31.05.2017
  2. 2. International legal instruments governing agricultural trade: focus on quality and safety Dr Kenza Le Mentec World Trade Organization Regional workshop on the WTO Trade Facilitation Agreement’s impact on agri-food trade May 30-June 1, Odessa, Ukraine
  3. 3. RELEVANT WTO AGREEMENTS
  4. 4. ■ Most WTO agreements are relevant to international agricultural trade, including the following: ■ General Agreement on Tariffs and Trade (GATT), ■ Agreement on Agriculture (AoA) ■ Agreements on Subsidies and Countervailing Measures (SCM) and on Customs Valuation, ■ Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs), ■ Agreement on Trade-Related Investment Measures (TRIMs) ■ Agreement on Technical Barriers to Trade (TBT) ■ Agreement on the Application of Sanitary and Phytosanitary Measures (SPS) ■ Trade Facilitation Agreement, ■ ……
  5. 5. MORE SPECIFICALLY IN RELATION TO THE SAFETY AND QUALITY ASPECTS
  6. 6. ■ WTO Agreement on Trade Facilitation (TFA) ■ WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) ■ WTO Agreement on Technical Barriers to Trade (TBT)
  7. 7. TRADE FACILITATION AGREEMENT (TFA)
  8. 8. TFA’s relevance to agricultural trade? • Adopted in 2014 and entered into force on 27 February 2017 • Seeks to expedite the movement, release and clearance of goods across borders => Reduce transaction costs • OECD estimates reduction of costs between 12,5 and 17,5 % • Increase in exports from developing countries between 14 and 22% • Importance of agriculture in GDP of developing countries vs. low performance in international markets => can reduction in transaction cost help?
  9. 9. TFA Final Provisions: paragraph 6 “nothing in this Agreement shall be construed as diminishing the rights and obligations of Members under the TBT and SPS Agreements.” BUT….. some TFA provisions may be "SPS-plus“ or “TBT-plus” adding obligations going beyond SPS & TBT Agreements
  10. 10. SPS AGREEMENT
  11. 11. Development of SPS measures: key principles • SPS measures should inter alia be: – non-discriminatory – transparent – not more trade-restrictive than necessary – science-based (risk assessment)
  12. 12. Scientific justification - Harmonization Article 3 Standard-setting organizations food safety plant healthanimal health
  13. 13. Enforcement/implementation of SPS measures – Annex C • Members required to avoid unnecessary trade disruption and transaction costs for traders when performing control, inspection and approval procedures – no undue delays; – information requirements limited to what is necessary; – non-discriminatory fees (not higher than actual cost of service), – non-discrimination in siting of facilities and selection of samples; – procedure to review complaints, take corrective action, etc. SPS Annex C closely linked to TFA
  14. 14. TBT AGREEMENT
  15. 15. Objective of the TBT Agreement: ■ Ensures that Technical regulations, standards and conformity assessment procedures do not create unnecessary obstacles to international trade. ■ The TBT Agreement applies to all products, including industrial and agricultural products.
  16. 16. TBT measures: ■ Three types of measures covered by the TBT Agreement (Annex 1): Standards Technical Regulations TBT Measures Conformity Assessment Procedures Voluntary Mandatory
  17. 17. Standard-setting and the TBT Agreement: ■ TBT Agreement does not refer to a specific list of standard-setting bodies (unlike SPS) but the following organizations set standards and conformity assessment procedures for agri-food that are applied worldwide: – International Standardization Organization (ISO), the United Nations Economic Commission for Europe (UNECE), the World Health Organization (WHO), the International Organization of Vine and Wine (OIV), the Organization for Economic Co- operation and Development (OECD), the Codex Alimentarius Commission, …etc.
  18. 18. “SPS- or TBT -plus” Provide advance rulings besides tariff classification and origin (TF Art. 3) Publish wide range of information related to import/export requirements and procedures (TF Art. 1) Border Agency Cooperation (TF Art. 8) Inform on detention of goods and facilitate test procedures (TF Art. 5) Allow pre-arrival processing / Publish average release times (TF Art. 7) Freedom of transit: Limit formalities and documentation requirements (TF Art. 11) Review and publish fees and charges (TF Art. 6) Review and reduce import/export transit formalities (TF Art. 10)
  19. 19. Thank you for your attention Kenza Le Mentec email: Kenza.lementec@wto.org

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