WTO and sanitary and phytosanitary measures. Presentation for master students of international business. Preparation time: 2 hours. Presentation time: 10 minutes Presentation can be viewed at: http://www.youtube.com/watch?v=MdzdT1kRV_c

1. ...but I took
a bath
SPS MEASURES & TRADE
BY:
MICHAEL MIELLO
1 © MICHAEL MIELLO

2. SPS measures....what???
Sanitary + Phyto-sanitary
Sanitary
‣ means clean
Phyto-sanitary
‣ plants
HUH!?
Measures
‣ creating rules
2 © MICHAEL MIELLO

3. What are Sanitary and Phyto-sanitary
measures
Safety requirements imposed by
governments
‣ Animals
‣ Humans No danger!
‣ Environment I promise
Protections
‣ Directly - contaminants (bird flu)
‣ Indirectly - pests (long term)
Technical trade to barrier
Reference: Hoekman, B. Kostecki, M. (2002) WTO
3 © MICHAEL MIELLO

4. SPS - production to delivery
Expor&ng Country Impor&ng Country
1. RegulaAons and procedures 2. Product criteria
3. Processes and producAon methods 4. TesAng inspecAon
4. TesAng inspecAon 6. QuaranAne treatments
5. CerAficaAon and approval procedures
7. Provisions on relevant staAsAcal procedures and
risk assessment methods
8. Packaging and labeling requirements directly to
food safety
4 © MICHAEL MIELLO

5. Actors on multiple levels
International
‣ WTO - created in Uruguay Round (GATT)
‣ UNCTAD
Regional / National
‣ Ministry of Commerce, Agriculture and
Health
‣ Food and Drug Administrations
‣ General Administration of Quality
Supervision, Inspection and Quarantine
Local
‣ Municipals
‣ NGO participation
5 © MICHAEL MIELLO

6. International Trading Area
WTO
‣ Prepare SPS measures
- International standards
- Scientific evidence
‣ Prevent unjustifiably
discrimination
‣ Maintain an SPS enquiry to
advance SPS measures
‣ Dispute Settlement Body
Reference: Hoekman, B. Kostecki, M. (2002)
6 © MICHAEL MIELLO

7. CASE OF
APPLES
CASE STUDY: “MISUSING” SPS MEASURES
7 © MICHAEL MIELLO

8. stealing
our
business
American
apple =
stomach
ache
PROTECTING OF WHOM? TRADE OR OCHARDS
8 © MICHAEL MIELLO

9. Must provide scientific evidence
WTO’s findings
‣ Japan’s quarantine treatment
violated SPS measures
‣ no scientific evidence to prove
harmful substances
Conclusion
‣ Japan sinks under pressure after
years
‣ pays America $143 million1
hSp://www.caltradereport.com/eWebPages/front‐page‐1090525827.html
9 © MICHAEL MIELLO

10. In the news...
I'm just a
bug
February 2009
North American Plant Protect
Organization (NAPPO) propose
standard
Inspect ships for Asian Gypsy
Moth
China, S. Korea, Indonesia and
Japan are mad
Continuation of same conflict??
© MICHAEL MIELLO

11. References
1. Hoekman, B. Kostecki, M. (2002), The PoliAcal
Economy of the World Trading System, Oxford,
Oxford University Press, xxi – 547 p. (second
ediAon) ISBN 0‐19‐829434‐4.
2. hSp://www.authorstream.com/PresentaAon/
Renzo‐66273‐food‐safety‐InternaAonal‐Purpose‐
Sanitary‐Phytosanitary‐SPS‐RegulaAon‐
Agreements‐agre‐as‐News‐Reports‐ppt‐
powerpoint/
3. hSp://www.wto.com
4. hSp://www.ustr.gov/Document_Library/
Press_Releases/2004/July/
US_DissaAsfied_with_Japan_over_Apple_Dispute.h
tml
5. hSp://www.wto.org/english/news_e/news09_e/
sps_25feb09_e.htm
6. hSp://www.caltradereport.com/eWebPages/front‐
11 © MICHAEL MIELLO

12. moo...
merci!!
Q&A
12 © MICHAEL MIELLO