WTO agreements on TBT and SPS

1. Trade Policy& Agrl. Research: Non-tariff barriers
Agreements on
Application of Sanitary and Phytosanitary Measures (SPS)
Technical Barriers to Trade (TBT)
Sudhir Kumar Soam
soam@naarm.org.in

2. 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

3. Some sector specific SPS concerns
to India
• Marine products-97 EU-Seafood Exporters Association of India spent 25 million $ for upgradation to
proposed standard
• Meat- Buffalo meet-No-FMD- more stringent than Int. Standard-OIE
• Aflatoxin-MRL- more stringent than IS-CAC
• Mango- pest, process of vapor heat treatment- open from May 2007
• Rice- Middle East- lack of clarity in specification standards- TBT?
• Red chilli powder (Sudan Red)-EU 2003- sudan free certificate for all spices
• Milk products- no- Netherlands- origin of milk
• Tea- Germany- high level of ethion in Darjeeling tea and biocofol in Assam tea and Dooars tea
• Flowers- Netherlands- 50% check at entry point
• Ecuador- Cd in Cocoa- MRL, As low as reasonably achievable (ALRA)
• ECJ- Pollen in Honey- as ingredient
• EU- Novel food regulation
• India- import of animal/product- high in 2004 and in 2009 Low pathogenic Influenza Virus. India
lost the case against US, DS430, and need to change law by June 2016.
• Import of plant/product compulsory fumigation with Methyl Bromide (Montreal Protocol?). Live
breeding horses –Contagious Equine Metritis (3 years absence)- scientific evidences for more than
OIE. Pork meat import-2006-Vety certificate for certain diseases. Hide and skin import 2008-sanitary
and other conditions to be attested in veterinary certificates- EU unjustified?
• India- 2004 ban on meat-bird flu, assessment not scientific, pig do not carry virus

4. 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

5. 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
• S&DT provisions (Art 10)-WTO DSS-EC-biotech-
weak interpretation
• Plant quarantine?
• Till Oct 2011, 10366 notifications, USA, Brazil,
China main nations, developing countries 2/3

6. Harmonization of SPS Measures
• Int.standards, guidelines, recommendation
– Codex Alimentarius Commission
– International Office of Epizootics (World Organization
of Animal Health)
– International Plant Protection Convention
• Vienna Convention
• National regulations?
• Roles? PRA, Diseases free zones

7. 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)

8. SPS-TBT
• Obscure boundaries-similar textual lang.
• Labeling- pesticides residues/ expiry date
• Objective rationale
– risk- legitimate objectives (SPS+)
– products-labeling
• Nondiscrimination (MFN & NT)
– like situation- like product
• International bodies

9. Technical Regulations- India
• Livestock Importation Act 1898
• AGMARK Act 1937
• Prevention of Food Adulteration Act 1954
• Food and Safety Standards Act 2006
• 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

11. 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
• Notifications-1995-365, 2006- 875, 2007-
1030
– In 2006- 47%- human health and safety, 17%
deceptive practice, 15% environment, 7%
consumer information, 1% animal & plant

12. Are SPS-TBT measures NTBs?
• Number of notifications
• By whom?
– 1995-2009- China-560, USA-460
– BIS receives 20-25 comments per month
• Concept of environmental goods
• Whether ghee is butter oil? what is whisky?
• Rapid alert
• Public Health Security and Bioterrorism Preparedness and
Response Act 2002 of USA. Title III deals with ‘protecting
safety and security of food and drug supply’

13. Dispute settlement rules & procedures
Annex-2 (27 Art-4 annex)
• Consultations-2
• Panel establishment (TOR, interim review)
• Reports-parties-6, DSB-9
• Adoptions –DSB-2/ 9-12 (+6= 15-18)
• Implementation-reasonable time
• Non-implementation
– Mutual acceptable compensation
– Retaliation (authorization to suspend concessions
• Arbitration -2
Appellate rev-3
Disputes ?
Compliance panel

14. EC-meat & meat products
April96-July99-WTO panel Chairman- Thomas Cottier
• US, Canada; Australia, Norway
• EC ban meat containing hormones-
– Oestradiol 17, 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

15. EC-meat & meat products
• Implementation
• No mutual agreement
– Arbitration panel-reasonable period of time, EC-39
months (15+24), 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

16. 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?)

17. 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

18. 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

19. 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

20. 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?

21. 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

22. 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

25. Photo by SK Soam, Klein, Switzerland