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Enhancing Trade through SPS Technical Cooperation

This report discusses the importance of SPS measures in international trade and highlights the role of the Standards and Trade Development Facility (STDF) in facilitating safe trade. It also explores current challenges and opportunities for improving SPS measures to reduce trade barriers.

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Enhancing Trade through SPS Technical Cooperation

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  1. Standards and Trade Development Facility A global partnership in SPS technical cooperation Melvin Spreij IPPC CDC, June 2015

  2. Outline • Context and brief overview • Current and future thematic work • Facilitating safe trade • WTO TA activities in 2015

  3. WTO SPS Agreement Protecting human, animal, plant life or health Avoiding unnecessary barriers to trade Multilateral framework of rules and disciplines to guide development, adoption and enforcement of SPS measures which directly or indirectly affect international trade

  4. Main principles • SPS measures should inter alia be: • non-discriminatory • transparent • not more trade-restrictive than necessary to achieve appropriate level of protection (ALOP) • science-based (risk assessment) • Article 3: Members are encouraged to “harmonize” or base national measures on international standards, guidelines and recommendations → presumption of compliance

  5. Standard-setting organizations food safety plant health animal health CODEX OIE IPPC HarmonizationArticle 3, Annex A

  6. A global partnership in SPS-related technical cooperation Goal • Developing countries implement international food safety, animal and plant health standards, guidelines and recommendations and gain/maintain market access Vision • Sustainable economic growth, poverty reduction, food security and environmental protection in developing countries

  7. What is STDF’s value added? • Coordination mechanism among providers of SPS technical cooperation to strengthen coherence, avoid duplication and enhance results • Knowledge platform/reference point for sharing experiences, identification and dissemination of good practice, discussion of cross-cutting topics • Funding for development and implementation of projects that support compliance with international SPS requirements to gain and maintain market access

  8. Recent thematic work • SPS-related capacity evaluation tools (update of STDF guide foreseen) • Joint EIF/STDF analysis on coverage of SPS issues in DTIS (October 2015) • SPS market access prioritization (SPS-MAP) • Implementation of SPS measures to facilitate safe trade

  9. Context Outdated border clearance procedures and excessive red tape greater barrier to trade than tariffs (WB, 2011) Performance gap between SPS agencies and others (WB, LPI) Low-performing countries: much more physical inspection Import/export lead times twice as long for poor performers(low-income countries) than top performers (high-income countries) Source: World Bank Logistics Performance Index

  10. Research in Southeast Asia and Southern Africa • How are SPS measures implemented for specific products? • Article 8 and Annex C: Members are required to avoid unnecessary trade disruption and transaction costs for traders when performing control, inspection and approval procedures. • Are there SPS trade costs that can be reduced while maintaining/reinforcing health protection? Good practice? • No direct link to new WTO Trade Facilitation Agreement (TFA) – but opportunity to enhance dialogue and leverage additional funds to improve SPS border management

  11. SPS-related procedural obstacles to trade:examples Consequences: • More controls than justifiable • Longer than necessary waiting times • Uncertainty • Increased costs for traders, sometimes also for government For instance: • Complex and lengthy procedures • Excessive document requirements (registration, licences, fees) • Formal / informal fees • Limited information (transparency) • No complaint / appeal procedures • Arbitrariness and unpredictability

  12. …before the border? …at the border? Do the procedural obstacles occur… Duplicative document requirements by importing/exporting countries No distinction between mandatory and voluntary standards Overlapping jurisdiction between government agencies (Multiple) inspections, tests and sampling Repeated document checks Long waiting times Lack of coordination between border agencies (e.g. opening hours)

  13. Preliminary findings • SPS measures may result in justifiabletransaction costs based on need to protect food safety, animal/plant health • Ineffective/inefficient implementation disrupts trade more than necessary and may result in poor health protection • Opportunities exist to reduce cost and reinforce health protection, e.g.: • Increase harmonization with international standards • Improve transparency • Use of risk-based approach (border inspections) • Participate in national TF committees/needs assessments • Review existing SPS measures regularly (still fit for purpose?)

  14. Next steps • Finalize and circulate report Southern Africa (June/July), as basis for further discussion in STDF WG (October) • Develop short STDF film on SPS border controls (ongoing) • Coordinate plenary session at 5th Global Review of Aid for Trade (30 June, 13:30 – 15:00, WTO) on “Implementation of SPS Measures to Facilitate Safe Trade” • Develop two-page STDF briefing note (to be decided by WG) • Additional research, based on expressions of interest from countries (project applications)?

  15. Future work? Ongoing discussion in WG: • Benefits of standards harmonization/implementation • New, innovative ways to finance SPS capacity building • Good regulatory practice in SPS area • E-certification • Other suggestions?

  16. More information? Standards and Trade Development Facility World Trade Organization Rue de Lausanne 154 CH-1211 Geneva Switzerland STDFSecretariat@wto.org www.standardsfacility.org • Subscribe to receive STDF news • View STDF publications, briefings, films, project information, etc. • Search for documents in Virtual Library

  17. WTO SPS TECHNICAL ASSISTANCE - 2015 • National seminars upon request - https://adobeformscentral.com/?f=xdwzKQdS1rW-ACYrvWhqtA • e-Training courses available all year long (pre-requisite for activities below) - https://etraining.wto.org/ • 2015 Regional Workshops: • Caribbean (Venue: TBC) : Date to be confirmed • Asia (Bangkok, Thailand) : Week of 9 November (TBC) • Arab countries (Kuwait City, Kuwait): 30 November – 3 December • Advanced Courses • 2015 Advanced SPS Course: English – 5 to 23 October 2015 • Thematic SPS Workshop • 12-13 October 2015: Workshop on Transparency

  18. WTO SPS TECHNICALASSISTANCE Information on eligibility criteria, deadlines, funding, pre-requisites, application process and form available from: • G/SPS/GEN/997 /Rev.5 • SPS Technical Assistance gateway at: http://www.wto.org/sps/ta • 2015 Application form available at: https://worldtradeorganization.wufoo.eu/forms/2015-wto-sps-technical-assistanceapplication-form/ Other relevant activities: • July 2015 SPS Committee Meeting: Informal Session on Risk Communication

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