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The SPS Agreement

The SPS Agreement. Reaffirming countries’ right to protect Health. Why an SPS Agreement?. Uruguay Round Agreement on Agriculture Article XX (b) Why wasn’t the TBT Agreement sufficient?. What is an SPS measure? To protect from. Human or animal life Human life.

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The SPS Agreement

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  1. The SPS Agreement Reaffirming countries’ right to protect Health

  2. Why an SPS Agreement? • Uruguay Round Agreement on Agriculture • Article XX (b) • Why wasn’t the TBT Agreement sufficient?

  3. What is an SPS measure?To protect from • Human or animal life • Human life • Risks food additives, contaminants, toxins or disease-causing organisms in foods, beverages/foodstuffs • diseases carried by animals, plants or products thereof

  4. What is an SPS Agreement?to protect from • The entry, establishment or spread of pests, diseases, disease-carrying or disease-causing organisms • Animal life, including fish and wild fauna • to protect plant life, including forests and wild flora

  5. What is an SPS measure?to protect from • A country • Damage within the territory from entry, establishment or spread of pests

  6. SPS measures: laws, decrees, regulations… including: • End product criteria • processes and production methods • testing, inspection, certification approval procedures, etc. • quarantine treatments • animal transport • packaging and labelling requirements directly related to food safety

  7. Other measures... • Environment protection • Consumer interests other than health related • Animal welfare • Are not covered by the SPS Agreement... • …but partly by the TBT Agreement

  8. SPS rights and obligations • Right to restrain trade to protect health • Measures based on scientific principles • Non-discriminatory • No disguised restrictions • Conformity presumption Article 2

  9. International Harmonization • Food safety: Codex • Encouraging the use ofinternational standards • Animal Health: OIE • Plant protection: IPPC • Conformity Presumption(...not unchalangeable) Article 3 • Right to be more stringent, but... • Scientific justification or Risk Assessment

  10. Risk Assessment • Risk assessment • Scientific evidence • Production methods • Inspection methods, etc. • Scientific methodology • Economic factors (animals/plants) • loss production or sales;costs eradication; cost-effectivenessalternative approaches Article 5

  11. Objective! Appropriate level of protection • Consistency application ALOP • Right to precaution(& emergency measures…?) Article 5 • Constraining measures: right explanation

  12. Precaution • Right: • Provisional measure • Insufficient scientific evidence • Obligation: • Seek additional information • Review measure accordingly within reasonable period of time Article 5.7

  13. Precaution • Appellate Body (Hormones): • PP not written in SPS as ground for justifying measures otherwise inconsistent • PP finds reflection in 5.7 of SPS • No need to assume 5.7 exhausts relevance of PP • Panel to bear in mind that governments act from perspectives of prudence & precaution • PP does not override provisions of 5.1 & 5.2 of SPS

  14. SPS - Risk “management” Article 5 • Appropriate measure • Minimize negative trade effects • Not more trade-restrictive than required • Technical and economic feasibility

  15. Equivalence • Acceptance of equivalent measures Article 4 • Exporter to demonstrate • Access to importer • Bilateral and multilateral agreements

  16. “Veterinary Agreement”EU/New Zealand • Signed December 1996. Applies to live animals, cattle, sheep, pigs and poultry, and animal products; fish and fish products. • Based on the SPS Agreement principles, recognizes equivalency of SPS measures and adaptation to regional conditions.

  17. “Veterinary Agreement”EU/New Zealand • Facilitated other export/import practices, including certification, inspection, auditing, frontier checks, etc.(Ex. Heat-treated milk and FMD) • Includes provisions for expeditious consultation (in any case within 14 days) regarding serious concerns about risk to public or animal health.

  18. SPS - Regionalization • Adaptation of measures to risk profile Pest- or disease-free areas FMD;… BSE Exporter: burden of proof(…reasonable access) Article 6

  19. Technical assistance • Reinforcement services • Establishment regulatory bodies • Advice, credits, donations, grants WHO FAO Bilateral “Three sisters” ITC

  20. Special and differential treatment • Take into account special needs of LDC • Phased introduction of new SPS measures • Specified, time-limited exceptions upon request • Facilitate active participation LDC in IOs Article 10 Article 14 • Delayed application

  21. Control, Inspection & Approval Procedures • Non-discriminatory Annex C • Without undue delay • If national system approval additives/tolerances: encouragement • harmonization

  22. Transparency • Publication • Notifications • Enquiry Points WWW.WTO.ORG

  23. It is there to serve you... use it! SPS Committee • Administration of the Agreement • Forum for general consultation • Facilitate ad hoc consultations • Decisions by consensus

  24. SPS Committee • How do meetings work? • missions / experts from capital • Observers • Non-Members • “three sisters” + others, incl. Regional orgs. • Typical Agenda • main items

  25. SPS Committee • Implementation of the Agreement • Information from Members • Trade concerns • Discussion of Notifications • Monitoring • Developing Countries • Technical Assistance • Agenda

  26. Some Specific Trade Concerns • EC Aflatoxins; Cholera; Dioxins… • BSE (EC, Switzerland, US...) • Thai milled rice • Australia Tropical Fruits • US - Imports of citrus fruits

  27. Doha and the SPS Agreement • Ministerial declaration: no SPS renegotiations requested • Negotiations on relationship between WTO rules and trade obligations in MEAs • Instruct Cttee. Trade & Environment to give attention to • (i) effect environmental measures on market access • (iii) labelling requirements for environmental purposes • But not add or diminish rights and obligations under SPS nor alter balance rights/obligations take account needs DCs & LDCs • Implementation decisions

  28. What next? • New issues, i.e.biotechnology • Clarification of application of existing WTO rules • in negotiations (Doha mute…) • in committees • through dispute settlement • (through a working group) • Is more needed? • specific agreement or inclusion in others • risks of re-opening agreements

  29. WTO “focal point”? “Keys” for success • National coordination • with Codex, OIE, IPPC experts • with different national agencies • Participation Committee • Use of information material • Internet • Use of transparency provisions

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