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The Agreement on Technical Barriers to Trade the “TBT Agreement”

The Agreement on Technical Barriers to Trade the “TBT Agreement”. avoidance of unnecessary obstacles to international trade. allowing for regulatory autonomy to protect legitimate interests. promotion of international standards. Non-tariff barriers to trade (NTBs). Trade Rounds.

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The Agreement on Technical Barriers to Trade the “TBT Agreement”

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  1. The Agreement on Technical Barriers to Tradethe “TBT Agreement”

  2. avoidance of unnecessary obstacles to international trade allowing for regulatory autonomy to protect legitimate interests promotion of international standards

  3. Non-tariff barriers to trade (NTBs)

  4. Trade Rounds

  5. Tariffs (1) ≈ 40% > 4% Overall, import weighted tariff on industrial products

  6. (Nevertheless, tariffs are still an issue ...)

  7. Doha Ministerial Declaration(para 16)negotiations

  8. “July Package” 1 August 2004(para B-3, Para 14)intensify

  9. Hong Kong Ministerial Declaration(para 22)need for proposals .. quickly

  10. Scope of TBT Agreement

  11. TBT Agreement is applicable to: “1.3 All products, including industrial and agricultural products, shall be subject to the provisions of this Agreement.”

  12. What is the TBT Agreement is not applicable to ?

  13. TBT Agreement is not applicable to .... “The provisions of this Agreement do not apply to sanitary and phytosanitary measures as defined in Annex A of the Agreement on the Application of Sanitary and Phytosanitary Measures.”TBT Agreement, Article 1:5 (General Provisions)

  14. Protection of the environment Invasive species GMOs? quality - safety

  15. SPS measures TBT Agreement Services Government procurement Import bans

  16. What is a TBT measure?

  17. Conformity Assessment Procedures Technical Regulations Standards

  18. Technical Regulation “Document which lays down product characteristics or their related processes and production methods, including the applicable administrative provisions, with which compliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method.” TBT Agreement, Annex 1, para 1 Jump to PPM

  19. Technical Regulation document which lays downproduct characteristicsor their related processes and production methodswith which compliance is mandatory…TBT Agreement, Annex 1, para 1 (words) Jump to PPM

  20. “characteristics” sizeshape colour texture hardnesstensile strength flammability conductivity density or viscosity

  21. “related characteristics” terminologysymbolspackagingmarking or labelling requirements

  22. Technical Regulations Standards Conformity Assessment Procedures

  23. Conformity Assessment Procedures “Any procedure used, directly or indirectly, to determine that relevant requirements in technical regulations or standards are fulfilled.”TBT Agreement, Annex 1, para 3

  24. Technical Regulations Standards Conformity Assessment Procedures

  25. Definition of a “standard” “Document approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characteristics for products or related processes and production methods, with which compliance is not mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method.” TBT Agreement, Annex 1, para 2

  26. Definition of a “standard” 1 recognized bodythat provides, for common and repeated userules, guidelines or characteristics for products or related processes and production methodswith which compliance is not mandatoryTBT Agreement, Annex 1, para 2 2 3 4

  27. “International Body or System”(Annex 1, para 4) “Body or system whose membership is open to the relevant bodies of at least all Members.”

  28. SPS Agreement Note: the SPS Agreement has particular and unique provisions with respect to science and risk assessment. TBT Agreement Basic principles ?

  29. Three Key Principles

  30. non-discrimination unnecessary obstacle harmonization

  31. Non-discrimination(MFN, NT)

  32. Article III:4 ofGATT 1994 “The products of the territory of any Member imported into the territory of any other Member shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use.” …

  33. Article 2.1 of the TBT Agreement “Members shall ensure that in respect of technical regulations, products imported from the territory of any Member shall be accorded treatment no less favourable than that accorded to like products of national origin and to like products originating in any other country.”

  34. “like products”“treatment no less favourable”

  35. What is a “like product”

  36. In respect of non-discrimination, is there a difference between TBT and SPS?

  37. Article 2.3 of the SPS Agreement • no unjustifiable discrimination between • Members where identical or similar conditions prevail • including own territory and other Members • no disguised restrictions on international trade

  38. non-discrimination unnecessary obstacle harmonization

  39. Unnecessary obstacles to international trade

  40. Article 2.2 (TBT)(technical regulations) “Members shall ensure that technical regulations are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstaclesto international trade. For this purpose, technical regulations shall not be more trade-restrictive than necessary to fulfil a legitimate objective, taking account of the risks non-fulfilment would create. .. .” (emphasis added)

  41. “unnecessary obstacle”“not more trade-restrictive than necessary”“taking into account risk of non-fulfillment”

  42. Case-by-case

  43. Choice of measure

  44. non-discrimination unnecessary obstacle harmonization

  45. = ≈ The use of international standards “harmonization”

  46. = ≈ Article 2.4 – 2.6 of the TBT Agreement

  47. Three issues = ≈ explain / presumption(2.5) use !(2.4) participation(2.6)

  48. = ≈ EC – Sardines (2002) EC – Trade Description of Sardines (Peru)(first TBT case)... look at this later ...

  49. Three issues = ≈ explain / presumption(2.5) use !(2.4) participation(2.6)

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