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Lucknow
Workshop on WTO
July 8th 2010
Standards and Safety
• Article 20 of the General Agreement on Tariffs and Trade (GATT)
allows governments to act on trade in order to protect human,
animal or plant life or health, provided they do not discriminate or
use this as disguised protectionism.
• In addition, there are two specific WTO agreements dealing with
food safety and animal and plant health and safety, and with
product standards in general.
• Both try to identify how to meet the need to apply standards and
at the same time avoid protectionism in disguise.
• These issues are becoming more important as tariff barriers fall —
some compare this to seabed rocks appearing when the tide goes
down.
Food, Animal and Plant Products: How Safe is Safe?
• A separate agreement on food safety and animal and
plant health standards (the Sanitary and Phytosanitary
Measures Agreement or SPS) sets out the basic rules.
• It allows countries to set their own standards. But it also
says regulations must be based on science.
• They should be applied only to the extent necessary to
protect human, animal or plant life or health.
• They should not arbitrarily or unjustifiably discriminate
between countries where identical or similar conditions
prevail.
Why SPS
• Over US$ 600 billion agricultural products
• Over US$ 400 billion food trade per year
• About 500 million tons of food products
• About 75% is exported to and imported from
industrialized countries…
• More than 50% of fruits and vegetables, sugar,
non-alcoholic beverages, fish and fishery products
are imported from developing countries
Expanded International Trade
A country
• Damage caused by the entry, establishment or
spread of pest
Spécifications of SPS
• “Animal” includes wild fauna and fish
• “Plants” include forest and wild flora
• “Parasites” include weeds
• “Contaminants” include pesticide residues,
veterinary drug residues and extraneous
matter
Types of Measures
End product criteria
Consumer
Protection
interests Animal
of the
other than welfare
environment
health
Objectives of the SPS Agreement
• To protect and improve the current human health,
animal health and phytosanitary situation of all
1 Member countries
Technical
Equivalence
assistance
Article 4
Article 9
Disease-free
areas Article 6
Key Features….
• SPS measures to be based on scientific risk
assessment
• Countries should base their SPS measures on
international standards like Codex, OIE & IPPC
• Countries may have higher level of SPS measures but
shall be based on scientific risk assessment
• Transparency - all proposed, new and changed
measures are to be notified by members to the SPS
Committee of WTO Secretariat
Key Features…..
assessment of risks to human, animal or plant life or
health, taking into account risk assessment techniques
developed by international organizations.
available scientific evidences; process and production
methods; inspection & sampling methods; prevalence of
specified disease or pests; existence of pests/disease-free
areas, etc
relevant economic factors & cost effectiveness of
alternate approaches
Avoid arbitrary/unjustifiable distinctions in the levels in
different situations if these result in disguised restrictions
Key Features…..
To take provisional measures in case of insufficient
scientific evidence
Adaptation of SPS measures to regional conditions,
including pest- or disease- free areas, differing climatic
conditions & different pest or diseases or food safety
conditions so as to lead to the development/imposition of
different SPS requirements
Members are required to notify all sanitary and
phytosanitary regulations which are adopted or proposed
to be adopted
Notifications made in the event of non-existence of an
international standard or where substantially different
from it or where there is a significant effect on trade
Key Features…..
• ‘Enquiry Points’ to be notified by each Member to
disseminate information about existing and
proposed SPS regulations, control and inspection
procedures, quarantine treatment etc./ TBT
standards, technical regulations & CA
procedures
• Provision of ‘Emergency Notification’
• Take account special needs of developing countries
when developing SPS measures
Problems Faced by India in Implementing
the SPS Provisions
• Participation in international standardising bodies
• Non representativeness of international standards
• Plethora of standardising bodies at the national and sub-
national levels & lack of role clarity
• Absence of a national notification system
• A general lack of awareness
• Some aspects not very well developed – traceability, risk
assessment, R&D, residues, data
Difference Between SPS &TBT
• Regulation regarding fertilisers
SPS if relating to residues in food or animal feed (objective
protection of human/ animal health)
TBT if related to quality or efficacy of the product or health
risk to handlers
• Labelling requirements for foods
SPS if related to food safety
TBT if the regulation concerns issues such as; positioning,
letter size, nutrient content, grade, etc.
• Regulation regarding containers for the shipment of grains
SPS if relating to fumigation or other treatment of these containers, i.e.,
disinfection in order to prevent the spread of disease, whereas under
TBT if the regulation regards the size or structure of the containers
Nodal Ministry
• Ministry of Commerce (Trade Policy Division)
• Enquiry Points
SPS - Plant Protection Division (Deptt. of Agri. &
Coop.), Ministry Of Health, Ministry of Commerce
TBT - Bureau of Indian Standards