Technical Barriers to Trade Agreement - Salient Features

Ms Shashi Sareen Director, Export Inspection Council, Ministry of Commerce & Industry

WTO Scenario
Establishment of WTO - Dismantling of barriers for free flow of trade Creation of global market with equal access to all countries Quality, health & safety & environmental issues gaining importance Role of standards both mandatory and voluntary & CA procedures Rules and disciplines laid down in terms of nontariff agreements SPS,TBT & PSI, basically aim at protecting interest of foreign suppliers

TBT Agreement - Objectives

Allows members to apply standards, technical regulations, conformity assessment procedures for
 protection of human safety or health (sockets, seat belts, labelling cigarettes) Protection of animal & plant life or health (pollution, extinct eg turtle extruder device) Protection of environment (level of vehicle emissions) Prevention of deceptive practices (labelling, size) Other objectives (quality-size of fruits & vegs, tech harmonization-telecom)

However need to ensure that these do not create obstacles to international trade

TBT Agreement Application

Scope
Applies to all products including industrial & agri products, both voluntary standards & technical regulations(standards to which compliance mandatory) Not apply to SPS measures as defined in SPS Agreement

Covers
Product characteristics Process & production methods(PPM) that have an effect on product characteristics Terminology & symbols Packaging & labelling requirements

TBT Principles
Avoidance of unnecessary obstacles to trade Non-discrimination & national treatment Harmonization Equivalence of technical regulations Mutual recognition & conformity assessment procedures Transparency

Avoidance of unnecessary obstacles to trade

Least Trade Restrictive should not be formulated & applied in a manner so as to cause any unnecessary obstacle to trade not more trade restrictive than needed to fulfill legitimate objectives (prevent deceptive practices, protection of human, animal or plant life or health, or environment) Examples site for carrying out CA, sampling procedures, methods of testing or their sensitivity levels

Non-discrimination & national treatment

Most Favoured Nation Basis should apply on a MFN basis to imports from all sources National Treatment Principle shall not extend to imported products treatment less favourable than that extended to domestically produced products

Harmonization
Why harmonize
 Benefits to producer can cater to needs of all countries leading to productions of scale eg cars, mobiles, TV sets, etc  Benefits to consumers wide choice, spare parts, etc Harmonization & TBT - standards/tech

regulations/CA procedures to be consistent with or based on international standards unless their use ineffective or inappropriate to fulfill objective Technical regulations in accordance with International standards are presumed not to create unnecessary obstacles to trade participate actively in work of ISO/other international bodies

Mutual Recognition of Conformity Assessment (Article 6)

CA procedures are those used to determine that requirements met. Include sampling, inspection, testing, evaluation, verification of conformity, accreditation, etc. Equivalence
 ensure that each others results of CA procedures are recognized based on an equivalence (ie even if these differ, if they are satisfied that the procedures used offer an assurance of conformity with their standards/technical regulations) (6.1)  compliance with relevant Guides & accreditations is an indication of adequate tech competence of CABs (6.1.1)  Encouraged to enter into negotiations for Agreements for recognition of results of each others CA procedures (6.3)

Transparency
Notifications
 all proposed, new and changed measures are to be notified by members to the TBT Committee of WTO Secretariat,  to be provided to members, translated versions if requested, & any deviations from international standards  give sufficient notice to allow for adapting to these reqts.  If technical regulation differs from international standards, need to also take into account comments of exporter Enquiry Points  An enquiry point to be set up a focal point answer all reasonable enquiries provide documents on technical regulations, standards & CA procedures;  any agreements to be notified to secretariat

Equivalence of technical regulations

Accept as equivalent, technical regulations of other members even if these differ from their own, if they are satisfied that these adequately fulfill the objectives of their own regulations (Article 2.7) Example auto emission levels controlled through catalytic converter, objective can also be achieved through use of diesel engines

Key Features for Preparation, Adoption & Application of Voluntary Standards

Code of Good Practice for Standards Development to be followed Substantive Provisions
 NSBs to follow principles & rules similar for mandatory standards ie base on & participate in international standards formulation, apply on a MFN basis, National Treatment Principle, Least Trade Restrictive  avoid duplication or overlap  specify requirements in terms of performance  6-mthly programme of work  60 days for comments  provide copy to interested party  take comments into account  promptly publish

Other Key Features

Technical assistance
provided to developing countries in the area of setting up NSBs, participation in int standardization, preparing technical regulations, setting up regulatory bodies for CA activities, methods of CA, etc

Special & Differential Treatment

more favourable treatment to be provided to developing countries take into account their special developmental, financial & trade needs when developing tech regulations, standards and CA procedures so that no unnecessary obstacles created to exports from developing countries.

Institutions, Consultations & Dispute Settlement

Committee on TBT established having representatives from each members meet 2-3 times a year, for discussing operation of Agreement or furtherance of objectives Consultations & settlement of disputes shall be under auspices of Dispute Settlement Body of WTO. However a provision for technical expert groups to assist in issues of technical nature has been provided

Some Examples
Peru labelling of footwear for country of origin & corporate tax number Products to have atleast 60% of shelf life remaining before imports BIS certification marking & introduce less onerous procedures MRP labelling agreements

Thank you

Key Features for Preparation, adoption & Application of Technical Regulations

Most Favoured Nation Basis should apply on a MFN basis to imports from all sources National Treatment Principle shall not extend to imported products treatment less favourable than that extended to domestically produced products Least Trade Restrictive should not be formulated & applied in a manner so as to cause any unnecessary obstacle to trade not more trade restrictive than needed to fulfil legitimate objectives (prevent deceptive practices, protection of human, animal or plant life or health, or environment). Contd..

Key Features on Technical Regulations

Should be based on scientific information & evidence Harmonisation - standards/tech regulations/CA procedures to be consistent with or based on international standards participate actively in work of ISO/other international bodies Transparency
 all proposed, new and changed measures are to be notified by members to the TBT Committee of WTO Secretariat,  to be provided to members, translated versions if requested  give sufficient notice to allow for adapting to these requirements.  If technical regulation differs from international standards, need to also take into account comments of exporter

Other Key Features

Information
 An enquiry point to be set up answer all reasonable enquiries provide documents on technical regulations, standards & CA procedures;  any agreements to be notified to secretariat

Technical assistance is provided to developing countries in the area of setting up NSBs, participation in int standardization, preparing technical regulations, setting up regulatory bodies for CA activities, methods of CA, etc