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Information Backgrounder prepared for the Regional Breifing of National Consultation Facilitators

THE TIES THAT BIND WTO

OBLIGATIONS

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With the 8th

Uruguay Round of Multilateral Trade Negotiations and the establishment of the World

Trade Organization (WTO) in 1995, agriculture generally, was subjected to a widening scope of trad

regulations and agreements, directly through the Agreements on Agriculture and Application on

Sanitary and Phytosanitary (SPS) Measures and indirectly, through rules of general application.

AAggrreeeemmeenntt oonn AAggrriiccuullttuurree ((AAooAA)) The WTO AoA seeks to reform principles and strengthen disciplines on agricultural policy inorder to reduce distortions in agricultural trade caused by agricultural protectionism and domestic

support policies of, particularly, developed countries.

The AoA obligates member countries to reduce barriers to market access (high tariffs and trade-

restricting non-tariff measures), the level and extent of support to domestic producers and limit th

use of measures that create conditions of unfair competition, specifically, export subsidies. Caribbean

countries obligations fell largely within the Market Access commitments to establish maximum o

bound tariffs. Tariff reduction commitments agreed to, also generally relate to reducing high tariffsto a final bound level for selected products. All Caribbean countries bound the final most favored

nation (MFN) tariffs for most agricultural products at 100%, with some variations according to

products and among countries, as notified in their Schedules. For Domestic Support commitments

Caribbean countries notified no trade-distorting measures (as classified in the Amber box) and thei

total domestic supports to agriculture were well within WTO-allowed levels. No Caribbean country

notified use of Export Subsidies; hence export subsidy reduction commitments were not applicable.

AAggrreeeemmeenntt oonn tthhee aapppplliiccaattiioonn ooff SSaanniittaarryy aanndd PPhhyyttoossaanniittaarryy ((SSPPSS))

mmeeaassuurreess The SPS agreement recognizes the sovereign right of every WTO member to take measures thatmay restrict trade and to implement national laws to protect human and animal life and health from

foodborne risks; human life from plant/animal carried diseases; animal or plant life from pests

diseases, or disease causing organisms; and preventing/limiting other damage to a country from thentry, establishment or spread of pests.

The WTO SPS Agreement obligated countries to reform and upgrade their agricultural health and

food safety systems depending on the status and operation of the systems at the time when the

Agreement took effect in 1995. The establishment and notification of single notification authoritie

and enquiry points, in particular, are the two unequivocal obligations for all countries. Caribbean

countries continue to experience significant difficulties in implementing the SPS Agreement, which

requires far reaching structural modification of various public institutions, the development and

implementation of administrative structures, the enactment of new legislation, upgrading technica

competence at various levels and institutional reform.

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TTeecchhnniiccaall BBaarrrriieerrss ttoo TTrraaddee

((TTBBTT))..The objective is to ensure that

technical regulations are not prepared,

adopted or applied with a view to, or

with the effect of creating unnecessary

obstacles to trade. It sets out objectivesfor which governments may develop

technical regulations, including, inter

alia: national security; prevention of

deceptive practices; protection of

human health or safety, and animal

and plant life or health; and the

environment.

Technical regulations (compulsoryproduct standards, packaging &

labeling requirements, etc);

It establishes the basic principles for

the preparation, adoption and

application of technical regulations

and the procedures for conformity

assessment and circumscribes

mandatory technical regulations that

specify product characteristics or

their related processes and production

methods.

Product standards (e.g. productcharacteristics, process &

production methods, terminology &

symbols).

Both the SPS and TBT agreements

contain rules of general application,which govern goods entering the

customs territory of an importing

country. But the SPS Agreement is

focused more narrowly than the TBT

Agreement and therefore contains

certain objective standards of

legitimacy for all SPS measures.

As tariff barriers are reduced, the

importance of standards and technical

regulations has increased markedly.

Small developing countries should

devote carefully rationed attention tothe evolving rules in the TBT and SPS

WTO negotiations.

While it is clear that lower tariffs mean

freer trade, it is not at all clear how

changes in particular standards or

technical regulations, or the system as

a whole, affect trade. Specifications

can be voluntary standards or

mandatory technical regulations; they

can be national or international; and

most important, they can increase

access by developing countries to the

market or they can bar entry.

AAggrreeeemmeenntt oonn SSuubbssiiddiieess aannddCCoouunntteerrvvaaiilliinngg MMeeaassuurreess

((SSCCMM));;SCM seeks to balance potentially

conflicting concerns, such that: -

Domestic industries should not beput at an unfair disadvantage by

competition from goods that benefit

from government subsidies;

Countervailing measures to offsetsubsidies should not themselves be

obstacles to fair trade.

IImmpplleemmeennttaattiioonn ooffAArrttiiccllee VVII

ooffGGAATTTT11999944 ((AAnnttii--

DDuummppiinngg)) ((AADDPP))ADP seeks to balance potentially

conflicting interests of: -

importing countries in imposinganti-dumping measures to prevent

injury to domestic industries; and

exporters, that anti-dumpingmeasures and procedures should not

themselves become obstacles to fairtrade.

The SCM and ADP both govern

measures that governments of

importing countries can take if

requested by domestic industry in

response to unfair trade practices.

TTrraaddee RReellaatteedd AAssppeeccttss ooff

IInntteelllleeccttuuaall PPrrooppeerrttyy RRiigghhttss

((TTRRIIPPSS))The TRIPS Agreement seeks to ensure

minimum standards for protection of

intellectual property. In agriculture

that would be relate to:

trademarks, i.e., signs or symbolsused to distinguish goods of one

enterprise from another;

geographical indications (GIs)which refer to the use of a regions

name by producers from the area in

order to protect their reputation or

to safeguard the expectations o

consumers who have come to

associate certain qualities with a

products origin.

Geographical indications, in

particular, have become more

important in the global agriculture and

food industry because of the expansion

in global trade.

Although there are other related

international agreements, the TRIPS

Agreement is the first agreement to

deal with GIs as such. Under TRIPS

the normal level of protection

(afforded to all products) refers toMembers obligation to provide the

legal means for interested parties to

prevent the use of indications deceiving

consumers as to the geographica

origin of a good or constituting an ac

of unfair competition.

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