international standards and the tbt agreement

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International Standards and the TBT Agreement Ludivine Tamiotti WTO, Trade and Environment Division Legal Affairs Officer [email protected]

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International Standards and the TBT Agreement. Ludivine Tamiotti WTO, Trade and Environment Division Legal Affairs Officer [email protected]. What products are subject to TBT provisions?. TBT applies to. TBT Article 1.3 “ All products , - PowerPoint PPT Presentation

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Page 1: International Standards and the TBT Agreement

International Standards and the TBT Agreement

Ludivine Tamiotti

WTO, Trade and Environment Division

Legal Affairs Officer

[email protected]

Page 2: International Standards and the TBT Agreement

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

What products are subject to TBT provisions?

TBT applies to ....

Page 3: International Standards and the TBT Agreement

What products are subject to TBT provisions?

TBT does not apply to

Sanitary and phytosanitary

(SPS) measures

Sanitary and phytosanitary

(SPS) measures

Purchasing specifications prepared

by governments

Purchasing specifications prepared

by governments

Regulations and standards related

to services

Regulations and standards related

to services

Page 4: International Standards and the TBT Agreement

Applicability of the TBT Agreement

Technical RegulationTechnical Regulation

Mandatory Measures

Mandatory Measures

StandardStandard

Voluntary Measures

Voluntary Measures

Conformity Assessment ProcedureConformity Assessment Procedure

Page 5: International Standards and the TBT Agreement

Technical Regulation

TBT Annex 1.1

It lays down product characteristics

It lays down product characteristics

Compliance is mandatoryCompliance is mandatory

...or their related processes and production methods

...or their related processes and production methods

Page 6: International Standards and the TBT Agreement

Technical Regulation

TBT Annex 1.1

terminology requirements terminology requirements

packaging requirements packaging requirements

symbols requirements symbols requirements

marking requirements marking requirements

labelling requirements labelling requirements

Page 7: International Standards and the TBT Agreement

TBT Annex 1.2

Approved by a Recognized Body

Approved by a Recognized Body

Provides, for common and repeated use, rules, guidelines or characteristics for products

or related processes and production methods

Provides, for common and repeated use, rules, guidelines or characteristics for products

or related processes and production methods

Compliance is voluntaryCompliance is voluntary

Standard

Page 8: International Standards and the TBT Agreement

To determine that relevant requirements in technical regulations

or standards are fulfilled

To determine that relevant requirements in technical regulations

or standards are fulfilled

What for ?What for ?

TBT Annex 1.3

Conformity Assessment Procedure

Page 9: International Standards and the TBT Agreement

Evaluation, verification and assurance of conformityEvaluation, verification and assurance of conformity

What kind ?

Sampling, testing and inspectionSampling, testing and inspection

Registration, accreditation and approvalRegistration, accreditation and approval

...as well as their combinations

TBT Annex 1.3

Conformity Assessment Procedure

Page 10: International Standards and the TBT Agreement

Philosophy of the TBT Agreement

Right to Take Regulatory Measures

Avoid Unnecessary Obstacles to Trade

Page 11: International Standards and the TBT Agreement

Core Disciplines

AvoidDiscriminationDiscrimination

Unnecessary Obstacles to TradeUnnecessary Obstacles to Trade

Using

HarmonizationHarmonization

EquivalenceEquivalence

Mutual Recognition of Conformity Assessment Results

Mutual Recognition of Conformity Assessment Results

TransparencyTransparency

Page 12: International Standards and the TBT Agreement

Non-Discrimination

Treatment no Less Favourable toLike Products

Treatment no Less Favourable toLike Products

OriginatingOriginating

Of national originOf national origin

National Treatment

From any other countryFrom any other country

Most-Favoured Nation (MFN)

Page 13: International Standards and the TBT Agreement

Avoid unnecessary obstacles to trade

Create unnecessary obstacles to international trade

Create unnecessary obstacles to international trade

Technical Regulations, Standards, and Conformity Assessment Procedures

Must not be prepared, adopted or applied so as to

Must not be prepared, adopted or applied so as to

Page 14: International Standards and the TBT Agreement

Avoid unnecessary obstacles to trade

Technical Regulations shall Not be more Trade

Restrictive than Necessary

to Fulfil a Legitimate Objective, taking Account

of the Risks Created by Non-Fulfilment

Page 15: International Standards and the TBT Agreement

Avoid unnecessary obstacles to trade

Legitimateobjectives

National security requirements

Protection of animal or plant life or health

Protection of the environment

Prevention of deceptive practices

…Inter alia…

Protection of human health or safety

Page 16: International Standards and the TBT Agreement

Harmonization Principle

Page 17: International Standards and the TBT Agreement

The Preamble of the TBT Agreement

Development of International Standards is Encouraged

Development of International Standards is Encouraged

Page 18: International Standards and the TBT Agreement

Benefits of Harmonization

Reduce costs and allow economies of scales

Reduce costs and allow economies of scales As producers do not have to

design and manufacture a product in many variations to

meet varying, different standards

As producers do not have to design and manufacture a

product in many variations to meet varying, different standards

Result in lower costs to consumers

Result in lower costs to consumers

Who may compare and chose from a larger number of

suppliers

Who may compare and chose from a larger number of

suppliers

Facilitate market accessFacilitate market accessAs the products conforming to

the same standards may be accepted more widely

As the products conforming to the same standards may be

accepted more widely

Page 19: International Standards and the TBT Agreement

Benefits of Harmonization

Ease production and trading conditions for producers, importers and exporters

Ease production and trading conditions for producers, importers and exporters

Ultimately...

Minimize obstacles to international trade Minimize obstacles to international trade

Promote trade of developing countriesPromote trade of developing countries

Page 20: International Standards and the TBT Agreement

The Harmonization Principle

2 key requirements

Members must use international standards, guidelines and

recommendations as a basis for their national TBT measures

Members must use international standards, guidelines and

recommendations as a basis for their national TBT measures

Members must participate in international standardizing

bodies

Members must participate in international standardizing

bodies

Page 21: International Standards and the TBT Agreement

TBT Article 2.6

In the preparation by appropriate international international standardizing bodiesstandardizing bodies of international standards,

guides or recommendations

In the preparation by appropriate international international standardizing bodiesstandardizing bodies of international standards,

guides or recommendations

Products for which Members have adopted/expected to adopt technical regulations

Products for which Members have adopted/expected to adopt technical regulations

For What ?

Members shallshall play a full partMembers shallshall play a full part

Within the limits of their resourcesWithin the limits of their resources

Page 22: International Standards and the TBT Agreement

International Standardizing Bodies ?

They are not explicitly recognized in the TBT Agreement

They are not explicitly recognized in the TBT Agreement

Page 23: International Standards and the TBT Agreement

Decision of the TBT Committee at the Second Triennial Review

Principles for the Development of International Standards, Guides and Recommendations

Transparency

Impartiality and consensus

Openness

Coherence

Effectiveness and relevance

Development Dimension

Page 24: International Standards and the TBT Agreement

Harmonization explained: Dispute “EC - Trade

Description of Sardines (Peru)”

Page 25: International Standards and the TBT Agreement

Products at issue

2 small fish species

Sardina pilchardus(the “European Sardine”)

Sardina pilchardus(the “European Sardine”)

Sardinops sagax (the “Peruvian Sardine”)

Sardinops sagax (the “Peruvian Sardine”)

Page 26: International Standards and the TBT Agreement

The measure at stake

Only fish from the species Sardina pilchardus can be marketed as sardines

Only fish from the species Sardina pilchardus can be marketed as sardines

EC Regulation laying down common marketing standards for preserved

sardines (1989)

Page 27: International Standards and the TBT Agreement

The standard

Codex Stan 94 for canned sardines (1978)

Page 28: International Standards and the TBT Agreement

The standard

Codex Stan 94 for canned sardines (1978)

Page 29: International Standards and the TBT Agreement

TBT Article 2.4

Members shall use IS as a basis for their technical regulations

Members shall use IS as a basis for their technical regulationsThen

Technical regulations are requiredTechnical regulations are required

Relevant international standards (IS) existRelevant international standards (IS) exist

If +

When such IS would be an ineffective or inappropriate means

When such IS would be an ineffective or inappropriate means

ExceptThe fulfilment

of the legitimate objectives

The fulfilment of the legitimate

objectivesFor

Page 30: International Standards and the TBT Agreement

NO

NO

Was Codex Stan 94 used as a basis for the EC Regulation?

Would Codex Stan 94 have been an ineffective or inappropriate means for the fulfilment of the legitimate

objectives pursued?

The EC Regulation is inconsistent with Article 2.4 of the TBT Agreement

The Panel & AB Findings

YESWas the EC Regulation a Technical Regulation?

YESWas Codex Stan 94 a Relevant International Standard?

Page 31: International Standards and the TBT Agreement

Mutually Agreed Solution

EC Regulation No 1181/2003 of 2 July 2003 amending Council Regulation No 2136/89 laying

down common marketing standards for preserved sardines

Preserved sardine-type products may be marketed in the EC under a trade

description consisting of the word 'sardines' joined together with the

scientific name of the species

Preserved sardine-type products may be marketed in the EC under a trade

description consisting of the word 'sardines' joined together with the

scientific name of the species

Page 32: International Standards and the TBT Agreement

Mutually Agreed Solution

EC Regulation No 1181/2003 of 2 July 2003 amending Council Regulation No 2136/89 laying

down common marketing standards for preserved sardines

Page 33: International Standards and the TBT Agreement

International Standardsand the TBT Agreement

Ludivine Tamiotti

WTO, Trade and Environment Division

Legal Affairs Officer

[email protected]