SPS Workshop Taipei, 5-6/12/2001

The SPS AgreementThe SPS Agreement

Reaffirming countries’ right to protect Health

SPS Workshop Taipei, 5-6/12/2001

Why an SPS Agreement?Why an SPS Agreement?

• Uruguay Round Agreement on Agriculture

• Article XX (b)

• Why wasn’t the TBT Agreement sufficient?

SPS Workshop Taipei, 5-6/12/2001

What is an SPS measure?What is an SPS measure? To protect To protect from from

• Human or animal life

• Human life

• Risks food additives, contaminants, toxins or disease-causing organisms in foods, beverages/foodstuffs

• diseases carried by animals, plants or products thereof

SPS Workshop Taipei, 5-6/12/2001

What is an SPS Agreement?What is an SPS Agreement? to protectto protect from from

• Animal life, including fish and wild fauna

• to protect plant life, including forests and wild flora

• The entry, establishment or spread of pests, diseases, disease-carrying or disease-causing organisms

SPS Workshop Taipei, 5-6/12/2001

What is an SPS measure?What is an SPS measure? to protect to protect fromfrom

• A country • Damage within the territory from entry, establishment or spread of pests

SPS Workshop Taipei, 5-6/12/2001

SPS measures: laws, decrees, regulations… SPS measures: laws, decrees, regulations… including:including:

• End product criteria• processes and production methods• testing, inspection, certification approval

procedures, etc.• quarantine treatments• animal transport• packaging and labelling requirements directly

related to food safety

SPS Workshop Taipei, 5-6/12/2001

Other measures...Other measures...

• Environment protection

• Consumer interests other than health related

• Animal welfare

• Are not covered by the SPS Agreement...

• …but partly by the TBT Agreement

SPS Workshop Taipei, 5-6/12/2001

SPS rights and obligations SPS rights and obligations

• Right to restrain trade to protect health

• Measures based on scientific principles

• Non-discriminatory

• No disguised restrictions

• Conformity presumptionArti

cle 2

SPS Workshop Taipei, 5-6/12/2001

International HarmonizationInternational Harmonization

Article 3

• Encouraging the use ofinternational standards

• Food safety: Codex• Animal Health: OIE

• Plant protection: IPPC

• Conformity Presumption(...not unchalangeable)

• Right to be more stringent, but...

• Scientific justification or Risk Assessment

SPS Workshop Taipei, 5-6/12/2001

Risk AssessmentRisk Assessment

• Scientific methodology

• Economic factors (animals/plants)loss production or sales;costs eradication; cost-effectivenessalternative approaches

• Risk assessment

• Scientific evidence• Production methods• Inspection methods, etc.

Article 5

SPS Workshop Taipei, 5-6/12/2001

Appropriate level of protectionAppropriate level of protection

• Right to precaution(& emergency measures…?)

• Constraining measures: right explanation

Article 5

• Consistency application ALOP Objective!

SPS Workshop Taipei, 5-6/12/2001

PrecautionPrecaution

• Right:

• Provisional measure

• Insufficient scientific evidence

• Obligation:

• Seek additional information

• Review measure accordingly within reasonable period of time

Article 5.7

SPS Workshop Taipei, 5-6/12/2001

PrecautionPrecaution

• Appellate Body (Hormones):– PP not written in SPS as ground for justifying

measures otherwise inconsistent– PP finds reflection in 5.7 of SPS– No need to assume 5.7 exhausts relevance of PP– Panel to bear in mind that governments act from

perspectives of prudence & precaution– PP does not override provisions of 5.1 & 5.2 of SPS

SPS Workshop Taipei, 5-6/12/2001

SPS - Risk “management”SPS - Risk “management”

• Appropriate measure

• Minimize negative trade effects

• Not more trade-restrictive than required

• Technical and economic feasibility

Article 5

SPS Workshop Taipei, 5-6/12/2001

EquivalenceEquivalence

Article

4• Acceptance of equivalent measures

• Exporter to demonstrate

• Access to importer

• Bilateral and multilateral agreements

SPS Workshop Taipei, 5-6/12/2001

““Veterinary Agreement”Veterinary Agreement”EU/New ZealandEU/New Zealand

• Signed December 1996. Applies to live animals, cattle, sheep, pigs and poultry, and animal products; fish and fish products.

• Based on the SPS Agreement principles, recognizes equivalency of SPS measures and adaptation to regional conditions.

SPS Workshop Taipei, 5-6/12/2001

““Veterinary Agreement”Veterinary Agreement”EU/New ZealandEU/New Zealand

• Facilitated other export/import practices, including certification, inspection, auditing, frontier checks, etc.(Ex. Heat-treated milk and FMD)

• Includes provisions for expeditious consultation (in any case within 14 days) regarding serious concerns about risk to public or animal health.

SPS Workshop Taipei, 5-6/12/2001

SPS - RegionalizationSPS - Regionalization

Adaptation of measures to risk profile

Pest- or disease-free areas

FMD;… BSE

Exporter: burden of proof(…reasonable access)Article 6

SPS Workshop Taipei, 5-6/12/2001

Technical assistanceTechnical assistance

• Reinforcement services

• Establishment regulatory bodies

• Advice, credits, donations, grants

Bilateral “Three sisters”ITC

FAOWHO

SPS Workshop Taipei, 5-6/12/2001

Special and differential treatmentSpecial and differential treatment

• Take into account special needs of LDC

• Phased introduction of new SPS measures

• Specified, time-limited exceptions upon request

• Facilitate active participation LDC in IOs

• Delayed application

Article 10

Article 14

SPS Workshop Taipei, 5-6/12/2001

Control, Inspection &Control, Inspection & Approval Procedures Approval Procedures

• Non-discriminatory

• Without undue delay

• If national system approval additives/tolerances: encouragement

• harmonization

Annex C

SPS Workshop Taipei, 5-6/12/2001

TranspTransparencyarency

•Publication

•Enquiry Points

WWW.WTO.ORG

•Notifications

SPS Workshop Taipei, 5-6/12/2001

SPS CommitteeSPS Committee

• Administration of the Agreement

• Forum for general consultation

• Facilitate ad hoc consultations

• Decisions by consensus

It is there to serve you... use it!

SPS Workshop Taipei, 5-6/12/2001

SPS CommitteeSPS Committee

• How do meetings work?– missions / experts from capital

• Observers– Non-Members

– “three sisters” + others, incl. Regional orgs.

• Typical Agenda– main items

SPS Workshop Taipei, 5-6/12/2001

SPS CommitteeSPS Committee

• Implementation of the Agreement

• Information from Members

• Trade concerns

• Discussion of Notifications

• Monitoring

• Developing Countries

• Technical Assistance Agenda

SPS Workshop Taipei, 5-6/12/2001

Some Specific Trade ConcernsSome Specific Trade Concerns

•EC Aflatoxins; Cholera; Dioxins…

•BSE (EC, Switzerland, US...)

•Thai milled rice

•Australia Tropical Fruits

•US - Imports of citrus fruits

SPS Workshop Taipei, 5-6/12/2001

Doha and the SPS AgreementDoha and the SPS Agreement

• Ministerial declaration: no SPS renegotiations requested

• Negotiations on relationship between WTO rules and trade obligations in MEAs

• Instruct Cttee. Trade & Environment to give attention to

– (i) effect environmental measures on market access

– (iii) labelling requirements for environmental purposes

• But not add or diminish rights and obligations under SPS nor alter balance rights/obligations take account needs DCs & LDCs

• Implementation decisions

SPS Workshop Taipei, 5-6/12/2001

What next?What next?

• New issues, i.e.biotechnology• Clarification of application of existing WTO rules

– in negotiations (Doha mute…)– in committees– through dispute settlement– (through a working group)

• Is more needed?– specific agreement or inclusion in others– risks of re-opening agreements

SPS Workshop Taipei, 5-6/12/2001

““Keys” for successKeys” for success

• National coordination– with Codex, OIE, IPPC experts– with different national agencies

• Participation Committee

• Use of information material– Internet

• Use of transparency provisions

WTO “focal point”?