Presentation on

WTO Agreements
By Department of Commerce Ministry of Commerce & Industry

SPS & TBT

What is an SPS Measure?

SPS measures are food safety, animal and plant quarantine measures that apply to domestically produced food or local animal or plant diseases, as well as to products coming from other countries The protection of fish and wild fauna, forests and wild flora are included in this definition while the protection of environment per se and animal welfare are excluded

Rights & Obligations

Countries have right to take SPS measures necessary for the protection of human, animal or plant life or health To be applied only to the extent necessary National Treatment Shall not arbitrarily or unjustifiably discriminate between countries or act as disguised restriction on international trade

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

TBT Agreement: Technical regulations

Technical regulations and standards set out specific characteristics of a product - such as its size, shape, design, functions and performance, or the way it is labelled or packaged before it is put on sale In certain cases, the way a product is produced can affect these characteristics, and it may then prove more appropriate to draft technical regulations and standards in terms of a product's process and production methods rather than its characteristics per se The TBT Agreement makes allowance for both approaches in the way it defines technical regulations and standards

Key Features
Objective - Protection of human safety or health Protection of animal and plant life or health Protection of the environment Prevention of deceptive practices National Treatment Shall not create unnecessary obstacles to international trade Shall not be more trade restrictive than necessary As far as possible international standards should be used

Conformity assessment procedures

These are technical procedures - such as testing, verification, inspection and certification - which confirm that products fulfil the requirements laid down in regulations and standards
Exporters bear the cost, if any, of these procedures

Non-transparent and discriminatory conformity assessment procedures can become effective protectionist tools

PROBLEMS FACED BY INDIA in

implementing the SPS Provisions
Lack of adequate time to adapt to SPS measures and adequate advance warning about the new measures High cost of adaptation. Unwillingness on the part of the developed countries to accept equivalent measures of developing countries Lack of adequate technical assistance to developing countries particularly for infrastructure necessary for ensuring quality testing standards Ineffective participation in the activities of the international standardizing bodies leading to standards getting fixed by default

AREAS WHERE INDIA FACES PROBLEMS ON SPS ACCOUNT

Peanuts,other nuts and milk- Level of aflatoxin presence
Mangoes and Grapes- presence of certain flies Coffee- level of Ochratoxin

Bone and Bone Products- non-grant of TSE free status

Cereals and Cereal Products-presence of impurities Tobacco- level of DDT residue Pesticides residue problem in various products such as Egg Products, grapes,gherkins, honey, meat and milk products and tea and spices

Strategy for future

Upgradation of level of standards within India Building-up scientific evidence unreasonable SPS Measures to counter

Exporters/EPCs should examine WTO-compatibility of health and sanitary regulations/product standards Close co-ordination between Government and Exporters regarding specific cases. Need for framing of standards for manufacture, production units/processes, monitoring contaminants, sampling procedures and additives

Subsidies Agreement

ASCM
Prohibits grant of certain subsidies Prescribes disciplines on action taken to counter subsidies causing adverse effects Has a detailed S& D provision (Art 27)

When Does Subsidy Exists

Financial contribution Direct / potential direct transfer of funds Revenue otherwise due foregone Provision of goods or services excluding general infrastructure Entrustment by Government of above functions Benefit thereby conferred

Types of Subsidies
Prohibited subsidies
Contingent on export performance Contingent on use of domestic over imported goods To be withdrawn immediately else countermeasures Exception for certain countries including India

Non Actionable Subsidies

Refers to subsidies which are not Enterprise specific Industry specific Region specific Objective criteria for eligibility 3 categories of specific subsidies were earlier non-actionable but the provision (Art 8) has lapsed

Actionable Subsidies
Residual category of subsidies Remedies for actionable subsidies causing adverse effects Consultations, Panel process To remove adverse effects or withdraw the subsidy else face counter measures Imposition of COUNTERVAILING DUTY

ACTIONABLE SUBSIDIES
Injury to domestic industry
Serious prejudice Displace impede imports Displace impede exports in 3rd country Significant price undercutting etc.

S&D Provisions
Flexibilities for Annex VII countries including India Export subsidies not prohibited (Art 27.2(a)) Enhanced subsidy margin of 3% and volume of subsidized imports of 4% / 9% not subject to investigations.

AoA & SCM

Special provisions in Article 13 of AoA regarding action against subsidies for agricultural products Annex-2 measures exempt from countervailing duty action and the Dispute Settlement process Measures in Article 6 protected through due restraint provisions in initiation of countervailing duty investigations Countervailing duties possible only after establishment of injury or threat thereof Also exempt from action based on non-violation nullification or impairment of tariff concessions subject to certain conditions Export subsidies conforming to AoA also protected by the due restraint clause

Trade Related Intellectual Property Rights (TRIPS)

INTELLECTUAL PROPERTY RIGHTS & TRIPS

Intellectual property is economically valuable information Intellectual Property Right is the legally enforceable power to exclude others from using the information created, or to set the terms on which it can be used TRIPS prescribes minimum standards of protection to different intellectual property rights Members are free to have higher standards at the national level

THE SEVEN IPRs IN THE TRIPS UNIVERSE

Patents (for plant varieties, the protection can be given either through patents or a sui generis system or a combination of both); Copyright and related rights; Trademarks; Industrial designs; Layout-designs of integrated circuits; Undisclosed information, including trade secrets Geographical indications, including appellation of origin.

PATENTS
Subject matter any invention, whether of products or processes, in all fields of technology, provided they are new, non-obvious and useful. Exceptions to subject matter (1)Medical Use (2) Plants and animals other than micro-organisms (but not plant varieties). (3) Essentially biological processes for the production of plants and animals. Rights conferred Patents give owners exclusive property rights Assignment allowed. (Compulsory Licensing allowed subject to conditions) Term of protection Twenty years counted from filing date.

Plant Variety Protection

TRIPS mandates that protection of plant varieties shall be provided either by patents or by an effective sui generis system or by any combination thereof PVP Bill, passed by Parliament in August, 2001 Provides 15/18 years protection for plant varieties provisions for Farmers Rights, Benefit Sharing, Community Rights Farmers right to save, exchange, use and sell farms saved seeds has been preserved

GEOGRAPHICAL INDICATIONS
Subject matter - Indications which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or any other characteristic of the good is essentially attributable to its geographical origin Rights conferred prevention of the use of any means which mislead the public or an act of unfair competition. Additional protection for wines and spirits Prohibition on use even where the true origin of the goods is indicated or the GI is used in translation or accompanied by expressions such as land, type, style, initiation or the like

GI Protection for other products

India along with many other countries has proposed that the higher level of protection as available to wines and spirits should made available to other products also. Doha Declaration mandates TRIPS Council to examine this issue and report by end of 2002 for appropriate action

COMPLIANCE WITH TRIPS

The Patents (Second Amendment) Bill, 1999 has now been passed by Parliament The Protection of Plant Varieties and Farmers Rights Bill, 1999 was passed by Parliament in August 2001

DIFFICULTIES IN COMPLIANCE
The most important concerns related to patents and plant variety protection. It was felt that - our pharmaceutical industry will be adversely affected, - drug prices will go up, - our biological materials will be pirated, - our farmers will no longer be able to use or sell seeds from their farm produce

DIFFICULTIES IN COMPLIANCE
The Government has taken account of all these fears in the proposed Bills on the subjects. Some of the preventive measures in the Bills are - Farmers right to save, exchange and use farm saved seeds has been preserved - Wide range of inventions that are not patentable have been kept (Section 3) - Strong Government use, R&D, revocation provisions have been introduced ( Chapter XVII and Sections 47, 66) - Strong compulsory licensing provisions have been retained (Chapter XVI) - Vast powers retained for the Security of India (Section 157A)

DOHA MANDATE ON TRIPS

Negotiations to establish a multilateral system of notification and registration for GI for wines and spirits; Extension of higher order of protection to items like Basmati rice will be addressed by the Council for TRIPS; and TRIPS Council to examine relationship between TRIPS and CBD, the protection of traditional knowledge and folklore

Thank You