INFLUENCE OF WTO ON VIETNAM’S

AGREEMENTS WITH CASE EXAMPLES

(Part II)

LLM LE QUYNH TRANG

 TBT
Agreement on Technical Barriers to Trade

2
 1. Introduction

With regard to technical barriers, WTO

law sets out specific rules in a separate
agreement, that is, the Agreement on
Technical Barriers to Trade (hereinafter
the ‘TBT Agreement’).

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 1. Introduction
TBT Agreement is applicable to:
“1.3. All products, including industrial and
agricultural products, shall be subject to the
provisions of this Agreements.” (Art. 1.3 of
TBT)
TBT Agreement is NOT applicable to:
“... do not apply to sanitary and phytosanitary
measures as defined in Annex A of the
Agreement on the Application of Sanitary and
Phytosanitary Measures” (Art. 1.5 of TBT)

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 2. PURPOSES OF THE TBT AGREEMENT

1 To recognize the necessity of technical barriers to trade: and, at

the same time

2 To take control of such barriers in order to ensure that members

shall use the barriers in appropriate and legitimate manner and
such barriers shall not merely become a tool of protection

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 3. WHAT ARE TECHNICAL BARRIERS TO TRADE?

In international trade, "technical barriers

to trade" are the technical standards
and regulations that a country applies
to imported goods and / or conformity
assessment procedure

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 3. WHAT ARE TECHNICAL BARRIERS TO TRADE?
Technical regulations:
1 Document that lays down product characteristics or their related
processes and production methods, including the applicable
administrative provisions, with which compliance is mandatory.

It may also include or deal exclusively with terminology, symbols,

packaging, marking or labelling requirements as they apply to a product,
process or production method.

(TBT Agreement, Annex 1, para 1)

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 3. WHAT ARE TECHNICAL BARRIERS TO TRADE?

“Product Characteristics”
1 Size, shape, color, texture, hardness, tensile strength, flammability,
conductivity, density or viscosity.

“Related Characteristics”
Terminology, symbols, packaging, marking or labelling
requirements.

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 3. WHAT ARE TECHNICAL BARRIERS TO TRADE?
Conformity Assessment Procedures: “Any procedure used, directly or
2 indirectly, to determine that relevant requirements in technical regulations or
standards are fulfilled” (TBT Agreement, Annex 1, para 3)
(Conformity assessment procedures include procedures for sampling,
testing and inspection; evaluation, verification and assurance of conformity;
registration, accreditation and approval as well as their combinations.)

Technical standards: document approved by a recognized body, that

3 provides, for common and repeated use, rules, guidelines or
characteristics for products or related processes and production methods,
with which compliance is not mandatory (TBT Agreement, Annex 1, para 2)

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 KIND OF TECHNICAL BARRIERS TO TRADE

Technical Technical Conformity

regulations standards assessment
procedure

Mandatory Not mandatory Assess a kind of

(enterprises must (be approved by goods under
comply with it) an organization regulations/
recognized) standards

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 NOTE: TECHNICAL REGULATIONS
- WTO’s members shall abide by relevant general
international technical standards if any regulations
- WTO’s members may not apply common international
standards if they are ineffective or fail to set their
national goals (possibly due to geographical, climatic,
technological…)

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 4. KEY ASPECT OF TBT AGREEMENT

No unnecessary
Transparency
obstacles to
Non- discrimination
international trade (Arts. 2.9, 2.10,
(Art. 2.1 TBT)
(Art. 2.2 TBT) 5.6 and 5,7 TBT)

Scientific Harmonization Equivalence &

justification (Arts. 2.4 and Recognition
(Art. 2.3 TBT) 2.6 TBT) (Arts. 2.7, 6.3
TBT)

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 ❑ Non-discrimination (Article 2.1 TBT)

- Members shall ensure that in respect of technical

regulations, products imported from the territory of any
Member shall be accorded treatment no less favourable
than that accorded to like products of national origin and to
like products originating in any other country

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 ❑ Non-discrimination (Article 2.1 TBT)

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 ❑ No unnecessary obstacles to international trade (Article 2.2 TBT)
- Members shall ensure that technical regulations are not prepared, adopted or
applied with a view to or with the effect of creating unnecessary obstacles to
international trade.
- For this purpose, technical regulations shall:
(i) Not be more trade-restrictive than necessary to fulfil a legitimate objective,
taking account of the risks non-fulfilment would create.
(ii) Such legitimate objectives are, inter alia: national security requirements;
the prevention of deceptive practices; protection of human health or safety,
animal or plant life or health, or the environment.
(iii) In assessing such risks, relevant elements of consideration are, inter alia:
available scientific and technical information, related processing technology or
intended end-uses of products.
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 ❑ Transparency (Articles 2.9, 2.10, 5.6 and 5,7 TBT)

- Whenever a relevant international standard does not exist or the technical

content of a proposed technical regulation is not in accordance with the
technical content of relevant international standards, and if the technical
regulation may have a significant effect on trade of other members; or
where urgent problems of safety, health, environmental protection or
national security arise or threaten to arise for a member, such members
shall publish a notice; notify other members; upon request, provide other
members with copies of the proposed technical regulation; allow other
members to present their comments in writing, etc. (Articles 2.9, 2.10, 5.6
and 5.7)
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 5. VIETNAMESE ENTERPRISES
⊷ For Vietnamese enterprises when exporting,
there are no preventive or countermeasures
but only measures to comply with.
⊷ Compliance with these measures sometimes
requires important changes not only for
finished goods for export, but also for the
cultivation and exploitation of raw materials to
the processing, packaging, and transportation
of products.

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 SPS
Agreement on the Application
of Sanitary and Phytosanitary
Measures

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 “
Due to different SPS standards
amongst countries, the SPS
Agreement encourages WTO’s
members to align its SPS
measures based on international
standards (Art. 3)

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 1. SPS MEASURES
Measure is defines in Annex A, SPS:

❖ Protect animal or plant life or health from risks arising from the entry,
establishment or spread of pests, diseases, disease-carrying organisms or
disease-causing organisms;
❖ Protect human or animal life or health from risks arising from additives,
contaminants, toxins or disease-causing organisms in foods, beverages or
feedstuffs;
❖ Protect human life or health from risks arising from diseases carried by animals,
plants or products thereof, or from the entry, establishment or spread of pests;
❖ Prevent or limit other damage from the entry, establishment or spread of pests.

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 2. CONDITIONS FOR APPLYING

Ensure the principle of Ensure

03 “necessary”
"non-discrimination"
of GATT

01 02

Assurance
of science
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 Ensuring "necessary" (Article 2.2 of the SPS Agreement)
SPS measures are applied only when necessary to protect human health and plant
and animal life.

Assurance of science (Article 2.2 of the SPS Agreement)

SPS measures must be issued on a scientific basis and cannot be maintained without
appropriate scientific grounds (unless otherwise specified).

Ensuring the principle of "non-discrimination" of GATT (Article 2.3 of the SPS

Agreement)
SPS measures may not create "arbitrary or unjustified" discrimination between
members on the same conditions and may not be applied to restrict international trade.

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 3. Viet Nam Sanitary and Phytosanitary Notification
Authority and Enquiry Point (under the Ministry of
Agriculture and Rural Development)
Its functions are:

- To notify sanitary and phytosanitary contents and regulations and answer questions
thereon;

- To request WTO members to provide information on measures and procedures for risk
assessment, on inspection, examination and other relevant sanitary and phytosanitary
matters

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 AOA
Agreement on Agriculture
 According to WTO, commodities are
divided into two (02) main groups:
agricultural and non-agricultural.

Agricultural products include all products

of Chapters 1 to 24 (except fish and fish
products) and some products of other
chapters in Harmonized Commodity
Description and Coding System of Vietnam
and do not include products in the fisheries,
forestry and salt production sectors

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 1. OBJECT OF AoA
The Agreement on Agriculture
(AoA) was aimed to

⊷ remove trade barriers and

⊷ to promote transparent
market access and
integration of global
markets.

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 2. COVERAGE
Applies to the products listed in Annex 1

⮚ Basic agricultural products such as wheat, milk and live animals

⮚ The products derived from the such as bread, butter and meat

⮚ All processed agricultural products such as chocolate and

sausages

⮚ Wines, spirits and tobacco products, fibers such as cotton, wool

and silk, and raw animal skins destined for leather production

⮚ Fish and fish products are not included, nor are forestry
products

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 3. KEY ASPECTS OF AoA
Market Access
Tariff-only protection
Tariff reductions
Prohibition of non-tariff border measures
Special safeguard provisions

Domestic Support:
Amber Box ( subject to WTO reduction commitment )
Blue Box ( not subject to WTO commitment)
Green Box ( not subject to WTO commitment)

Export Subsidies:
Under the Agreement, the right to use export subsidies is
limited to four situations (Arts. 9.2(b), 9.4, 10)
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 4. Special safeguard (SSG) for imported agricultural products
⮚ Object of SSG
▪ SSG applies only to agricultural products whose non - tariffization measures have
the note “SSG” in the WTO Commitments on Taxes for Agricultural products of each
country

⮚ Conditions apply to SSG

SSG is only applicable when one of the two conditions is met:
▪ Where the volume of imports increases rapidly beyond a specified level (called
volume-reduced SSG); or
▪ Where the import price (by shipment) is lower than the prescribed reference
price (called the SSG triggered by the price)

⮚ How to apply SSG

▪ Application form: Impose an additional tax on the usual tariff on the agricultural
products concerned
▪ Term of application: Volume-induced SSG applies only in the relevant year;
SSG price-based is only applicable to the shipment involved
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 The Agreement on
Textiles and Clothing

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 1. INTRODUCTION

“
The Agreement of Textile and Clothing
stipulates that the Multifibre Arrangement will be
phased out and that the textiles and clothing
sector will be integrated into WTO in four stages
over 10 years.
Under ATC, all such quotas were phased out
as of 1-1-2005, yet high tariffs may remain.

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 2. OBJECT OF ATC

1. Promote trade liberalization with

textiles and clothing

1. These items are uniformly

adjusted

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 3. KEY ASPECTS OF ATC
❖ Make a list of goods applicable under the agreement, including
wool, rush and synthetic fibers, textile products and garments.

❖ Provide a program under which these goods are fully

integrated in accordance with the principles of GATT-94.

❖ Implementation of the liberalization in which the quota is

continuously reduced by increasing the rate of quota abolition
every year

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 ❖ Put in place a special protection mechanism to deal with cases
that arise causing serious harm to domestic producers.

❖ Establish the Textiles Monitoring Body (TMB) to supervise the

implementation of the ATC agreement.

❖ Regulations on the management of quotas, the application of

restrictive measures not under the MFA and other
commitments affecting textiles and clothing.

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 📖 CASE STUDY
1. A imports fertilizer products from B, C (A, B, C
are WTO’s members). Unlike B, separate TBT
measures applied to the same products from C.
Can A apply the above – mentioned measures to
C?

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 THANK YOU

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