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Technical Barriers to Trade

Technical barriers to trade (TBT) refer to regulations, standards, and technical requirements imposed by
countries on imported goods. These barriers are designed to protect consumers, the environment, or
public health and safety, but they can also be used as a means of restricting trade. TBTs may include
product testing and certification procedures, labeling requirements, packaging standards, and other
technical regulations that imported goods must meet before they can be sold in a particular market.

The use of TBTs should comply with the agreements set by the World Trade Organization (WTO) to
ensure they are not used as unjustified protectionist measures. The WTO's Agreement on Technical
Barriers to Trade aims to facilitate trade while safeguarding legitimate concerns related to technical
regulations and standards.

Scope of application of TBT Agreement 1995 with reference to technical resolution, standards,
conformity assessment procedure

The Agreement on Technical Barriers to Trade (TBT Agreement) is a part of the World Trade Organization
(WTO) agreements established in 1995. It aims to ensure that technical regulations, standards, and
conformity assessment procedures do not create unnecessary obstacles to international trade.

The scope of application of the TBT Agreement includes the following:

1. Technical Regulations: The agreement covers technical regulations that lay down product
characteristics or their related processes and production methods. These regulations should be based on
legitimate objectives such as national security, public health, or environmental protection.

2. Standards: The agreement applies to standards, which are voluntary or non-mandatory measures, that
governments may use for various purposes, including promoting compatibility and interoperability of
products.

3. Conformity Assessment Procedures: The TBT Agreement also addresses conformity assessment
procedures, which are processes used to ensure that products meet relevant technical regulations or
standards.

The TBT Agreement sets out principles and disciplines for these measures to prevent them from creating
unnecessary trade barriers. It encourages members to use international standards whenever possible to
facilitate trade and avoid creating technical barriers that could hinder international commerce.
Additionally, it promotes transparency in the development and implementation of technical regulations
and conformity assessment procedures, allowing other WTO members to be aware of the measures and
their potential impact on trade.

The TBT Agreement plays a crucial role in harmonizing technical regulations and standards globally,
promoting fair trade practices, and facilitating the flow of goods in international markets.
Functions of TBT Committee

The Technical Barriers to Trade (TBT) Committee is a part of the World Trade Organization (WTO) and
plays a significant role in addressing technical barriers that may impede international trade. Its main
functions include:

1. Monitoring and Review: The TBT Committee monitors the implementation of the TBT Agreement by
member countries. It reviews the technical regulations, standards, and conformity assessment
procedures notified by WTO members to ensure they comply with the agreed principles and
requirements.

2. Information Exchange: The committee serves as a platform for information exchange among WTO
members regarding technical regulations, standards, and conformity assessment procedures. It
facilitates discussions and consultations on any potential trade issues arising from these measures.

3. Transparency: The TBT Committee encourages transparency in the development and application of
technical regulations and standards. Members are encouraged to notify proposed or newly adopted
measures to the WTO to allow other members to be aware of potential trade impacts and express any
concerns.

4. Cooperation and Harmonization: The committee promotes cooperation among WTO members to
harmonize technical regulations and standards at the international level. It encourages the use of
international standards to facilitate trade and minimize unnecessary technical barriers.

5. Capacity Building: The TBT Committee provides technical assistance and capacity-building support to
developing countries, helping them to enhance their ability to meet technical requirements and
participate effectively in international trade.

6. Dispute Settlement: In case of disputes related to technical barriers to trade, the TBT Committee can
be involved in consultations to assist in resolving these disputes. However, it is not a formal dispute
settlement body; instead, it plays a supportive role in the process.

Overall, the TBT Committee works towards ensuring that technical regulations and standards do not
create unnecessary obstacles to trade and help facilitate the flow of goods and services in international
markets.
Sir Note:

Regulatory measures affecting trade in goods now commonly raise a more pressing challenge for
international trade and the multilateral trading system.

Such regulatory measures can take the form of technical barriers to trade.

WTO rules applicable to technical barriers go beyond the general rules applicable to non-tariff barriers, as
set out in the GATT 1994.

Technical Barriers to Trade Agreement

The Technical Barriers to Trade (TBT) Agreement aims to ensure that technical regulations, standards, and
conformity assessment procedures are non-discriminatory and do not create unnecessary obstacles to
trade.
At the same time, it recognizes WTO members' right to implement measures to achieve legitimate policy
objectives, such as the protection of human health and safety, or protection of the environment.
The TBT Agreement strongly encourages members to base their measures on international standards as a
means to facilitate trade.
Through its transparency provisions, it also aims to create a predictable trading environment.

The relevant rules of the TBT Agreement encourage Members to harmonize their national TBT measures
around standards set by the relevant international standard-setting bodies.

Technical barriers to trade are omnipresent in modern society.

Television sets, toys, cosmetics, medical equipment, fertilisers, meat, and cheese are all subject to
requirements relating to their (intrinsic and extrinsic) characteristics and the manner in which they are
produced.

The objective of these requirements may be – and often is – the protection of life or health, the protection
of the environment, the protection of consumers, the prevention of deceptive practices, or the protection
or promotion of many other legitimate societal values or interests.

These requirements may be mandatory, set, and enforced by governments.

More often, however, these requirements are rules laid down by national standardising bodies, which are
not mandatory but are nevertheless generally applied in business transactions in a given country.

In both cases, these requirements may constitute formidable barriers to trade, even where they are not
applied in a discriminatory manner.
This is so because the divergence in the regulatory requirements imposed in different countries increases
the cost and difficulty of gaining market access
for exporters.

Scope of Application of the TBT Agreement

The rules of the TBT Agreement apply to:

(1) technical regulations;

(2) standards; and
(3) conformity assessment procedures.

The three types of measures to which the TBT Agreement applies are defined in Annex 1 to the TBT
Agreement:

Technical Regulation

In Annex 1.1, a technical regulation is defined as a:

Document which 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.

For example, a law requiring that batteries be rechargeable or a law requiring that wine be sold in green
glass bottles is a technical regulation within the meaning of the TBT Agreement. The rules specifically
applicable to technical regulations are set out in Articles 2 and 3 of the TBT Agreement.

Standard

Annex 1.2 to the TBT Agreement defines a standard as a:

[D]ocument approved by a recognized body, that provides, for common and repeated use, rules,
guidelines or characteristics for products or related processes and production methods, with which
compliance is not 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.
Contrary to technical regulations, standards are of a voluntary nature, meaning that compliance is not
mandatory.

Companies comply with these voluntary standards for various reasons, ranging from the wish to be
responsive to consumer concerns to practical considerations of compatibility of products.

However, often companies have little choice but to comply with these
voluntary standards as non-adherence would in practice make it much more
difficult (if not impossible) to sell their products.

Conformity assessment
In addition to technical regulations and standards, conformity assessment procedures also fall within the
scope of application of the TBT Agreement. Conformity assessment procedures are defined in Annex 1.3
to the TBT Agreement as:

Any procedure used, directly or indirectly, to determine that relevant requirements in technical
regulations or standards are fulfilled.

Examples of conformity assessment procedures include procedures for sampling, testing, and inspection.
The rules specifically applicable to conformity assessment procedures are set out in Articles 5 to 9 of the
TBT Agreement.

The TBT Agreement applies to technical regulations, standards, and conformity assessment procedures
relating to:

(1) products (including industrial and agricultural products); and

(2) processes and production methods (PPMs).

It is the subject of much debate, however, whether the processes and production methods to which the
TBT Agreement applies include so-called non-product-related processes and production methods (NPR–
PPMs).

This term is commonly used to refer to processes and production methods that do not affect the physical
characteristics of the final product put on the market.

An example of a technical regulation relating to an NPR–PPM would be the prohibition of the use of
environmentally unfriendly sources of energy, or the use of child labour, in the production of a product.

There have been a number of disputes to date in which panels and/or

the Appellate Body have had occasion to examine whether the measure at
issue was a ‘technical regulation’.