Agriculture Trade Negotiations – Lecture 6

WTO Agreement on the Application

of Sanitary and Phytosanitary
Measures: The SPS Agreement
Serafino Marchese
“Virtual” Visiting Lecturer, Foreign Trade University, Hanoi
former WTO staff member

AG - 1
 Presentation Outline

 Why an Agreement on SPS matters?

 What is an SPS Measure?

 Key provisions of the SPS Agreement

 The SPS Committee

 Technical Assistance

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 Why the SPS Agreement?

%
tar
iff ?
s

1947 1995
Why an Agreement on
SPS matters?
World food and agriculture
trade:

• In 2014, US$ 1765 billion of

agricultural products traded

• US$ 1486 billion food traded

(2014)

But, on the other hand...

Bird Flu BSE

Plant Pests
SARS

MRL
 Which may lead to...

• Heavy economic losses for producers and

exporters

• Loss of confidence between trading partners

• Trade bans followed by more severe import

controls

• Loss of consumers’ confidence!!!

 Uruguay Round:
Negotiations on Agriculture

• Objectives to eliminate quantitative import restrictions

• Eliminate other non-tariff barriers (variable levies)

• Reduce tariffs

• Reduce domestic production subsidies

• Reduce export subsidies

• Establish sanitary and phytosanitary rules

 What is the objective of the
SPS Agreement?

Recognizing
the right to Avoiding
protect human, unnecessary
animal, plant barriers to trade
life or health

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 SPS Agreement - Coverage
Article 2.1

“Members have the right to take sanitary and

phytosanitary measures necessary for the
protection of human, animal or plant life or health,
provided that such measures are not inconsistent
with the provisions of this Agreement”

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 What is the purpose of the
SPS Agreement?

 Establishes a multilateral framework of rules

and disciplines to guide development, adoption,
and enforcement of sanitary and phytosanitary
measures

 Applies to SPS measures which may, directly or

indirectly, affect international trade

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 What are SPS Measures?
Definition - Annex A
A measure taken to protect:
Human or risks arising from additives,
from
animal health contaminants, toxins or disease
organisms in food, drink, feedstuff
fromor animal-carried diseases
Human life plant-

Animal or pests, diseases, disease-causing

from
plant life organisms

from
Territory of other damage caused by entry,
Member establishment or spread of pests
 SPS Measures
Definition - Annex A

A measure taken to protect:

Human or risks arising from additives,

animal health from
contaminants, toxins or disease
organisms in food, drink, feedstuff

limits on limits on
residues aflatoxin
in fish & residues
shellfish in nuts

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 SPS Measures
Definition - Annex A
A measure taken to protect:

fromor animal-carried diseases

Human life plant-

BSE-related restrictions
requirement that
susceptible animals
be vaccinated
against rabies
 SPS Measures
Definition - Annex A

A measure taken to protect:

Animal or pests, diseases, disease-causing
from
plant life organisms

measure to measure to
prevent prevent
introduction introduction
of FMD of fruit flies

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 SPS Measures
Definition - Annex A
A measure taken to protect:

Territory of other damage caused by entry,

from
Member establishment or spread of pests

measure to seed
prevent regulation
introduction to avoid
of zebra mussels introduction
through ballast of exotic
water of ships weeds
 Important footnote

 “animals” include fish and wild fauna

 “plants” include forests and wild flora
 “pests” include weeds
 “contaminants” include residues of pesticides and
veterinary drugs, as well as extraneous matter
 All types of measures with these
purposes, including:

 product criteria
 quarantine measures
 processing methods
 certification
 inspection
 testing
 packaging, labelling
(food safety)

It is not the type of measure that counts,

nor the products involved, but rather its objective!
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 SPS vs. TBT

Minimum size of fruit ?

Packaging ?

Use of anti-pest sprays ?

 Key Provisions of the
SPS Agreement
1. Non-discrimination
2. Scientific justification
• harmonization
• risk assessment
• consistency
• least trade-restrictiveness
3. Equivalence
4. Regionalization
5. Transparency
6. Technical assistance/special treatment
7. Control, inspection and approval procedures
 SPS: Non-discrimination
Article 2.3

No unjustifiable discrimination between

Members with similar conditions between own

territory and other Members

 SPS: Scientific justification
Article 2.2

based on scientific principles

applied only to the extent

Members necessary to protect human,
shall ensure animal or plant life or health
that any SPS (least trade restrictive)
measure is:
not maintained without
sufficient scientific evidence

except as provided for in Article 5.7

 SPS: Scientific justification
Articles 3 & 5

Measures must be based on

International standards OR RiskRisk assessment

assessment
 SPS: Harmonization
Article 3

Standard-setting organizations

food safety animal health plant health

CODEX OIE IPPC

Codex = Joint FAO/WHO Codex Alimentarius Commission

OIE = World Organization for Animal Health
IPPC = International Plant Protection Convention (FAO)
 SPS: Scientific justification –
Exception: Provisional measures - Article 5.7

Members may provisionally adopt SPS measures

when relevant scientific information is insufficient

on the basis of available information

In such circumstances, Members shall

seeks to obtain additional information to assess risk

review the measure within a reasonable period of time

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 SPS: Consistency
Article 5.5

Members shall
avoid arbitrary distinctions

in appropriate level of SPS

protection (ALOP) considered in
different situations

if distinctions result in discrimination or

disguised restrictions on trade
 SPS: Equivalence
Article 4

If the exporting country objectively

demonstrates that its measures achieve the
ALOP of the importing country

Members shall

accept SPS measures of

other Members as equivalent
 SPS: Regionalization
Article 6

Pest- or disease free areas

Members shall ensure that their SPS measures
are adapted to the SPS characteristics of an
“area”

all of a country all or parts of

several countries
part of a country
 SPS: Transparency:
Article 7 & Annex B

establish an Enquiry Point

Members shall AND
designate a Notification Authority

notify other Members of new or changed

SPS regulations when

no international standard exists regulation may

OR AND have
the new regulation is different significant
than the international standard effect on trade
 SPS Agreement: Food Safety

 Food safety measures should:

– be based on Codex standards or on a risk assessment
– have consistent level of health protection
– be the least restrictive of trade
– be notified in advance, with comment period
– be published, with reasonable interval before entry into force
• Recognize equivalence of other measures
• No unjustified costs in testing, certification, approval
• Subject to WTO formal dispute settlement procedures

Separate food safety from quality requirements

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 NOT: Sanitary and
Phytosanitary Measures

• Basic documents: G/SPS/7/Rev. 3 (also in SPS Manual)

• Annex B para. 10 - “one-time”

National Notification Authority (NNA)
All Members

• Annex B para. 3 - “one-time”

National Enquiry Point (NEP)
All Members

• SPS measures not based on international standards…

– ad-hoc -
The SPS Commitee

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WTO: The Structure
 SPS Committee
Who is on it?
Which statement is true?

The SPS Committee is open to participation by

agricultural producer and exporter associations,
industry representatives, and the general public
can participate as observers.

The SPS Committee is open to WTO Members,

observer governments and observer
international intergovernmental organizations.

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 Observers in the SPS
Committee
• Codex, IPPC and OIE
• FAO, WHO, UNCTAD, World Bank, IMF, ITC, ISO

Ad hoc Observers:
• ACP Group, AU, CEN-SAD, COMESA, ECCAS,
ECOWAS, EFTA, GSO, IGAD, IICA, OECD, OIRSA,
SADC, SELA, WAEMU

Pending requests:
• Asian Pacific Coconut Community, CABI, CBD, CITES,
ICCO, International Vine and Wine Office (OIV)

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 The SPS Committee:
What does it do?
• Implementation of SPS Agreement
• Reviews compliance
• Potential trade impacts
• Co-operation with technical organizations

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 SPS Committee Meetings

• 3 regular meetings per year

 often preceded by informal meetings to discuss
specific topics (S&D, Third review, Private
Standards, Ad Hoc consultations, etc... )

• Special meetings/workshops
 for example on TA, transparency-enquiry points,
SPS coordination, etc.

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 SPS Committee Meetings
Standing Agenda Items

Which statement is true?

The SPS committee only considers issues

specifically mentioned in the SPS Agreement.

The SPS Committee can consider any issue

raised by Members that is included on the
agreed agenda.

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 SPS Committee Meetings:
Standing Agenda Items

• Activities of Members
• Specific trade concerns
• Transparency
• Special and differential treatment
• Equivalence
• Pest- or disease-free areas
• Technical assistance

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 SPS Committee:
Specific Trade Concerns

a Only developing country Members can raise

a specific complaint about SPS measures
imposed by other Members in the SPS
Committee.
______________________________________
b All Members can raise a specific complaint
about SPS measures imposed by other Members
in the SPS Committee.

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 Specific Trade Concerns
On the agenda

a A specific trade concern can be raised at any

time during a meeting of the SPS Committee.
____________________________________
b To include a specific trade concern on the
agenda of the SPS Committee meeting Members
should: (i) submit the request identifying the
concern in writing to the SPS Secretariat at least
11 calendar days before the meeting; and (ii)
inform the other Member(s) of the complaint at that
time.
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 Specific Trade Concerns
1995-2016

403 + 8 = 411 Total

Source: G/SPS/GEN/204/Rev.16,
SPS Information Management System (http://spsims.wto.org) 41
 SPS: General Issues in
implementation

• Lack of awareness
• Inappropriate legislation (or no existing legislation)
• Capacity limitations
• Failure to use international standards
• Undue delays – in risk assessment, approval
decisions, etc.
• Over-reactions in emergency situations
• Political pressures – hazard-based measures
 Adopted by the SPS Committee

Decisions, Guidelines and Recommended Procedures:

o Decision on Equivalence (G/SPS/19/Rev.2)

o Guidelines on Consistency (G/SPS/15)

o Guidelines on Regionalization (G/SPS/48)

o Recommended procedures on transparency (G/SPS/7/Rev.3)

o Transparency of special & differential treatment (G/SPS/33/Rev.1)

o Agreed actions on SPS-related Private Standards (G/SPS/55)

o Procedure to encourage and facilitate ad hoc consultations

(G/SPS/61)
Technical Assistance

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Art. 9: Technical Assistance
 Agencies/Countries Providing
Technical Assistance
• Multilateral Organizations
– FAO, WHO, OIE, World Bank

• Bilateral arrangements
– European Union
– USA – USDA
– Japan
– Canada
– ……

• Multi-bilateral arrangements
 Standards and Trade
Development Facility (STDF)

http://www.standardsfacility.org
 Participating in Meetings of
International Standard Setting
Bodies
SPS: Exercising Rights &
Meeting Obligations
Thank you for your attention!

Serafino.Marchese@gmail.com

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