Trade

Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Overview of the WTO Agreement on Sanitary & Phytosanitary Measures (SPS)

Andrew L. Stoler

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

WTO SPS Agreement

Recognizes: -- right of Governments to adopt measures necessary to protect human, animal or plant health. Ensures that: -- such measures are necessary through need to base restrictions on scientific justification
2

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Definition of an SPS Measure

Measure to Protect:
Human or animal life

From:
Risks arising from additives, contaminants, toxins or diseasecausing organisms; Plant- or animal-carried diseases (zoonoses); Pests, diseases, or diseasecausing organisms Damage caused by entry, establishment or spread of pests
3

Animal or plant life A country

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Broad Coverage of SPS Measures

ANIMAL includes fish and fauna in the wild; PLANT includes forests and wild flora CONTAMINENTS includes pesticides, veterinary drug residues, extraneous matter PESTS include weeds
4

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Examples of SPS Measures

Import ban on live cattle from herds infected by BSE / Justification: the prevent the introduction and spread of the disease to domestic herds; Restrictions on imports of citrus fruit grown with certain types of pesticides proven toxic for human consumption / Justification: the protection of human health; Quarantine Measures on food, plant & animal imports are SPS Measures
5

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Key SPS Principles

1. 2. 3. 4. 5. Harmonization encouraged through common international standards of protection Equivalence of differing measures Adaptation to regional conditions Transparency Measures must be based on scientific justification
6

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Scientific Justification
Scientific justification for SPS measures should take into account recognized risk assessment techniques, ideally developed by international organizations In risk assessment, consider PPMs, relevant inspection, testing and sampling methods, prevalence of specific diseases or pests, relevant ecological conditions In deciding appropriate level of protection, consideration to be given to costs of response, potential economic damage, relative cost effectiveness of approaches.
7

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

(Article 5, Paragraph 7) When faced with a particular potential threat and where relevant scientific evidence is insufficient, provisional SPS measures may be adopted on the basis of available pertinent information BUT In such circumstances, Governments are obliged to seek additional scientific information necessary for proper risk assessment within a reasonable period of time.
8

The Precautionary Principle

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Harmonization / International Standards

Use of international standards encouraged, as well as participation in appropriate bodies for development of common international standards Typical International Bodies for SPS FAO/WHO Codex Alimentarius Commission Office International des Epizooties FAO Secretariat International Plant Protection Convention
9

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Equivalence
WTO Members are obligated to:
Accept SPS measures of other Members as equivalent to their own, even if different, if exporting country objectively demonstrates to importing country that its measures achieve importing countrys appropriate level of SPS protection. Enter into consultations upon request with the aim of achieving bilateral and multilateral agreements on recognition of the equivalence of specific SPS measures.

10

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Adaptation to Regional Conditions

SPS Agreement recognizes that conditions warranting SPS measures may not prevail in all areas of the country (exporting or importing) and mandates regional adaptation Mandated recognition of: Pest and disease-free areas Areas of low pest or disease prevalence Subject to proof and possible inspection
11

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

SPS Transparency
Publication Requirements Notification Requirements Enquiry Points

12

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Publication Obligations
All sanitary and phytosanitary regulations (including laws, decrees or ordinances) adopted must be published promptly in such a way as to enable interested parties to become acquainted with the regulations. Except in urgent circumstances, exporters are to be given a reasonable period of time between SPS regulation publication and entry into force in order to adapt products and methods of production to changed requirements.

13

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Notification Requirements
When an international standard does not exist, or where a proposed SPS measure is substantially different from the international measure, the adopting country must: Publish a notice Notify relevant details through WTO Provide copies of measure on request Allow time to make comments on content of proposed measure Procedures are simplified in cases of demonstrated emergency
14

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

NOTIFICATION

1. 2.
3.

Member to Agreement notifying: AUSTRALIA If applicable, name of local government involved: Agency responsible: Food Standards Australia New Zealand (FSANZ) Products covered (provide tariff item number(s) as specified in national schedules deposited with the WTO; ICS numbers should be provided in addition, where applicable): Foods in general Regions or countries likely to be affected, to the extent relevant or practicable: All countries. Imported (as well as domestically produced) foods sold in Australia. Title, language and number of pages of the notified document: Assessment Report for Application A591 Maximum Residue Limits (available in English, 38 pages) Description of content: This application seeks to amend the Australia New Zealand Food Standards Code (the Code) to align maximum residue limits (MRLs) for various agricultural and veterinary chemicals with other national regulations relating to the safe and effective use of agricultural and 15 veterinary chemicals.

4.

5.

6.

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

7.

Objective and rationale: [ X ] food safety, [ ] animal health, [ ] plant protection, [ ] protect humans from animal/plant pest or disease, [ ] protect territory from other damage from pests International standard, guideline or recommendation: [ X ] Codex Alimentarius Commission, [ ] World Organization for Animal Health (OIE), [ ] International Plant Protection Convention, [ ] None If an international standard, guideline or recommendation exists, give the appropriate reference and briefly identify deviations: Relevant documents and language(s) in which these are available: Australia New Zealand Food Standards Code (available in English) Proposed date of adoption: Notification to Government anticipated August 2007 with adoption (gazettal) to follow, pending Government consideration. Proposed date of entry into force: Date of Gazettal pending Government consideration (see 10. above). 16

8.

9. 10.

11.

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

12.

Final date for comments: 25 May 2007 Agency or authority designated to handle comments: [ X ] National notification authority, [ ] National enquiry point, or address, fax number and E-mail address (if available) of other body: Food Standards Australia New Zealand PO Box 7186 Canberra BC ACT 2610 Australia Fax: + 61 2 6271 2278 E-mail: slo@foodstandards.gov.au Texts available from: [ X ] National notification authority, [ ] National enquiry point, or address, fax number and E-mail address (if available) of other body: Documents are available from the Food Standards Australia New Zealand website: www.foodstandards.gov.au/standardsdevelopment Copies are also available from: The Australian SPS Notification Point GPO Box 858 CANBERRA ACT 2601 AUSTRALIA Fax: +61 2 6272 3678 Email: sps.contact@daff.gov.au 17

13.

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Enquiry Points

Each WTO Member must have at least one enquiry point charged with answering all reasonable questions re: Any proposed or adopted SPS measures Any control and inspection procedures, production and quarantine treatment, pesticide tolerance and food additive approval procedures Risk assessment procedures followed Membership and participation in international bodies and agreements bearing on SPS activities Copies of requested documents should be supplied by the enquiry point at the same price charged to nationals
18

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

SPS Wrap Up
Agreement facilitates international trade through use of international standards, recognition of equivalency and transparency SPS measures must be scientifically justifiable Key role of national Enquiry Points and ability to comment on draft SPS measures and prepare in advance for changed SPS regulations
19

Trade
Institute for International Trade The University of Adelaide, Australia

National Awareness Workshop on WTO Accession of Bhutan

Case Studies*
The SPS Agreement and Crisis Management: The Chile-EU Avian Influenza Experience (Chapter 10) Indonesias Shrimp Exports: Meeting the Challenge of Quality Standards (Chapter 18) Nepal: Exports of Ayurvedic Herbal Remedies and SPS Issues (Chapter 31)
* Managing the Challenges of WTO Participation: 45 Case Studies
20