Agreement on the application of

sanitary and phytosanitary measures.

By
Adarsh Kurian (2357105)
and
Aditi Mohapatra(2357106)
INTRODUCTION
● SPS measures safeguard human, animal, and
plant health from pests, diseases, additives,
toxins, and contaminants in food and feed.
● The WTO's SPS Agreement regulates these
measures, overseen by the SPS Committee.
● It was negotiated during the Uruguay Round of
GATT and entered into force with the
establishment of WTO at the beginning of 1995.
● It provides rules for developing, adopting, and
enforcing SPS measures affecting trade.
● Each WTO Member determines its appropriate
level of protection (ALOP).
● Adoption of SPS measures must consider
minimizing adverse effects on international
trade.
THE NEED FOR THE SPS AGREEMENT

I. Protection of Human, Animal, and Plant Health

II. Avoiding Unjustified Trade Barriers
III. Harmonization and Equivalence
IV. Transparency
V. Dispute Settlement
VI. Consumer Confidence
 Key Provisions of the SPS Agreement
The SPS Agreement has 14 Articles, containing the rights and obligations that WTO members have agreed to.

1. Non-discrimination (Art. 2.3) - No Member should be prevented from adopting or enforcing measures
necessary to protect human, animal or plant life or health, subject to the requirement that these
measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable
discrimination between Members where the same conditions prevail or a disguised restriction on
international trade
2. Scientific justification (Art. 2.2) - Members shall ensure that any sanitary or phytosanitary measure is
applied only to the extent necessary to protect human, animal or plant life or health, is based on scientific
principles and is not maintained without sufficient scientific evidence, except as provided for in paragraph
7 of Article 5.
3. Harmonization (Art. 3) -
○ Article 3.1- To harmonize sanitary and phytosanitary measures on as wide a basis as possible,
Members shall base their sanitary or phytosanitary measures on international standards, guidelines
or recommendations, where they exist, except as otherwise provided for in this Agreement, and in
particular in paragraph 3.
○ Article 3.3 – allows Members to implement SPS measures higher than if they were basing them on
international standards where there is a scientific justification or the Member determines the
measure to be appropriate in accordance with 5.1-5.8.
4. Equivalence (Art. 4) - Members shall accept the sanitary or phytosanitary measures of other Members as
equivalent, even if these measures differ from their own or from those used by otherMembers trading in the
same product, if the exporting Member objectively demonstrates to the importing Member that its measures
achieve the importing Member's appropriate level of sanitary or phytosanitary protection.

5. Risk Assessment (Art. 5.1)- Members shall ensure that their sanitary or phytosanitary measures are based on
an assessment, as appropriate to the circumstances, of the risks to human, animal or plant life or health, taking
into account risk assessment techniques developed by the relevant international organizations. Article 5.7–
echoes the 'Precautionary Principle' where there is no science available with which to justify a measure.

6. Least Trade-Restrictiveness (Art. 5.6) - when establishing or maintaining sanitary or phytosanitary measures
to achieve the appropriate level of sanitary or phytosanitary protection, Members shall ensure that such
measures are not more trade-restrictive than required to achieve their appropriate level of sanitary or
phytosanitary protection, taking into account technical and economic feasibility.

7. Regionalization (Art. 6) - Members shall, in particular, recognize the concepts of pest- or disease-free areas
and areas of low pest or disease prevalence. Determination of such areas shall be based on factors such as
geography, ecosystems, epidemiological surveillance, and the effectiveness of sanitary or phytosanitary controls.
8. Transparency (Art. 7) - Members shall notify changes in their sanitary or phytosanitary measures and shall
provide information on their sanitary or phytosanitary measures in accordance with the provisions of Annex B.
 The SPS Committee
The SPS (Sanitary and Phytosanitary) Committee, a key component of
the World Trade Organization (WTO), conducts regular meetings to
address various issues related to SPS measures and international trade.
Here are some key points regarding these meetings:

1.Frequency: The SPS Committee typically holds meetings on a

regular basis throughout the year. The frequency may vary
depending on the need and the agenda.

2.Agenda: Meetings cover a wide range of topics related to SPS

measures, including updates on member countries' regulations,
discussions on specific trade issues, and consideration of
notifications.

3.Notification Review: Members may use these meetings to review

and discuss SPS-related notifications submitted by other
members, ensuring transparency and understanding of each
other's measures.
The SPS Committee
4.Dispute Settlement: Disputes related to SPS measures can also be
discussed and addressed during these meetings, with a focus on finding
resolutions and ensuring compliance with WTO rules.

5.Technical Discussions: The committee may include technical discussions

on various aspects of food safety, animal health, and plant health standards.

6.Capacity Building: Meetings can also include discussions on capacity-

building initiatives and technical assistance programs for developing countries
to help them meet SPS standards.

7.Information Exchange: The meetings serve as a platform for members to

share information and experiences related to SPS issues, promoting a better
understanding of each other's measures.
The specific timing of meetings for the SPS (Sanitary and Phytosanitary)
Committee under the World Trade Organization (WTO) can vary. These
meetings are not held on fixed dates but are scheduled based on the need
and agenda. The frequency and scheduling of SPS Committee meetings can
be influenced by several factors, including the volume of issues to be
addressed, the availability of members, and the importance of certain topics
on the international trade agenda.
Typically, the SPS Committee holds regular meetings throughout the year to
address various SPS-related matters, exchange information, and discuss
trade issues related to food safety, animal health, and plant health standards.
The specific dates and agendas for these meetings are usually announced in
advance and can be found on the WTO's official website or through official
WTO notifications to member countries.
 Dispute Settlement
The dispute settlement mechanism of the Agreement on the Application of Sanitary and Phytosanitary
Measures (SPS Agreement) within the World Trade Organization (WTO) is designed to address trade
disputes related to food safety and animal and plant health measures. Here are the key points
regarding the SPS Agreement's dispute settlement mechanism:

1. Consultations: Disputing parties are encouraged to engage in consultations to resolve their

differences before initiating a formal dispute. This allows for a more cooperative approach to
resolving the issue.

2. Request for the Establishment of a Panel: If consultations do not lead to a resolution, the
complaining party can request the establishment of a WTO dispute settlement panel. This panel
is responsible for examining the dispute and making recommendations.

3. Panel Composition: The panel is composed of independent experts who are well-versed in
trade and SPS issues. These experts are not affiliated with any WTO member.

4. Panel Proceedings: The panel conducts its proceedings according to the SPS Agreement and the
WTO's Dispute Settlement Understanding (DSU). It reviews the evidence and arguments
presented by both parties and issues a report on its findings.
5. Report and Recommendations: The panel's report includes its findings
on whether a member's SPS measures are consistent with WTO rules.
If a violation is found, the panel recommends steps to bring the
measures into compliance.
6. Adoption of Panel Report: The panel's report is circulated to all WTO
members. If no party appeals the report within a specified timeframe, it is
considered adopted. If there is an appeal, it goes to the Appellate Body (if
functioning) for review.
7. Appellate Body Review: The Appellate Body reviews the panel's report to
ensure its legal interpretation is correct. It may uphold, modify, or reverse
the panel's findings. The Appellate Body's decision is final and binding.
8. Compliance Proceedings: If a WTO member does not comply with the
recommendations of the panel or Appellate Body, the complaining party can
request authorization to take retaliatory measures.
 9. Timeframes: The SPS Agreement sets specific timeframes for various stages of the
dispute settlement
process, ensuring a timely resolution.
10. Transparency: The dispute settlement process under the SPS Agreement is transparent,
with all documents and proceedings made available to WTO members and the public.
11. Non-Discrimination: The SPS Agreement emphasizes the principle of non-discrimination,
meaning that SPS measures should not unfairly discriminate against foreign products.
12. Scientific Justification: SPS measures must be based on scientific principles and risk
assessments to ensure they are not arbitrary and do not create unnecessary barriers to
trade.
13.Protection of Human, Animal, and Plant Health: The SPS Agreement recognizes the
importance of protecting human, animal, and plant health while also promoting
international trade.

Overall, the dispute settlement mechanism of the SPS Agreement aims to strike a balance between
safeguarding health and safety and facilitating international trade by ensuring that SPS measures are
not used as unjustified trade barriers.
 The SPS Agreement's dispute settlement mechanism within the
WTO framework allows countries to resolve disputes through a structured
process. Parties begin with consultations, striving for amicable solutions. If
unresolved, they can request an impartial panel to review the issue. This panel,
comprised of experts, assesses compliance with WTO rules, issues
recommendations, and its report is adopted unless appealed. An Appellate
Body may review these decisions. This process ensures transparency, adheres
to specified timeframes, and emphasizes scientific justifications, striking a
balance between trade and health concerns. Ultimately, it enables WTO
members to address SPS-related trade disputes fairly and effectively, promoting
a rules-based international trading system.
Compliance Challenges
Compliance with the SPS (Sanitary and Phytosanitary) Agreement of the WTO presents several
common challenges for member countries:

1. Scientific Rigor: Establishing sound, science-based risk assessments and standards can
be complex and resource-intensive.
2. Transparency vs. Confidentiality: Balancing the need for transparency in SPS measures
with protecting sensitive health data is often difficult.
3. Non-Discrimination: Ensuring that SPS measures do not unfairly discriminate against
foreign products while safeguarding public health can be a delicate task.
4. Domestic Regulation Alignment: Harmonizing domestic regulations with international
SPS standards may require extensive legal and administrative changes.
5. Scientific Disputes: Disagreements over the interpretation of scientific evidence and
risk assessments can lead to contentious trade disputes, challenging compliance efforts.
Compliance Challenges ( Difficulty in achieving balance between protecting health and facilitating trade )
Achieving
KKkj a balance between protecting health and facilitating trade is indeed a
significant challenge to compliance with the SPS (Sanitary and Phytosanitary) Agreement
( the WTO. This challenge arises due to several reasons:
of

1. Scientific Uncertainty: Determining the level of risk posed by various products can
be inherently uncertain. Striking the right balance between ensuring safety and
allowing trade often requires navigating this uncertainty.
2. Differing Risk Tolerance: Countries may have varying risk tolerance levels when it
comes to health and safety. What one country deems an acceptable risk, another
may not. This divergence can lead to conflicts in interpretation and compliance.
3. Protectionism Concerns: Some countries may use health and safety regulations as
a pretext for protecting domestic industries and limiting foreign competition, which
can hinder trade and be challenging to detect.
Compliance Challenges

4. Resource Constraints: Developing and implementing stringent SPS measures that

adhere to international standards can be resource-intensive, especially for
developing nations, posing a challenge to compliance.
5. Trade Impact Assessment: It can be difficult to accurately assess the potential
economic impact of SPS measures on trade, making it hard to strike a balance that
safeguards health without unduly hindering commerce.
6. Dispute Resolution: Disputes often revolve around finding this balance. Resolving
these disputes within the WTO framework can be time-consuming and complex,
further complicating compliance.

Addressing these challenges requires cooperation, transparency, and a commitment to

science-based decision-making to ensure that SPS measures are genuinely aimed at
protecting health while minimizing unnecessary trade barriers.
Compliance Challenges (Importance of technical assistance for developing countries)
Technical assistance plays a crucial role in helping developing countries comply with the SPS
(Sanitary and Phytosanitary) Agreement of the WTO. Here's why it's important and can be
challenging:

1. Capacity Building: Developing countries often lack the technical expertise,

infrastructure, and resources to meet complex SPS standards. Technical assistance
helps build their capacity to conduct risk assessments, develop regulations, and
implement compliance measures.
2. Compliance Costs: Meeting international SPS requirements can be expensive. Technical
assistance can help offset these costs by providing financial support, training, and
equipment to improve compliance.
3. Access to Markets: Compliance with SPS measures is essential for accessing global
markets. Developing countries can struggle to penetrate these markets without
assistance to meet the necessary standards.
Compliance Challenges (Importance of technical assistance for developing countries)

4. Trade Opportunities: Compliance allows developing countries to benefit from

expanded trade opportunities, boosting their economies and potentially reducing
poverty.
5. Knowledge Transfer: Technical assistance facilitates the transfer of knowledge
and best practices from more advanced countries, helping developing nations
adopt effective SPS measures efficiently.
6. Capacity for Risk Assessment: Developing countries may lack the ability to
conduct thorough risk assessments. Technical assistance can aid in building this
capacity, leading to more scientifically sound regulations.
7. Sustainability: Ensuring that SPS measures are sustainable and continue to meet
evolving international standards requires ongoing technical support and capacity-
building efforts.
 Benefits of the SPS Agreement
The SPS (Sanitary and Phytosanitary) Agreement of the WTO benefits international trade in
several ways:

1. Consumer Safety: It ensures that products meet established health and safety
standards, enhancing consumer confidence in imported goods.
2. Reduced Barriers: By harmonizing international SPS standards, it reduces the
likelihood of unjustified trade barriers, fostering smoother cross-border trade.
3. Predictability: The agreement provides a rules-based framework, promoting
predictability in trade relations and reducing uncertainty for exporters.
4. Market Access: Compliance with SPS standards enables countries to access global
markets, leading to increased trade opportunities and economic growth.
5. Scientific Basis: It emphasizes science-based decision-making, encouraging countries
to base their measures on sound scientific evidence.
6. Conflict Resolution: The dispute settlement mechanism allows countries to address
SPS-related trade disputes, maintaining fairness in trade relations.

Overall, the SPS Agreement promotes safer products, fairer trade, and economic benefits
for both exporting and importing nations.
How SPS Agreement reduces trade barriers
The SPS (Sanitary and Phytosanitary) Agreement of the WTO reduces the risk of arbitrary trade barriers by:

1. Transparency: Mandating that countries provide clear, accessible information about their SPS
measures, making it difficult to impose hidden or unjustified barriers.
2. Non-Discrimination: Prohibiting measures that discriminate between domestic and foreign
products, promoting equal treatment and preventing arbitrary favoritism.
3. Consultations: Encouraging countries to engage in consultations to resolve issues before resorting to
formal dispute settlement, fostering cooperation over arbitrary actions.
4. Dispute Settlement: Providing a structured mechanism to address and resolve disputes,
discouraging the arbitrary imposition of SPS barriers and promoting adherence to agreed-upon rules.

By emphasizing these principles, the SPS Agreement enhances transparency and fairness, reducing the
likelihood of arbitrary trade barriers that hinder international commerce.
Case Study - I

US & EU Beef Hormones Dispute

● Beef has been an important part of International Trade between the US &
the EU.
● The dispute dates back to the 1980s when the EU banned the import of
beef from cattle treated with certain growth-promoting hormones.
● The United States, along with Canada and other countries, challenged this
ban, arguing that it was not based on scientific evidence and violated
international trade rules.
● The EU's ban on hormone-treated beef was based on concerns about
potential health risks associated with hormone residues in meat.
US & EU Beef Hormones Dispute ( Contd.)
● The U.S. and some other countries argued that the ban lacked scientific
justification and that the hormones used in beef production were safe when
used according to established guidelines.
● The U.S. continued to impose retaliatory tariffs on EU products in response
to what it saw as insufficient progress on the hormone-treated beef issue.
● However, after the WTO was formed the SPS agreement allowed for the
trade barriers when it came to a country supposing threat which were
supported with scientific reasons, but then trade measures have to be
temporary.
● The US and the Canadian Govt. Both applied to the WTO dispute panel in
1994 to peacefully resolve the dispute but before which the US was asked to
stop its counter retaliatory measures.
● Further, both the parties decided to peacefully resolve the disputes under
the Dispute Settlement Unit.
 CONCLUSION
The SPS (Sanitary and Phytosanitary) Agreement is vital in global trade for
several reasons. It ensures the protection of human, animal, and plant health
while preventing unjustified trade barriers. By promoting science-based
measures, it fosters safe international commerce, enhancing consumer
confidence and reducing health risks. Its principles of transparency and non-
discrimination facilitate fair trade relations, providing a predictable and level
playing field for exporters. Moreover, the SPS Agreement's dispute settlement
mechanism resolves conflicts, maintaining a rules-based global trading system.
Ultimately, it balances health protection and trade interests, facilitating the
smooth flow of goods across borders and supporting economic growth
worldwide.
THANK YOU