By Li Xuefeng

1. Chapter 5 the WTO Agreements (4) Agreement on the Application of Sanitary and Phytosanitary (P75) Agreement on the Application of Technical Barriers to Trade (P83) By Li Xuefeng

2. Rules of origin Automatic import licensing Six methods of customs valuation Adverse notification Stipulate Positive standards Review

3. Agreement on the Application of Sanitary and Phytosanitary实施动植物卫生检疫措施的协议 the SPS

4. Contents of the SPS • I. Background • II. The substantive provisions • III. Institutional and Procedural provisions

5. SPS ※health and trade World Trade ※expanded significantly I. Background 1). Why an SPS Agreement?

6. World food & agriculture trade • ★ Over US$ 600 billion agricultural products • ★ Over US$ 400 billion food trade per year • ★ About 500 million tons of food products

7. Expanded international trade = • movement of products • that may pose health risks

8. From the news... • Example 1: BSE Disease since 1997 resulted in massive cattle slaughter in the UK and severely affects European exports of meat and cattle… • Example 2: Massive chicken slaughter carried out in Belgium over Bird Flu; Dutch Workers involved treated for related infection…

9. As a result... • Heavy producers’ and exporters’ economic losses • Trade bans followed by more severe import controls • Loss of confidence of trading partners & consumers’ confidence!!!

10. health aspect allows ”measures necessary to protect human, animal or plant life or health” sanitary measures: relating to human or animal life or health phytosanitary measures: relating to plant life or health international trade aspect in seeking to protect health, measures must not be unnecessary or which constitute a disguised restriction to trade (protectionism) objective, science-based, transparent, non-arbitrary, non-discriminatory, predictable rules applied only to the extent sufficient to protect human, animal, plant life or health SPS Agreement:health and international trade 卫生措施 植物检疫

11. 2）. Scope and coverage of the SPS Agreement （a）保护成员境内的人类或动物的生命或健康免受食品、饮料或饲料中的添加剂、污染物、毒素或致病有机体所产生的风险； （b）保护成员境内的动物或植物的生命或健康免受虫害、病害、带病有机体或致病有机体的传入、定居或传播所产生的风险； （c）保护成员境内的人类的生命或健康免受动物、植物或动植物产品携带的病害，或虫害的传入、定居或传播所产生的风险；

12. An important footnote • “animals” includes fish and wild fauna(动物群) • “plants” includes forests and wild flora（植物群） • “pests” includes weeds • “contaminants” includes pesticide and veterinary drug residues（农药残留） and extraneous matter （异物）

13. II. The Key Provisions of the SPS • 1). Basic rights and obligations • Rights---Members shall take SPS measures • necessary for the protection of human, animal or plant life or health. • Obligations---exercise is subject to the disciplines set out in the rest of the SPS Agreement.

14. 2). Scientific justification • Countries may adopt SPS measures provided the measures: • are applied only to the extent necessary to protect life or health; • do notunjustifiable discriminate between national and foreign, or among foreign sources of supply; • are based on scientific principles and not maintained without sufficient scientific evidence. Necessity Test prohibits arbitrary distinctions in the levels of protection a risk assessment

15. 3) Two options show the scientific measures: international standards scientific risk assessment

16. Harmonization协调原则 • --------Basing measures on international standards • (1) The SPS Agreement encourages Members to base their measures on international standards, guidelines and recommendations, where they exist. the interests of domestic industries, consumers’ tolerance of risk, climatic and geographical conditions, level of technological development and the economic resources available The WTO is not a regulatory body

17. Standard-setting bodies 联合国粮农组织和世界 卫生组织所属的食品法典委员会 国际植物保护公约 国际兽疫组织

18. 3 . Equivalence等效原则 • —when different measures achieve the same level of health protection • Members shall accept the SPS measures of other Members are equivalent, even if these measures differ from their own or from those used by other. Members 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.

19. 4. Regionalization • 病虫害非疫区和低度流行区适用地区的条件 • ---adapting measures to disease-free areas • Pest-and disease-free areas • The importing members • -----Not deny to access to goods from such areas • The exporting members: • -----Prove the disease-free status • -----Grant access to investigation of the claim

20. complex and subject to change a costly and burdensome process for exporters • 5. Transparency • Governments are required to notify other countries of any new or changed SPS measure which affects trade. • They have to set up Enquiry Points to respond to requests for more information on new or existing measures.

21. III. Institutional and Procedural provisions • technical assistance: assistance to fulfill SPS requirements of export markets and allow developing countries to maintain and expand market access. • special and differential treatment: longer time frames for compliance for developing countries. • the SPS Committee: ensures the implementation of the SPS Agreement. • meets three times per year • makes the decisions by consensus

22. dispute settlement: secure compliance with the covered Agreements; preserve the rights and obligations of Members under the covered agreements • ■secure a “positive solution” to the dispute. • ■ preferred outcome: • ---To reach a mutually agreed solution • ■ if not, • ---Panel Proceeding …. • --- [….and AB review.]

23. the use of the domestic regulatory process as a means of protecting domestic producers. The Agreement on the Application of Technical Barriers to Trade技术性贸易壁垒协议 the TBT

24. Contents related to the TBT Agreement • Key concepts • Basic Principles • Other principles

25. The purposes of the TBT Agreement can be broadly described as: • (1) assuring that technical regulations, standards • and conformity assessment procedures, do not create unnecessary obstacles to international trade, while • (2) leaving Members adequate regulatory discretion • to protect human, animal and plant life and health, national security, the environment, consumers, and other policy interests.

26. The TBT Agreement seeks to assure that: • (1) mandatory product regulations, • (2) voluntary product standards, and • (3) conformity assessment procedures (procedures designed to test a product’s conformity with mandatory regulations or voluntary standards) • do not become unnecessary obstacles to international trade and are not employed to obstruct trade.

27. I. Key concepts • Technical regulations 技术法规 • Document which lays down product characteristics or their related processes and production methods, including the applicable administrative provision, with which compliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labeling requirements as they apply to a product, process or production method. • 那些规定强制执行的产品特性或相关工艺和生产方法、包括适用的管理规定在内的文件。该文件还可包括专门涉及适用于产品、工艺或生产方法的专门术语、符号、包装、标志或标签要求。 • 如《食品、药品和化妆品法》、《消费产品安全法》 《高频设备干扰法》

28. Example 1: A law stating that only refrigerators that are one meter high can be sold in State X is a technical regulation. • Example 2: A law stating that all product packaging must be recyclable is an example of a technical regulation. • 欧美等国的环保法规对商品包装材料的易处理性、可回收率及动植物检疫有较高的要求和标准，不提倡重复包装和过度包装，以利于资源的节约。

29. （2）Technical standards 技术标准 • Document 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 labeling requirements as they apply to a product, process or production method. • 经公认机构批准的、规定非强制执行的、供通用或重复使用的产品或相关工艺和生产方法的规则、指南或特性的文件。该文件还可包括或专门涉及适用于产品、工艺或生产方法的专门术语、符号、包装、标志或标签要求。

30. Example 1: A government guideline saying that all eggs weighing 62 grams or more are entitled to be labelled “Grade A” is a standard (provided that eggs weighing less may still be sold). • Example 2: A guideline defining what products can display a “recyclable symbol” is a standard (provided that products that do not bear the symbol may still be sold).

31. (3) Conformity assessment procedures 合格评定程序 • Any procedure used, directly or indirectly, to determine that relevant requirements in technical regulations or standards are fulfilled. Conformity assessment procedures include, inter alia, procedures for sampling, testing and inspection; evaluation, verification and assurance of conformity; registration, accreditation and approval as well as the combinations thereof. • 任何直接或间接用以确定是否满足技术法规或标准中的相关要求的程序。特别包括：抽样、检验和检查；评估、验证和合格保证；注册、认可和批准以及前述各项的组合。 ISO9000质量管理体系认证和ISO14000环境管理体系认证

32. Example: Assume a country requires as a condition for the sale of spirits that the correct alcoholic content be displayed on the bottle. An official test of the beverage to determine that the correct alcoholic content is displayed would be a conformity assessment procedure implemented to verify compliance with a technical regulation.

33. 例如，２００２年日本单独将我国蔬菜的检验方式升级，由一般的抽样检验改为罕见的逐批检验。这种歧视性合格评定程序使我国出口产品蒙受严重损失。首先，由于检验费用、滞港费用剧增，产品的成本上升。如每批菠菜的平均检验费用从５万日元上升到８０万日元，增长率为１６００％。例如，２００２年日本单独将我国蔬菜的检验方式升级，由一般的抽样检验改为罕见的逐批检验。这种歧视性合格评定程序使我国出口产品蒙受严重损失。首先，由于检验费用、滞港费用剧增，产品的成本上升。如每批菠菜的平均检验费用从５万日元上升到８０万日元，增长率为１６００％。 • 其次，由于通关速度缓慢，产品的质量下降，宝贵的商机贻误。活鳗因日本当局实行机场４８小时吊水检验而大量死亡，蔬菜因在海关滞留时间太长而腐烂变质。２００３年下半年，山东一批冷冻菠菜在日本通关花费的时间接近一个月。结果，我国的产品通过了耗费大量金钱和时间的检验检疫程序后，在日本市场上原有的价格竞争优势和质量竞争优势已经丧失殆尽。

34. The principle difference between a technical regulation and a standard is that compliance with a technical regulation is mandatory, while compliance with a standard is voluntary. • Conformity assessment procedures are used to determine whether a technical regulation or standard has been complied with.

35. II. Key principles • 1. Harmonization • (1)Advantages : for Producers’ benefits and Consumers’ benefits • (2) Important roles taken by : ISO, IEC, ITU • ISO: the International Standardization Organization • IEC: the International Electrotechnical Commission • ITU: the International Telecomunication Union

36. 2 . Equivalence • Members accept that technical regulations different from their own fulfill the same policy objectives even if through different means. • －－－ Very few agreements

37. 3. Mutual recognition • The TBT Agreement strongly encourages WTO Members to enter into negotiations with other Members for the mutual acceptance of conformity assessment results.

38. Other principles • 1. Transparency • ---Notifications • all proposed, new and changed measures are to be notified by members to the TBT Committee of WTO Secretariat, • give sufficient notice to allow for adapting to these reqts. • If technical regulation differs from international standards, need to also take into account comments of exporter • ---Enquiry Points ---a focal point

39. 2. The Code of Good Practice • 1). Why a code of good practice? • The TBT Agreement provides disciplines, including those related to transparency, for the preparation, adoption and application of standardsby all central government, local government, non-governmental and regional standardizing bodies. • The Code is open for acceptance by any of these standardizing bodies.

40. 3. Technical assistance • provided to developing countries in the area of setting up NTBs, participation in int standardization, preparing technical regulations 4. Special & Differential Treatment • more favorable treatment to be provided to developing countries • take into account their special developmental, financial & trade needs when developing tech regulations, standards and CA procedures so that no unnecessary obstacles created to exports from developing countries.

41. 5. Committee on TBT established having representatives from each members meet 2-3 times a year, for discussing operation of Agreement or furtherance of objectives • 6. Consultations & settlement of disputes shall be under auspices of Dispute Settlement Body of WTO. However a provision for technical expert groups to assist in issues of technical nature has been provided

42. Language points • Key words • Key terms • Language points

43. Key words • prevail (written) • To exist or be very common at a particular time or in a particular place 普遍存在，盛行，流行 • e.g • They should not arbitrarily or unjustifiably discriminate between countries where identical or similar conditions prevail. (P75 )

44. The SPS Agreement The TBT Agreement Harmonization Risk assessment Equivalence Technical regulation Technical standard CA The FAO IPPC OIE ISO Key terms

45. What are differences between SPS and TBT?