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International Agreements Governing Food Trade
January 9, 2017, Bangkok
Yayoi TSUJIYAMAActing Director for International Standards Office
Food Safety Policy Division
Food Safety and Consumer Affairs Bureau
Ministry of Agriculture, Forestry and Fisheries
JAPAN
1
Purpose of this Presentation
• For better understanding of Codex
standards in the context of
international trade agreements
2
Introduction
• WTO/SPS Agreement and WTO/TBT
Agreement are quoted in many trade
agreements: “Affirm/Incorporate the
right and obligation of SPS /TBT
agreement”.
3
• They increase the importance of
Codex Standards.
• What is the reason?
I’ll ask you at the end of this presentation
What is WTO
and WTO Agreement ?
• World Trade Organization
• International
Organization with 164
Members
• Established in 1995 by
Uruguay Round
Agreement
• Successor to the General
Agreement on Tariffs and
Trade (GATT)
4
5
What is the
WTO?
...a negotiating
forum
...a set of rules
- goods
- services
- intellectual
property
... a place to settle
disputes
Agreement on the Application of Sanitary and Phytosanitary
SPS Agreement
Human and animal health including food
safety
Plant health
Key Provisions: 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
1a Under certain conditions
Members may implement measures which restrict trade in food products.
_____________________________
1b Members shall not implement measures which restrict trade in food products.
Card 1 : What is the objective of the SPS Agreement?
Recognizing the right to protect human, animal, plant life or health
Avoiding unnecessary barriers to trade
Card 1 : What is the objective of the SPS Agreement?
“Members have the right to take sanitary andphytosanitary measures necessary for theprotection of human, animal or plant life or health,provided that such measures are not inconsistentwith the provisions of this Agreement”
Card 1 : SPS Agreement - CoverageArticle 2.1
1A
2a Governments must base their SPS measures on appropriate scientific
evidence.
_____________________________
2b Governments must base their SPS measures on economic principles.
Card 2: Scientific Justification Article 2.2
Members shall
ensure that any
SPS measure
is:
Card 2: Scientific Justification Article 2.2
applied only to the extent necessary to protect human, animal or plant life or health
based on scientific principles
not maintained without sufficient scientific evidence
except as provided for in Article 5.7
2A
Card 5: Harmonization
5a Codex, IPPC, OIE, WHO and ISO
develop the international standards explicitly recognized in the SPS
Agreement
_____________________________
5b Codex, IPPC, and OIE
develop the international standards explicitly recognized in the SPS
Agreement
Standard-setting organizations
food safety
Codexplant health
IPPCanimal health
OIE
Codex = Joint FAO/WHO Codex Alimentarius CommissionOIE = World Organization for Animal Health
IPPC = International Plant Protection Convention (FAO)
Card 5: HarmonizationAnnex A, Para. 3
5B
Card 6: Scientific Justification
6a SPS measures which conform to an
international standard are presumed to be consistent with the SPS Agreement.
_________________________________
6b SPS measures which conform to an
international standard must be proven to be consistent with the SPS Agreement.
Article 3.2: Measures that conform to internationalstandards shall be deemed to be necessary to protecthuman, animal or plant life or health, and presumed to beconsistent with the relevant provisions of thisAgreement....
Card 6: Scientific JustificationArticle 3.2
6A
Card 8: Risk assessment
8a Economic and biological consequences must be considered for risk assessments relating to food safety, and risks to animal or plant life or health
________________________________________
8b Economic and biological consequences must only be considered for risk assessments relating to risks to animal or plant life or health
17
Card 8 - Risk assessmentDefinition, Annex A, Para 4
Food safety:
• Potential for adverse effects on human or animal health
• Arising from the presence of additives, contaminants, toxins or disease-causing organisms in food, beverages or feedstuffs.
18
19
Card 8 - Risk assessmentDefinition, Annex A, Para 4
Disease or pest risk:
• Evaluation of likelihood of entry, establishment or spread of a pest or disease
• According to the SPS measures which might be applied
• and of associated potential biological and economic consequences
8B
Card 10: Risk assessmentexception
10a In the absence of sufficient scientific
evidence, Members may not adopt trade restricting SPS measures
________________________________
10b In the absence of sufficient scientific
evidence, Members may adopt provisional SPS measures based on available
information20
21
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 reasonableperiod of time
Card 10: Risk assessment - exception Provisional Measures, Article 5.7
10B
Card 13: TBT Agreement Coverage
13a Most food labelling requirements and quality regulations are subject to the
SPS Agreement.
_________________________________
13b Most food labelling requirements and quality regulations are subject to the
TBT Agreement. 22
23
Card 13: TBT Agreement – CoverageAnnex A, para.1
It applies to all:
– technical regulations (mandatory)
– standards (voluntary)
– conformity assessment procedures
TBT SPS
But: its provisions do not apply to SPS measures
13B
24
SPS MeasuresDefinition - Annex A
Human or risks arising from additives,
animal health contaminants, toxins or disease
organisms in food, drink, feedstuff
A measure taken to protect:
Human life plant- or animal-carried diseases
Animal or pests, diseases, disease-causing
plant life organisms
Territory of other damage caused by entry,
Member establishment or spread of pests
from
from
from
from
25
SPS or TBT ?
human or animal health from
food-borne risks
human health from animal-
or plant-carried diseases
animals and plants from
pests or diseases
examples:
pesticide residues
food additives
human disease control
(unless it’s food safety)
nutritional claims
food packaging and quality
examples:
labelling (unless related
to food safety)
pesticide handling
seat belts
SPS Measures TBT Measures
Marrakesh Agreement establishing the WTO
ANNEX 1AANNEX 1
ANNEX2:Understanding on Rules and Procedures Governing the Settlement of Disputes
ANNEX3:Trade Policy Review Mechanism
GATT1994
Agriculture Agreement
SPS Agreement
ANNEX 1B
(GATS)
ANNEX 1C
(TRIPS)
Structure of WTO Agreement
TBT Agreement
26
If a country believes that the other country breaks the
Agreement, it can use the dispute settling system.
TBT Agreement
27
Allowing for regulatory autonomy to protect legitimate interests
Avoiding unnecessary barriers to trade
The objective of the TBT Agreement?
Purpose of TBT Agreement
Legitimate objectives, Inter alia:National security requirementThe prevention of deceptive practiceProtection of human health or safetyAnimal or plant life or healthThe environment …… But, excludes SPS measures.
Avoiding unnecessary obstacles to
international trade
29
WHAT is TBT Agreement ?
Scope・ technical regulation(mandatory measure)・ standards(optional measure)
Including packaging, marking, labelling requirements
(Technical Barriers to Trade)
30
・ Non-discrimination
・ Not be trade-restrictive than necessary
・ Use Int’l standards as basis
Obligations
With respect to central government..
31
・ fundamental climate or geographical factor
・ fundamental technological problems
(Article 2.4)
Member shall use international standards or the relevant parts of
them as a basis for their technical regulations except when such international standards or relevant parts would be an ineffective or inappropriate
Relations with International Standards
32
Dispute Settlement
33
34
EXPERTS
The Panel Process
WTODispute Settlement
Body
PANEL
AppellateBody
APPEAL
35
Dispute timetable
1 Year 3 months
APPEAL
© WTO-OMC 2006 36
How are rulings enforced?
• Members given reasonable period of time
• Dispute Settlement Body reviews implementation
• “Retaliation” or “compensation”
Codex and Dispute Settlement
• SPS
EC - Measures Concerning Meat and Meat Products(Hormones) (1996)
Complainants: US & Canada
Respondent: EC
37
Maximum Residue Limits and Risk Management Recommendations for Residue of Veterinary Drugs in Foods (CAC/MRL 2-2015
Codex and Dispute Settlement
• TBT
EC - Trade Description of Sardines (2002)
Respondent: EC
Complainants : Peru
38
Preserved sardinesStandard for Canned Sardines and Sardine-type Products (CODEX STAN 94)
Sardine pichardus
Sardinops sagax sagax
• EC Regulation (EEC) 2136/89 which, according to Peru, prevents Peruvian exporters to continue to use the trade description “sardines” for their products.
• Peru argued that, according to the relevant Codex Alimentarius standards (STAN 94-181 rev. 1995), the species “sardinops sagax sagax” are listed among those species which can be traded as “sardines
39
Summary
International Standard including Codex Standards are used for Harmonization.
The purpose of WTO SPS agreement and TBT agreement is to balance two different goals.
Harmonization is very effective way to achieve the purpose of the Agreements.
40
Final question
• Why does the WTO agreement increase the importance of Codex standards?
41
Thank you for your attention!
42