The Emergence of Private SPS Standards: Challenges and Opportunities from the perspective of the WTO s SPS Committee

Transcription

1 The Emergence of Private SPS Standards: Challenges and Opportunities from the perspective of the WTO s SPS Committee Marlynne Hopper Agriculture and Commodities Division World Trade Organization World Bank "Agroenterprise without Borders Conference Singapore, July 2009

2 Role of the WTO Negotiate trade rules Implement trade agreements Resolve trade disputes Review national trade policies 2

3 Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) The right to protect human, animal or plant life or health Avoiding unnecessary barriers to trade 3

4 SPS Measures Definition - Annex A A measure taken to protect: Human or animal health Human life Animal or plant life A country from from from from risks arising from additives, contaminants, toxins or disease organisms in food, drink, feedstuff plant- or animal-carried diseases pests, diseases, disease-causing organisms other damage caused by entry, establishment or spread of pests 4

5 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 5

6 The SPS Committee Open to all WTO Members, acceding countries and observer organizations Meets 3 times per year Reviews compliance with SPS Agreement Examines specific trade concerns Develops guidelines for implementation Cooperation with relevant organizations 6

7 Monitoring use of international standards Procedure to monitor use of international standards (Codex, OIE, IPPC) Countries identify specific trade problems due to use or non-use of international standards 11 th annual report on procedure to monitor use of international standards (July 2009) 7

8 Food safety as share of all specifc trade concerns raised in SPS Committee (277) 108 food safety issues 38% 169 other issues 62% 8

9 Government food safety requirements Separate food safety from quality Based on Codex or risk assessment Consistent level of health protection Least restrictive of trade Recognize equivalence of other measures Notified in advance with period for comments Published, with reasonable interval, before entry into force Subject to WTO formal dispute settlement procedures 9

10 Private standards and the SPS Committee First raised by St. Vincent and the Grenadines (June 2005) Frequent topic of discussion Main topics of discussion: 1. Market access 2. Development implications 3. Legal aspects 10

11 Market access: Possible implications Private standards going beyond official requirements Becoming de facto market access requirements Proliferation of different schemes - Overlap and/or contradictions - Lack of harmonization Access to higher-priced markets 11

12 Costs associated with private standards Compliance Certification Development implications No price premium Impact on small farmers Driving supply chain modernization and investments Faster upgrading Correcting underlying hygienic problems 12

13 Applicability of SPS Agreement Art. 1.1 and Annex A(1) Art. 13 Scientific basis Equivalence Transparency Legal aspects How and where to address trade concerns and resolve disputes? 13

14 ... Members shall: SPS Agreement - Article 13 Implementation take such reasonable measures as may be available to them to ensure that non-governmental entities within their territories... comply with the relevant provisions of this Agreement....not take measures which have the effect of, directly or indirectly, requiring or encouraging such... nongovernmental entities... to act in a manner inconsistent with the provisions of this Agreement. ensure that they rely on the services of nongovernmental entities for implementing sanitary or phytosanitary measures only if these entities comply with the provisions of this Agreement. 14

15 Recent work on private standards in the SPS Committee Information sessions (2006, 2007, 2008) Dedicated item on agenda of meetings Small ad hoc Working Group established (Oct. 2008) Questionnaire on effects of private standards (Dec. 2008) Descriptive report (G/SPS/GEN/932) issued (June 2009) Analytical report with recommendations for concrete actions by Committee (Oct. 2009) 15

16 Open questions Do private standards deviate from principles of multilaterally agreed SPS trade rules? Should the private sector regulate itself and control the impact of its standard-setting activities? Or is there a role for the WTO? Is there a way to address developing countries concerns regarding private standards while also taking advantage of the potential benefits? 16

17 Marlynne Hopper The World Trade Organization Centre William Rappard rue de Lausanne 154 CH 1211 Geneva 21 Switzerland