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

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Purpose of this Presentation

• For better understanding of Codex

standards in the context of

international trade agreements

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Introduction

• WTO/SPS Agreement and WTO/TBT

Agreement are quoted in many trade

agreements: “Affirm/Incorporate the

right and obligation of SPS /TBT

agreement”.

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• 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)

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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

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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.

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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

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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

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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

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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

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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

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If a country believes that the other country breaks the

Agreement, it can use the dispute settling system.

TBT Agreement

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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

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WHAT is TBT Agreement ?

Scope・ technical regulation(mandatory measure)・ standards(optional measure)

Including packaging, marking, labelling requirements

（Technical Barriers to Trade）

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・ Non-discrimination

・ Not be trade-restrictive than necessary

・ Use Int’l standards as basis

Obligations

With respect to central government..

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・ 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

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Dispute Settlement

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EXPERTS

The Panel Process

WTODispute Settlement

Body

PANEL

AppellateBody

APPEAL

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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

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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

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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

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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.

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Final question

• Why does the WTO agreement increase the importance of Codex standards?

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Thank you for your attention!

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