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WTO TBT Overview Slides Geneva, 6 February 2019
erik.wijkstrom@wto.org 1
Standards, regulations- intro to WTO TBT Agreement -
Are standards good or bad for international trade?
WTO TBT Overview Slides Geneva, 6 February 2019
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(different standards / not really)
technology / network effects / price / inter-connectivity
WTO TBT Overview Slides Geneva, 6 February 2019
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only poultry that has not been frozen can be labelled “fresh”
(regulation / perhaps)
WTO TBT Overview Slides Geneva, 6 February 2019
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information / minimum safety
WTO TBT Overview Slides Geneva, 6 February 2019
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WTO TBT Overview Slides Geneva, 6 February 2019
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or a “formidable barrier”?
So, a good basis for government policy
Standards are one tool.
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WTO rules (here SPS and TBT) are essentially about promoting good practices in regulation.
What are these “good practices”?
WTO TBT Overview Slides Geneva, 6 February 2019
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GRP
Application!
(These principles in the TBT Agreement colour what went before.)
Good regulatory practice is about the practical implementation of the TBT Agreement. As the
Agreement does not contain specific provisions on good regulatory practice, the emphasis of the Committee's discussions has been on how best to
implement the provisions of the Agreement to achieve a particular policy objective. Effective
implementation through best practices is seen as an important means of avoiding unnecessary
obstacles to trade
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Why is this important today?
Tariffs have gone down
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Trade RoundsYear Place / name Subjects covered #
1947 Geneva Tariffs 23
1949 Annecy Tariffs 13
1951 Torquay Tariffs 38
1956 Geneva Tariffs 26
1960-1961 Geneva (Dillon Round)
Tariffs 26
1964-1967 Geneva (Kennedy Round)
Tariffs and anti-dumping measures
62
1973-1979 Geneva (Tokyo Round)
Tariffs, NTBs, “framework agreements”
102
1986-1994 Geneva (Uruguay Round)
Tariffs, NTBs, rules, services, IP, DSU, textiles, agriculture, creation of WTO, etc.
123
2001 - Geneva (DDA) (the above) + environment, + ? 164Source: WTO
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Country / company: A, B, ……..to market
WTO Trade Facilitation Agreement(agreed in Bali 2013). Report just
out.-Multilateral cooperation
-Standard-setting / harmonization-Trade costs high in d-ing countries
…
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This trend is evident in regional trade agreements (RTAs):
Source: WTO
… an UNCTAD report from December 2017 reinforces this
message:
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“Technical Barriers to Trade are the most frequent form of NTMs, affecting 35 per cent of product lines and about 65 per cent of world trade, followed by export measures and sanitary and phytosanitary measures.”
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Activity in the TBT Committee may also be indicative:
TBT NOTIFICATIONS (1995 – 2018)
364 460795 650 670 608 541 586
795 637 765 870 10281248
148714121216
155215991528142116451774
2080
1935
3827 12 12 5 12
4955
107127
172
219
365 396469
577 469 622480
583725
850
35
94 12 13 22 26
5129
2330
18
43
34 4273
48 4356
46
70
53
84
21
53
6
23
25
11
13
7 1915
19 2934
30
34
28
51
388501
847681 697 633 574 624
897724
8971032
1229
1523
189318691773
219621402240
1977
2332
2580
3065
0
500
1000
1500
2000
2500
3000
3500
Num
ber o
f not
ifica
tions
New notifications Addenda Corrigenda Revisions
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STCs raised: 1995-2018
4 6 11 13 5 13 15 20 15 14 1224 27 32
4629
43 35 42 4737 31 27 224
612
12
32 20
34
2235
20
4151
74
85
88
107 124
88
101 124 142 152 162
410
1725
17
4535
54
37
49
32
65
78
106
131
117
150159
130
148
161173
179184
0
20
40
60
80
100
120
140
160
180
200Nu
mbe
r of S
TCs
New STCs Previously raised STCs
NEW NOTIFICATIONS BY DEVELOPMENT STATUS, 1995-2018
30
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Developed Members Developing Members Least-developed Members
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Trade policy is increasingly looking “behind the border”:
So, how how can WTO rules address the “bad” part?
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What do the rules say?
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WTO rules in this area are intended to be trade facilitating, reduce trade costs.
(But it is difficult to quantify effect of benefit!)
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Legitimate objective1
Non-discrimination2
Avoiding unnecessary barriers to trade3
Use of international standards4
Transparency5
= ≈
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- for training purposes only -
for training purposes only
US – Tuna II
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Sardina Pilchardus Sardinops Sagax
WTO Slide 44
Sardina pilchardusEC:
Sardinops sagaxPeru:
… only Sardina pilchardus may be marketed as preserved sardines in EC (Article 2)
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Legitimate objective1
Non-discrimination2
Avoiding unnecessary barriers to trade3
Use of international standards4
Transparency5
= ≈
To be more specific, what kind of measures are we
talking about?
5
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“Non-tariff measures” (NTMs)
TBT and SPS
other
Difficult to quantify!
There is a problem with transparency Trade effects are complex, ambiguous (impact? Compliance? Time? ==
uncertainty)
“Measures”TBT measures
SPS measures
1) Standards
2) Technical regulations
3) Conformity assessment Procedures
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Technical Regulations
document which lays down
product characteristicsor
their related processes and production methods
with which compliance is mandatory
(TBT Agreement, Annex 1, para 1)
Standards
recognized bodythat provides, for common and repeated
userules, guidelines or characteristics
for products or related processes and production methods
with which compliance is not mandatory
(TBT Agreement, Annex 1, para 2)
Voluntary Mandatory
Market
Conformity assessment procedure
Any procedure used, directly or indirectly, to determine that relevant requirements in technical regulations or standards are fulfilled
(TBT Agreement, Annex 1, para 3)
TBTSPS
TFA
+
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How does it work?
6
At WTO?
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Negotiations
Disputes Implementation
TBTSPS
WTO TBT Overview Slides Geneva, 6 February 2019
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Request clarification from Enquiry Point
Bilateral consultations
Raised in the Committee
Dispute(s)
(not raised formally)
540 “STCs”
≈ 30,000TBT notifications
(Dec17)
5 Disputes (with Panel and AB reports)+ 3 on-going
TBT SPS
≈ 22,000SPS notifications
427 “STCs”
Good Offices of the Chair
14 Disputes (with Panel reports)
+ 2 on-going
Implementation & monitoring role of the SPS and TBT Committees
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