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Technical Barriers to TradeRole of BIS as WTO-TBT Enquiry Point &Relevance to Automobile Sector
Technical Barriers to TradeRole of BIS as WTO-TBT Enquiry Point &Relevance to Automobile Sector
Rachna SehgalInternational Relations & Technical Information Services DepartmentBureau of Indian Standards
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Contents
TBT AgreementTBT NotificationsRole of Enquiry PointHandling of Trade ConcernsRecent TBT Notifications in Automobile SectorExpectations from Stakeholders
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Objectives of WTO
To ensureFree, more transparent and more predictable trade
Confidence in International Trade amongst the WTO member countries
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Barriers to Trade- Trends
Reduction in:• Tariffs• QuotasRise in:Barriers such as regulations, conformity
assessment procedures, labellingrequirements, etc
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Technical Barriers to Trade
WTO AgreementsRules for international trade being written through various WTO AgreementsRules pertaining to Standards, Regulations and Conformity Assessment for Trade in Goods are laid down inAgreement on Sanitary and Phyto Sanitary Measures (SPS)Agreement on Technical Barriers to Trade (TBT)
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TBT AGREEMENT
Applies to all products incl industrial and agricultural products
Ensures technical regulations, standards and conformity assessment procedures do not constitute barrier to international trade
Allowing members to take regulatory measures to protect legitimate interests.
Promotes use of international standards and improves efficiency of production, facilitating conduct of international trade.
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What measures are subject to TBT provisions?
Technical Regulation
Standard
Mandatory Measures
Voluntary Measures
Voluntary Measures
Conformity Assessment Procedure
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TECHNICAL REGULATION
Document which lays down product characteristics or their related processes and production methods, including the applicable administrative provisions, with which compliance is mandatory.
It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method.
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STANDARD
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 labelling requirements as they apply to a product, process or production method.
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CONFORMITY ASSESSMENT PROCEDURES
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 their combinations.
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Main Disciplines of the TBT Agreement
HarmonizationHarmonization
Avoidance of unnecessary obstacles to trade
Avoidance of unnecessary obstacles to trade
Non - DiscriminationNon - Discrimination
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Art. 5.1.1
Non-Discrimination
OriginatingOriginating
Of national originOf national origin
National Treatment
From any other countryFrom any other country
Most-Favoured Nation (MFN)
Conditions no Less Favourable toAccess of Suppliers of Like ProductsConditions no Less Favourable to
Access of Suppliers of Like Products
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Avoid unnecessary obstacles to trade
Standards/ Regulations/CAPs Must not be prepared, adopted or applied so as to
Create unnecessary obstacles to international trade
Art. 5.1.2
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The Harmonization Principle
2 key requirements
Shall play a full part in the preparation by appropriate
international standardizing bodies of guides and recommendations for
Standards/ Regulations/CAPs
Shall play a full part in the preparation by appropriate
international standardizing bodies of guides and recommendations for
Standards/ Regulations/CAPs
Relevant guides or recommendations issued by international standardizing bodies shall be used as a basis for the
elaboration of Standards/ Regulations/CAPs
Relevant guides or recommendations issued by international standardizing bodies shall be used as a basis for the
elaboration of Standards/ Regulations/CAPs
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The Harmonization Principle: Use of International Standards
Such guides or recommendations or relevant parts are inappropriate for the Members concerned
Such guides or recommendations or relevant parts are inappropriate for the Members concerned
Except
national security requirements
national security requirements
For, inter alia, such reasons as
prevention of deceptive practices
prevention of deceptive practices
protection of human health or safety
protection of human health or safety
protection of animal or plant life or health protection of animal or plant life or health
protection of the environment
protection of the environment
fundamental climatic or other geographical factorsfundamental climatic or
other geographical factors
fundamental technological problems
fundamental technological problems
fundamental infrastructural problems
fundamental infrastructural problems
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Code of Good Practice for the Preparation & Application of Standards
Use International Standards as basis for development of national standards-unless deviation is justifiedParticipate in International Standards Setting ProcessAvoid duplication/ Overlap of WorkAllow Period of 60 days for COMMENTSPublish PROGRAMME OF WORK-once in 6 monthsIndicate ICS classification
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Notification Conditions?
Members must notify a measure when both sets of conditions apply
A relevant international
standard does not exist
The measure may have a significant effect on trade of other Members
The measure may have a significant effect on trade of other Members
ORThe measure is not in accordance with
the standard
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When or at what stage to notify ?
Notifications at draft stages when amendments can still be introduced based on comments received.
For urgent reasons (safety, health, environment protection or national security), Notification must be made immediately upon adoption.
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The Notification
Format
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11 Sections in a Notification Form
Item 1 - Government making the notificationItem 2 - Body elaborating a proposal (TR or CAP)Item 3 - Relevant provision of the AgreementItem 4 – Products covered (HS no./ ICS no.)Item 5 - Title of proposal, number of pages, language. Indicate translations or summaries
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11 Sections in a Notification Form
Item 6 - Abstract, main features of the proposed/adopted measureItem 7 - Legitimate objectiveItem 8 - Any relevant document (publications). Reference to international standardsItem 9 -Adoption and entry into forceItem 10 - Final date for comments - normal time-limit of 60 days!Item 11 - Where to find the text of the measure
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How much time is allowedfor comments
At least 60 days time for other Members to make comments in writing
Discuss these comments upon request
Take into account these written comments and the results of these discussions
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Establishment of Notification Authority & Enquiry Point
Department of Commerce, Ministry of Commerce- Notification Authority for India.
Bureau of Indian Standards -Designated TBT Enquiry Point by Ministry of Commerce
Ministry of Health & Ministry of Agriculture- SPS Enquiry Points
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WTO TBT Enquiry Point
Role of BIS- Enquiry Point under TBT Agreement
Answering Enquiries pertaining to StandardsTechnical RegulationsConformity Assessment ProceduresDissemination of TBT Notifications Preparing Country’s stand on TBT NotificationsArranging Workshops/ Seminars for sensitizing other relevant agencies
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WTO TBT Enquiry Point-Work being done
Dissemination of Information
Creation of databank of stakeholdersDownloading & Classification of TBT Notifications based on ICS codesElectronic Dissemination of TBT Notifications to identified StakeholdersReceipt of Responses from Stakeholders
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BIS -TBT ENQUIRY POINT-PRESENT STATUS
Webpages on BIS website www.bis.org.infor benefit of Exporters
Monthly TBT Notifications and their Abstracts on the website of BIS
Abstracts published in our journal ‘Standards Monthly Additions’
Free registration for interested stakeholders for receipt of TBT Notifications
.
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TBT Notifications since 1995
365460
794
648 669611
538 581
794
638
771875
1030
0
200
400
600
800
1000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
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Notifications by Objective
Protection of environment
13%Prevention of deceptive
practices14%
Adoption of new domestic law
5%
Consumer information and labelling
6%
Quality requirements5%
Not specified0%
Others2%
Lowering / removal of trade barriers
1%
Protection of human health or safety
50%
Animal plant life or health
2%Harmonization2%
National security 0%
Cost saving0%
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Sector wise Distribution-Top six sectors.
0
5
10
15
20
25
Health, Safety& Environment
Food & AgroProducts
ElectricalEngg.
ChemicalTech/
Cosmetics
Civil Engg./Construction
DomesticEquipments
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Trade concerns: what can we do?
Comment on notification - new measure
Request explanation of measure from Enquiry Point or Member
Bilateral consultations
Raise issue at the TBT Committee
Request consultations
Dispute settlement provisions
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Roadmap for the solution of trade concerns
Toys Producer in Country A
Wants to export Toys in Country B
A Draft Technical regulation on Toys in Country B has just been notified in order to protect human health
from the toxicity of these toy paints
Country A received notification of Country B’s technical regulation through its Enquiry point
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Toy’s industry pressures the government to do something about it
However,Toy’s industry in country A considers that the modified Country B’s regulation is still more trade
restrictive than necessary
Roadmap for the solution of trade concerns
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Country B answers that concerns will be transmittedto capital and replied to at the next meeting
The government of Country A raises the concern at the multilateral level in the TBT Committee
Roadmap for the solution of trade concerns
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Country B amends its draft technical regulation to reflect Country A’s concerns
Country B enters into consultations with Country A
Roadmap for the solution of trade concerns
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Country B does not share Country A’s concerns and eventually adopts the
draft regulation as it is
2 possibilities...
Country A requests consultations with Country B before the DSB
A panel is established...
Country A can now export to Country B
its toys
Roadmap for the solution of trade concerns
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Specific trade concerns raised in the Committee from 1995-2007
How Many? Approximately 170 concerns raised
Who? On measures taken by ≈ 35 Members
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Typical trade concerns raised in the Committee
On What?
Food products, beverages and spirits
Chemical products
Textiles products
Machinery and mechanical appliances /electrical equipment
Vehicles, aircraft, vessels and associated transport equipment
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Some typical type of concernsMore trade restrictive than necessary
Discriminatory
Rationale for the measure
Failure/Delay to notify
Entry into force of the measure
Failure to reply to comments
Not in line with international standards
Most of the trade concerns raised are dealt with bilaterally
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TBT Notifications -Key Countries (1995-2009) (approx figures)
40Uganda250Argentina
60Australia260Canada
95France 280Israel
100Philippines290Japan
110Columbia290EC
130Switzerland300Thailand
130El Salvador320Brazil
160Mexico460USA
200Korea560China
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UNITED STATES – G/TBT/N/USA/170
Product -Automobile safety equipmentIssues - safety standard on lamps, reflective devices, and
associated equipment specifies performance requirements intended to reduce the incidence of vehicle crashes by providing adequate illumination of the roadway and by enhancing motor vehicle conspicuity in daylight, darkness, and other conditions of reduced visibility
Objective and rationale - Protection of human health
Recent TBT Notifications-Automobile Sector
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KINGDOM OF BAHRAIN – G/TBT/N/BHR/ 3
Product -Cars (safety and testing),Tyres ; Rear mirrors in cars ; Children's safety chairs in cars
Issues - Mainly the above standards deal with the mechanical aspect of motor vehicles, covering the area tyres, brakes, view mirrors, impact strength, restraining system for children in vehicles, speed limits and spare parts.
Objective and rationale -To maintain quality of vehicles, environmental issues, consumer protection, and marketing relations with GCC neighbours
Recent TBT Notifications-Automobile Sector
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THE PEOPLE’S REPUBLIC OF CHINA-G/TBT/N/CHN/84
Product - Quadricycles and three-wheeled cars for agricultural transportation
Issues - Limit and Measurement of the Voice Outside Accelerating Three-wheeled car or Low-speed Truck for agricultural purposes
Objective and rationale - For the environmental
protection
Recent TBT Notifications-Automobile Sector
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THE PEOPLE’S REPUBLIC OF CHINA– G/TBT/N/CHN/142
Product - Retreaded tyre for passenger car and its trailer
Issues - selection of retreaded passenger car tyre casing, requirements before and after being retreaded, appearance quality, outside dimension, safety performance, test method and mark.
Objective and rationale - For the protection of human safety
and health
Recent TBT Notifications-Automobile Sector
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THE PEOPLE’S REPUBLIC OF CHINA– G/TBT/N/CHN/143
Product - New tyres for passenger car
Issues - This standard specifies the requirements, test methods and marks of new tyres for passenger cars.
Objective and rationale - For the protection of human safety
Recent TBT Notifications-Automobile Sector
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THE PEOPLE’S REPUBLIC OF CHINA– G/TBT/N/CHN/192
Product - Safety belt anchorages of forward and rear ward seats for adult occupants of vehicles
Issues - This standard specifies the position, strength and test methods for safety belt of motor vehicles
Objective and rationale - For the protection of human safety.
Recent TBT Notifications-Automobile Sector
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EQUADOR– G/TBT/N/ECU/9
Product - pneumatic tyresIssues - technical and labelling requirements for
pneumatic tyres used on bicycles, motorcycles, scooters, passenger vehicles and motor cars, vans, jeeps and other multi-purpose vehicles and light trailers, lorries, buses, trailers and other multi-purpose road vehicles, minibuses, coaches, off-road vehicles, low-speed industrial vehicles, and platforms, trailers and vehicles for agricultural use.
specific requirements, labelling, conformity assessment tests, proof of conformity, administrative procedure for verifying compliance with this Regulation, control and supervisory authority, penalty regime, liability of conformity assessment bodies, review and updating, and entry into force.
Recent TBT Notifications-Automobile Sector
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EQUADOR– G/TBT/N/ECU/9 contd
Objective and rationale - Protection of human health and safety, prevention of fraud or misrepresentation arising from misleading advertising or labelling, environmental protection and prevention of harm to end-users.
Recent TBT Notifications-Automobile Sector
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REPUBLIC OF KOREA – G/TBT/N/KOR/105
Product -Electrical/Electronic Products, AutomobilesIssues - Prescribe restrictions on the use of hazardous
substances and requirements for improvement in material/structure aspect related matters; and incorporate the Extended Producer Responsibility (EPR) for electrical/electronic products under the Act on the Promotion of Saving and Recycling of Resources into this Act; and allow the Government to impose/collect Recycling Dues from manufacturers/importers or owners of automobiles.
Objective and rationale -To enhance recycling and reduce environmental risks from electrical/electronic products and automobiles.
Recent TBT Notifications-Automobile Sector
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KENYA – G/TBT/N/KEN/46
Product -Seat belts
Issues - Specifies the requirements for automobile seat belt assemblies which are designed to accommodate one adult and are fitted, in the main, to forward facing seats for the purpose of protecting passengers from injury in the event of a traffic accident
Objective and rationale - Protection of human safety
Recent TBT Notifications-Automobile Sector
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BIS -TBT Enquiry Point
Notifications from other countries-Comments not forthcoming
ConstraintsLack of awareness
The right stakeholder
Getting full texts of TBT Notification
Different Language-Translation
Time for comments
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BIS -TBT Enquiry Point
Notifications from IndiaFew Notifications from India Constraints
Lack of awareness of TBT Agreement RBs may not be aware with the obligatory clauses of WTONotifying authority not made aware of draft regulations by other national authorities.
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Examination of TBT NotificationsAspects to be considered:
Are these Notifications in accordance with International Standards ? Are the requirements trade restrictive ?
Are they stricter than International Standards than necessary to meet the legitimate objectives of:Protection of human health or safetyAnimal or Plant life or healthEnvironmentAre these Scientifically Justified ?
Expectations from Industry & Stakeholders
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Expectations from Industry & Stakeholders
Awareness of TBT Agreement and obligations of member countriesIndustry to be proactive to TBT NotificationsStudy TBT notifications, Technical Regulations etc. Segregate the TBT notifications as received from BIS- TBT Enquiry Point sector wise/product wise and further disseminate to relevant stakeholdersBased on feedback from stakeholders, send comments to BIS-TBT Enquiry Point within stipulated time
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Expectations from Industry & Stakeholders
Identification of need to conduct Trainings/ Workshops/ Seminar for all concerned with in their domainIdentification of trade related problems in their areaDiscussion with traders, manufacturers, exporters, importers, other key playersActive Interaction with MOC/BIS-TBT Enquiry Point
For Regulatory BodiesSend Draft Technical Regulations to Ministry of Commerce/ BIS Enquiry Point for notification at WTO in the required format
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Participate in International Standards Setting
Be Proactive to TBT Notifications
Expectations from Industry & Stakeholders