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The Agreement on Technical Barriers to Trade the TBT Agreement.

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Presentation on theme: "The Agreement on Technical Barriers to Trade the TBT Agreement."— Presentation transcript:

1 The Agreement on Technical Barriers to Trade the TBT Agreement

2 promotion of international standards allowing for regulatory autonomy to protect legitimate interests avoidance of unnecessary obstacles to international trade

3 Non-tariff barriers to trade (NTBs)

4 Trade Rounds YearPlace / nameSubjects covered# 1947GenevaTariffs AnnecyTariffs TorquayTariffs GenevaTariffs Geneva (Dillon Round) Tariffs Geneva (Kennedy Round) Tariffs and anti-dumping measures Geneva (Tokyo Round) Tariffs, NTBs, framework agreements Geneva (Uruguay Round) Tariffs, NTBs, rules, services, IP, DSU, textiles, agriculture, creation of WTO, etc Geneva (DDA)(the above) + environment, + ?148 Source: WTO

5 Tariffs (1) Overall, import weighted tariff on industrial products 40% > 4%

6 (Nevertheless, tariffs are still an issue...)

7 Doha Ministerial Declaration (para 16) negotiations

8 July Package 1 August 2004 (para B-3, Para 14) intensify

9 Hong Kong Ministerial Declaration (para 22) need for proposals.. quickly

10 Scope of TBT Agreement

11 TBT Agreement is applicable to: 1.3 All products, including industrial and agricultural products, shall be subject to the provisions of this Agreement.

12 What is the TBT Agreement is not applicable to ?

13 The provisions of this Agreement do not apply to sanitary and phytosanitary measures as defined in Annex A of the Agreement on the Application of Sanitary and Phytosanitary Measures. TBT Agreement, Article 1:5 (General Provisions) TBT Agreement is not applicable to....

14 GMOs? Protection of the environment Invasive species quality - safety

15 TBT Agreement Services SPS measures Government procurement Import bans

16 What is a TBT measure?

17 Technical Regulations Standards Conformity Assessment Procedures

18 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. TBT Agreement, Annex 1, para 1 Technical Regulation Jump to PPM

19 document which lays down product characteristics or their related processes and production methods with which compliance is mandatory … TBT Agreement, Annex 1, para 1 (words) Technical Regulation Jump to PPM

20 size shape colour texture hardness tensile strength flammability conductivity density or viscosity characteristics

21 terminology symbols packaging marking or labelling requirements related characteristics

22 Technical Regulations Standards Conformity Assessment Procedures

23 Any procedure used, directly or indirectly, to determine that relevant requirements in technical regulations or standards are fulfilled. TBT Agreement, Annex 1, para 3 Conformity Assessment Procedures

24 Technical Regulations Standards Conformity Assessment Procedures

25 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. TBT Agreement, Annex 1, para 2 Definition of a standard

26 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 TBT Agreement, Annex 1, para 2 Definition of a standard

27 Body or system whose membership is open to the relevant bodies of at least all Members. International Body or System (Annex 1, para 4)

28 Note: the SPS Agreement has particular and unique provisions with respect to science and risk assessment. SPS Agreement Basic principles ? TBT Agreement

29 Three Key Principles

30 harmonization unnecessary obstacle non-discrimination

31 Non-discrimination (MFN, NT)

32

33 The products of the territory of any Member imported into the territory of any other Member shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. … Article III:4 of GATT 1994

34 Members shall ensure that in respect of technical regulations, products imported from the territory of any Member shall be accorded treatment no less favourable than that accorded to like products of national origin and to like products originating in any other country. Article 2.1 of the TBT Agreement

35 like products treatment no less favourable

36 What is a like product

37 In respect of non-discrimination, is there a difference between TBT and SPS?

38 Article 2.3 of the SPS Agreement no unjustifiable discrimination between –Members where identical or similar conditions prevail –including own territory and other Members no disguised restrictions on international trade

39 harmonization unnecessary obstacle non-discrimination

40 Unnecessary obstacles to international trade

41 Members shall ensure that technical regulations are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade. For this purpose, technical regulations shall not be more trade-restrictive than necessary to fulfil a legitimate objective, taking account of the risks non-fulfilment would create.... (emphasis added) Article 2.2 (TBT) (technical regulations)

42 unnecessary obstacle not more trade-restrictive than necessary taking into account risk of non-fulfillment

43 Case-by-case

44 Choice of measure

45 harmonization unnecessary obstacle non-discrimination

46 The use of international standards harmonization =

47 Article 2.4 – 2.6 of the TBT Agreement =

48 use ! (2.4) explain / presumption (2.5) participation (2.6) = Three issues

49 EC – Sardines (2002) EC – Trade Description of Sardines (Peru) (first TBT case)... look at this later... =

50 use ! (2.4) explain / presumption (2.5) participation (2.6) = Three issues

51 What are the key differences between the TBT and SPS Agreements with respect to Harmonization? =

52 =

53 unnecessary obstacle new policy objective choice of measure case-by-case non- discrimination like products requirements? situations (SPS) = Standards Qualified obligation to use TBT open / SPS closed exceptions sardines

54 What I said at outset...


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