1. Technical Barriers to Trade Agreement - Salient Features
Ms Shashi Sareen
Director, Export Inspection Council, Ministry of Commerce & Industry

2. WTO Scenario
Establishment of WTO - Dismantling of barriers for free flow of trade
Creation of global market with equal access to all countries
Quality, health & safety & environmental issues gaining importance
Role of standards both mandatory and voluntary & CA procedures
Rules and disciplines laid down in terms of non-tariff agreements – SPS,TBT & PSI, basically aim at protecting interest of foreign suppliers

3. TBT Agreement - Objectives
Allows members to apply standards, technical regulations, conformity assessment procedures for
protection of human safety or health (sockets, seat belts, labelling cigarettes)
Protection of animal & plant life or health (pollution, extinct eg turtle extruder device)
Protection of environment (level of vehicle emissions)
Prevention of deceptive practices (labelling, size)
Other objectives (quality-size of fruits & vegs, tech harmonization-telecom)
However need to ensure that these do not create obstacles to international trade

4. TBT Agreement Application
Scope
Applies to all products including industrial & agri products, both voluntary standards & technical regulations(standards to which compliance mandatory)
Not apply to SPS measures as defined in SPS Agreement
Covers
Product characteristics
Process & production methods(PPM) that have an effect on product characteristics
Terminology & symbols
Packaging & labelling requirements

5. TBT Principles Avoidance of unnecessary obstacles to trade
Non-discrimination & national treatment
Harmonization
Equivalence of technical regulations
Mutual recognition & conformity assessment procedures
Transparency

6. Avoidance of unnecessary obstacles to trade
Least Trade Restrictive – should not be formulated & applied in a manner so as to cause any unnecessary obstacle to trade – not more trade restrictive than needed to fulfill legitimate objectives (prevent deceptive practices, protection of human, animal or plant life or health, or environment)
Examples – site for carrying out CA, sampling procedures, methods of testing or their sensitivity levels

7. Non-discrimination & national treatment
Most Favoured Nation Basis – should apply on a MFN basis to imports from all sources
National Treatment Principle – shall not extend to imported products treatment less favourable than that extended to domestically produced products

8. Harmonization Why harmonize
Benefits to producer – can cater to needs of all countries leading to productions of scale eg cars, mobiles, TV sets, etc
Benefits to consumers – wide choice, spare parts, etc
Harmonization & TBT - standards/tech regulations/CA procedures to be consistent with or based on international standards unless “their use ineffective or inappropriate” to fulfill objective
Technical regulations in accordance with International standards are presumed not to create unnecessary obstacles to trade
participate actively in work of ISO/other international bodies

9. Mutual Recognition of Conformity Assessment (Article 6)
CA procedures are those used to determine that requirements met. Include sampling, inspection, testing, evaluation, verification of conformity, accreditation, etc.
Equivalence
ensure that each others results of CA procedures are recognized based on an equivalence (ie even if these differ, if they are satisfied that the procedures used offer an assurance of conformity with their standards/technical regulations) (6.1)
compliance with relevant Guides & accreditations is an indication of adequate tech competence of CABs (6.1.1)
Encouraged to enter into negotiations for Agreements for recognition of results of each others’ CA procedures (6.3)

10. Transparency Notifications
all proposed, new and changed measures are to be notified by members to the TBT Committee of WTO Secretariat,
to be provided to members, translated versions if requested, & any deviations from international standards
give sufficient notice to allow for adapting to these reqts.
If technical regulation differs from international standards, need to also take into account comments of exporter
Enquiry Points
An enquiry point to be set up – a focal point
answer all reasonable enquiries
provide documents on technical regulations, standards & CA procedures;
any agreements to be notified to secretariat

11. Equivalence of technical regulations
Accept as equivalent, technical regulations of other members’ even if these differ from their own, if they are satisfied that these adequately fulfill the objectives of their own regulations (Article 2.7)
Example – auto emission levels controlled through catalytic converter, objective can also be achieved through use of diesel engines

12. Key Features for Preparation, Adoption & Application of Voluntary Standards
Code of Good Practice for Standards Development – to be followed
Substantive Provisions
NSBs to follow principles & rules similar for mandatory standards ie base on & participate in international standards formulation, apply on a MFN basis, National Treatment Principle, Least Trade Restrictive
avoid duplication or overlap
specify requirements in terms of performance
6-mthly programme of work
60 days for comments
provide copy to interested party
take comments into account
promptly publish

13. Other Key Features Technical assistance
provided to developing countries in the area of setting up NSBs, participation in int standardization, preparing technical regulations, setting up regulatory bodies for CA activities, methods of CA, etc
Special & Differential Treatment
more favourable treatment to be provided to developing countries
take into account their special developmental, financial & trade needs when developing tech regulations, standards and CA procedures so that no unnecessary obstacles created to exports from developing countries.

14. Institutions, Consultations & Dispute Settlement
Committee on TBT established having representatives from each members meet 2-3 times a year, for discussing operation of Agreement or furtherance of objectives
Consultations & settlement of disputes shall be under auspices of Dispute Settlement Body of WTO. However a provision for technical expert groups to assist in issues of technical nature has been provided

15. Some Examples
Peru – labelling of footwear for ‘country of origin’ & corporate tax number
Products to have atleast 60% of shelf life remaining before imports
BIS certification marking & introduce less onerous procedures
MRP labelling agreements

16. Thank you

17. Key Features for Preparation, adoption & Application of Technical Regulations
Most Favoured Nation Basis – should apply on a MFN basis to imports from all sources
National Treatment Principle – shall not extend to imported products treatment less favourable than that extended to domestically produced products
Least Trade Restrictive – should not be formulated & applied in a manner so as to cause any unnecessary obstacle to trade – not more trade restrictive than needed to fulfil legitimate objectives (prevent deceptive practices, protection of human, animal or plant life or health, or environment). Contd..

18. Key Features on Technical Regulations
Should be based on scientific information & evidence
Harmonisation - standards/tech regulations/CA procedures to be consistent with or based on international standards – participate actively in work of ISO/other international bodies
Transparency
all proposed, new and changed measures are to be notified by members to the TBT Committee of WTO Secretariat,
to be provided to members, translated versions if requested
give sufficient notice to allow for adapting to these requirements.
If technical regulation differs from international standards, need to also take into account comments of exporter

19. Other Key Features Information
An enquiry point to be set up
answer all reasonable enquiries
provide documents on technical regulations, standards & CA procedures;
any agreements to be notified to secretariat
Technical assistance is provided to developing countries in the area of setting up NSBs, participation in int standardization, preparing technical regulations, setting up regulatory bodies for CA activities, methods of CA, etc