1. The WTO SPS Agreement and its relevance to international standards
Ella Strickland
Head of unit
European Commission, DG Health and Consumers
Multilateral International Relations Unit
19 February 2014, Brussels

2. Why trade? Economic advantages Political advantages
Creates jobs and promotes growth
Greater variety of goods at lower prices to consumers
Helps to reduce poverty
Boosts competition
Leads to specialisation and higher efficiency
Spreads innovation
Political advantages
No trade restriction - no tension
More trade means more economic growth which can help to overcome the economic crisis
More than 36 million jobs in the EU depend on our ability to trade with the rest of the world
Powerty – higher income, higher salaries
Allows businesses to access inputs at lower prices, allowing them to compete (Spurs domestic producers to be more resource efficient)
The principle of “comparative advantage” says that countries prosper first by taking advantage of their assets in order to concentrate on what they can produce best, and then by trading these products for products that other countries produce best.
Being specialised mean that resources are used more efficiently.
Spreads new ideas, innovation, new technologies, the best research
Open trade – less chances of conflict
Trade with friends

3. EU’s position in global trade
The EU is the world's largest trading block
Central pillar of the world economy
Biggest market in the world million consumers
Well-informed consumers looking for high quality products
Committed to free trade – active participant in international fora
Open trade system - transparent rules
Political capacity to conclude trade agreements
EU is the largest economy in the world, companies/traders cannot afford to ignore this economy (despite the financial crisis)
Top trading partner for 80 countries (by comparison the US is for 20)
One single market – very attractive market, good to do business with
Acting with one voice instead of 28s
Stable and predictable
Highly diverse market, imports primary products and raw materials just as processed products
EU is the biggest importer in the world; first or second exporter
little or no EU production (e.g. tea, coffee, cocoa, spices, tropical fruits & vegetables)
EU production falls short of consumption (e.g. fish and animal feed)
Wider consumer choice, seasonal gaps in availability, satisfy demands for ethnic products, raw materials for businesses
Remained open even despite the crisis, while other countries closed their markets
Free trade – internally and also worldwide – look at the very active agenda of FTAs
Free trade is a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports) or quotas. According to the law of comparative advantage, the policy permits trading partners mutual gains from trade of goods and services. Under a free trade policy, prices emerge from the equilibration of supply and demand, and are the sole determinant of resource allocation.
bilateral trade agreements, CETA, US – TTIP: ground breaking FTA, south korea, singapore
Spill-over effect; create precedent

4. World Trade Organization
Established on 1 January 1995
Succeeded GATT (General Agreement on Tariffs and Trade)
Bali – 1st new WTO agreement since 1995
Based in Geneva
159 Members
Member-driven
Decisions by consensus
30 negotiated agreements
Dispute settlement
The Ministerial Conference in Bali delivered an agreement on the accession of Yemen, which will become the 160th member of the WTO.
The formal accession will only take place later this year after the necessary formalities are completed (ratification).
Yemen asked for a transitional period in the full implementation of the SPS Agreement until the end of 2016.
Since accessions have been completed. At the moment there are 23 countries lining up for accession.
Unified dispute settlement procedure; it was strenghtened as a result of the Uruguay round (eliminated blocking, panel must be convened, appelate body, tight time limits, enforcement improved)

5. WTO Agreements 12 specialised agreements on trade in goods
Agriculture
Sanitary and Phytosanitary (SPS)
Technical Barriers to Trade (TBT)
Textiles and clothing
etc
General agreement on trade in services
Agreement on trade-related aspects of intellectual property rights
Agreement on dispute settlement
Plurilateral agreements
Essentially, the WTO is a place where member governments go, to try to sort out the trade problems they face with each other.
At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations.
But the WTO is not just about liberalizing trade, and in some circumstances its rules support maintaining trade barriers — for example to protect consumers, prevent the spread of disease or protect the environment. These are very complex measures technically, difficult to challenge.
WTO rules have priority, members must change trade policies to conform to their WTO obligations
Agreements on non-tariff barriers (SPS, TBT) - in the recent years their importance increased (after tariffs were progressively reduced for agricultuural and fishery products); they were used as trade barriers more and more
SPS measures include all relevant laws, regulations, requirements and procedures applied to protect human, animal or plant life or health
Agrement on services re. air transport, telecommunication
Plurilateral: not signed by all members (civil aircraft)
Latest agreement is the trade facilitation agreement – WTO members still need to ratify; at least 2/3 of the members are needed. The deadline for this is The EU will give a 400 million euro support over 5 years to help developing countries implementing the TF agreement.

6. WTO SPS Agreement In force since 1 January 1995
Sets out rules that WTO members are obliged to follow when they set SPS measures on food safety, animal health and plant health
Recognises Members' rights to impose SPS measures to achieve the appropriate level of protection (ALOP)
- if this level is higher than international standard, it must be supported by scientific evidence
Applies to all measures that may affect international trade
Underlying objective is to promote stability and predictability in the system
Protection of the environment & animal welfare are excluded
SPS measures, by their nature, my result in restrictions on trade. All governments accept the fact that some trade restriction may be necessary.
Climate, existing pests, animal diseases are different – not always appropriate to impose the same import conditions
ALOP: by definition – each member may decide on what level of protection is appropriate to protect its people, animals, plants
Has to be justified, demonstrated why the relevant int sta is not good enough.s
Basic aim of the SPSA is to maintain member’s sovereign right to provide a level of health protection that it deems appropriate but to ensure that this right is not misused for protectionist purposes nd do not result in unnecessary barrieres to intrnat trade.
Keeps the balance bw protection and free trade

7. WTO SPS Agreement Basic principles SPS Measures shall be: Transparent
Based on international standards
Based on scientific principles and risk assessment
Proportionate
Non-discriminatory
No more trade restrictive than necessary
Encourages consistent and transparent decision-making – governments are required to notify of any new or changed SPS requirements which affect trade. Legislative changes
Encourages governments toa pply SPS measures that are consistent with international standards; harmonisation
WTO does not do it, there are internat. organisations

8. International standard-setting
WTO SPS Agreement encourages the use of standards developed by the international standard-setting bodies
The Three Sister Organisations:
Food safety – FAO/WHO CODEX Alimentarius Commission
Plant protection – International Plant Protection Convention (IPPC)
Animal health – World Organisation for Animal Health (OIE)

9. Why harmonize internationally?
In order to facilitate trade by:
providing health protection based on scientific evidence
avoiding market disturbances - stability
facilitating investment
ensuring consumers' confidence by ensuring high quality
facilitating access to third country markets
simplifying control procedures on the basis of
guarantees
We facilitate trade if we follow the same rules. Act according to the same standards. Have the same understanding.
Use of international standards protects against challenge

10. Decision-making in the WTO
Ministerial Conference
General Council
Council for Trade in Goods
Technical Committees: SPS, TBT
Min conf – highest dec making body, meets every 2 years
TRADE commissioner respresents the EU
Bali – lot of expectations; success story, historical moment – put the multilateral trading system back on track
Gen. Counc. Acts on behalf of the ministerial conference
Subsidiary body
Cion negotiates on behalf of the EU
EU and EU Member States are members; only the Commission representatives can speak
close coordination with MS
Informs EP and the Council

11. WTO SPS Committee Meets three times per year
Forum to exchange information, raise trade problems, review the Agreement
Horizontal issues: ad hoc consultation, private standards, issues under the fourth review
The three sisters have observer status as well as a number of other organisations

12. The work of the European Commission (DG SANCO/DG TRADE)
Works closely with EU stakeholders
Ensures that EU legislation meets the obligations of the SPS Agreement
Tackles unjustified and unreasonable SPS barriers
Requests bilateral discussions with third country authorities
Raises specific trade concerns in the plenary meeting of the SPS Committee
Negotiates the chapter on SPS in international agreements
Provides capacity building to developing countries
Actively participates in the standard setting work of the three sisters
As a general principle DG TRADE is responsible for exports (market acces); SANCO is responsible for imports.
SANCO
To protect the health of European consumers
To ensure food in the EU is safe and wholesome
To protect the health and welfare of animals
To protect the health of crops and forests
Different Commission Services - Member States – industry - Delegation in Geneva

13. Transparency – SANCO responsibilities
DG SANCO is the EU SPS notification authority/enquiry point
Assists Member States to notify their SPS measures to the WTO
Notifies any EU legislation which has an effect on international trade, responds to comments received
Discusses trade measures with partners
Monitors notifications (legislative changes) of other WTO members
Maintains records of all notifications via the SPS notifications database

14. Trade concerns involving the EU
74 concerns raised by the EU since 1995
Examples:
BSE – against several countries, since 2004
Import ban on live animals – against Russia, raised in 2012
Schmallenberg virus – against several countries, raised in 2012
BSE – against China, Korea, Australia, Japan
Some developments: US published a final rule on BSE; however exports could not resume yet because of the USDA FSIS

15. Trade concerns involving the EU
73 concerns raised against the EU since 1995
Examples:
EU temperature treatment requirements for imports of processed meat products – Russian Federation
Restrictions on poultry exports – US
There are other AH related STCs but limited in number.

16. Dispute settlement
Dispute Settlement Understanding (DSU) — the main WTO agreement on settling disputes
Not a quick-fix solution
More than 450 disputes – in all areas - had formally been raised until 15 November 2013
42 alleged violation of the SPS Agreement - 24 of which resulted in the establishment of a dispute settlement panel
These panels were established to look at 15 different SPS issues
You may also mention the ad hoc procedure as another tool to facilitate the resolution of trade disputes
OIE dispute settlement

17. Dispute cases when a panel was established
Canada and the United States' - against the European Communities' measures - meat and meat products (ban on meat treated with growth-promoting hormones);
European Communities - against Canada and the United States - their continued suspension of obligations relating to the EC-Hormones dispute;
United States - against the European Communities' measures - poultry meat and poultry meat products;
Canada – against the European Communities' measures – prohibiting the importation and marketing of seal products
These are only examples – there were 15 in total
The most known is the beef/hormone dispute
Poultry – raised by US in 2009
Antimicrobial surface decontamination
[Latest development: US submitted an application to the EU for the authorisation of peroxiacetic acid on poultry carcasses. EFSA is analysing it.]
The latest case is on seals. Raised by Canada in 2009.

18. Thank you for your attention!
Useful Links:
WTO
DG SANCO