WTO and Technical Barriers to Trade Manila 2

WTO and Technical Barriers to Trade Manila, 2 - 6 June 2003 1

TBT AGREEMENT (1) • Developed in response to recognition by GATT CP’s that non-tariff barriers could create barriers to trade. • First negotiated in 1973 -79 Tokyo Round. Manila, 2 - 6 June 2003 2

TBT AGREEMENT (2) • Revised in Uruguay Round. • Came into force on 1 January 1995. Manila, 2 - 6 June 2003 3

TBT AGREEMENT (3) RECOGNIZES The right of WTO Members to adopt technical regulations, standards and conformity assessment procedures. Manila, 2 - 6 June 2003 4

TBT AGREEMENT (4) HOWEVER, Ensures that such measures do not create unnecessary barriers to trade. Manila, 2 - 6 June 2003 5

TECHNICAL REGULATION Document which lays down product characteristics or their related processes and production methods with which compliance is mandatory. Manila, 2 - 6 June 2003 6

CONFORMITY ASSESSMENT PROCEDURES Any procedure used … to determine that relevant requirements in technical regulations or standards are fulfilled. Manila, 2 - 6 June 2003 7

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 Manila, 2 - 6 June 2003 8

Re. Cap • Main Principles: • Non-discrimination • Avoidance of Unnecessary Obstacles to Trade • Harmonization • Equivalence • Mutual Recognition • Transparency Manila, 2 - 6 June 2003 9

TBT AGREEMENT Does not cover sanitary or phytosanitary measures as defined by the SPS Agreement. Manila, 2 - 6 June 2003 10

TBT AGREEMENT • type of measure determines whether covered by TBT Agreement, but • purpose of measure relevant in determining if measure subject to SPS Agreement. Manila, 2 - 6 June 2003 11

IMPLEMENTATION ISSUES (1) Issues raised by developing countries with respect to the implementation of some existing WTO agreements and decisions. Manila, 2 - 6 June 2003 12

IMPLEMENTATION ISSUES (2) TBT implementation issues are concerned with technical assistance and S&D. Manila, 2 - 6 June 2003 13

IMPLEMENTATION ISSUES (3) Tangible and meaningful technical assistance and cooperation to be provided to developing country Members, ensuring the effective implementation of Article 11; Manila, 2 - 6 June 2003 14

IMPLEMENTATION ISSUES (4) Acceptance by developedcountry importers of selfdeclaration regarding adherence to standards by developingcountry exporters. To be introduced in Article 12. Manila, 2 - 6 June 2003 15

LABELLING • subject to GATT rules and principles, in particular to those of - non-discrimination; – mfn treatment (Art. I); and – national treatment (Art. III); – also expressly covered by TBT provisions. Manila, 2 - 6 June 2003 16

LABELLING According to the TBT Agreement a label is a technical regulation and, as such, mandatory whereas an eco-label is considered to be a standard and thus of a voluntary nature. Manila, 2 - 6 June 2003 17

ECO-LABELS Today, eco-labels are debated in two different WTO fora, i. e. the CTE and the TBT Committee Manila, 2 - 6 June 2003 18

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 Manila, 2 - 6 June 2003 19

ECO-LABELLING FOR FISHERIES: DEFINITION assuring the consumer that labelled products derive from stocks that are harvested in a sustainable way and that the fishing process will not have serious ecosystem effects. – Manila, 2 - 6 June 2003 20

ECO-LABELLING: OBJECTIVE "through communication of verifiable and accurate information – that is not misleading – on environmental aspects of products and services, to encourage the demand for and supply of those products and services that have a less negative impact on the environment, thereby stimulating the potential for market-driven Manila, 21 continuous environmental improvement. " 2 - 6 June 2003

TBT AGREEMENT Under the TBT Agreement, ecolabels fall under the definition of a standard, defined as a document which sets out rules for products or related processes and production methods. Manila, 2 - 6 June 2003 22

CTE The Ministerial declaration instructs the CTE to give particular attention to "labelling requirements for environmental purposes”. Manila, 2 - 6 June 2003 23

FIFTH WTO MINISTERIAL CONFERENCE • Takes place in Cancun, Mexico, on 10 -14 September 2003. • Main purpose: take stock of progress in Doha Development Round. Manila, 2 - 6 June 2003 24

THE END ! Manila, 2 - 6 June 2003 25