The Agreement on the Application of Sanitary and Phytosanitary Measures, also known as the SPS Agreement or just SPS, is an international

treaty A treaty is a formal, legally binding written agreement between actors in international law. It is usually made by and between sovereign states, but can include international organizations An international organization or international o ...

of the

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and e ...

(WTO). It was negotiated during the

Uruguay Round The Uruguay Round was the 8th round of multilateral trade negotiations (MTN) conducted within the framework of the General Agreement on Tariffs and Trade (GATT), spanning from 1986 to 1993 and embracing 123 countries as "contracting parties". The R ...

of the

General Agreement on Tariffs and Trade The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its pre ...

(GATT), and entered into force with the establishment of the WTO at the beginning of 1995. Broadly, the sanitary and phytosanitary ("SPS") measures covered by the agreement are those aimed at the protection of human, animal or plant life or health from certain risks. Under the SPS agreement, the WTO sets constraints on member-states' policies relating to food safety (bacterial contaminants,

pesticides Pesticides are substances that are meant to control pests. This includes herbicide, insecticide, nematicide, molluscicide, piscicide, avicide, rodenticide, bactericide, insect repellent, animal repellent, microbicide, fungicide, and lampric ...

inspection An inspection is, most generally, an organized examination or formal evaluation exercise. In engineering activities inspection involves the measurements, tests, and gauges applied to certain characteristics in regard to an object or activity. ...

and

labelling Labelling or using a label is describing someone or something in a word or short phrase. For example, the label "criminal" may be used to describe someone who has broken a law. Labelling theory is a theory in sociology which ascribes labelling ...

) as well as

animal Animals are multicellular, eukaryotic organisms in the Kingdom (biology), biological kingdom Animalia. With few exceptions, animals Heterotroph, consume organic material, Cellular respiration#Aerobic respiration, breathe oxygen, are Motilit ...

and

plant health Plant health includes the protection of plants, as well as scientific and regulatory frameworks for controlling plant pests or pathogens. Plant health is concerned with: *Ecosystem health with a special focus on plants *Tree health *The control of ...

(phytosanitation) with respect to imported pests and diseases. There are 3 standards organizations who set standards that WTO members should base their SPS methodologies on. As provided for in Article 3, they are the

Codex Alimentarius Commission The Codex Alimentarius () is a collection of internationally recognized standards, codes of practice, guidelines, and other recommendations published by the Food and Agriculture Organization of the United Nations relating to food, food production ...

(Codex),

World Organization for Animal Health The World Organisation for Animal Health (WOAH), formerly the (OIE), is an intergovernmental organization coordinating, supporting and promoting animal disease control. Mission and status The main objective of the WOAH is to control epizoo ...

(OIE) and the Secretariat of the

International Plant Protection Convention The International Plant Protection Convention (IPPC) is a 1951 multilateral treaty overseen by the United Nations Food and Agriculture Organization that aims to secure coordinated, effective action to prevent and to control the introduction and ...

(IPPC). The SPS agreement is closely linked to the Agreement on Technical Barriers to Trade, which was signed in the same year and has similar goals. The TBT Emerged from the Tokyo Round of WTO negotiations and was negotiated with the aim of ensuring non-discrimination in the adoption and implementation of technical regulations and standards.

History and framework

GATT The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its prea ...

's preliminary focus had been lowering

tariff A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and poli ...

s, the framework that preceded the SPS Agreement was not adequately equipped to deal with the problems of

non-tariff barriers Non-tariff barriers to trade (NTBs; also called non-tariff measures, NTMs) are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. The Southern African Development ...

(NTBs) to trade and the need for an independent agreement addressing this became critical. The SPS Agreement is an ambitious attempt to deal with NTBs arising from cross-national differences in technical standards without diminishing governments prerogative to implement measures to guard against diseases and pests.

Main provisions

* Article 1 – General Provisions - Outlines the application of the Agreement. * Annex A.1 – Definition of SPS measures. * Article 2 – Basic Rights and Obligations. Article 2.2 - requires measures to be based on sufficient scientific analysis. Article 2.3 - states that Members shall ensure that their sanitary and phytosanitary measures do not arbitrarily or unjustifiably discriminate between Members where identical or similar conditions prevail, including between their own territory and that of other Members. Sanitary and phytosanitary measures shall not be applied in a manner which would constitute a disguised restriction on international trade. * Article 3 – Harmonization. Article 3.1- To harmonize sanitary and phytosanitary measures on as wide a basis as possible, Members shall base their sanitary or phytosanitary measures on international standards, guidelines or recommendations, where they exist, except as otherwise provided for in this Agreement, and in particular in paragraph 3. Article 3.3 – allows Members to implement SPS measures higher than if they were basing them on international standards where there is a scientific justification or the Member determines the measure to be appropriate in accordance with 5.1-5.8. * Annex A.3 – outlines the standard-setting bodies. * Article 5 – Risk Assessment and Determination of the Appropriate Level of SPS Protection. Article 5.1 - Members shall ensure that their sanitary or phytosanitary measures are based on an assessment, as appropriate to the circumstances, of the risks to human, animal or plant life or health, taking into account risk assessment techniques developed by the relevant international organizations. * Annex A.4 – outlines risk assessment process. * Article 5.5 - each Member shall avoid arbitrary or unjustifiable distinctions in the levels it considers to be appropriate in different situations, if such distinctions result in discrimination or a disguised restriction on international trade. Article 5.7– echoes the 'Precautionary Principle' where there is no science available with which to justify a measure.

Cases

Some of the most important WTO 'cases' regarding the implementation of SPS measures include: * EC – Hormones (

Beef Hormone Dispute The Beef Hormone Dispute is one of the most intractable agricultural controversies since the establishment of the World Trade Organization (WTO). It has sometimes been called the "beef war" in the media, similarly to the UK–EU Beef war over the ...

) (1998) * Japan – Agricultural Products (1999) * Australia – Salmon (1999) * Japan – Apples (2003)

Genetically modified organisms

In 2003, the United States challenged a number of EU laws restricting the importation of

Genetically Modified Organism A genetically modified organism (GMO) is any organism whose genetic material has been altered using genetic engineering techniques. The exact definition of a genetically modified organism and what constitutes genetic engineering varies, with ...

s (GMOs) in a dispute known as EC-Biotech, arguing they are "unjustifiable" and illegal under SPS agreement. In May 2006, the WTO's dispute resolution panel issued a complex ruling which took issue with some aspects of the EU's regulation of GMOs, but dismissed many of the claims made by the USA. A summary of the decision can be foun
here

Hormone-treated beef

Another prominent SPS case is the hormone-treated beef case. In 1996, the United States and Canada challenged before the

WTO Dispute Settlement Body The Dispute Settlement Body (DSB) of the World Trade Organization (WTO) makes decisions on trade disputes between governments that are adjudicated by the Organization. Its decisions generally match those of the Dispute Panel. Institutional stru ...

(DSB) a number of EU directives prohibiting the importation and sale of meat and meat products treated with certain

growth hormone Growth hormone (GH) or somatotropin, also known as human growth hormone (hGH or HGH) in its human form, is a peptide hormone that stimulates growth, cell reproduction, and cell regeneration in humans and other animals. It is thus important in h ...

s. The complainants alleged that the EU directives violated, among other things, several provisions of the SPS Agreement. The EU contended that the presence of the banned hormones in food may present a risk to consumers' health and that, as a consequence, the directives were justified under several WTO provisions authorizing the adoption of trade-restrictive measures that are necessary to protect human health. In 1997 and 1998, the WTO adjudicating bodies admitted USA and Canada claims and invited the EU to bring the directives into conformity with WTO law before end of May 1999. EU did not comply and the DSB authorized the US and Canada to take countermeasures against the EU. The countermeasures took the form of increased custom duties applied by the US and Canada on certain EU products, including the notorious

Roquefort Roquefort is a sheep milk cheese from Southern France, and is one of the world's best known blue cheeses. Though similar cheeses are produced elsewhere, EU law dictates that only those cheeses aged in the natural Combalou caves of Roquefort-sur ...

cheese. In 2004, while the ban on hormone-treated meat was still in place, the EU initiated before the DSB new proceedings seeking the lifting of the countermeasures applied by the US and Canada. EU alleged that it had collected new scientific data evidencing that the banned hormones may cause harm to consumers. According to the EU, the new scientific data provides sufficient ground for the ban on hormones, which may no more be sanctioned by the countermeasures imposed by the US and Canada. As of January 2007, the proceedings initiated by the EU were still pending.

Interaction with other World Trade Organization instruments

While Article 1.5 of the TBT precludes the inclusion of SPS measures from its ambit, in EC-Biotech, the panel recognised that situations could arise where a measure is only partly an SPS measure, and in those cases, the SPS part of the measure will be considered under the SPS Agreement. If a measure conforms with SPS, under Article 2.4 of the SPS Agreement, it is assumed that the measure falls within the scope of GATT, Article XX(b).

Criticism

Economic considerations

Trade in the products subject to SPS-type measures have the potential to result in significant economic gains for national economies. Favouring economic concerns over other important public health policy issues, however, is something that requires close scrutiny by governments and the international community. The SPS Agreement reflects the

precautionary principle The precautionary principle (or precautionary approach) is a broad epistemological, philosophical and legal approach to innovations with potential for causing harm when extensive scientific knowledge on the matter is lacking. It emphasizes caut ...

– a principle which allows them to act on the side of caution if there is no scientific certainty about potential threats to human health and the environment. Under Article 5.7 Members who enact provisional measures are obligated to seek further information on possible risks and review the measure 'within a reasonable period of time'. The Appellate Body in Japan– Measures Affecting Agricultural Products, stated that the length of a 'reasonable period of time' is to be assessed on a case-by-case basis. Under SPS rules, the burden of proof is on the complainant country to demonstrate that a measure violates Article 2.2 and Articles 5.1-5.8 before it can be regulated even though scientific evidence can never be conclusive and it is not possible to test for all health risks that could arise from importation of a certain product.

Impact on developing countries

It is important that the views of

developing countries A developing country is a sovereign state with a lesser developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreem ...

are incorporated into the standard-setting process as the effect of exporting countries enacting SPS measures can be damaging to developing economies. This is partly due to these states not possessing the technology and resources needed to readily comply with certain SPS requirements.

Impact of consumer pressure on adherence

Some commentators pose that the WTO's assumption that trade liberalisation enhances

consumer welfare Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level. Attempting to apply the principles of welfare economics gives rise to the field of public econ ...

, has resulted in the SPS Agreement being ill-equipped to deal with trade restrictions put in place by governments responding to protectionist pressure from consumers. This was most noticeable in the Beef Hormones Dispute where, although the science pointed to the relative safety of the

growth hormones Growth hormone (GH) or somatotropin, also known as human growth hormone (hGH or HGH) in its human form, is a peptide hormone that stimulates growth, cell reproduction, and cell regeneration in humans and other animals. It is thus important in ...

in question, European consumers pressured governments to ban the import of hormone-treated beef.Tracey Epps, 'Reconciling public opinion and WTO rules under the SPS Agreement' (2008) 7(2) World Trade Review, 359-392, 360

References

External links

*Text of the SPS Agreemen
html(1)docpdfwpf

Penn Program on Regulation's Import Safety Page
*Concerted Action on Trade & Environment (CAT&E
Technical barriers to trade, sanitary and phytosanitary standards and eco-labellingWorld Trade Organization and Health, Sanitary and Phytosanitary Measures: Selective Bibliography
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