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World Trade Organization Activities on Technical Barriers to Trade. Paulo Ferracioli. GATT / WTO negotiations on TBT. GATT (1947): 23 countries Brazil, Canada, Chile, Cuba and USA Tokyo Round (1973 - 79): 102 countries Standards Code: 47 countries Uruguay Round (1986 - 94): 123 countries
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World Trade Organization Activities on Technical Barriers to Trade Paulo Ferracioli
GATT / WTO negotiations on TBT GATT (1947): 23 countries Brazil, Canada, Chile, Cuba and USA Tokyo Round (1973 - 79): 102 countries Standards Code: 47 countries Uruguay Round (1986 - 94): 123 countries WTO’s creation TBT Agreement mandatory for all members
TBT Agreement Objective: to ensure that technical regulations and standards, including packaging, marking and labeling requirements, and procedures for assessment of conformity with technical regulations and standards do not create unnecessary obstacles to international trade.
WTO’s principles in the TBT Agreement Most Favoured Nation Clause National Treatment Clause
The Committee on Technical Barriers to Trade Consultations on any matters relating to the operation of the TBT Agreement. Triennial Review of TBT Agreement
Legitimate Objectives Protection of human health or safety Protection of animal or plant life or health Protection of the environment Prevention of deceptive practices National security requirements
Technical regulations and international standards Members shall use relevant international standards as basis for their regulation International Standardizing Bodies are not nominated ISO, Codex Alimentarius and ITU are accepted
Principles for the development of international standards Transparency Membership open to the bodies at least of all WTO members Impartiality and consensus, Effectiveness and relevance (market needs) Coherence Address the concerns of developing countries.
“Trade Description of Sardines” Peru challenged a regulation of the EC on the labeling of products prepared from sardines Third Parties: Canada, Chile, Ecuador, US, and Venezuela Sardina Pilchardus: Eastern North Atlantic, Mediterranean, Black Sea Sardinops sagax: coasts of Peru and Chile Codex Stan 94: a list of 21 species may be used
Transparency Enquiry Points: to answer reasonable questions The Notification Mechanism: new technical regulations and conformity assessment procedures
Performance X Characteristics Requirements in terms of performance rather than design or descriptive characteristics Production and Process Methods (PPM) questions
Labeling and TBT Labeling requirements must consider the TBT provisions. Developing countries and labeling. Discussions in the TBT Committee. A seminar next year?
Labeling and Metrology Metrology is not explicit in the TBT. Labeling requirements is a threat to developing countries without metrological infrastructure.
Mutual Recognition Arrangements Acceptance of the results of conformity assessment procedures Accreditation IAF, ILAC, EA, IAAC etc. The CIPM MRA
Technical Assistance TBT: assistance to reduce asymmetry among members. Doha Declaration: many references on technical assistance.
Technical Barriers to Trade Negotiations in the FTAA
I Summit of the AmericasMiami / December of 1994 Principles To preserve and strengthen the community of democracies of the Americas; To promote prosperity through economic integration and free trade; To eradicate poverty and discrimination in our hemisphere; To guarantee sustainable development and conserve our natural environment for future generations.
I Trade Ministerial MeetingDenver (June 1995) WG1 - Market Access WG 2 - Customs Procedures and Rules of Origin WG 3 - Investment WG 4 - Standards and Technical Barriers to Trade Establishment of Working Groups: WG 5 - Sanitary and Phytosanitary Measures WG 6 - Subsidies, Antidumping and Countervailing Duties WG 7 - Smaller Economies
WG 4 - Standards and Technical Barriers to Trade Chairman: Mr. Claude Carrière (Canada). Promote discussions on the issue. Develop proposals on mutual accreditation of testing facilities. Prepare an inventory of standards and related measures.
IV Trade Ministerial MeetingSan Jose (March 1998) The FTAA negotiations were formally launched. Settled the structure and organisation of the negotiations. Negotiators should consider the differences in the levels of development and size of the economies in the Americas.
Themes Chair Vice-chair Colombia Market Access Argentina Bolivia Investments Mexico Venezuela Services CARICOM Colombia Government Procurement Costa Rica Chile Dispute Settlement Paraguay Agriculture Guatemala Uruguay Intellectual Property United States Dominican Republic Rights Subsidies, Antidumping and Peru CARICOM Countervailing Duties Competition Policy Colombia Peru Negotiation Groups
FTAA TBT Negotiations New Phase Functions of the WG 4 were absorbed by The Market Access Negotiation Group. Two positions on dispute: 1- Only reaffirm the obligations under TBT Agreement of WTO 2 - Establishment of a specific chapter on technical barriers to trade
“Chapter” on TBT Negotiations The “Chapter”of Technical Barriers to Trade is in its revision 9. This proposed chapter should cover: Metrology, Standards, Technical Regulations, Conformity Assessment, Mutual Recognition, Technical Co-operation and information Systems.
Questions on the Chapter Should the chapter repeat or not WTO/TBT words? Would it cause “forum shopping”? Should the chapter make explicit reference to SIM and define what should be its role?
VII Trade Ministerial Meeting Quito (November 2002) Private sector of some countries will propose the creation of a specific negotiation group to discuss technical barriers to trade. New recommendations on the negotiation process are expected.