agreement on sanitary and phtyo-sanitary meseaures

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    Workshop on WTOJuly 8th 2010

    Uttar Pradesh Academy of Administration & ManagementLucknow

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    Standards and Safety

    Article 20 of the General Agreement on Tariffs and Trade (GATT)allows governments to act on trade in order to protect human,

    animal or plant life or health, provided they do not discriminate or

    use this as disguised protectionism.

    In addition, there are two specific WTO agreements dealing with

    food safety and animal and plant health and safety, and with

    product standards in general.

    Both try to identify how to meet the need to apply standards and

    at the same time avoid protectionism in disguise.

    These issues are becoming more important as tariff barriers fall some compare this to seabed rocks appearing when the tide goes

    down.

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    Food, Animal and Plant Products: How Safe is Safe?

    A separate agreement on food safety and animal andplant health standards (the Sanitary and Phytosanitary

    Measures Agreement or SPS) sets out the basic rules.

    It allows countries to set their own standards. But it also

    says regulations must be based on science. They should be applied only to the extent necessary to

    protect human, animal or plant life or health.

    They should not arbitrarily or unjustifiably discriminate

    between countries where identical or similar conditionsprevail.

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    Why SPS

    Over US$ 600 billion agricultural products

    Over US$ 400 billion food trade per year

    About 500 million tons of food products

    About 75% is exported to and imported fromindustrialized countries

    More than 50% of fruits and vegetables, sugar,

    non-alcoholic beverages, fish and fishery productsare imported from developing countries

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    Expanded International Trade

    Results In movement of products that may pose health

    risks LIKE

    BSE Disease since 1997 resulted in massive cattle

    slaughter in the UK and severely affects Europeanexports of meat and cattle

    Imports of live poultry and poultry products from

    several Asian countries suspended due to severe

    outbreaks of the highly contagious Avian

    Influenza...

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    Agreement On The Application of Sanitary &

    Phytosanitary Measures (SPS)

    Came into force in 1995

    Negotiated in parallel with major

    agricultural trade negotiations

    Applies to all measures used to protect

    human, animal and plant life and health

    which may directly or indirectly affect

    trade

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    Definition of an SPS measure

    Human or animal life or health

    Risks arising from additives, contaminants, toxins ordisease causing organisms in their food & beverage

    Human life or health

    Diseases carried by Plant or animal

    Animal or plant life or health

    Pest diseases or disease-causing organisms

    A country

    Damage caused by the entry, establishment orspread of pest

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    Spcifications of SPS

    Animal includes wild fauna and fish

    Plants include forest and wild flora

    Parasites include weeds

    Contaminants include pesticide residues,

    veterinary drug residues and extraneous

    matter

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    Types of MeasuresEnd product criteria

    Process & production methods

    Testing, sampling and inspection

    Certification & approval procedures

    Risk assessment methods

    Quarantine treatments related totransportation

    Packaging & labeling requirements

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    Other Types of Measures

    Not Covered by SPS Agreement but

    may be TBT Measures

    Protectionof the

    environment

    Consumerinterests

    other than

    health

    Animalwelfare

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    Objectives of the SPS Agreement

    1

    To protect and improve the current human health,animal health and phytosanitary situation of allMember countries

    2

    To protect Members from arbitrary or unjustifiablediscrimination due to different sanitary andphytosanitary standards

    3

    To maintain the sovereign right of any Govt. toprovide an appropriate level of protection i.e. allowcountries to set their own standards for health andsafety

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    Rights & Obligations Members have the right to apply sanitary & phytosanitary

    measures (Article 2.1) So Countries have right to take SPSmeasures necessary for the protection of human, animalor plant life or health

    Obligations Members shall ensure that any sanitary or phytosanitary

    measure is applied only to the extent necessary for theprotection of human, animal & plant life or health (Article 2.2)To be applied only to the extent necessary

    National Treatment Shall not arbitrarily or unjustifiably discriminate between

    countries or act as disguised restriction on internationaltrade

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    Key Features

    ScientificJustification

    Article 5

    Harmonization

    Article 3

    EquivalenceArticle 4

    Disease-freeareas Article 6

    Technical

    assistanceArticle 9

    Transparency

    Article 7

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    Key Features.

    SPS measures to be based on scientific riskassessment

    Countries should base their SPS measures oninternational standards like Codex, OIE & IPPC

    Countries may have higher level of SPS measures butshall be based on scientific risk assessment

    Transparency - all proposed, new and changed

    measures are to be notified by members to the SPSCommittee of WTO Secretariat

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    Key Features..

    assessment of risks to human, animal or plant life orhealth, taking into account risk assessment techniquesdeveloped by international organizations.

    available scientific evidences; process and productionmethods; inspection & sampling methods; prevalence ofspecified disease or pests; existence of pests/disease-freeareas, etc

    relevant economic factors & cost effectiveness ofalternate approaches

    Avoid arbitrary/unjustifiable distinctions in the levels indifferent situations if these result in disguised restrictions

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    Key Features..

    To take provisional measures in case of insufficientscientific evidence

    Adaptation of SPS measures to regional conditions,including pest- or disease- free areas, differing climaticconditions & different pest or diseases or food safety

    conditions so as to lead to the development/imposition ofdifferent SPS requirements

    Members are required to notify all sanitary andphytosanitary regulations which are adopted or proposedto be adopted

    Notifications made in the event of non-existence of aninternational standard or where substantially differentfrom it or where there is a significant effect on trade

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    Key Features..

    Enquiry Points to be notified by each Member to

    disseminate information about existing andproposed SPS regulations, control and inspectionprocedures, quarantine treatment etc./ TBT

    standards, technical regulations & CAprocedures

    Provision of Emergency Notification

    Take account special needs of developing countrieswhen developing SPS measures

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    Problems Faced by India in Implementingthe SPS Provisions

    Participation in international standardising bodies

    Non representativeness of international standards

    Plethora of standardising bodies at the national and sub-national levels & lack of role clarity

    Absence of a national notification system

    A general lack of awareness

    Some aspects not very well developed traceability, riskassessment, R&D, residues, data

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    Difference Between SPS &TBT

    Regulation regarding fertilisersSPS if relating to residues in food or animal feed (objective

    protection of human/ animal health)

    TBT if related to quality or efficacy of the product or health

    risk to handlers

    Labelling requirements for foodsSPS if related to food safety

    TBT if the regulation concerns issues such as; positioning,

    letter size, nutrient content, grade, etc.

    Regulation regarding containers for the shipment of grains

    SPS if relating to fumigation or other treatment of these containers, i.e.,

    disinfection in order to prevent the spread of disease, whereas under

    TBT if the regulation regards the size or structure of the containers

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    Nodal Ministry

    Ministry of Commerce (Trade Policy Division)

    Enquiry Points

    SPS - Plant Protection Division (Deptt. of Agri. &

    Coop.), Ministry Of Health, Ministry of CommerceTBT - Bureau of Indian Standards

    TBT and SPS Portals (Centre for WTO Studies)TBT:-

    http://cc.iift.ac.in/tbt/index.asp

    SPS:- http://cc.iift.ac.in/sps/index.asp

    http://cc.iift.ac.in/tbt/index.asphttp://cc.iift.ac.in/sps/index.asphttp://cc.iift.ac.in/sps/index.asphttp://cc.iift.ac.in/tbt/index.asp
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    Main Government Agencies

    Directorate General of Health Services - PFA (1955)

    Export Inspection Council - Export Inspection & Quality

    Control Act

    Bureau of Indian Standards - Food & AgricultureDepartment

    Department of Animal Husbandry & Directorate of Plant

    Protection, Ministry of Agriculture, Dairying & Fisheries

    Ministry of Food Processing Industries - Food ProductsOrder 1955, Integrated Food Law

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    Relevant Legislations

    Directorate General of Health Services - PFA (1955)

    Export Inspection Council - Export Inspection & Quality

    Control Act

    Bureau of Indian Standards - Food & AgricultureDepartment

    Department of Animal Husbandry & Directorate of Plant

    Protection, Ministry of Agriculture, Dairying & Fisheries

    Ministry of Food Processing Industries - Food ProductsOrder 1955, Integrated Food Law

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    Relevant Legislations and Institutional Set-up

    Insecticide Act Milk and Milk Product Control Order (MMPO)

    Meat Food Product Order 1973

    Ministry ofAgriculture

    Directorate of Marketing and Inspection (DMI)

    Agricultural Produce (Grading and Marking) Act

    Ministry of Rural

    Development

    Prevention of Food Adulteration Act 1954

    Fruits & Vegetable Products (Control) OrderFPO 1955 Ministry of Health & Family Welfare

    Ministry of Food

    Processing

    Industries

    Export (Quality Control & Inspections) Act1963

    Ministry ofCommerce

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    Relevant Legislations and Institutional Set-up

    Standards of Weights & Measures Act

    Standards of Weights & Measures (Enforcement) Act

    Solvent Extracted Oils, De-oiled Meal and Edible FlourControl Order, 1967

    Vegetable Products Control Order, 1976

    Bureau of Indian Standards (BIS) Act 1986

    Ministry of CivilSupplies,

    Consumer Affairsand Public

    Distribution

    Aquaculture Authority Notification 1997 & 2002

    Environment (Protection) Act 1986, Environment

    (Protection) Third Amendment Rules, 2002 Coastal Regulation Zone Notification 21 May 2002

    Aquaculture Authority - Notification

    Ministry of

    Environment andForests

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    Life after WTO

    Increased Relevance of International Standards Need to harmonize avoid duplication & multiplicity ROLE

    CLARITY

    Countries implementing strong import controls (USA, EC, Canada,Australia, Japan etc)

    Conformance to Int/ importing country requirements Provision for recognition of export control & certification systems as

    equivalent

    Equivalence Agreements MoUs/MRAs

    Legislative framework

    Infrastructural facilities - Labs, inspection/certification bodies

    RENEWED RELEVANCE TO EXPORT CERTIFICATION OF EIC

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    Problem Faced by India

    Peanuts,other nuts and milk- Level of aflatoxin presence

    Mangoes and Grapes- presence of certain flies

    Coffee- level of Ochratoxin

    Bone and Bone Products- non-grant of TSE free status

    Cereals and Cereal Products-presence of impurities

    Tobacco- level of DDT residue

    Pesticides residue problem in various products such as EggProducts, grapes,gherkins, honey, meat and milk products

    and tea and spices

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    Problem Faced by India

    Language barrier eg health certificates in Spanish- NTB

    Regulatory Measures eg milk products

    Voluntary Standards ISO 9000/ ISO 14000 restricts market access tillcountry upgrades, also cost of impln

    SA 8000 Social Accountability deals with working conditions, better Q

    of life, other socioeco issues importing country limiting imports Rapid Alert System No systematic approach- hundreds of consignments

    over 2 years

    Turtle extruder device

    CE Marking Absence of designated CA Bodies in India cost increasing

    due to foreign certifn & testing No information on specification, methods of sampling, inspection & test-

    chance to comment, familiarize (eg bacterial inhibitors, vibrio)

    New regulations implemented without sufficient notice period

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    Standard-setting bodies The Three Sisters

    Food safety

    CODEX

    Animal health

    OIE

    Plant health

    IPPC

    Joint FAO/WHO Codex Alimentarius CommissionCodex

    Office International des Epizooties

    OIE International Plant Protection Convention (FAO)IPPC

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    Economic Impact Of some SPS Measures

    Some developed importing countries fixing standardwithout risk assessment eg vibrio parahaemoliticus

    Inspite of repeated requests risk evaluation not

    made available Some countries stressing on infrastructural

    aspects eg milking machines, flake icemachines; primary production etc

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    Potential problems

    Lack of transparency

    Complexity of SPS standards

    Threshold limits

    Standard takers instead of Standard Setters

    Relevance of the standard to the production

    conditions of the exporting countries

    Domestic Regulatory Problems

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    Strategy for future

    Upgradation of level of standards within India

    Building-up scientific evidence to counter unreasonable SPS

    Measures

    Exporters/EPCs should examine WTO-compatibility of

    health and sanitary regulations/product standards

    Close co-ordination between Government and Exporters

    regarding specific cases.

    Need for framing of standards for manufacture, productionunits/processes, monitoring contaminants, sampling

    procedures and additives

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    Strategy for future -Conformity Assessment Issues

    Test methods varying from international standards

    high sensitivitybased on capability not risk (eg chloramphenicol,

    aflatoxin)

    non-validated (NorwayVibrio cholerae)

    Different standards in different labs Results in increase in rejections

    Solution joint testing, acceptance of certification of

    exporting country & not retesting

    Article 5 provides SPS measures to be based on riskassessmentand if requested by exporting countrymake

    known details of assessment

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    Thank You

    [email protected]

    (+91) 94151 18971