Sanitary and phyto-sanitary and technical standards in the KORUS FTA and WTO

Preview Purpose of sanitary and phyto-sanitary and technical standards Scope of sanitary and phyto-sanitary (SPS) and technical standards Problems of adhering to the agreed standards 1-2

Purpose of sanitary and phyto-sanitary (SPS) and technical standards Sanitary and phyto-sanitary (SPS) standards are applied to imported and domestically produced to reduce the effects from pests and diseases: human welfare or human health and safety: protect humans from pests and diseases animal welfare: protect plants and animals from pests and diseases economic welfare: protect countries from the economic cost of pest or diseases

Purpose of sanitary and phyto-sanitary (SPS) and technical standards More generally, sanitary and phyto-sanitary (SPS) and technical standards are applied to imported and domestically produced to maintain safe and sanitary products, particularly food consumer protection more generally environment protection, particularly by agricultural practices designed to minimize pollution occupational health, safety and welfare for various industries, particularly the food industry animal welfare, particularly in agriculture

Scope of sanitary and phyto-sanitary (SPS) and technical standards Under the WTO, the scope of various sanitary and phyto-sanitary and technical standards are covered in Article 20 of the General Agreement on Tariffs and Trade, agreed to in 1947 Technical Barriers to Trade (TBT) Agreement , agreed to in 1979 The Sanitary and Phyto-Sanitary (SPS) Agreement, agreed to in 1994 See http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm4_e.htm

Scope of sanitary and phyto-sanitary (SPS) and technical standards Under the Korea-US FTA, agreed to in 2012, definitions and scope of various aspects of sanitary and phyto-sanitary measures are covered in Article 8: Sanitary and Phyto-sanitary Measures Article 9: Technical Barriers to Trade

Scope of sanitary and phyto-sanitary (SPS) and technical standards Under these agreements, countries generally agree to use international standards or regulations when appropriate to use scientific standards and scientific assessment of risk not to unjustifiably discriminate between members when conditions are similar in member countries not to apply measures that are disguised trade restrictions to maintain a government information/inquiry body to inform members and the WTO in advance about changes in standards

Scope of sanitary and phyto-sanitary (SPS) and technical standards In sum, SPS and technical standards should address sanitary/health, other consumer, environmental, worker, animal or other hazards be consistent with international standards, whenever appropriate be based on rules (not arbitrary), and be especially based on scientific rules be non-discriminatory: conform to national treatment clause consider the welfare of consumers and producers/sellers (including workers)

Problems of adherence Even though the WTO and KORUS FTA have been voluntarily agreed to by member countries, problems of adhering to the agreed standards remain:

Problems of adherence Countries in the WTO sometimes have problems adhering to the agreements because they: lack the means to scientifically measure risk or hazards have difficulty conforming to international standards because of cost. The problem is even worse when scientific standards and risk analysis need to be updated over time. US or Korea can also experience these problems under the KORUS FTA.

Problems of adherence SPS or technical standards could be used to restrict imports through unjustified (that is, non-scientific) or discriminatory regulations. costly and time-consuming tests. The problem increases when inspectors are inept, politically influenced or corrupt.

Problems of adherence Multiple bodies with overlapping jurisdictions are involved in inspection, sometimes resulting in multiple inspections and no single body overseeing food production from start to finish. There are often no international accreditation for food safety/sanitary standards.

Problems of adherence To reduce problems 2. and 3. (and possibly 1.), the WTO encourages, but does not require, the principle of “equivalency”: trading partners should try to adopt similar or equivalent standards and inspection procedures and accept the inspection procedures of other countries, whenever appropriate. For example, food can be inspected when it is exported or imported, but inspecting it two times may not be required.

Problems of adherence Standards sometimes do not distinguish between safety and quality, and quality standards can also be a hidden barrier of trade. For example, “poor” quality food is often cheap food, and consumers should be able to choose to buy it unless it is unsafe/unsanitary.

Summary SPS and technical standards try to address various sanitary/health, other consumer, environmental, worker, animal or other hazards. Countries agree to try to make these standards consistent with international standards, whenever appropriate. based on scientific rules instead of arbitrarily applying them. non-discriminatory and not to treat domestic products/production more favorably than imports.

Summary Countries also try to adopt equivalent inspection procedures and try to accept the inspection procedures of other countries, when appropriate. But even though countries agree to implement the principles, they may lack the resources necessary to assess risk scientifically or to make standards consistent with the latest international standards.