1. Regulating goods and the WTO
Erik Wijkström Counsellor, Trade and Environment Division World Trade Organization (WTO) Geneva, Switzerland

2. Why is regulation becoming more important?
Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
Why is regulation becoming more important?
The right to regulate remains, even under freer trade
The “how” is important, much can be learnt from both Agreement and a dynamic committee work

3. And what is the consequence? = Coherence become crucial!
Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
WTO - World Trade Report 2014, p118

4. 9%
Average applied tariff, WTO Members in 2013

5. Tariffs have declined significantly.

6. But also trade patters have changed …

7. …..to market More specialization!
Country / company: A, B, …
WTO Trade Facilitation Agreement (agreed in Bali 2013). Report just out.
Multilateral cooperation
Standard-setting / harmonization
Trade costs high in d-ing countries …

8. = production is more fragmented

9. Another way to say it: deeper integration 

10. Compatibility, inter-operability

11.  More focus on “behind the border” measures

12. Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
In sum: tariffs are declining, production is more fragmented and deeper integration is on the rise, this puts increasing focus on regulations (and regulation is not declining).

13. The right to regulate remains, even under freer trade
Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
The right to regulate remains, even under freer trade

14. Non-tariff measures (NTMs, NTBs)
neutral term! (NTMs are not necessarily bad!)
Non-tariff measures (NTMs, NTBs)
(including standards)

15. NTMs are allowed! (and there may me many reasons …)

16. Information to consumer: fresh or frozen? (TBT)
Food safety (SPS)
Information to consumer: fresh or frozen? (TBT)

17. Protecting environment (dolphins), informing the consumer (TBT)

18. Nutritional labelling (not safety) = TBT

19. In the last three years, 27 per cent of trade issues discussed in the TBT Committee are related to NCDs.
Some specifics.
1) Legitimate objective: all agree …– there is agreement on objective, of course!
2) Disagreement lies in the detail: How far to go? Scientific basis? What is effective what is not? (alcohol labelling a good example)
3) Labelling is common - not surprising – and a good example (Thai – Alcohol labelling) – also packaging
4) Content, naming, definitions … (transfat, processed, reformulated)

20. 1
Legitimate objective

22. TBT
SPS

23. Food safety, animal plant life or health = SPS
The rest (including environment, safety and health) = TBT

24. All products are covered!

25. Does it make a difference?
TBT
SPS
Open
“Relevant” ISBs
Factors other than science also
Closed: food safety, animal plant life or health
Codex, OIE and IPPC
Science!

26. Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
In sum: You have the right to regulate – WTO rules are not about removing barriers to trade, they are about disciplining how you regulate so as to avoid unnecessary trade trade friction.

27. Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
The “how” is important, much can be learnt from both Agreement and a dynamic committee work

28. Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
right
obligation

29. Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
First: you don’t necessarily need to regulate (even if you have the right) – there are voluntary and mandatory measures

30. Measures Voluntary Mandatory Market
Technical Regulations
Standards
Conformity Assessment Procedures
Market

31. Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
So to repeat: an important first question is if there is a need to regulate. That is a decision that you, regulators (government), must take – not WTO.

32. Once that decision has been taken, the rules apply
Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
Once that decision has been taken, the rules apply

33. 2
Non-discrimination

34. Most-favoured nation (MFN) treatment and national treatment (NT)

35. Can you label “fresh” if defrosted?

36. Treating “characterizing flavours” differently

37. MFN and NT: “Like products” – same treatment
(this is a simplification)

38. Avoidance of unnecessary obstacles to international trade3
Avoidance of unnecessary obstacles to international trade

39. allowing Members to fulfill legitimate objectives
at levels they consider appropriate
avoiding unnecessary barriers to international trade

42. Holistic weighing and balancing
1) Degree of contribution 2) Trade restrictiveness 3) nature of the risks / gravity of the consequences 4) alternatives (assessment)
Holistic weighing and balancing

43. Necessary
Unnecessary

44. Necessary
Unnecessary

45. Unnecessary
Necessary

46. allowing for regulatory autonomy to protect legitimate interests
avoiding unnecessary obstacles to international trade
use of international standards

47. The use of international standards4
The use of international standards
“harmonization”
= ≈

48. = ≈
Which ones?

49. = ≈
SPS
Does anyone know the difference between the TBT and SPS agreement with respect to harmonization of standards?? SPS names standards from three bodies as relevant for the purposes of the agreement.
IPPC – International Plant Protection Convention
OIE – World Organization for Animal Health
WHO/FAO codex alimentarius commission
ISO: The text is approved as an International Standard if a two-thirds majority of the P-members of the TC/SC is in favour and not more than one-quarter of the total number of votes cast are negative.

50. = ≈
EC – Sardines
Sardina Pilchardus
Sardinops Sagax

51. = ≈ EC: Peru: Sardina pilchardus Sardinops sagax
… only Sardina pilchardus may be marketed as preserved sardines in EC (Article 2)
Sardinops sagax
Peru:
WTO
Slide 51

52. 5
Transparency

53. Timeline

54. 1 2 3 4
= ≈ 5

55. WTO rules to not remove the right to regulate!
Why do I show this? To make the point that regulation, standards – is becoming more central in trade policy. There are several contributing reasons for this …
New trade patters today. Production is more fragmented. Globalized manufacturing, integrated supply chains. All this makes “putting the pieces together” more important – more emphasis on regulation, avoding unnecessary trade costs (TFA). …
Deeper. Integration is deeper (in RTAs). In trade policy, “deeper integration” (among groups of Members) is on the rise and with it comes a greater focus on “behind the border” measures where standards and regulations figure prominently. Chapters on TBT. Level of detail is going up.
And what is the consequence? = Coherence become crucial!
1) Good regulation = GRP
2) Good standard-setting practices = CGP
3) Cooperation, between trade and health community is essential  Coherence
Where to start?
Articulating the synergies and the risks will help governments promote the complementary objectives of health and trade policies. NCDs are a serious global challenge facing all governments worldwide. For health and trade policies to be coherent more cooperation is needed between regulators, both from health and trade ministries and with their international counterparts.
Food labelling next? 2016 – sector-specific discussion. There are signs that governments are willing to cooperate more: for 2016, Members in the TBT Committee have agreed to start a process of "regulatory cooperation", including on specific sectors, where regulation is emerging and new.
Regulation is becoming more important (tariffs down, trade patters changing, deeper integration). Here is where trade policy is going to focus.
WTO rules to not remove the right to regulate!
The rules are about fairness, necessity, transparency, use of international standards: taking these into account will make regulation more effective and less likely to cause friction.

56. Thank you!