Agriculture food and safety
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Technical Barriers to Trade Agreement
Technical Barriers to Trade Agreement The Technical Barriers to Trade Agreement aims to ensure that regulations standards testing and certification procedures followed by WTO members do not create unnecessary obstacles to trade. Annual Review of TBT Agreement The WTO Committee on Technical Barriers to Trade collects data on an annual basis on the implementation of the TBT Agreement. The information in this brochure is based on the 2022 review.
Implementing the WTO agreement on fisheries subsidies
The WTO Agreement on Fisheries Subsidies adopted at the 12th Ministerial Conference marks a major step forward for ocean sustainability by prohibiting harmful fisheries subsidies which are a key factor in the widespread depredation of the world’s fish stocks. Implementing the new disciplines will present challenges for many developing country members especially least-developed countries. The objective of this report is to examine existing bilateral and multilateral assistance in support of sustainable fisheries including how this may help countries meet obligations under the new Agreement.
Sanitary and Phytosanitary Measures Agreement
A new booklet launched on 27 July highlights strong engagement from WTO members at all levels of development in transparency and prevention of trade disputes. The information contained in the booklet is based on the 2020 review of members’ implementation of the Agreement on the Application of Sanitary and Phytosanitary Measures (the “SPS Agreement”).
Canada - Measures Governing the Sale of Wine
On 25 May 2021 the WTO circulated the panel report in the case brought by Australia in “Canada — Measures Governing the Sale of Wine” (DS537).
“Agricultural Products” and “Fishery Products” in the GATT and WTO
The WTO Agreement on Agriculture applies to those “agricultural products” as defined in its Annex 1. This definition expressly excludes “fish and fish products” from the scope of application of the Agreement. In light of this exclusion the paper is intended to provide a historical account of the relationship between agricultural products and fishery products in the context of the negotiations leading to and during the GATT period up to the conclusion of the Uruguay Round and some of its implications for WTO negotiations.
Illicit Trade and Infectious Diseases
We collect a novel dataset that covers about 130 countries and the six four-digit live animal categories in the Harmonized System (HS) over a sixteen-year period to study the link between illicit trade in live animals and threat to animal health from infectious diseases.
Indonesia - Measures Concerning the Importation of Chicken Meat and Chicken Products
On 10 November 2020 the WTO circulated the compliance panel report in the case brought by Brazil in “Indonesia — Measures Concerning the Importation of Chicken Meat and Chicken Products” (DS484).
Future Resilience to Diseases of Animal Origin
The WTO Secretariat has published a new information note about trade issues associated with the spread of diseases of animal origin. The note maps out the international framework in place to address these issues along with ongoing efforts to ensure safe trade in animals and animal products including in wildlife.
COVID-19 and Agriculture
The WTO Secretariat has published a new information note examining the impact of the COVID-19 pandemic on world agricultural trade. The paper notes that agricultural trade has fared better than other sectors and that initial measures focused on guaranteeing the immediate availability of food have been followed by a second phase of policies seeking to mend broken supply chains and help producers to cope with the “new normal” situation.
Standards, Regulations and COVID-19
Mainly affecting trade in medical products and food such standards and regulatory measures typically account for two-thirds of the notifications members submit to the WTO in line with obligations under the Agreement on Technical Barriers to Trade (TBT) and the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS). These agreements set out disciplines for standards and regulatory measures used to protect human animal and plant life and health the environment and product safety. The paper notes that most of the COVID-related notifications were submitted under the emergency/urgent notification provisions in the two agreements in response to the pressing health problems posed by the pandemic. The notifications mainly concern trade in personal protective equipment food live animals medical equipment and medicines. The notified measures fall under four main categories: streamlining certification procedures; ensuring safe medical goods; making food available by relaxing technical regulations; and addressing COVID-19 risks from international trade in live animals.
The WTO's TPR Coverage of SPS Systems in Sub-Saharan Africa
The main purpose of the paper is to present the coverage of SPS systems in SSA countries by TPR reports and their main findings. It also opens the discussion as to whether the SPS analytical framework in TPR reports has been sufficiently comprehensive and beneficial in guiding technical assistance (TPR follow-up) activities in SSA. At the outset we briefly present the strategic importance of agriculture in SSA countries with a description of the link between an effective SPS regulatory system and the performance of agriculture.
China - Domestic Support for Agricultural Producers
On 28 February 2019 the WTO circulated the panel report in the case brought by the United States in “China — Domestic Support for Agricultural Producers” (DS511)
The Benefits Of Taking Part
Part I described the system of food standards and trade rules created by members for members. With such a system in place what is then required to keep it working and fit for purpose? And how can members take advantage of the benefits it has to offer?
A Dynamic System
Methods of production and processing as well as the paths that food travels along from farm to fork are continuously evolving. The standards world must be ready to adjust to ensure that food trade can continue to flow smoothly. Stakeholders will need to be prepared able to pick up the signals that change is taking place and to steer their national frameworks accordingly.
Executive summary
This publication explains how international food safety standards are set through the Joint Food and Agriculture Organization of the United Nations and World Health Organization (FAO/WHO) Food Standards Programme – the Codex Alimentarius Commission – and how these standards are applied in the context of the World Trade Organization (WTO) Agreements on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and on Technical Barriers to Trade (TBT Agreement).
Introduction
The annual value of trade in agricultural products has grown almost three-fold over the past decade largely in emerging economies and developing countries reaching USD 1.7 trillion. Over the past two decades the reduction in tariffs through global and regional trade agreements has provided greater opportunities for the expansion of global food trade. However in order to trade internationally and access markets for high-value products producers must be able to meet food standards. Governments apply food standards to ensure that food is safe and meets quality and labelling requirements. The use of international food standards worldwide helps reduce trade costs by making trade more transparent and efficient allowing food to move more smoothly between markets.
The Institutional Framework
Trade can be more complicated than we think. What happens when two countries define the same product differently or if they set out different criteria to check that a product is safe? Let us think for example of the inconvenience as a traveller in havin 15 different types of electrical outlet plugs in the world or the enormous infrastructure investment required for train cargo and passengers to travel across the border between two countries that have different track gauge. Then consider the benefits of being able to plug in and use a USB key with any computer worldwide or the advantages of standard cables standard operating systems or the standard size of a credit card.
Acknowledgements
This publication Trade and Food Standards has been jointly prepared by the Food and Agriculture Organization of the United Nations (FAO) and the World Trade Organization (WTO).
Trade and Food Standards
Co-published by the World Trade Organization (WTO) and the Food and Agriculture Organization (FAO)
Foreword
Trade in food is difficult to imagine without standards. Food standards give confidence to consumers in the safety quality and authenticity of what they eat. By setting down a common understanding on different aspects of food for consumers producers and governments standards enable trade to take place. If every government applies different food standards trade is more costly and it is more difficult to ensure that food is safe and meets consumers' expectations.
Indonesia - Importation of Horticultural Products, Animals and Animal Products
On 9 November 2017 the WTO Appellate Body issued its report in the cases brought by New Zealand and the United States in “Indonesia - Importation of Horticultural Products Animals and Animal Products”.
United States - Anti-Dumping and Countervailing Measures on Large Residential Washers from Korea
On 13 April 2017 an Arbitrator issued her Award regarding the “reasonable period of time” for implementing the recommendations and rulings of the Dispute Settlement Body (DSB) in the dispute “United States — Anti-dumping and Countervailing Measures on large residential washers from Korea” (WT/DS464). The Arbitrator determined that the “reasonable period of time” for the United States to implement the DSB’s recommendations and rulings in this dispute is 15 months from the adoption of the panel and Appellate Body Reports in this dispute. The reasonable period of time will thus expire on 26 December 2017.
Russian Federation - Measures on the Importation of Live Pigs, Pork and other Pig Products from the European Union
On 23 February 2017 the WTO Appellate Body issued its report in the case “Russian Federation - Measures on the Importation of Live Pigs Pork and Other Pig Products from the European Union”.
Indonesia - Importation of Horticultural Products, Animals and Animal Products
On 8 May 2014 New Zealand requested consultations with Indonesia concerning certain measures it imposes on the importation of horticultural products animals and animal products. New Zealand claims that the measures are inconsistent with: - Articles III:4 X:1 and XI:1 of the GATT 1994; - Article 4.2 of the Agreement on Agriculture; - Articles 1.2 1.5 1.6 2.2 3.2 3.3 5.1 and 5.2 of the Import Licensing Agreement; and - Articles 2.1 and 2.15 of the Agreement on Preshipment Inspection.
Russian Federation - Measures on the Importation of Live Pigs, Pork and other Pig Products from the European Union
On 8 April 2014 the European Union requested consultations with the Russian Federation concerning certain measures adopted by the Russian Federation affecting the importation of live pigs and their genetic material pork pork products and certain other commodities from the European Union purportedly because of concerns related to cases of African swine fever. The European Union claims that the measures at issue are inconsistent with: - Articles 2.2 2.3 3.1 3.2 3.3 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6.1 6.2 6.3 7 8 Annex B and Annex C of the SPS Agreement; and - Articles I:1 III:4 and XI:1 of the GATT 1994.
Legal texts on agriculture
Having decided to establish a basis for initiating a process of reform of trade in agriculture in line with the objectives of the negotiations as set out in the Punta del Este Declaration.
Introduction
The WTO Agreement on Agriculture entered into force when the World Trade Organization (WTO) came into being on 1 January 1995. Its main objective is to reform agricultural trade so that it is closer to competitive market conditions — but also to serve other objectives.
Agriculture Agreement
Historically governments have intervened in the agriculture sector more than in other sectors. Agriculture was always covered by the General Agreement on Tariffs and Trade which entered into force in 1948. But numerous exemptions meant agricultural trade escaped most of the disciplines that applied more generally to trade in industrial products. The result was the widespread use of measures that obstructed imports — import bans limits on quantities that could be imported (quotas) high import duties import duties whose rates varied and so created market uncertainty minimum import prices and various impediments not related to tariffs such as regulations and the activities of state trading enterprises. Major agricultural products such as cereals meat dairy sugar and a range of fruits and vegetables faced trade barriers on a scale unseen in the rest of merchandise trade.
The WTO Agreements Series: Agriculture, 3nd Edition (2016)
This new edition provides an introduction to the WTO’s Agreement on Agriculture outlining its key principles the work of the Agriculture Committee and how disputes have interpreted WTO law on agriculture. The publication includes the full text of the Agriculture Agreement as well as the decisions taken on agriculture at the 2013 Bali Ministerial Conference. A frequently asked questions section provides a handy overview of the Agriculture Agreement and the issues covered by it. The publication also provides an update on agriculture negotiations at the WTO. This publication forms part of the WTO Agreements Series a set of compact booklets on selected WTO agreements. Other publications in the series include Sanitary and Phytosanitary Measures and Technical Barriers to Trade.
Frequently asked questions
Agriculture is important but trade is distorted by subsidies and protectionism — hurting producers (and some consumers) who are not supported or protected. The 1994 agreement is a first step in the effort to reduce the distortion.
United States - Certain Country of Origin Labelling (Cool) Requirements
On 07 December 2015 the WTO issued the dispute panel reports in the case "United States - Certain country of origin labelling (cool) requirements".
Sanitary and Phytosanitary Measures
Agricultural products worth over US$ 1765 billion were traded in 2013. WTO rules help to ensure that these products are traded safely and that health protection measures are not used as an excuse for protecting domestic producers. This brochure produced to mark the WTO’s 20th anniversary looks into the key provisions of the Agreement and the work of the SPS Committee.
Peru - Additional Duty on Imports of Certain Agricultural Products
On 12 April 2013 Guatemala requested consultations with Peru with respect to the imposition by Peru of an “additional duty” on imports of certain agricultural products such as rice sugar maize milk and certain dairy products. Guatemala claims that the measure at issue is inconsistent with: - Article 4.2 and footnote 1 of the Agreement on Agriculture; - Articles II:1(a) II:1(b) X:1 X:3(a) XI and XI:1 of the GATT 1994; and - Articles 1 2 3 5 6 and 7 of the Customs Valuation Agreement.
India - Measures Concerning the Importation of Certain Agricultural Products
On 6 March 2012 the United States requested consultations with India with respect to the prohibitions imposed by India on the importation of various agricultural products from the United States purportedly because of concerns related to Avian Influenza. The measures at issue are: the Indian Livestock Importation Act 1898 (9 of 1898) ("Livestock Act"); a number of orders issued by India's Department of Animal Husbandry Dairying and Fisheries pursuant to the Livestock Act most recently S.O. 1663(E); as well as any amendments related measures or implementing measures.
United States - Certain Country of Origin Labelling (Cool) Requirements - Recourse 1
On 1 December 2008 Canada requested consultations with the United States concerning certain mandatory country of origin labelling (COOL) provisions in the Agricultural Marketing Act of 1946 as amended by the 2008 Farm Bill and as implemented through an Interim Final Rule of 28 July 2008. These include the obligation to inform consumers at the retail level of the country of origin in respect of covered commodities including beef and pork. The eligibility for a designation of a covered commodity as exclusively having a US origin can only be derived from an animal that was exclusively born raised and slaughtered in the United States. This would exclude such a designation in respect of beef or pork derived from livestock that is exported to the United States for feed or immediate slaughter.
Agricultural Trade and Development
The system of global agricultural and food trade is undergoing rapid processes of change with important implications for economic development. In this paper we document and discuss these changes; including the rapid growth and structural change in agri-food trade the increased consolidation in food supply chains the proliferation of public and private food standards high and volatile food prices and increased vertical coordination in the chains. We investigate what the implications are of these changes for developing countries for their participation in international agricultural trade as well as for economic development income mobility and poverty reduction in rural areas.
Argentina - Measures Affecting the Importation of Goods
On 21 August 2012 Japan requested consultations with Argentina concerning certain measures imposed by Argentina on the importation of goods. Japan challenges: (i) the requirement to present for approval of a non-automatic import licence: Declaración Jurada Anticipada de Importación (DJAI); (ii) non-automatic licences required in the form of Certificados de Importación (CIs) for the importation of certain goods; (iii) requirements imposed on importers to undertake certain trade-restrictive commitments; and (iv) the alleged systematic delay in granting import approval or refusal to grant such approval or the grant of import approval subject to importers undertaking to comply with certain allegedly trade-restrictive commitments.
Peru - Additional Duty on Imports of Certain Agricultural Products
On 12 April 2013 Guatemala requested consultations with Peru with respect to the imposition by Peru of an “additional duty” on imports of certain agricultural products such as rice sugar maize milk and certain dairy products. Guatemala claims that the measure at issue is inconsistent with: - Article 4.2 and footnote 1 of the Agreement on Agriculture; - Articles II:1(a) II:1(b) X:1 X:3(a) XI and XI:1 of the GATT 1994; and - Articles 1 2 3 5 6 and 7 of the Customs Valuation Agreement.
United States - Certain Country of Origin Labelling (Cool) Requirements - Recourse 1
On 1 December 2008 Canada requested consultations with the United States concerning certain mandatory country of origin labelling (COOL) provisions in the Agricultural Marketing Act of 1946 as amended by the 2008 Farm Bill and as implemented through an Interim Final Rule of 28 July 2008. These include the obligation to inform consumers at the retail level of the country of origin in respect of covered commodities including beef and pork. The eligibility for a designation of a covered commodity as exclusively having a US origin can only be derived from an animal that was exclusively born raised and slaughtered in the United States. This would exclude such a designation in respect of beef or pork derived from livestock that is exported to the United States for feed or immediate slaughter.
India - Measures Concerning the Importation of Certain Agricultural Products
On 6 March 2012 the United States requested consultations with India with respect to the prohibitions imposed by India on the importation of various agricultural products from the United States purportedly because of concerns related to Avian Influenza. The measures at issue are: the Indian Livestock Importation Act 1898 (9 of 1898) ("Livestock Act"); a number of orders issued by India's Department of Animal Husbandry Dairying and Fisheries pursuant to the Livestock Act most recently S.O. 1663(E); as well as any amendments related measures or implementing measures.
European Communities - Measures Prohibiting the Importation and Marketing of Seal Products
On 2 November 2009 Canada requested consultations with the European Communities concerning Regulation (EC) No. 1007/2009 of the European Parliament and of the EC Council of 16 September 2009 on trade in seal products and subsequent related measures. According to Canada the regulation in question prohibits the importation and the placing on the EC market of all seal products.
Korea - Measures Affecting the Importation of Bovine Meat and Meat Products from Canada
On 9 April 2009 Canada requested consultations with Korea concerning measures affecting the importation of bovine meat and meat products from Canada. According to Canada since May 2003 Korea prohibits the importation of Canadian bovine meat and meat products. The alleged objective of this prohibition would be that of protecting against risks arising from bovine spongiform encephalopathy (BSE).
United States - Certain Country of Origin Labelling (Cool) Requirements
On 1 December 2008 Canada requested consultations with the United States concerning certain mandatory country of origin labelling (COOL) provisions in the Agricultural Marketing Act of 1946 as amended by the 2008 Farm Bill and as implemented through an Interim Final Rule of 28 July 2008. These include the obligation to inform consumers at the retail level of the country of origin in respect of covered commodities including beef and pork. The eligibility for a designation of a covered commodity as exclusively having a US origin can only be derived from an animal that was exclusively born raised and slaughtered in the United States. This would exclude such a designation in respect of beef or pork derived from livestock that is exported to the United States for feed or immediate slaughter.
United States - Measures Affecting the Production and Sale of Clove Cigarettes
On 7 April 2010 Indonesia requested consultations with the United States with respect to a provision of the Family Smoking Prevention Tobacco Control Act of 2009 that bans clove cigarettes. Indonesia alleged that Section 907 which was signed into law on 22 June 2009 prohibits among other things the production or sale in the United States of cigarettes containing certain additives including clove but would continue to permit the production and sale of other cigarettes including cigarettes containing menthol. Indonesia alleged that Section 907 is inconsistent inter alia with Article III:4 of the GATT 1994 Article 2 of the TBT Agreement and various provisions of the SPS Agreement.
SPS Measures and Trade
In an attempt to disentangle the impact of sanitary and phytosanitary (SPS) measures on trade patterns we estimate a Heckman selection model on the HS4 disaggregated level of trade. Using SPS measures obtained from the SPS Information Management System of the WTO and controlling for zero trade flows we find that SPS concerns reduce the probability of trade in agricultural and food products consistently. However the amount of trade is positively affected by SPS measures conditional on market entry. This suggests that SPS measures constitute an effective market entry barrier. Additionally we split SPS measures into requirements related to (i) conformity assessment and (ii) product characteristics. Both types of measures are implemented by policy makers to achieve a desired level of health safety yet entail diverse trade costs. We find that conformity assessment measures hamper not only the likelihood to trade but also the amount of trade while measures related to product characteristics do not affect the market entry decision but have a strong positive impact on the trade volume. This suggests that trade outcomes crucially depend on the measure policy makers decide to implement.
United States - Certain Country of Origin Labelling (Cool) Requirements
On 1 December 2008 Canada requested consultations with the United States concerning certain mandatory country of origin labelling (COOL) provisions in the Agricultural Marketing Act of 1946 as amended by the 2008 Farm Bill and as implemented through an Interim Final Rule of 28 July 2008. These include the obligation to inform consumers at the retail level of the country of origin in respect of covered commodities including beef and pork. The eligibility for a designation of a covered commodity as exclusively having a US origin can only be derived from an animal that was exclusively born raised and slaughtered in the United States. This would exclude such a designation in respect of beef or pork derived from livestock that is exported to the United States for feed or immediate slaughter.