International Trade &

Development
Technical Barriers to Trade
Agreement - Salient Features

Prepared by: Mose Yast

Wednesday 11th November, 2009
 Overview
• Background
• WTO Scenario
• TBT Agreement – Objectives
• TBT Agreement Application
• TBT Principles

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Cont. Overview
• Key Features for Preparation, Adoption &
Application of Voluntary Standards
• Other Key Features
• Institutions, Consultations & Dispute
Settlement
• Some Examples

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 Background
Why an Agreement?
• High number of tech.regulations &standards
• Impact on int. trade
• Tokoyo Round Sts. Code to the WTO TBT
Agreement + Different bet. “Tech. Regls.”
“Standards & Conformity Assessment
Procedures

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 WTO Scenario
• Establishment of WTO - Dismantling of barriers
for free flow of trade
• Creation of global market with equal access to
all countries
• Quality, health & safety & environmental issues
gaining importance
• Role of standards both mandatory and voluntary
& CAPs
• Rules and disciplines laid down in terms of non-
tariff agreements – SPS,TBT & PSI, basically
aim
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at protecting interest of foreign suppliers 5
 TBT Agreement - Objectives
• Allows members to apply standards, technical
regulations, conformity assessment procedures for
 protection of human safety or health (sockets, seat
belts, labelling cigarettes)
Protection of animal & plant life or health (pollution,
extinct eg turtle extruder device)
Protection of environment (level of vehicle emissions)
Prevention of deceptive practices (labelling, size)
Other objectives (quality-size of fruits & vegs, tech
harmonization-telecom)
• However need to ensure that these do not create
obstacles to international trade
 TBT Agreement Application
• Scope
Applies to all products including industrial & agri
products, both voluntary standards & technical
regulations(standards to which compliance mandatory)
Not apply to SPS measures as defined in SPS
Agreement
• Covers
Product characteristics
Process & production methods(PPM) that have an
effect on product characteristics
Terminology & symbols
Packaging & labelling requirements
 TBT Principles
• Avoidance of unnecessary obstacles to trade
• Non-discrimination & national treatment
• Harmonization
• Equivalence of technical regulations
• Mutual recognition & conformity
assessment procedures
• Transparency
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 Key Features for Preparation, Adoption
& Application of Voluntary Standards
• Code of Good Practice for Standards Development –
to be followed
• Substantive Provisions
 NSBs to follow principles & rules similar for mandatory
standards ie base on & participate in international standards
formulation, apply on a MFN basis, National Treatment
Principle, Least Trade Restrictive
 avoid duplication or overlap
 specify requirements in terms of performance
 6-mthly programme of work
 60 days for comments
 provide copy to interested party
 take comments into account
 promptly publish
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 Other Key Features
• Technical assistance
provided to developing countries in the area of setting
up NSBs, participation in int standardization,
preparing technical regulations, setting up regulatory
bodies for CA activities, methods of CA, etc
• Special & Differential Treatment
more favourable treatment to be provided to
developing countries
take into account their special developmental,
financial & trade needs when developing tech
regulations, standards and CA procedures so that no
unnecessary obstacles created to exports from
developing countries.
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 Institutions, Consultations
& Dispute Settlement
• Committee on TBT established having
representatives from each members meet 2-3
times a year, for discussing operation of
Agreement or furtherance of objectives

• Consultations & settlement of disputes shall be

under auspices of Dispute Settlement Body of
WTO. However a provision for technical expert
groups to assist in issues of technical nature has
been provided
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 Some Examples
• Peru – labelling of footwear for ‘country of
origin’ & corporate tax number
• Products to have atleast 60% of shelf life
remaining before imports
• BIS certification marking & introduce less
onerous procedures
• MRP labelling agreements

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Key Features for Preparation, adoption
& Application of Technical Regulations
• Most Favoured Nation Basis – should apply on a
MFN basis to imports from all sources

• National Treatment Principle – shall not extend to

imported products treatment less favourable than that
extended to domestically produced products
• Least Trade Restrictive – should not be formulated &
applied in a manner so as to cause any unnecessary
obstacle to trade – not more trade restrictive than
needed to fulfil legitimate objectives (prevent deceptive
practices, protection of human, animal or plant life or
health, or environment). Contd..
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Key Features on Technical Regulations
• Should be based on scientific information & evidence
• Harmonisation - standards/tech regulations/CA
procedures to be consistent with or based on
international standards – participate actively in work of
ISO/other international bodies
• Transparency
 all proposed, new and changed measures are to be notified by
members to the TBT Committee of WTO Secretariat,
 to be provided to members, translated versions if requested
 give sufficient notice to allow for adapting to these
requirements.
 If technical regulation differs from international standards,
need to also take into account comments of exporter
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 Other Key Features
• Information
 An enquiry point to be set up
answer all reasonable enquiries
provide documents on technical regulations, standards
& CA procedures;
 any agreements to be notified to secretariat

• Technical assistance is provided to developing

countries in the area of setting up NSBs,
participation in int standardization, preparing
technical regulations, setting up regulatory bodies
for CA activities, methods of CA, etc
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Thank you