Lesson 3: SPS Agreement Principles
Topic 9: Conclusion
In this topic, you will learn how the SPS Agreement addresses issues not covered by the GATT, as well as the benefits provided to Member countries.
Objectives:
- Discuss how the SPS Agreement addresses issues that were not covered in the GATT
- Explain how countries benefit from the SPS Agreement.
The Progression of the SPS Agreement
The development of national food safety and animal and plant measures were subject to GATT rules. Specifically, Members had to provide Most Favored Nation status to imports from other member countries, and the GATT prohibited preferential national treatment for domestically produced goods. The GATT also permitted countries to take measures “necessary to protect human, animal or plant life or health,” (Article XX:b) as long as measures were not discriminatory or caused an unnecessary restriction to trade.
Sanitary and phytosanitary measures can be very effective trade restrictions. GATT Members realized that there was a need for rules regarding the use of SPS measures, and the GATT did not provide that specific guidance. As successive rounds of negotiation reduced other types of barriers to trade, the need for SPS guidance became even more important. The SPS Agreement was intended to close potential loopholes in previous agreements. It provides clear, detailed rights and obligations. Countries can only use requirements that are based on scientific evidence in order to protect health. A government can challenge another country’s measures on the grounds that these measures are not justified based on scientific evidence. The procedures and decisions used by a country in assessing risk must be made available to other countries, and countries must be consistent in identifying risk and responding to animal and plant health concerns.
Benefits of the SPS Agreement
How do countries benefit from the SPS Agreement? The transparency provisions in the SPS Agreement are designed to ensure that measures are made known to both domestic and international stakeholders. Because new requirements must be published promptly, and other Members can request an explanation of the reasons for new requirements, trading partners experience much less uncertainty than they would in the absence of such rules. Uncertainty can arise when requirements are not transparent, are not based on risk or scientific evidence, or are applied in a discriminatory manner. By providing risk assessment guidance and a formal means through which disputes can be resolved, the SPS Agreement encourages Members to base requirements on science and to apply them consistently among all trading partners. Trading relationships are more stable when uncertainty is removed, and economic prosperity is more likely in a stable relationship. For this reason, the entire international agricultural community benefits when all countries adhere to the SPS Agreement.
In this topic, you learned that the SPS Agreement addresses issues that were not covered in the GATT. It provides specific guidance, rights, and obligations that help ensure SPS measure are applied in a consistent technically justified manner. Countries benefit from the SPS Agreement because the application of SPS measures is transparent, is based on risk and science, and is subject to a formal dispute resolution process.
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