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BY: MICHAEL MIELLO SPS MEASURES & TRADE 1 ...but I took a bath © MICHAEL MIELLO

WTO SPS Measures

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WTO and sanitary and phytosanitary measures. Presentation for master students of international business. Preparation time: 2 hours. Presentation time: 10 minutes Presentation can be viewed at: http://www.youtube.com/watch?v=MdzdT1kRV_c

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Page 1: WTO SPS Measures

BY: MICHAEL MIELLO

SPS MEASURES & TRADE

1

...but I took

a bath

© MICHAEL MIELLO

Page 2: WTO SPS Measures

Sanitary + Phyto-sanitary

Sanitary

‣ means clean

Phyto-sanitary

‣ plants

Measures

‣ creating rulesHUH!?

2

SPS measures....what???

© MICHAEL MIELLO

Page 3: WTO SPS Measures

What are Sanitary and Phyto-sanitary measures

Safety requirements imposed by governments

‣ Animals

‣ Humans

‣ Environment

Protections

‣ Directly - contaminants (bird flu)

‣ Indirectly - pests (long term)

Technical trade to barrier

3

No danger!

I promise

Reference:Hoekman,B.Kostecki,M.(2002)WTO© MICHAEL MIELLO

Page 4: WTO SPS Measures

SPS - production to delivery

Expor&ngCountry

1.RegulaAonsandprocedures3.ProcessesandproducAonmethods4.TesAnginspecAon5.CerAficaAonandapprovalprocedures7.ProvisionsonrelevantstaAsAcalproceduresandriskassessmentmethods8.Packagingandlabelingrequirementsdirectlytofoodsafety

Impor&ngCountry

2.Productcriteria4.TesAnginspecAon6.QuaranAnetreatments

4 © MICHAEL MIELLO

Page 5: WTO SPS Measures

Actors on multiple levels

International ‣ WTO - created in Uruguay Round (GATT)

‣ UNCTAD

Regional / National‣ Ministry of Commerce, Agriculture and

Health

‣ Food and Drug Administrations

‣ General Administration of Quality Supervision, Inspection and Quarantine

Local‣ Municipals

‣ NGO participation

5 © MICHAEL MIELLO

Page 6: WTO SPS Measures

International Trading AreaWTO ‣ Prepare SPS measures

- International standards- Scientific evidence

‣ Prevent unjustifiably discrimination

‣ Maintain an SPS enquiry to advance SPS measures

‣ Dispute Settlement Body

6

Reference:Hoekman,B.Kostecki,M.(2002)© MICHAEL MIELLO

Page 7: WTO SPS Measures

CASE STUDY: “MISUSING” SPS MEASURES7

CASE OF APPLES

© MICHAEL MIELLO

Page 8: WTO SPS Measures

PROTECTING OF WHOM? TRADE OR OCHARDS8

American

apple =

stomach

ache

stealing

our

business

© MICHAEL MIELLO

Page 9: WTO SPS Measures

Must provide scientific evidence

WTO’s findings

‣ Japan’s quarantine treatment violated SPS measures

‣ no scientific evidence to prove harmful substances

Conclusion

‣ Japan sinks under pressure after years

‣ pays America $143 million1

9

hSp://www.caltradereport.com/eWebPages/front‐page‐1090525827.html© MICHAEL MIELLO

Page 10: WTO SPS Measures

In the news...

February 2009

North American Plant Protect Organization (NAPPO) propose standard

Inspect ships for Asian Gypsy Moth

China, S. Korea, Indonesia and Japan are mad

Continuation of same conflict??

I'm just a

bug

© MICHAEL MIELLO

Page 11: WTO SPS Measures

References

1. Hoekman,B.Kostecki,M.(2002),ThePoliAcalEconomyoftheWorldTradingSystem,Oxford,OxfordUniversityPress,xxi–547p.(secondediAon)ISBN0‐19‐829434‐4.

2. hSp://www.authorstream.com/PresentaAon/Renzo‐66273‐food‐safety‐InternaAonal‐Purpose‐Sanitary‐Phytosanitary‐SPS‐RegulaAon‐Agreements‐agre‐as‐News‐Reports‐ppt‐powerpoint/

3. hSp://www.wto.com

4. hSp://www.ustr.gov/Document_Library/Press_Releases/2004/July/US_DissaAsfied_with_Japan_over_Apple_Dispute.html

5. hSp://www.wto.org/english/news_e/news09_e/sps_25feb09_e.htm

6. hSp://www.caltradereport.com/eWebPages/front‐

11 © MICHAEL MIELLO

Page 12: WTO SPS Measures

Q&A12

moo...

merci!!

© MICHAEL MIELLO