WTO Members may impose measures for the protection of human, animal, plant life or health reasons, under the Agreement on Sanitary and Phyto-Sanitary Measures (SPS). The measures imposed should conform to international standards and guidelines, in order to ensure harmonisation in implementation. The measures should not restrict the flow of trade, implemented in a non-discriminatory manner and should be applicable to all countries and domestic producers or suppliers.
Despite these guidelines, disputes have been referred to the WTO on SPS measures. For example, the ban imposed by the US on importation of poultry products from China is viewed as discriminatory protectionism by China as it violates the obligations under the General Agreement on Tariffs and Trade (GATT) 1994 and the SPS Agreement. The US however insists that the SPS measures taken by them are to ensure food safety and is based on scientific evidence as required under the SPS Agreement and therefore is in compliance with WTO obligations.
In a similar case, Canada has initiated a case against Korea, as a result of the ban on imports of bovine meat and meat products from Canada. Korea imposed the ban for health reasons, in order to protect against risks arising from Bovine Spongiform Encephalopathy (BSE), commonly known as Mad-Cow Disease (MCD). Canada however has highlighted that since the measures taken by Korea are not based on relevant international standards, guidelines or recommendations nor based on scientific principles, are hence undertaken without sufficient evidence. In addition Canada is of the view that the measures imposed by Korea are unduly trade restrictive and represent a disguised form of restriction on international trade. Korea in response has insisted that the measures taken are consistent with the SPS Agreement in ensuring that BSE which is a disease that infect humans as well as animals could be avoided especially taking into consideration that Korea did not have any cases of BSE before. Furthermore in November 2008 and May 2009 BSE was detected in Canada.
While such measures are taken by Governments to protect domestic industries or for reasons of health and safety, it is important for the industry to understand the requirements set by WTO and abide by these requirements, especially in terms of specifications relating to food safety and security.
In this regard, Malaysian industry can seek clarification from the Government with regards to the SPS measures imposed by other Members, if it is felt that these measures are not consistent with the WTO SPS Agreement and may impact trade activities.
Despite these guidelines, disputes have been referred to the WTO on SPS measures. For example, the ban imposed by the US on importation of poultry products from China is viewed as discriminatory protectionism by China as it violates the obligations under the General Agreement on Tariffs and Trade (GATT) 1994 and the SPS Agreement. The US however insists that the SPS measures taken by them are to ensure food safety and is based on scientific evidence as required under the SPS Agreement and therefore is in compliance with WTO obligations.
In a similar case, Canada has initiated a case against Korea, as a result of the ban on imports of bovine meat and meat products from Canada. Korea imposed the ban for health reasons, in order to protect against risks arising from Bovine Spongiform Encephalopathy (BSE), commonly known as Mad-Cow Disease (MCD). Canada however has highlighted that since the measures taken by Korea are not based on relevant international standards, guidelines or recommendations nor based on scientific principles, are hence undertaken without sufficient evidence. In addition Canada is of the view that the measures imposed by Korea are unduly trade restrictive and represent a disguised form of restriction on international trade. Korea in response has insisted that the measures taken are consistent with the SPS Agreement in ensuring that BSE which is a disease that infect humans as well as animals could be avoided especially taking into consideration that Korea did not have any cases of BSE before. Furthermore in November 2008 and May 2009 BSE was detected in Canada.
While such measures are taken by Governments to protect domestic industries or for reasons of health and safety, it is important for the industry to understand the requirements set by WTO and abide by these requirements, especially in terms of specifications relating to food safety and security.
In this regard, Malaysian industry can seek clarification from the Government with regards to the SPS measures imposed by other Members, if it is felt that these measures are not consistent with the WTO SPS Agreement and may impact trade activities.