Disclaimer
This booklet on the SPS Agreement is only a brief introduction to the topic. It
is intended as a guide, designed to raise awareness of some of the main issues
countries should consider in implementing the SPS Agreement. However, it
is essential that countries consult further information sources before making
decisions on implementation. While every effort has been made to ensure
the accuracy in the text in this booklet, it cannot be taken as an authoritative
interpretation of the SPS Agreement. It should not be considered as a
description of Australian Government policy nor as a representation by the
Australian Government to any other government or group.
This booklet briefly outlines the basic concepts of the Agreement on the Application
of Sanitary and Phytosanitary Measures (commonly referred to as ‘the SPS
Agreement’) of the World Trade Organization (WTO). All countries that become
members of the WTO are bound by the SPS Agreement.
The booklet shows why knowledge of the SPS Agreement is important for all who are
interested in international trade in agricultural commodities.
Only a short introduction to the SPS Agreement is given here. To get a
comprehensive review of the SPS Agreement you will need to go to other
publications and sources of information. We provide a list of some of these at the end
of this booklet and refer to them in the text using numbers in square brackets [].
Health and international trade
The SPS Agreement is essentially about health and international trade. International
trade and travel have expanded significantly in the past 50 years. This has increased
the movement of products that may pose health risks. The SPS Agreement recognises
the need for WTO members to protect themselves from the risks posed by the entry
of pests and diseases, but also seeks to minimise any negative effects of SPS measures
on trade.
The health aspect of the SPS Agreement basically means that WTO members can
protect human, animal or plant life or health by applying measures to manage the
risks associated with imports. The measures usually take the form of quarantine or
food safety requirements.
The measures that WTO members apply can be classified as sanitary (relating to
human or animal life or health) or phytosanitary (relating to plant life or health).
They are commonly known as SPS measures.
The international trade aspect of the SPS Agreement basically means that, in seeking
to protect health, WTO members must not use SPS measures that are: unnecessary,
not science-based, arbitrary, or which constitute a disguised restriction on
international trade.
This booklet focuses on trade in agricultural commodities, and in particular on
animal and plant health issues; it only touches on human health issues.
What does the SPS agreement say?
The SPS Agreement has 14 Articles, containing the rights and obligations that
WTO members have agreed to. The SPS Agreement also has three annexes giving
definitions of various terms, and elaborating on certain obligations in the body of the
SPS Agreement.
The following terms are highlighted in this booklet — harmonisation,
equivalence, appropriate level of protection, risk assessment, regional conditions
and transparency. These terms represent some of the key principles in the
SPS Agreement.
We do not cover the provisions of the SPS Agreement in detail in this booklet. You
can read the full text of the SPS Agreement [1] at the WTO website. Also available
at the site is a WTO publication [2] that more fully explains the SPS Agreement,
including the difference between SPS measures and technical barriers to trade. You
can gain further detailed information and find out about current developments by
visiting the ‘gateway’ to SPS measures [3] on the WTO website.
Increasing volumes of international trade mean that quarantine procedures must be
able to deal with many different types of goods and packaging, complex transport
infrastructure and the associated potential pathways for pests and diseases.
The basic rights and obligations of WTO members are covered in Article 2 of
the SPS Agreement, the text of which is given in the box below. At various points
in this booklet, we will refer to other Articles in connection with some of the
topics discussed.
Who administers the SPS Agreement?
The SPS Agreement is administered by the Committee on Sanitary and Phytosanitary
Measures (the ‘SPS Committee’), in which all WTO members can participate.
The SPS Committee is a forum for consultations where WTO members regularly
come together to discuss SPS measures and their effects on trade, to oversee
implementation of the SPS Agreement, and to seek to avoid potential disputes.
SPS Agreement, Article 2 — Basic rights and obligations
1. Members have the right to take sanitary and phytosanitary measures necessary
for the protection of human, animal or plant life or health, provided that
such measures are not inconsistent with the provisions of this Agreement.
2. Members shall ensure that any sanitary or phytosanitary measure is applied
only to the extent necessary to protect human, animal or plant life or health,
is based on scientific principles and is not maintained without sufficient
scientific evidence, except as provided for in paragraph 7 of Article 5.
3. Members shall ensure that their sanitary and phytosanitary measures do not
arbitrarily or unjustifiably discriminate between Members where identical
or similar conditions prevail, including between their own territory and
that of other Members. Sanitary and phytosanitary measures shall not
be applied in a manner which would constitute a disguised restriction on
international trade.
4. Sanitary or phytosanitary measures which conform to the relevant
provisions of this Agreement shall be presumed to be in accordance with the
obligations of the Members under the provisions of GATT 1994 which relate
to the use of sanitary or phytosanitary measures, in particular the provisions of
Article XX(b).
WTO members benefit from active participation in the SPS Committee. The SPS
Committee has various activities to help members implement the SPS Agreement.
You can find out more about the SPS Committee [4] on the WTO website.
Risks and commodities
The SPS Agreement applies to essentially all measures taken by a WTO member to
protect human, animal or plant life or health within its territory from certain risks,
and which may affect international trade.
The risks to animal life or health come from:
the entry, establishment or spread of pests (including weeds), diseases, diseasecarrying
organisms or disease-causing organisms; or
additives, contaminants (including pesticide and veterinary drug residues and
extraneous matter), toxins or disease-causing organisms in feedstuffs.
The risks to plant life or health may come from:
the entry, establishment or spread of pests (including weeds), diseases, diseasecarrying
organisms or disease-causing organisms.
The risks to human life or health come from additives, contaminants, toxins or
disease-causing organisms in foods or beverages; diseases carried by animals, plants
or their products; or the entry, establishment or spread of pests.
Therefore, imports of food, plants (including plant products), and animals (including
animal products) are three of the main risk pathways — but risks are not restricted to
food and agricultural commodities.We export machinery, not agricultural commodities. Why do we need to
know about the SPS Agreement and SPS measures?
While your exports themselves may not represent a risk, they may be
contaminated with soil or plant residues, or may be shipped using packaging
materials such as timber pallets or plant straw. SPS measures are therefore relevant
to all exporters and importers.
Resources needed to implement the
SPS Agreement
Responsibility for implementing the SPS Agreement usually lies with the government
departments and national repositories that have the expertise and information
relevant to plant and animal health, as well as food safety matters. The implementing
bodies typically include the National Plant Protection Organization (NPPO) and the
equivalent animal health and food safety authorities.
Reference collections of pests and diseases are important tools in determining and
demonstrating plant health status.
A domestic regulatory framework covering the work, responsibilities and powers of
these bodies is needed, together with systems to enforce compliance. This encourages
confidence in assessments and confidence in certificates issued in connection with
SPS measures.
Establishing animal or plant health status, and developing appropriate SPS measures,
involves the collection of a lot of varied information from many different sources.
This information is of continuing value, and it is important that it is organised,
categorised and stored so that it is readily retrievable.
To identify risks and to research, develop and implement science-based SPS measures,
WTO members need access to personnel trained in appropriate areas of expertise.
Access to expertise in the detection and diagnosis of animal and plant pests and
diseases is needed to support trade in agricultural commodities, including skills in
entomology, plant pathology, veterinary pathology, epidemiology, and taxonomy.
Quarantine and inspection officers trained in sampling and detection techniques are
needed at import entry and export exit points.
Collections of specimens, reference material on insects and plants, and laboratories
equipped with diagnostic facilities, are of great importance.
Implementing the SPS Agreement in our country is going to cost us a lot and
our resources are scarce. Will it be worthwhile?
A recent World Bank study [5] found that the costs of complying with
international food standards may be less than expected and that the benefits
may be underestimated because they are harder to measure than the costs. The
report also notes that those developing countries that have adopted internat
Disclaimer
This booklet on the SPS Agreement is only a brief introduction to the topic. It
is intended as a guide, designed to raise awareness of some of the main issues
countries should consider in implementing the SPS Agreement. However, it
is essential that countries consult further information sources before making
decisions on implementation. While every effort has been made to ensure
the accuracy in the text in this booklet, it cannot be taken as an authoritative
interpretation of the SPS Agreement. It should not be considered as a
description of Australian Government policy nor as a representation by the
Australian Government to any other government or group.
This booklet briefly outlines the basic concepts of the Agreement on the Application
of Sanitary and Phytosanitary Measures (commonly referred to as ‘the SPS
Agreement’) of the World Trade Organization (WTO). All countries that become
members of the WTO are bound by the SPS Agreement.
The booklet shows why knowledge of the SPS Agreement is important for all who are
interested in international trade in agricultural commodities.
Only a short introduction to the SPS Agreement is given here. To get a
comprehensive review of the SPS Agreement you will need to go to other
publications and sources of information. We provide a list of some of these at the end
of this booklet and refer to them in the text using numbers in square brackets [].
Health and international trade
The SPS Agreement is essentially about health and international trade. International
trade and travel have expanded significantly in the past 50 years. This has increased
the movement of products that may pose health risks. The SPS Agreement recognises
the need for WTO members to protect themselves from the risks posed by the entry
of pests and diseases, but also seeks to minimise any negative effects of SPS measures
on trade.
The health aspect of the SPS Agreement basically means that WTO members can
protect human, animal or plant life or health by applying measures to manage the
risks associated with imports. The measures usually take the form of quarantine or
food safety requirements.
The measures that WTO members apply can be classified as sanitary (relating to
human or animal life or health) or phytosanitary (relating to plant life or health).
They are commonly known as SPS measures.
The international trade aspect of the SPS Agreement basically means that, in seeking
to protect health, WTO members must not use SPS measures that are: unnecessary,
not science-based, arbitrary, or which constitute a disguised restriction on
international trade.
This booklet focuses on trade in agricultural commodities, and in particular on
animal and plant health issues; it only touches on human health issues.
What does the SPS agreement say?
The SPS Agreement has 14 Articles, containing the rights and obligations that
WTO members have agreed to. The SPS Agreement also has three annexes giving
definitions of various terms, and elaborating on certain obligations in the body of the
SPS Agreement.
The following terms are highlighted in this booklet — harmonisation,
equivalence, appropriate level of protection, risk assessment, regional conditions
and transparency. These terms represent some of the key principles in the
SPS Agreement.
We do not cover the provisions of the SPS Agreement in detail in this booklet. You
can read the full text of the SPS Agreement [1] at the WTO website. Also available
at the site is a WTO publication [2] that more fully explains the SPS Agreement,
including the difference between SPS measures and technical barriers to trade. You
can gain further detailed information and find out about current developments by
visiting the ‘gateway’ to SPS measures [3] on the WTO website.
Increasing volumes of international trade mean that quarantine procedures must be
able to deal with many different types of goods and packaging, complex transport
infrastructure and the associated potential pathways for pests and diseases.
The basic rights and obligations of WTO members are covered in Article 2 of
the SPS Agreement, the text of which is given in the box below. At various points
in this booklet, we will refer to other Articles in connection with some of the
topics discussed.
Who administers the SPS Agreement?
The SPS Agreement is administered by the Committee on Sanitary and Phytosanitary
Measures (the ‘SPS Committee’), in which all WTO members can participate.
The SPS Committee is a forum for consultations where WTO members regularly
come together to discuss SPS measures and their effects on trade, to oversee
implementation of the SPS Agreement, and to seek to avoid potential disputes.
SPS Agreement, Article 2 — Basic rights and obligations
1. Members have the right to take sanitary and phytosanitary measures necessary
for the protection of human, animal or plant life or health, provided that
such measures are not inconsistent with the provisions of this Agreement.
2. Members shall ensure that any sanitary or phytosanitary measure is applied
only to the extent necessary to protect human, animal or plant life or health,
is based on scientific principles and is not maintained without sufficient
scientific evidence, except as provided for in paragraph 7 of Article 5.
3. Members shall ensure that their sanitary and phytosanitary measures do not
arbitrarily or unjustifiably discriminate between Members where identical
or similar conditions prevail, including between their own territory and
that of other Members. Sanitary and phytosanitary measures shall not
be applied in a manner which would constitute a disguised restriction on
international trade.
4. Sanitary or phytosanitary measures which conform to the relevant
provisions of this Agreement shall be presumed to be in accordance with the
obligations of the Members under the provisions of GATT 1994 which relate
to the use of sanitary or phytosanitary measures, in particular the provisions of
Article XX(b).
WTO members benefit from active participation in the SPS Committee. The SPS
Committee has various activities to help members implement the SPS Agreement.
You can find out more about the SPS Committee [4] on the WTO website.
Risks and commodities
The SPS Agreement applies to essentially all measures taken by a WTO member to
protect human, animal or plant life or health within its territory from certain risks,
and which may affect international trade.
The risks to animal life or health come from:
the entry, establishment or spread of pests (including weeds), diseases, diseasecarrying
organisms or disease-causing organisms; or
additives, contaminants (including pesticide and veterinary drug residues and
extraneous matter), toxins or disease-causing organisms in feedstuffs.
The risks to plant life or health may come from:
the entry, establishment or spread of pests (including weeds), diseases, diseasecarrying
organisms or disease-causing organisms.
The risks to human life or health come from additives, contaminants, toxins or
disease-causing organisms in foods or beverages; diseases carried by animals, plants
or their products; or the entry, establishment or spread of pests.
Therefore, imports of food, plants (including plant products), and animals (including
animal products) are three of the main risk pathways — but risks are not restricted to
food and agricultural commodities.We export machinery, not agricultural commodities. Why do we need to
know about the SPS Agreement and SPS measures?
While your exports themselves may not represent a risk, they may be
contaminated with soil or plant residues, or may be shipped using packaging
materials such as timber pallets or plant straw. SPS measures are therefore relevant
to all exporters and importers.
Resources needed to implement the
SPS Agreement
Responsibility for implementing the SPS Agreement usually lies with the government
departments and national repositories that have the expertise and information
relevant to plant and animal health, as well as food safety matters. The implementing
bodies typically include the National Plant Protection Organization (NPPO) and the
equivalent animal health and food safety authorities.
Reference collections of pests and diseases are important tools in determining and
demonstrating plant health status.
A domestic regulatory framework covering the work, responsibilities and powers of
these bodies is needed, together with systems to enforce compliance. This encourages
confidence in assessments and confidence in certificates issued in connection with
SPS measures.
Establishing animal or plant health status, and developing appropriate SPS measures,
involves the collection of a lot of varied information from many different sources.
This information is of continuing value, and it is important that it is organised,
categorised and stored so that it is readily retrievable.
To identify risks and to research, develop and implement science-based SPS measures,
WTO members need access to personnel trained in appropriate areas of expertise.
Access to expertise in the detection and diagnosis of animal and plant pests and
diseases is needed to support trade in agricultural commodities, including skills in
entomology, plant pathology, veterinary pathology, epidemiology, and taxonomy.
Quarantine and inspection officers trained in sampling and detection techniques are
needed at import entry and export exit points.
Collections of specimens, reference material on insects and plants, and laboratories
equipped with diagnostic facilities, are of great importance.
Implementing the SPS Agreement in our country is going to cost us a lot and
our resources are scarce. Will it be worthwhile?
A recent World Bank study [5] found that the costs of complying with
international food standards may be less than expected and that the benefits
may be underestimated because they are harder to measure than the costs. The
report also notes that those developing countries that have adopted internat
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