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Article
Publication date: 14 September 2010

David J. Hornsby

One of the major strategic challenges facing the transatlantic trade relationship is the ability to regulate such risk areas as the environment whilst maintaining important trade…

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Abstract

Purpose

One of the major strategic challenges facing the transatlantic trade relationship is the ability to regulate such risk areas as the environment whilst maintaining important trade flows. Much scholarship has emphasised formal United States (US)‐European Union (EU) trade disputes when considering the treatment of risk. However, these cases represent a minority of the trade conflict at the World Trade Organisation (WTO). A majority of trade conflict gets raised, debated and resolved informally in the WTO committee structure. The Sanitary and Phytosanitary (SPS) Agreement is the WTO institutional arrangement that seeks to reconcile environmental, health and food safety regulations with trade objectives. The SPS embodies “in‐house” dispute resolution mechanisms that are based on the notion of constructive engagement. Mechanisms like ad hoc consultations, registering official protests, use of the chair's good offices and coordination with international standard setting organisations have been effective in promoting harmonisation between states. The paper aims to discuss these issues.

Design/methodology/approach

The paper traces the process that is embedded within the SPS Committee for resolving trade conflict over risk‐based regulations, highlighting a recent case in point of wood‐packing materials.

Findings

The paper elucidates a good news story about how American and EU policy makers utilize SPS Committee mechanisms to resolve differences over environmental regulations at the SPS Committee. Specific recommendations are offered on how to strengthen those mechanisms.

Practical implications

If the recommendations offered are followed, trade conflict resolution over risk‐based issues in the SPS context will be strengthened.

Originality/value

The paper is the first utilizing a case study to assess the effectiveness of WTO/SPS mechanisms for trade conflict resolution.

Details

Journal of International Trade Law and Policy, vol. 9 no. 3
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 21 March 2016

Marie-Agnes Jouanjean, Jean-Christophe Maur and Ben Shepherd

This paper aims to provide new evidence that the US phytosanitary regime is associated with a restrictive market access environment for fruit and vegetable products. One chief…

Abstract

Purpose

This paper aims to provide new evidence that the US phytosanitary regime is associated with a restrictive market access environment for fruit and vegetable products. One chief reason seems to be that the US regime uses a positive list approach, under which only authorized countries can export.

Design/methodology/approach

The methodology of the paper is primarily qualitative. This paper reviews the US sanitary and phytosanitary measures (SPS) system and its scope for use to protect markets, in addition to protecting life and health. The approach is institutional and political economic.

Findings

For most products, only a portion of global production is authorized for export to the USA. Even among authorized countries, only a small proportion is actually exported. As a result, the number of countries exporting fresh fruit and vegetables to the USA is far lower than those exporting to countries like the EU and Canada, but it is on a par with markets known to be restrictive in this area, such as Australia and Japan. Using a data set of fruit and vegetable market access and political contributions, this paper also provides evidence showing that domestic political economy considerations may influence the decision to grant market access to foreign producers.

Originality/value

The US SPS system has not previously been analyzed in this way, and the distinction between negative and positive list approaches is highlighted in terms of its implications for third-party exporters. Similarly, the analysis of political contributions is novel and suggestive of an important dynamic at work in the determination of the US policy.

Details

Journal of International Trade Law and Policy, vol. 15 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 5 December 2008

Abdul Haseeb Ansari and Nik Ahmad Kamal Nik Mahmod

When genetically modified organisms (GMOs) were put into the international trade, people in many countries, especially European countries, became skeptical of them. A perception…

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Abstract

Purpose

When genetically modified organisms (GMOs) were put into the international trade, people in many countries, especially European countries, became skeptical of them. A perception developed that they are harmful to human, animal, plant life and health, and destructive to the environment. It is true that if there is no safe use of genetically modified living organisms (LMOs), other species might be affected causing loss to the environment. So as to ensure safe use of LMOs and GMOs, the Cartagena Protocol and the SPS Agreement were, respectively, made. The purpose of this paper is to critically examine both the legal instruments and to explore ways to make them co‐existent, so that human, animal, plant life and health, and the environment are protected without affecting the international trade in LMOs and GMOs.

Design/methodology/approach

This paper undertakes a critical examination of the issues surrounding GMOs and LMOs.

Findings

The Cartagena Protocol and the SPS Agreement serve two different purposes. It is for this reason that some of their provisions are not co‐extensive. But the conflict in them can be resolved. It is suggested that the provisions pertaining to the precautionary principle of the SPS Agreement should be brought in line with that of the Cartagena Protocol. It is also suggested that importing countries should conduct their own risk assessment preferably by following the CODEX procedure. In no case, risk assessment done by producing companies should be taken as conclusive.

Practical implications

If suggestions offered by the paper are followed, the two will then protect the human, animal and plant health and the environment in the best possible way.

Originality/value

For achieving its object, the paper presents a comparative assessment of the cases decided under the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO).

Details

Journal of International Trade Law and Policy, vol. 7 no. 2
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 1 December 1999

Enrique Sierra

This article highlights the main principles and provisions contained in the WTO’s product quality related agreements, i.e. the Agreement on Technical Barriers to Trade (TBT) and

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Abstract

This article highlights the main principles and provisions contained in the WTO’s product quality related agreements, i.e. the Agreement on Technical Barriers to Trade (TBT) and the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS) which apply, to a large extent, to quality concepts and practices in relation to the design, production, packaging, transportation and distribution of goods in international trade (exports and imports) such as standards, technical regulations (mandatory standards) and quality assurance procedures (testing, inspection, certification, accreditation). From this angle, quality professionals should be aware of the main principles and provisions embodied in the agreements so that their decisions and advice provided are consistent with the international trade rules which govern world trade and facilitate the accessibility of products to international markets.

Details

The TQM Magazine, vol. 11 no. 6
Type: Research Article
ISSN: 0954-478X

Keywords

Article
Publication date: 31 May 2007

Edward A. Morse

This article examines the framework of the Agreement for Sanitary and Phytosanitary Measures (SPS Agreement) and assesses its impacts on domestic autonomy and authority in matters…

Abstract

This article examines the framework of the Agreement for Sanitary and Phytosanitary Measures (SPS Agreement) and assesses its impacts on domestic autonomy and authority in matters of food and environmental safety. The direct impact of the SPS Agreement appears quite limited, as only a few cases have arisen. The Agreement has not proven to be a pervasive tool for the purpose of overturning domestic policies on food or environmental safety, despite the fact that the WTO Panel or Appellate Body decisions have found that domestic measures violate the terms of the SPS Agreement. Limited enforcement mechanisms provide protection for domestic policies, though perhaps at the price of trade sanctions. Moreover, theoretical literature suggests that the SPS Agreement may indeed enhance democratic values by discounting the influence of special interests and retaining ultimate authority for enforcement within the discretion of domestic government. Important issues nevertheless remain, including the role of the precautionary principle in policymaking and the means to address normative values, such as developing moral consensus on animal welfare, in trade matters. Trade has proven to be a catalyst for change and cooperative development in this context.

Details

Journal of International Trade Law and Policy, vol. 6 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 15 December 2003

Surya P. Subedi

Posits that trade in agriculture constitutes the main element of the ongoing multilateral trade negotiations, with the World Trade Organisation, which has a conclusion date of 1…

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Abstract

Posits that trade in agriculture constitutes the main element of the ongoing multilateral trade negotiations, with the World Trade Organisation, which has a conclusion date of 1 January 2005. Acknowledges that liberalization of trade in this sector was the prime reason why developing countries joined the WTO. Reckons that developed countries resist mounting pressure of decisive moves towards agricultural improvement, during the trade negotiations, by trying to protect their own agricultural sectors from foreign competition.

Details

Managerial Law, vol. 45 no. 5/6
Type: Research Article
ISSN: 0309-0558

Keywords

Article
Publication date: 19 June 2017

Shawkat Alam and George F. Tomossy

The purpose of this paper is to address the challenges developing countries face in attempting to balance sanitary and phytosanitary measures (SPS) health and safety measures

Abstract

Purpose

The purpose of this paper is to address the challenges developing countries face in attempting to balance sanitary and phytosanitary measures (SPS) health and safety measures against concerns about protectionism, illustrated by the impact of trade barriers on the fisheries and aquaculture sector in Bangladesh. The paper then provides recommendations to overcome the effects of these trade barriers.

Design/methodology/approach

The author uses a close doctrinal approach for the first three parts of the paper by analysing the provisions of the World Trade Organisation (WTO) SPS Agreement and the effect of those provisions in creating domestic compliance gaps in the Bangladeshi fisheries and aquaculture sector. A qualitative approach is then adopted in suggesting potential reforms and future directions to assist the Bangladeshi fisheries and aquaculture sector overcome SPS trade barrier issues.

Findings

To overcome the market access issues created by SPS trade barriers, Bangladesh and other developing countries require multilateral assistance, accommodation by trading partners and internal reforms. This includes reforming internal governance structures, improving trade participation and negotiation, increasing infrastructure investment and learning from similar countries who have improved their supply chain management.

Research limitations/implications

This paper will have significant implications by contributing to law and policy reform debates involving international trade law and domestic compliance gaps. It will also assist other developing countries that experience SPS trade barriers to learn from the experience of the Bangladeshi fisheries and aquaculture sector.

Practical implications

This paper has practical implications by providing recommendations for how Bangladesh can overcome SPS trade barriers and improve its market access. This will help Bangladesh integrate into the global trading system by enhancing its participation in the SPS framework.

Social implications

By addressing and providing recommendations for the SPS trade barrier challenges faced by Bangladesh fishery and aquaculture sector, this paper provides a framework to improve the economic development and global competitiveness of the industry. This will contribute the gross domestic product growth and help increase the overall living standards of the people involved in the fisheries and aquaculture business in Bangladesh.

Originality/value

This paper is an original work that has not been published elsewhere. It is the first time a paper has dealt with the legal, policy and compliance challenges faced by the fisheries and aquaculture sector in Bangladesh.

Details

Journal of International Trade Law and Policy, vol. 16 no. 2
Type: Research Article
ISSN: 1477-0024

Keywords

Book part
Publication date: 1 February 2009

Mitsuo Matsushita

There are several agreements within the framework of the World Trade Organization that have an impact on the issue of food safety. These include the prohibition against…

Abstract

There are several agreements within the framework of the World Trade Organization that have an impact on the issue of food safety. These include the prohibition against quantitative restrictions of GATT 94, the general exceptions of Article XX, the Agreement on Sanitary and Phytosanitary Measures, the Agreement on Technical Barriers to Trade, and the Agreement on Trade-Related Aspects of International Property Rights. This chapter analyzes the primary disputes pertaining directly or tangentially to matters of food safety and representation under each of these agreements that were impaneled under the dispute settlement understanding. Particular attention is given to the EC/Hormones and the EC/genetically modified organisms (GMO) cases.

Book part
Publication date: 10 April 2023

Vadsana Chanthanasinh and Piya Wongpit

The main objectives of this study were to examine the Lao People’s Democratic Republic (PDR) agricultural exports to the People’s Republic of China (PRC), the tuning of the…

Abstract

The main objectives of this study were to examine the Lao People’s Democratic Republic (PDR) agricultural exports to the People’s Republic of China (PRC), the tuning of the Agricultural Commodity Frequency Index (ACFI) to non-tariff measures (NTMs), and the coverage ratio of goods to determine the effects of the PRC’s NTMs on Lao PDR’s agricultural exports using a demand export model with a fixed-effect method. The authors found that Lao PDR’s agricultural exports to the PRC increased by an average of 46.91% from 2013 to 2020, covering a total of 51 product codes, comprising six of the most valuable product types (i.e., bananas, corn, tapioca flour, watermelon, sticky rice, and sweet potato) given priority by the PRC. Additionally, from 2013 to 2020, the average ACFI concentration with NTMs was 10.08%, and the average coverage ratio for goods was 14.43%. The results of statistical significance testing at 1% suggest that three factors demonstrated the most significant impact on value: agricultural products facing NTMs in the form of sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBTs), treaties with priority conditions regarding SPSs and priorities for agricultural products, and the real gross domestic product (GDP) of the PRC. Furthermore, a PRC GDP increase of 1% resulted in a 3.1235% impact on Lao PDR exports.

Details

Comparative Analysis of Trade and Finance in Emerging Economies
Type: Book
ISBN: 978-1-80455-758-7

Keywords

Open Access
Article
Publication date: 16 August 2019

Xia Shang and Glynn T. Tonsor

The purpose of this paper is to provide an ex post econometric examination of SPS measures and their influences on red meat trade.

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Abstract

Purpose

The purpose of this paper is to provide an ex post econometric examination of SPS measures and their influences on red meat trade.

Design/methodology/approach

The authors conduct multiple new assessments to further assess the particular effects of specific SPS measures related to animal health, human health and maximum residue limits on red meat trade values. This finer assessment provides updated and more detailed insights into the marginal trade impacts of different SPS measures.

Findings

The current study sheds important light on the determinants of red meat trade. The economic conditions of destination countries and production capability of suppliers are key to determining trade values. Factors including personal income and exporters’ meat supply are identified as trade facilitators. Since the restrictiveness of SPS measures vary across beef and pork sectors, maintaining commodity-specific SPS measures is essential for accurate assessment of trade determinants.

Originality/value

This paper provides multiple contributions to the existing literature and more broadly the authors’ economic understanding on the increasingly contentious issue of global meat trade. Combined, this study yields several implications for food policy, trade negotiators and industry leaders given the growing role and surrounding controversies of trade in meat and livestock markets around the world. The authors further believe the paper would be of notable interest to fellow researchers consistent with the existence of a sizable published literature and ongoing debates in international meat trade.

Details

British Food Journal, vol. 121 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

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