Agreement on Technical Barriers to Trade - (a brief note)
Poorna Prasad Manandhar
Introduction:
Overall objective of formation of WTO is to facilitate the international trade without any barrier. Generally there are two different kinds of trade barriers. One can be defined as the tariff barrier and another is the non-tariff barrier. The tariff barrier means the barrier put upon by high custom and excises and some other matters, which affect the cost of the product. Similarly, one among non-tariff barriers deals with the standards, technical regulations, conformity assessment procedures, accreditation, etc. Such barriers are also known as Technical Barriers to Trade. In order to avoid the unnecessary hindrances or obstacles to international trade because of the technical regulations and standards along with procedures of assessment of conformity with them; to encourage the development of international standards and conformity assessment system which facilitates the conduct of international trade; to avoid unjustifiable discrimination between countries where the same conditions prevail and to protect any country on taking measures necessary to ensure the quality of its exports etc.,Agreement on Technical Barriers to Trade has been formulated . Under WTO there are more than 25 such agreements on different subjects and this is one among them.
Principles of Agreement:
1. Avoidance of unnecessary and unjustifiable obstacles to international trade
2. Non-discrimination and national treatment
3. Harmonization in standards, technical regulations, conformity assessment procedures
4. Mutual recognition of conformity procedures
5. Maintenance of transparency
6. To follow the code of good practice
Output of the Agreement:
1. Uniformity in trade
2. Compliance in requirements
Easy trade
General terms (Annex 1)
1. Standard
Standard is a document approved by the recognized body. This document includes
A. Characteristics for the product
B. Production Methods
C. Methods of analysis
D. Terminology, packaging, marking or labeling requirements
Standard is for common and repeated use but it is not necessarily mandatory to comply with.
2. Technical Regulation:
It is the document, which lays down characteristics of the product or their related processes and production methods. This also includes applicable administrative provisions or rules with which the compliance is mandatory. This document may also deal with terms, packaging and marking or labeling requirements as they apply to the product, process, or production method. However, for the purpose of this agreement standards are defined as voluntary and technical regulations as mandatory document.
3. Conformity Assessment Procedure
Any procedure which are used for sampling, testing, and inspection; evaluation, verification and assurance of conformity; registration, accreditation and approval is called conformity assessment procedure. It is also used to determine or to prove that requirements in technical regulations or standards are fulfilled. This may also cover directly or indirectly calibration and verification procedure in weights and measures.
Other remaining terms are international body, regional body, central government body, and local government body, non-government body that also has legal power to enforce a technical regulation.
Salient Features of the Agreement on TBT in brief
There are six headings, fifteen articles and three annexes
General provision (Article 1)
It deals with the general provision or scope. Agreement on TBT covers all products including industrial and agriculture except Agreement on Government Procurement and Agreement on Applications of Sanitary and Phytosanitary Measures (SPS). They are separately dealt with.
Technical Regulations and Standards
(Articles 2,3,and 4)
Technical regulations should be prepared, adopted or applied upon in such a manner that products which are imported from any member country could be given same treatment as that given to the like products of national origin of the particular member country and also to like products originating in any other member country. There shall not be any discrimination. They shall not create unnecessary obstacles to international trade or it shall not be more trade restrictive than necessary to fulfil the legitimate objectives e.g protection of human health or safety, plant life, environment etc. Use of relevant international standard is advised.
Exceptions: When international standard does not exist or when proposed technical regulation differs from relevant international standard, the member country must notify other members indicating its objective and rationale. Such notification should be done as early as possible so that other members shelled have time to be acquainted with in time.
Article 3
Preparation, Adoption and Application of Technical Regulations by Local Govt. Bodies and Non-Govt. Bodies (Article 3)
Member countries shall not have any measures, which encourage local government and non-government bodies within their territories to act in a manner inconsistent to what is described in Article 2. Other things remain the same.
Preparation, Adoption and Application of Standard (Article 4)
Member countries shall ensure that the preparation, adoption and application of standards shall be in compliance with code of good practice as described in this agreement.
Conformity with Technical Regulations and Standards
The conformity assessment procedures shall be prepared, adopted and applied in a manner that they should not create any discrimination on granting access to the foreign goods in comparison to those accorded to like products of national origin. This demands for the harmonization in conformity assessment procedures. However, there are provisions for special cases. When the guide issued by international standardization body could not be made use of or etc.etc. the member country can publish the notice in order to make other members acquainted with that they propose to introduce a particular conformity assessment procedure, or they can send the copy of it identifying the part or parts which in substance deviate from relevant international standard. Further, the members are asked for the comment, which shall be taken into account. Main purpose is to maintain the transparency in the subject.
Article 6: Recognition of conformity assessment procedure by member countries even when those procedures differ from their own, provided that they offer assurance of conformity against said concerned subjects.
Article 7: Procedures for assessment of conformity by local government bodies- it will be the responsibility of this body to follow the same track as mentioned in article 5 and 6 but they shall have no obligation to notify as referred above in article 5.
Article 8: For non-government bodies - similar to article 7.
Article 9: describes about adaptation of international and regional systems for conformity assessment system whenever practicable.
Article 10: It describes that each member shall have competent enquiry points for information on TR, standards and conformity assessment procedures. Dissemination of the information shall be done without any discrimination.
Article 11: It describes on Technical Assistant to be provided by member countries to other members especially the developing country members on preparation of technical regulations, conformity assessment procedure, establishment of standardization bodies, and regulations bodies by providing them the grant.
Article 12: Special treatment for developing countries and countries in transitional economy has been described in this article.
Article 13,14 and 15 describes about the committee on TBT, dispute settlement body and the reservations respectively. As far as reservation is concerned no member shall be allowed to deviate from implementation and administration of the agreement after the date on which WTO agreement enters into force.
Annex 1 is already described before, Annex 2 and 3 describe on technical expert groups and code of good practice respectively for preparation, adoption and application of standards, technical regulations, and conformity assessment procedures.
The End
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