Agreement on Sanitary and Phytosanitary (SPS) Measures

Introduction
The Agreement on Sanitary and Phytosanitary (SPS) Measures is an international
trade agreement under the World Trade Organization (WTO) that aims to ensure food
safety and protect animal and plant health while preventing unnecessary trade
barriers. The SPS Agreement was negotiated during the Uruguay Round and came
into force with the establishment of the WTO on January 1, 1995.
The agreement provides a framework for countries to implement science-based
sanitary (related to human or animal health) and phytosanitary (related to plant
health) measures to protect against risks from pests, diseases, and harmful
organisms while ensuring that these measures are not used as disguised trade
restrictions.
Purpose and Scope of the SPS Agreement
The primary objective of the SPS Agreement is to balance trade liberalization with
the need for governments to protect public health in their territories. The agreement
aims to ensure that measures taken to safeguard human, animal, or plant life and
health:
● Are scientifically justified.
● Do not unfairly discriminate between WTO members.
● Are not disguised restrictions on international trade.
The SPS Agreement covers measures aimed at:
1. Protecting human or animal life from risks arising from additives,
contaminants, toxins, or disease-causing organisms in food and beverages.
2. Protecting animal or plant life from pests, diseases, or disease-causing
organisms.
3. Preventing or limiting damage from the entry, establishment, or spread of
pests.
The agreement applies to all WTO members and provides a legal framework for
addressing disputes arising from the application of SPS measures that might
negatively affect trade.
Key Provisions of the SPS Agreement
The SPS Agreement consists of several key provisions aimed at harmonizing
sanitary and phytosanitary measures while ensuring transparency, scientific
justification, and minimizing trade distortions. These provisions include:
1. Scientific Basis and Risk Assessment
2. Harmonization and International Standards
3. Equivalence
4. Transparency
5. Adaptation to Regional Conditions
6. Dispute Settlement
1. Scientific Basis and Risk Assessment
The SPS Agreement requires that all SPS measures must be based on scientific
evidence. WTO members must ensure that their SPS measures are applied only to
the extent necessary to protect human, animal, or plant life or health. These
measures must not arbitrarily or unjustifiably discriminate between countries where
similar conditions exist.
● Risk Assessment:
The agreement emphasizes the need for countries to conduct a risk
assessment to justify SPS measures. A risk assessment involves
evaluating the likelihood of harmful organisms or diseases entering a
country and the potential consequences for public, animal, or plant
health.
● Appropriate Level of Protection (ALOP):
WTO members have the right to set their own appropriate level of
protection (ALOP), often referred to as the acceptable risk level.
However, the SPS Agreement requires countries to ensure that their
ALOP is consistent across similar risks and does not unfairly
discriminate between domestic and foreign products.
2. Harmonization and International Standards
One of the core principles of the SPS Agreement is the promotion of harmonization
of SPS measures based on international standards, guidelines, and
recommendations. The aim is to encourage members to use internationally
recognized standards to avoid unnecessary barriers to trade.
● International Standards-Setting Bodies:
The SPS Agreement recognizes three major international bodies for
developing SPS standards:
1. Codex Alimentarius Commission (Codex) – responsible for
international food safety standards.
2. World Organization for Animal Health (OIE) – responsible for
animal health standards.
3. International Plant Protection Convention (IPPC) – responsible
for plant health standards.
● WTO members are encouraged to align their SPS measures with these
international standards. However, countries may adopt stricter measures if
there is a scientific justification or if the country can demonstrate that a higher
level of protection is necessary to achieve its desired ALOP.
3. Equivalence
The concept of equivalence under the SPS Agreement allows WTO members to
accept the SPS measures of other countries as equivalent, even if they differ from
their own, provided the exporting country can demonstrate that its measures achieve
the importing country's ALOP.
 ● This provision encourages mutual recognition of differing approaches to
managing SPS risks, which facilitates trade while maintaining adequate
protection.
● Equivalence is particularly important for developing countries, as it allows
them to adopt alternative measures that suit their specific circumstances
while still ensuring compliance with the importing country’s safety standards.
4. Transparency
The SPS Agreement promotes transparency in the application of SPS measures by
requiring WTO members to provide advance notice of new or modified SPS
regulations and to allow other members to comment on them.
● Notification Obligations:
When a country plans to introduce a new SPS measure or modify an existing one
that may affect trade, it must notify the WTO Secretariat and provide information
about the scientific basis for the measure. This enables other WTO members to
understand the rationale behind the measure and potentially raise concerns.
● National Enquiry Points:
Each member is required to establish a national enquiry point, which acts as a point
of contact for other countries to obtain information on SPS regulations, risk
assessments, and other relevant data.
5. Adaptation to Regional Conditions
The SPS Agreement recognizes that disease and pest risks can vary across different
regions of a country or among countries. It therefore encourages WTO members to
adapt their SPS measures to regional conditions rather than applying blanket
measures.
● Regionalization:
This concept allows an exporting country to demonstrate that its products come
from a region that is free of pests or diseases, even if the rest of the country is
affected. This allows trade to continue even when certain areas are experiencing
disease outbreaks or pest infestations.
● The agreement requires importing countries to recognize these differences
and apply SPS measures accordingly, based on scientific evidence and
appropriate risk assessments.
6. Dispute Settlement
The SPS Agreement is subject to the WTO’s Dispute Settlement Understanding
(DSU), which provides a framework for resolving disputes related to SPS measures.
If a member believes that another member’s SPS measure is inconsistent with the
agreement, it can bring the matter to the WTO Dispute Settlement Body (DSB).
● Burden of Proof:
In SPS disputes, the burden of proof lies with the complaining country, which must
demonstrate that the SPS measure in question is inconsistent with the provisions of
the agreement, such as lacking scientific justification or being more trade-restrictive
than necessary.
 ● The dispute settlement process has been used to address high-profile SPS
disputes, such as the EU’s ban on hormone-treated beef and the US
restrictions on shrimp imports due to concerns about turtle conservation.
Special and Differential Treatment for Developing Countries
The SPS Agreement includes provisions to provide Special and Differential
Treatment (S&DT) to developing and least-developed countries (LDCs):
● Longer Time Frames: Developing countries are given longer periods to
implement SPS measures and adjust their regulations.
● Technical Assistance: Developed countries are encouraged to provide
technical assistance to help developing countries build their capacity to
comply with SPS measures and participate in international standard-setting
processes.
● Flexibility in Applying Measures: Developing countries are allowed more
flexibility in applying SPS measures, particularly in the early stages of
implementing the agreement.
Challenges and Criticisms of the SPS Agreement
While the SPS Agreement provides a structured framework for balancing trade and
health protection, it faces several challenges:
1. Scientific Disputes:
Countries may disagree on the interpretation of scientific evidence, leading to
disputes over whether an SPS measure is justified. For example, disagreements over
the safety of genetically modified organisms (GMOs) have led to SPS disputes
between the EU and the US.
2. Developing Country Concerns:
Developing countries often struggle to comply with SPS measures due to lack of
infrastructure, technical expertise, and resources. While the agreement includes
provisions for technical assistance, some argue that more needs to be done to
ensure that developing countries can effectively participate in the international
trading system.
3. Trade Barriers Disguised as SPS Measures:
Some countries have been accused of using SPS measures as disguised trade
barriers to protect domestic industries. This has led to concerns about the misuse of
the agreement to create unjustified trade restrictions.
4. Non-Tariff Barriers:
SPS measures, even when scientifically justified, can act as non-tariff barriers that
restrict trade, particularly for agricultural products. This is a significant issue for
exporters from developing countries who face strict import requirements in
developed markets.
Conclusion
The Agreement on Sanitary and Phytosanitary (SPS) Measures plays a vital role in
regulating the global trade of food, animals, and plants by ensuring that countries
can protect human, animal, and plant health without imposing unjustified barriers to
trade. Its emphasis on science-based measures, transparency, and harmonization of
standards helps create a predictable and fair-trading environment.
However, the challenges of scientific interpretation, developing country participation,
and potential misuse of SPS measures highlight the ongoing need for reforms and
capacity-building efforts to ensure that the SPS Agreement achieves its goals in a
balanced and equitable manner.