International trade and phytosanitary regulations Implications for the NZ Forest industry

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1 International trade and phytosanitary regulations Implications for the NZ Forest industry FOA/MAF 8 th Annual Forest Biosecurity Workshop Richard Ivess Senior Specialist (SPS) Trade Negotiations Division Ministry of Foreign Affairs and Trade

2 Objectives Briefly describe the phytosanitary problems associated with the international trade in plants/plant products Outline the international rules governing the application of phytosanitary measures

3 The situation Plant pests (i.e. insects, mites, pathogens, weeds, etc) are not evenly distributed throughout the world Importing countries don t want any new ones

4 International concerns Importing countries may: be pressured to use phytosanitary requirements to shield domestic producers from economic competition put in place requirements (including prohibitions) that are not based on science (have overly risk-adverse officials) Such restrictions when not actually required for plant health reasons can be very effective protectionist devices and because of their technical complexities, be particularly deceptive and difficult barriers to challenge

5 Market access problems? Never take No for an answer Keep asking: Why? What s the risk? What measures? Where s the justification?

6 The rules Two major agreements/treaties covering international trade in plants/plant products 1. The WTO Agreement on the Application of Sanitary and Phytosanitary Measures - SPS Agreement. ( Umbrella ) 2. FAO International Plant Protection Convention ( Implementation )

7 The SPS Agreement The basic aim To maintain the sovereign right of any government to provide the level of health protection it deems appropriate, but to ensure that these sovereign rights are not misused for protectionist purposes and do not result in unnecessary barriers to international trade.

8 The SPS Agreement Note - The SPS Agreement is a two-sided coin covered by the same set of rules, i.e. Your exports are our imports Our exports are your imports NOT, exports OK imports no way!

9 Scope of the SPS Agreement The Agreement applies to all sanitary and phytosanitary measures which may, directly or indirectly, affect international trade. Examples of phytosanitary pathways - containers, soil, used vehicles and machinery, and packaging material, plant products, tourists

10 SPS Agreement - Key Provisions 1) Scientific justification Members shall ensure that any SPS 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,

11 SPS Agreement - Key 2) HarmonisationProvisions Talking the same language Members shall base their SPS measures on international standards, guidelines or recommendations, where they exist, The SPS Agreement recognises three international standard setting bodies: for plant health the recognised body is the IPPC Commission on Phytosanitary Measures

12 SPS Agreement - Key 3) Equivalence Provisions More than one way to skin a cat HTFA Papaya from Fiji Vapour heat Mangoes (Philippines) Irradiation Mangoes (Australia) Winter window cucurbits (Aus.) Stage of ripeness bananas Resistant varieties - Chilli Cold treatment grapes (US) Fumigation MeBr watermelon (Tonga) Area freedom oranges (part of Aus)

13 SPS Agreement - Key Provisions 4) Risk assessment Members shall ensure that: their SPS measures are based on an assessment, as appropriate to the circumstances, of the risks to human, animal or plant life or health, taking into account risk assessment techniques developed by the relevant international organizations. For plants/plant products the relevant international organisation is under the framework of the IPPC

14 SPS Agreement - Key Provisions 5) Disease- and pest-free areas Members shall, in particular, recognise the concepts of pestor disease-free areas and areas of low pest or disease prevalence.

15 SPS Agreement - Key Provisions 6) Transparency Members shall: Notify changes in their sanitary or phytosanitary measures and shall provide information on their sanitary or phytosanitary measures... Publish regulations Establish enquiry points

16 International Plant Protection Convention An international treaty relating to plant health 172 contracting parties ( ) Adopted by the Conference of FAO at its Sixth Session in 1951 Provides a framework and a forum for international cooperation, harmonization and technical exchange between CPs

17 IPPC Purpose to prevent the spread and introduction of pests of plants and plant products, and to promote appropriate measures for their control The IPPC extends to the protection of the environment Scope The IPPC covers anything that can act as a vector for the spread of pests of plants

18 Contracting parties IPPC Have two major groups of requirements and obligations i) National requirements - Plant health ii) International obligations trade Each CP is required to provide an official National Plant Protection Organisation (NPPO)

19 IPPC International obligations Mirror the requirements of the SPS Agreement a) Technical justification No measures unless made necessary by phytosanitary considerations and must be technically justified. Contracting parties shall, on request, make available to CP the rationale for phytosanitary requirements, restrictions and prohibitions. b) Transparency - shall, immediately upon their adoption, publish and transmit phytosanitary requirements, restrictions and prohibitions to any C.P. or parties that they believe may be directly affected by such measures.

20 International obligations c) Specified points of entry d) Inspection e) Non-compliance IPPC

21 International obligations g) Phytosanitary measures must be: technically justified consistent with the pest risk involved represent the least restrictive measures available result in the minimum impediment to the international movement of people, commodities and conveyances h) Changing conditions phytosanitary measures to be promptly modified or removed if found to be unnecessary. i) Lists of regulated pests IPPC

22 Recourse Bilateral Competent authority to competent authority SPS Committee meetings Three meetings per year Standing agenda item on Concerns of Members Article 12.2 Committee encourages ad hoc consultations on SPS issues. Use of the good offices of the Chair

23 Recourse Dispute settlement under the IPPC Applies: i) Interpretation on the application of the Convention ii) If a contracting party considers that any action by another CP is in conflict with the obligations Provides a neutral forum for conciliation on technical issues Provision for non-binding dispute settlement, if needed. Emphasizes an open technical dialogue as the basis for dispute avoidance and settlement

24 Recourse WTO Settlement of Disputes Dispute Settlement Body administer the rules and procedures Consultations Good Offices, conciliation, mediation Panels objective assessment of the case Appellate Body Surveillance of implementation of rulings and recommendations

25 If all else fails?