TBT on
Self-drive Cars and Medical Tools at WTO
·
India on the Mat on Food Standards,
Liquor Labelling
At a meeting of the Technical Barriers to Trade Committee
on 25-26 February, WTO members discussed how to improve regulatory cooperation on
self-driving cars and medical devices. They also exchanged experiences on procedures
related to testing and certification. These discussions were followed by a regular
meeting of the Committee on 26-27 February, where members discussed 64 trade concerns,
12 of which were new.
The discussions among members highlighted the importance of cooperation
between regulatory authorities in two sectors with rapid advances in technological
innovation: autonomous vehicles and medical devices.
Members noted that cooperation in these sectors, where regulations
have not been fully developed, could be especially valuable and trade facilitating
for exporters. They highlighted the importance of following relevant international
standards and establishing guidance to promote regulatory compatibility between
members. In addition, it was pointed out that following the principle of good regulatory
practices helps avoid unnecessary trade barriers, while at the same time allowing
members to effectively achieve their public policy objectives, such as safety and
environmental protection.
Members shared their experiences and case studies on the way they accept
conformity assessment results (tests, certificates) from other members. Specific
sectors discussed included toys, medical devices, machinery and electrical and electronic
devices. They also discussed challenges related to accepting these results.
The WTO Secretariat reported a record number of TBT notifications of
new or changed measures in 2019, with over 3,330 such notifications circulated by
93 members. It was noted that 63% of notifications were from developing members.
More detail – including on specific trade concerns (STCs) – can be found in the
25th Annual Review of the Implementation and the Operation of the TBT Agreement
(G/TBT/44).
At the regular meeting of the TBT Committee, WTO members discussed
64 specific trade concerns, including 12 new ones.
Members used a new online system, eAgenda,
to simplify the process of raising STCs for the meeting. Around 90% of STCs were submitted using this system.
A brief summary of new STCs is provided below.
Several members expressed concern about a draft Mexican regulation
setting out nutrition labelling requirements for pre-packaged food and non-alcoholic
beverages. The European Union, the United States, Switzerland, Costa Rica and Guatemala
said that the proposal restricts trade more than necessary – although they recognize
the importance of promoting public health and empowering consumers to make informed
decisions. These countries are concerned, among other things, about the mandatory
nature of the measure and how the proposal treats various types of nutritional information
(e.g. on dietary fibres, added sugars, trans‑fat).
They are also concerned that the requirements are not aligned with relevant Codex
standards. Mexico was requested to provide an adequate transition period to allow
industry to adapt.
Mexico said that the proposed regulation was introduced in order to
address an obesity epidemic. The proposal had been subject to public consultations,
which concluded in December 2019. Thousands of comments had been received from both
national and international stakeholders. Following the consultations, in January
2020, a revised proposal had been agreed by the relevant Mexican authorities. The
revised version would shortly be published in Mexico's Official Gazette.
A concern was expressed about proposed maximum sodium (salt) levels
for agricultural products in Colombia. While supporting Colombia's efforts to promote
public health, the United States and Guatemala expressed concern that the measure
did not consider the functional role of sodium; they also questioned the scientific
basis for the regulation. They said the mandatory nature of the requirements could,
potentially, lead to unnecessary restrictions on trade.
In response, Colombia emphasized that the measure aims to promote public
health through consumer education. The objective is to reduce excessive intake of
salt. Nevertheless, the proposal would not prohibit the sale of products that exceeded
the limits but would instead put in place penalties. Scientific evidence had suggested
that a voluntary approach (self-regulation) would not achieve a sufficient impact.
In addition, Colombia noted that industry had been consulted on the matter.
Members discussed a measure introduced by the State of New York (United
States) concerning the regulation of toxic chemicals in children's products. The
European Union said that it appeared to entail an additional layer of requirements
beyond the rules already in force at federal and state levels in the United States.
In addition, the EU noted that the procedures for the listing of chemicals were
not in line with good regulatory practices. The United States was requested to provide
for an adequate transition period to allow industry to adapt.
The United States said that it was working with the State of New York
on the matter and encouraged members to submit comments on the notification.
Potential new Chinese requirements affecting food products exported
to China was raised as a concern by several members. Chinese authorities are considering
(the regulation is still at the draft phase) additional certification procedures.
Members expressing concern included Mexico, the Republic of Korea, Switzerland,
the United States, Japan, the European Union and Chinese Taipei. They are seeking
assurances that any additional certification procedures would not create additional
burdens for exporters, and that any associated risk assessment be based on science.
China was asked to notify the measure and allow for feedback from stakeholders.
Mexico asked China to clarify whether the proposal would also cover alcoholic beverages;
there was concern in Mexico that Tequila would be classified as a "high risk
product".
China emphasized that the measure was still in the drafting process
and would be notified to the Committee with enough time for comments to be made.
It was noted that the measure was being developed in response to an increase in
trade.
Some members expressed concern about a proposed measure that would
require the pre-installation of Russian software in technically complex goods sold
in Russia. The United States, Japan and the European Union were concerned, among
other things, about the rationale for the pre-installation requirement, possible
discriminatory aspects of the measure, its proportionality and the absence of a
notification (and associated 60‑day comment period). The US said that the
measure appeared to be a technical regulation as defined by the TBT Agreement because
it set out “product characteristics” with which compliance was mandatory. Further
clarification was sought on the scope of the term "technically complex goods".
The Russian Federation said that the proposed measure fell outside
the scope of the TBT Agreement and that the TBT Committee was not the appropriate
forum to discuss it. The proposed measure was not a technical regulation because
it did not provide for requirements on “product characteristics”, nor did it prescribe
“production methods”. It also did not set out any conformity assessment procedures.
Russia also said that the proposal was non‑discriminatory and would not cause
any negative impact on international trade.
The United States and the European Union expressed concern with India's
recent draft measure on labelling for food products. The regulation requires front
of package nutritional information on food products and a warning on alcoholic beverages. The US said that the proposed measure would affect
the export of processed products, including alcoholic beverages, and would create
consumer confusion. The US urged India to notify any changes to the labelling requirements
to the TBT Committee. The EU urged India to align the provision with Codex standards
of labelling for pre-packaged foods and nutrition labelling. The EU asked for a
longer transition period to allow industry to adapt to the new measures.
India said that members' comments had been considered and that front
of package labelling requirements had been removed from the draft measure, which
would be re‑notified to the Committee. Regarding warning labels on alcoholic
beverages, India said that these were based on recommendations by the World Health
Organization and Codex.
A proposed measure by the European Union which introduces changes to
the regulatory framework for the production and labelling of organic products drew
reactions from several members. The Dominican Republic, Canada, Panama, Paraguay,
Peru, Ecuador, Chile and Colombia expressed concerns about various parts of the
regulation. The regulation required, it was noted, that a control certification
and Certificate of Inspection be issued before the shipment was due to leave the
country of origin and that it had to be approved by the authorities in the country
of export. Furthermore, group certification would not be accepted any more. This
would impact small producers who would have to bear the burden of the cost of individual
certificates.
Concerned members were of the view that the measure could potentially
cause administrative and financial ramifications for organic food exporters to the
European Union. The EU was urged to notify any changes to its regulations to the
Committee in order to allow time for comments.
The EU said that discussions were ongoing with EU member states. Nevertheless,
organic products entering the EU market had to comply with EU organic production
rules, including provisions on group certification. The EU would take into consideration
the comments of members in the ongoing discussions.
The European Union and Switzerland expressed concern with an online
certification system for a conformity assessment safety platform (SALEM) launched
by Saudi Arabia. The system was designed to help exporters obtain a Gulf Cooperation
Council conformity tracking symbol from a certified body and required all products
to be registered on the online platform. Members noted that the system was having
a negative impact on the import of products – especially toys and ceramics – because
it was burdensome for exporters.
The Kingdom of Saudi Arabia said that the purpose of the platform was
to evaluate the conformity of products before shipment, and to reduce the clearance
time at the border. It was in response to a growing number of instances of non-compliance
on the market. The procedures were applied in the same manner to local and foreign
manufacturers, and the measure had been notified to the WTO in line with transparency
obligations.
The Russian Federation sought clarification regarding a measure introduced
by Mongolia involving mandatory requirements for wheat flour enrichment. Russia
asked if the measure was consistent with relevant international standards and said
that there was not enough time between the publication of the regulation and its
entry into force to give producers an opportunity to adapt.
Mongolia said that all information related to the new regulation was
available on the website of the Ministry of Food, Agriculture and Light Industry
of Mongolia.
China expressed concern with a new regulation that requires the display
of the standard absorption rate (SAR) of radio terminal equipment in France. While
China respected the objective of protecting human health and safety, it urged France
to remove the requirement as it could lead to consumer confusion and added unnecessary
costs. France was requested to postpone the implementation of the requirement for
12 months to allow industry to adapt.
The EU said that the regulation was a response to requests from consumer
organizations regarding public exposure to radio equipment. The entry into force
was set for July 2020.
Several members expressed concern about a new Peruvian measure that
would ban the use of adhesive labels for food and beverages to comply with labelling
requirements on advertising warnings. Costa Rica, Chile, the United States, Brazil,
Colombia, the European Union, Guatemala and Korea said that this change would create
an unnecessary barrier to trade and would place a burden on small business to adjust.
Peru was urged to modify the measure to allow for the use of less trade restrictive
alternatives, such as stickers.
Peru said the measure sought to achieve the legitimate objective of
protecting public health, especially of the most vulnerable members of the population,
and of providing adequate information to consumers.
Korea expressed its concern about a new regulation in the Kingdom of
Saudi Arabia that stipulated temperature requirements when testing the performance
of washing machines. Korea said that the requirement was not in line with international
standards and urged Saudi Arabia to notify the measure to the Committee.
The Kingdom of Saudi Arabia said that it was willing to discuss the
matter bilaterally.
The Chair Mr Sung-hwa
Jang (Republic of Korea) announced the WTO Secretariat's intention to organize an
event this year commemorating the 40th anniversary of the "original" TBT
Agreement – known as the "Standards Code".
The event will take place on 30 October, immediately after the conclusion
of the Committee's last formal meeting of the year. It will unite former and current
TBT negotiators, scholars and stakeholders to look back at the past 40 years, to
consider current issues and to look ahead to challenges in the future.