Technical Barriers to Trade Role of BIS as WTO-TBT Enquiry ...Technical Barriers to Trade WTO Agreements Rules for international trade being written through various WTO Agreements

Technical Barriers to TradeRole of BIS as WTO-TBT Enquiry Point &Relevance to Automobile Sector

Technical Barriers to TradeRole of BIS as WTO-TBT Enquiry Point &Relevance to Automobile Sector

Rachna SehgalInternational Relations & Technical Information Services DepartmentBureau of Indian Standards

Contents

TBT AgreementTBT NotificationsRole of Enquiry PointHandling of Trade ConcernsRecent TBT Notifications in Automobile SectorExpectations from Stakeholders

Objectives of WTO

To ensureFree, more transparent and more predictable trade

Confidence in International Trade amongst the WTO member countries

Barriers to Trade- Trends

Reduction in:• Tariffs• QuotasRise in:Barriers such as regulations, conformity

assessment procedures, labellingrequirements, etc

Technical Barriers to Trade

WTO AgreementsRules for international trade being written through various WTO AgreementsRules pertaining to Standards, Regulations and Conformity Assessment for Trade in Goods are laid down inAgreement on Sanitary and Phyto Sanitary Measures (SPS)Agreement on Technical Barriers to Trade (TBT)

TBT AGREEMENT

Applies to all products incl industrial and agricultural products

Ensures technical regulations, standards and conformity assessment procedures do not constitute barrier to international trade

Allowing members to take regulatory measures to protect legitimate interests.

Promotes use of international standards and improves efficiency of production, facilitating conduct of international trade.

What measures are subject to TBT provisions?

Technical Regulation

Standard

Mandatory Measures

Voluntary Measures

Voluntary Measures

Conformity Assessment Procedure

TECHNICAL REGULATION

Document which lays down product characteristics or their related processes and production methods, including the applicable administrative provisions, with which compliance is mandatory.

It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method.

STANDARD

Document approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characteristics for products or related processes and production methods, with which compliance is not mandatory.

It may also include or deal exclusively with terminology,symbols, packaging marking or labelling requirements as they apply to a product, process or production method.

CONFORMITY ASSESSMENT PROCEDURES

Any procedure used, directly or indirectly to determine that relevant requirements in technical regulations or standards are fulfilled.

Conformity assessment procedures include,inter alia,procedures for sampling, testing and inspection; evaluation, verification and assurance of conformity; registration, accreditation and approval as well as their combinations.

Main Disciplines of the TBT Agreement

HarmonizationHarmonization

Avoidance of unnecessary obstacles to trade

Avoidance of unnecessary obstacles to trade

Non - DiscriminationNon - Discrimination

Art. 5.1.1

Non-Discrimination

OriginatingOriginating

Of national originOf national origin

National Treatment

From any other countryFrom any other country

Most-Favoured Nation (MFN)

Conditions no Less Favourable toAccess of Suppliers of Like ProductsConditions no Less Favourable to

Access of Suppliers of Like Products

Avoid unnecessary obstacles to trade

Standards/ Regulations/CAPs Must not be prepared, adopted or applied so as to

Create unnecessary obstacles to international trade

Art. 5.1.2

The Harmonization Principle

2 key requirements

Shall play a full part in the preparation by appropriate

international standardizing bodies of guides and recommendations for

Standards/ Regulations/CAPs

Shall play a full part in the preparation by appropriate

international standardizing bodies of guides and recommendations for

Standards/ Regulations/CAPs

Relevant guides or recommendations issued by international standardizing bodies shall be used as a basis for the

elaboration of Standards/ Regulations/CAPs

Relevant guides or recommendations issued by international standardizing bodies shall be used as a basis for the

elaboration of Standards/ Regulations/CAPs

The Harmonization Principle: Use of International Standards

Such guides or recommendations or relevant parts are inappropriate for the Members concerned

Such guides or recommendations or relevant parts are inappropriate for the Members concerned

Except

national security requirements

national security requirements

For, inter alia, such reasons as

prevention of deceptive practices

prevention of deceptive practices

protection of human health or safety

protection of human health or safety

protection of animal or plant life or health protection of animal or plant life or health

protection of the environment

protection of the environment

fundamental climatic or other geographical factorsfundamental climatic or

other geographical factors

fundamental technological problems

fundamental technological problems

fundamental infrastructural problems

fundamental infrastructural problems

Code of Good Practice for the Preparation & Application of Standards

Use International Standards as basis for development of national standards-unless deviation is justifiedParticipate in International Standards Setting ProcessAvoid duplication/ Overlap of WorkAllow Period of 60 days for COMMENTSPublish PROGRAMME OF WORK-once in 6 monthsIndicate ICS classification

Notification Conditions?

Members must notify a measure when both sets of conditions apply

A relevant international

standard does not exist

The measure may have a significant effect on trade of other Members

The measure may have a significant effect on trade of other Members

ORThe measure is not in accordance with

the standard

When or at what stage to notify ?

Notifications at draft stages when amendments can still be introduced based on comments received.

For urgent reasons (safety, health, environment protection or national security), Notification must be made immediately upon adoption.

The Notification

Format

11 Sections in a Notification Form

Item 1 - Government making the notificationItem 2 - Body elaborating a proposal (TR or CAP)Item 3 - Relevant provision of the AgreementItem 4 – Products covered (HS no./ ICS no.)Item 5 - Title of proposal, number of pages, language. Indicate translations or summaries

11 Sections in a Notification Form

Item 6 - Abstract, main features of the proposed/adopted measureItem 7 - Legitimate objectiveItem 8 - Any relevant document (publications). Reference to international standardsItem 9 -Adoption and entry into forceItem 10 - Final date for comments - normal time-limit of 60 days!Item 11 - Where to find the text of the measure

How much time is allowedfor comments

At least 60 days time for other Members to make comments in writing

Discuss these comments upon request

Take into account these written comments and the results of these discussions

Establishment of Notification Authority & Enquiry Point

Department of Commerce, Ministry of Commerce- Notification Authority for India.

Bureau of Indian Standards -Designated TBT Enquiry Point by Ministry of Commerce

Ministry of Health & Ministry of Agriculture- SPS Enquiry Points

WTO TBT Enquiry Point

Role of BIS- Enquiry Point under TBT Agreement

Answering Enquiries pertaining to StandardsTechnical RegulationsConformity Assessment ProceduresDissemination of TBT Notifications Preparing Country’s stand on TBT NotificationsArranging Workshops/ Seminars for sensitizing other relevant agencies

WTO TBT Enquiry Point-Work being done

Dissemination of Information

Creation of databank of stakeholdersDownloading & Classification of TBT Notifications based on ICS codesElectronic Dissemination of TBT Notifications to identified StakeholdersReceipt of Responses from Stakeholders

BIS -TBT ENQUIRY POINT-PRESENT STATUS

Webpages on BIS website www.bis.org.infor benefit of Exporters

Monthly TBT Notifications and their Abstracts on the website of BIS

Abstracts published in our journal ‘Standards Monthly Additions’

Free registration for interested stakeholders for receipt of TBT Notifications

.

TBT Notifications since 1995

365460

794

648 669611

538 581

794

638

771875

1030

0

200

400

600

800

1000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Notifications by Objective

Protection of environment

13%Prevention of deceptive

practices14%

Adoption of new domestic law

5%

Consumer information and labelling

6%

Quality requirements5%

Not specified0%

Others2%

Lowering / removal of trade barriers

1%

Protection of human health or safety

50%

Animal plant life or health

2%Harmonization2%

National security 0%

Cost saving0%

Sector wise Distribution-Top six sectors.

0

5

10

15

20

25

Health, Safety& Environment

Food & AgroProducts

ElectricalEngg.

ChemicalTech/

Cosmetics

Civil Engg./Construction

DomesticEquipments

Trade concerns: what can we do?

Comment on notification - new measure

Request explanation of measure from Enquiry Point or Member

Bilateral consultations

Raise issue at the TBT Committee

Request consultations

Dispute settlement provisions

Roadmap for the solution of trade concerns

Toys Producer in Country A

Wants to export Toys in Country B

A Draft Technical regulation on Toys in Country B has just been notified in order to protect human health

from the toxicity of these toy paints

Country A received notification of Country B’s technical regulation through its Enquiry point

Toy’s industry pressures the government to do something about it

However,Toy’s industry in country A considers that the modified Country B’s regulation is still more trade

restrictive than necessary


Country B answers that concerns will be transmittedto capital and replied to at the next meeting

The government of Country A raises the concern at the multilateral level in the TBT Committee


Country B amends its draft technical regulation to reflect Country A’s concerns

Country B enters into consultations with Country A


Country B does not share Country A’s concerns and eventually adopts the

draft regulation as it is

2 possibilities...

Country A requests consultations with Country B before the DSB

A panel is established...

Country A can now export to Country B

its toys


Specific trade concerns raised in the Committee from 1995-2007

How Many? Approximately 170 concerns raised

Who? On measures taken by ≈ 35 Members

Typical trade concerns raised in the Committee

On What?

Food products, beverages and spirits

Chemical products

Textiles products

Machinery and mechanical appliances /electrical equipment

Vehicles, aircraft, vessels and associated transport equipment

Some typical type of concernsMore trade restrictive than necessary

Discriminatory

Rationale for the measure

Failure/Delay to notify

Entry into force of the measure

Failure to reply to comments

Not in line with international standards

Most of the trade concerns raised are dealt with bilaterally

TBT Notifications -Key Countries (1995-2009) (approx figures)

40Uganda250Argentina

60Australia260Canada

95France 280Israel

100Philippines290Japan

110Columbia290EC

130Switzerland300Thailand

130El Salvador320Brazil

160Mexico460USA

200Korea560China

UNITED STATES – G/TBT/N/USA/170

Product -Automobile safety equipmentIssues - safety standard on lamps, reflective devices, and

associated equipment specifies performance requirements intended to reduce the incidence of vehicle crashes by providing adequate illumination of the roadway and by enhancing motor vehicle conspicuity in daylight, darkness, and other conditions of reduced visibility

Objective and rationale - Protection of human health

Recent TBT Notifications-Automobile Sector

KINGDOM OF BAHRAIN – G/TBT/N/BHR/ 3

Product -Cars (safety and testing),Tyres ; Rear mirrors in cars ; Children's safety chairs in cars

Issues - Mainly the above standards deal with the mechanical aspect of motor vehicles, covering the area tyres, brakes, view mirrors, impact strength, restraining system for children in vehicles, speed limits and spare parts.

Objective and rationale -To maintain quality of vehicles, environmental issues, consumer protection, and marketing relations with GCC neighbours


THE PEOPLE’S REPUBLIC OF CHINA-G/TBT/N/CHN/84

Product - Quadricycles and three-wheeled cars for agricultural transportation

Issues - Limit and Measurement of the Voice Outside Accelerating Three-wheeled car or Low-speed Truck for agricultural purposes

Objective and rationale - For the environmental

protection


THE PEOPLE’S REPUBLIC OF CHINA– G/TBT/N/CHN/142

Product - Retreaded tyre for passenger car and its trailer

Issues - selection of retreaded passenger car tyre casing, requirements before and after being retreaded, appearance quality, outside dimension, safety performance, test method and mark.

Objective and rationale - For the protection of human safety

and health



Product - New tyres for passenger car

Issues - This standard specifies the requirements, test methods and marks of new tyres for passenger cars.

Objective and rationale - For the protection of human safety



Product - Safety belt anchorages of forward and rear ward seats for adult occupants of vehicles

Issues - This standard specifies the position, strength and test methods for safety belt of motor vehicles

Objective and rationale - For the protection of human safety.


EQUADOR– G/TBT/N/ECU/9

Product - pneumatic tyresIssues - technical and labelling requirements for

pneumatic tyres used on bicycles, motorcycles, scooters, passenger vehicles and motor cars, vans, jeeps and other multi-purpose vehicles and light trailers, lorries, buses, trailers and other multi-purpose road vehicles, minibuses, coaches, off-road vehicles, low-speed industrial vehicles, and platforms, trailers and vehicles for agricultural use.

specific requirements, labelling, conformity assessment tests, proof of conformity, administrative procedure for verifying compliance with this Regulation, control and supervisory authority, penalty regime, liability of conformity assessment bodies, review and updating, and entry into force.


EQUADOR– G/TBT/N/ECU/9 contd

Objective and rationale - Protection of human health and safety, prevention of fraud or misrepresentation arising from misleading advertising or labelling, environmental protection and prevention of harm to end-users.


REPUBLIC OF KOREA – G/TBT/N/KOR/105

Product -Electrical/Electronic Products, AutomobilesIssues - Prescribe restrictions on the use of hazardous

substances and requirements for improvement in material/structure aspect related matters; and incorporate the Extended Producer Responsibility (EPR) for electrical/electronic products under the Act on the Promotion of Saving and Recycling of Resources into this Act; and allow the Government to impose/collect Recycling Dues from manufacturers/importers or owners of automobiles.

Objective and rationale -To enhance recycling and reduce environmental risks from electrical/electronic products and automobiles.


KENYA – G/TBT/N/KEN/46

Product -Seat belts

Issues - Specifies the requirements for automobile seat belt assemblies which are designed to accommodate one adult and are fitted, in the main, to forward facing seats for the purpose of protecting passengers from injury in the event of a traffic accident

Objective and rationale - Protection of human safety


BIS -TBT Enquiry Point

Notifications from other countries-Comments not forthcoming

ConstraintsLack of awareness

The right stakeholder

Getting full texts of TBT Notification

Different Language-Translation

Time for comments

BIS -TBT Enquiry Point

Notifications from IndiaFew Notifications from India Constraints

Lack of awareness of TBT Agreement RBs may not be aware with the obligatory clauses of WTONotifying authority not made aware of draft regulations by other national authorities.

Examination of TBT NotificationsAspects to be considered:

Are these Notifications in accordance with International Standards ? Are the requirements trade restrictive ?

Are they stricter than International Standards than necessary to meet the legitimate objectives of:Protection of human health or safetyAnimal or Plant life or healthEnvironmentAre these Scientifically Justified ?

Expectations from Industry & Stakeholders


Awareness of TBT Agreement and obligations of member countriesIndustry to be proactive to TBT NotificationsStudy TBT notifications, Technical Regulations etc. Segregate the TBT notifications as received from BIS- TBT Enquiry Point sector wise/product wise and further disseminate to relevant stakeholdersBased on feedback from stakeholders, send comments to BIS-TBT Enquiry Point within stipulated time


Identification of need to conduct Trainings/ Workshops/ Seminar for all concerned with in their domainIdentification of trade related problems in their areaDiscussion with traders, manufacturers, exporters, importers, other key playersActive Interaction with MOC/BIS-TBT Enquiry Point

For Regulatory BodiesSend Draft Technical Regulations to Ministry of Commerce/ BIS Enquiry Point for notification at WTO in the required format

Participate in International Standards Setting

Be Proactive to TBT Notifications


Technical Barriers to Trade Role of BIS as WTO-TBT Enquiry ...Technical Barriers to Trade WTO Agreements Rules for international trade being written through various WTO Agreements

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