Agreement on Technical Barriers to Trade

The Agreement on Technical Barriers to Trade (TBT) is an international treaty administered by the World Trade Organization (WTO).
- Adopted: Uruguay Round of GATT
- In force: 1995 (with the creation of the WTO)
- Purpose: To ensure that technical regulations, standards, testing, and certification procedures do not create unnecessary obstacles to trade.
- Legitimate objectives: Protection of human, animal, and plant life, environmental safety, and consumer interests.

Purpose

The TBT Agreement:
- Prevents technical requirements from being disguised trade restrictions.
- Recognizes the right of countries to regulate for legitimate interests (health, safety, environment).
- Promotes international standards to harmonize trade requirements.

Structure of the TBT Agreement

The Agreement is divided into five parts:

1. Scope

   • Covers all products, industrial and agricultural.
   • Excludes:
     • Services
     • Sanitary and phytosanitary measures (SPS Agreement)
     • Government procurement specifications

2. Technical Regulations

   • Outlines principles and obligations for creating technical regulations.

3. Conformity Assessment

   • Covers testing, certification, and inspection procedures.

4. Information and Assistance

   • Members must share information and assist in drafting technical regulations.

5. Institutional and Dispute Provisions

   • Establishes the Committee on Technical Barriers to Trade and sets dispute settlement procedures.

Scope of Application

Article 1 defines the scope:

• Substantive scope: Technical regulations, standards, and conformity assessment.
• Personal scope: Applies to all WTO members.
• Temporal scope: Obligations are ongoing as long as members maintain such measures.

Key Categories (Annex 1)

1. Technical Regulation (Annex 1.1)

   • Mandatory requirements on product characteristics or production methods.
   • Includes terminology, packaging, labelling.
   • Example: Batteries must be rechargeable; wine must be in green bottles.

2. Standard (Annex 1.2)

   • Voluntary guidelines approved by a recognized body.
   • Producers often comply for market access and consumer trust.

3. Conformity Assessment (Annex 1.3)

   • Procedures to verify compliance with regulations or standards.
   • Examples: Testing, inspection, certification.

Issues of Scope

• Mandatory vs. Voluntary:

  • Technical regulation → mandatory
  • Standard → voluntary

• Case Study:

  • Tuna-Dolphin (GATT I & II) → US "dolphin-safe" label considered a technical regulation because it effectively restricted market access.

• Non-product Related Processes (NPRP):

  • Labels like organic, fair trade, free-range → debated if they are technical regulations.
  • Some case law implies that labeling can fall under TBT.

Key Principles and Obligations

1. Non-Discrimination

• No less favorable treatment for imported products vs domestic products.
• Applies to technical regulations and conformity assessments (Art. 2.1, 5.1).

2. Avoidance of Unnecessary Barriers to Trade

• Article 2.2: Regulations cannot be more trade-restrictive than necessary to achieve legitimate objectives.

3. Harmonization with International Standards

• Members should base technical regulations on international standards (Art. 2.4, 5.4).
• WTO TBT Committee’s “Six Principles” guide standard development.

4. Notification Requirements

• Members must notify other members of proposed measures when:

  1. The measure is a technical regulation or conformity assessment.
  2. It does not align with international standards.
  3. It has a significant effect on trade.

• Urgent situations (Art. 2.10): Safety, health, environmental, or national security concerns allow fast-track notifications.

Adjudication of Disputes

• Article 14.1: Disputes are handled by the WTO Dispute Settlement Body.
• Mechanisms to support the TBT Agreement:
  • Enquiry Points (TBT Windows) for sharing information
  • Technical assistance to help developing countries comply with global standards

See Also

• Codex Alimentarius
• World Trade Organization (WTO)
• Sanitary and Phytosanitary (SPS) Agreement

References & External Links

• Text of the TBT Agreement(https://www.wto.org/english/docse/legale/17-tbt.pdf)
• Analytical Index to the TBT Agreement (2004 update)(https://www.wto.org/english/rese/bookspe/analyticindexe/tbt01e.htm)