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Transcript of Slide No. 1 Pradeep S Mehta Secretary General CUTS International Jaipur, India Email: [email protected]...
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Slide No. 1
Pradeep S MehtaSecretary GeneralCUTS International
Jaipur, IndiaEmail: [email protected]
International Trade Concerns
Effects of International Regulatory Harmonisation and International Agreements (For Trade)
August 2006
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Slide No. 2
• All international agreements for trade are relevant, but their objectives differ.
• Different objectives lead to constant conflicts among divergent approaches.
• Clashes over international agreements have economic implications.
• Developing countries face numerous challenges with the highest economic implications.
• A well-balanced and harmonised international regulatory mechanism needs to be created.
FACTS
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Slide No. 3
Following international rule-making bodies govern the Biosafety and Biotechnology regulation:
• WTO: It sets the regulations, which govern global trade in all products.
• Cartagena Biodiversity Protocol: It was negotiated in 2000 to cover transboundary movements of GM and LM products;
• Codex Alimentarius Commission in Rome: It is responsible for providing technical judgments on food safety issues.
INTERNATIONAL REGULATIONS
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Slide No. 4
• WTO Agreements i.e. GATT, SPS & TBT aim to ensure that
measures affecting trade are no more restrictive than necessary.
• Biosafety Protocol and the Codex Alimentarius intend to regulate
the international transfer of LMOs thus focusing primarily on environmental and human health risks.
CONFLICTING REGULATIONS
OUTCOME:
Uncertainty occurs as to how environmental and health measures can be harmonised with relevant WTO Agreements.
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Slide No. 5
Uncertainty aggravates when two different groups of countries favour different approaches.
• US, Canada and Argentina have adopted the principle of ‘sound science evidence’ and prefer the WTO Agreements.
• EU, Japan and South Korea have adopted the ‘precautionary principle’ thus restricting trade. They favour CBD to justify their stringent national regulations.
FURTHER COMPLICATIONS
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Slide No. 6
• This dispute became a test case on how the WTO will deal with
decision-making based on the precautionary principle.
• Ruling in favour of US, Argentina and Canada against EU.
• Ruling could not help clear the dust nor affect the EU's current biotech regulatory framework.
US-EU BIOTECH TRADE DISPUTE
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Slide No. 7
• Fear related to exports of agricultural commodities to EU and other countries.
• Preserving the export opportunities, they need to be “GM-free” countries.
• If they opt not to grow any GM crops, then the farmers are at a loss.
• Their capacity to implement, monitor and enforce bio-safety laws remains weak.
• India recently went through a very tough time in terms of governance of biotechnology.
• The bio-safety guidelines require a comprehensive and dynamic policy mechanism , not just a tool for regulation.
CHALLENGES FACED BY DEVELOPING COUNTRIES
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Slide No. 8
• Africa still lacks a comprehensive regulatory system against
agricultural biotechnology vis-à-vis the international negotiations at the WTO.
• Most countries do not have the necessary infrastructure to comply with the regulations.
• Need to balance their rights and obligations under the Biosafety Protocol with their commitments under the WTO.
CHALLENGES FACED BY DEVELOPING COUNTRIES
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Slide No. 9
• Can take assistance from FAO, IAEA, UNEP and WHO to work
together for developing a model regulatory framework.
• The Codex Alimentarius Commission and Consultative Group on International Agriculture Research (CGIAR) centres can be involved.
TOWARDS INTERNATIONAL REGULATORY HARMONISATION
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Slide No. 10
For International regulatory harmonisation, US and EU can cooperate either by:
• Mutual recognition of regulatory systems,
• Explicit regulatory harmonisation, or
• Informal mutual regulatory adjustment.
NEED FOR COOPERATION BETWEEN US AND EU
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Slide No. 11
CONCLUSION
Given the entrenched differences between the US and the EU, and also between the WTO and the Biodiversity Protocol, a formal or informal mutual regulatory adjustment short of formal harmonisation is the most promising.
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Slide No. 12
Thank You !
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