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TRADE
Understanding how the Sanitary and Phytosanitary (SPS) Agreement helps protect New Zealands
people, economy and environment while improving trade opportunities
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conTEnTs
Frewrd 1
Itrduti why the sPs Agreemet matter 2
1 What i the sPs Agreemet 4
2The sPs Agreemet ad new Zealad 13
3challege fr the future 16
ctat 17
Glary 18
Further pieTis report can be downloaded romhttp://www.maf.govt.nz.
You can request hard copies rom:
SPS Enquiry Point
PO Box 2526
Wellington 6140
el: 64 4 894 0431
Email: [email protected]
2009 Crown copyright Ministry o Agriculture and Forestry, Ministry o Foreign Afairs and rade, New Zealand
Food Saety Authority
ISBN 978-0-478-33880-5 (Print)
ISBN 978-0-478-33881-2 (Online)
DilaimerTe inormation in this publication by the Ministry o Agriculture and Forestry, Ministry o Foreign
Afairs and rade and the New Zealand Food Saety Authority is based on the best inormation available
at the time it was written and all due care was exercised in its preparation. As it is not possible to oresee
all uses o this inormation or to predict all uture developments and trends, any subsequent action that
relies on the accuracy o the inormation in this publication is the sole commercial decision o the user
and is taken at their own risk. Accordingly, the Ministry o Agriculture and Forestry, Ministry o
Foreign Afairs and rade and the New Zealand Food Saety Authority disclaims any liability whatsoever
or any losses or damages arising out o the use o this inormation, or in respect o any actions taken.
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Foreword
New Zealand depends on trade or its prosperity. Fair
and consistent rules or international trade benet
New Zealand as well as our trading partners. Tesecountries require an assurance that our exports are sae.
Similarly, the New Zealand government has to manage
the risks that imported goods can pose to the saety o
our ood, our productive base and to our native plants
and animals.
Te World rade Organization (WO) Agreement on
the Application o Sanitary and Phytosanitary Measures
(SPS Agreement) sets in place rules that protect each
countrys sovereign right to take the measures necessary
to protect the lie or health o its people, animals,
and plants while at the same time acilitating trade. It
embodies and promotes the use o science-based risk
assessments in managing the risks associated with the
international movement o goods.
New Zealand, as a member o the WO, has the
sovereign right to decide its own level o health
protection. We also expect our exports to be allowed
to compete airly in oreign markets, while meeting the
level o protection required by the importing country.
We thereore have a strong interest in the setting o
international standards so that they protect lie and
health but do not unnecessarily restrict trade.
We commend this publication to New Zealanders as a
clear summary o the international rules or ood saety,
and protecting human, animal and plant lie or health
when trading.
Hon David Carter
Minister o Agriculture
Minister or Biosecurity
Minister o Forestry
Hon im Groser
Minister o rade
Hon Kate Wilkinson
Minister or Food Saety
Foreword
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introduction why the SPS Agreement mAtterS
At the heart o the world trading system is theWorld rade Organization (WO). By 2008 the
WO had 153 members, representing most o the
worlds trading nations.
aris and quotas have or many years been the
biggest barriers to trade. Tese are continually
being reduced through negotiations in the WO.
Measures to protect against the spread o diseases
and pests by traded goods may also be barriers to
trade. Te SPS Agreement is about how to applysanitary (human and animal health) measures and
phytosanitary (plant health) measures in a way that
does not unnecessarily restrict trade.
An increasing volume o international trade and
travel means that all countries, New Zealand
included, need to be more vigilant than ever
against pests and diseases that threaten the health
o their people, animals and plants. Likewise,
countries rightly expect the ood they import tomeet their own standards o saety.
So reedom to trade, and the benets that result,
must be balanced against the need to protect
people, animals and plants rom unacceptable risks
to health and saety.
WO member countries negotiated the SPS
Agreement to help achieve this balance. It
establishes principles that countries are committed
to uphold when trading in animals, plants andtheir products. Te SPS Agreement does not
stop countries rom protecting health and saety.
Rather, it allows them to determine their own level
o protection but requires that any restrictions
on trade needed to achieve that protection be
non-discriminatory, transparent and scientically
justied.
P looks at the SPS Agreement in detail.
P looks at how the SPS Agreement affects
New Zealand.
P 3describes some of the future challenges in
implementing the SPS Agreement.
Finally there is a shortGssof terms and guide
to further sources of information.
Freedom to trade, and thebenefts that result, must be
balanced against the need to
protect people, animals and plants
rom unacceptable risks to health
and saety.
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introduction3
, f
s ps
xpsbecause they generate
almost two-thirds o
New Zealands exports
o goods, and employ
hundreds o thousands oNew Zealanders, directly
and indirectly.
sbecause it makes clear the
actors that should be taken
into account when sanitary
and phytosanitary measures
are applied to protect our
unique natural resources,
and plants and animals, rom
damaging pests and diseases.
t SPS ag s p :
pp s zsbecause it allows us to protect human and
environmental health rom damaging pests
and diseases.
pp s ssbecause it allows us to ensure that ood
imports are sae to eat.
pswho benet rom
certainty over import
requirements. In
turn, processors and
commercial users o
imported ood, animal
and plant products also
benet.
vpg sthat can use the international
ramework or SPS arrangements
among countries, irrespective o their
economic and technical capability.
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whAt iS
the SPS aGreement? a g pspTe WO and its agreements, including the SPS
Agreement, were created and put into orce in
1995. Te SPS Agreement represented a signicant
change in philosophy in that trade can now
not be prohibited without good reason, such as
protecting human, animal and plant lie or health.
Beore the SPS Agreement, countries could and
did impose barriers to imports on sometimes-
dubious health grounds with the burden being onpotential exporters to prove that such barriers were
not justied. Te SPS Agreement now requires that
any import restrictions that are imposed must be
supported by scientic evidence, and be based on a
risk assessment or international standard.
Te SPS Agreement maintains the sovereign right
o any government to determine the level o health
protection it deems appropriate, but it also aims
to stop abuse o this right and the prolieration ounnecessary barriers to international trade. Tis is
consistent with the overall trade-enhancing thrust
o the WO system.
w SPS ag vs
Te SPS Agreement covers all SPS measures that
aect or have the potential to aect trade
between WO members. It establishes principles
that members must ollow when they set measures
or protecting the lie or health o their people,
animals or plants when importing animals, plants
and their products. SPS measures apply to
products moved between countries.
Te SPS Agreement does not cover:
measures or the welare o animals;
measures or protecting the physical
environment (or example, water and air
quality);
measures or protecting the health o animals
being transported between countries but not
being traded (e.g. companion cats and dogs);
and
non-health/non-saety-related consumerinterests (or example, labeling or consumer
choice and packaging o ood).
Tese are addressed by other WO agreements, or
example the Agreement on echnical Barriers to
rade (B see box).
SPS measures are requirements that are applied:
to protect human or animal lie or health rom
risks arising rom additives, contaminants,
toxins or disease-causing organisms in oods orbeverages;
to protect human lie or health rom risks arising
rom diseases carried by animals, plants or their
products, or rom the entry, establishment or
spread o pests;
to protect animal or plant lie or health rom
the entry, establishment and spread o pests,
diseases or organisms that carry or cause
disease; and
to prevent or limit other damage to a country
rom the entry, establishment or spread o pests.
Key featuresThe SPS Agreement covers all sanitary and phytosanitary
(SPS) measures standards, guidelines and
recommendations to protect human, animal and plant lie
or health that aect international trade between WTO
members.
The SPS Agreement preserves national sovereignty:
countries have the right to protect the lie or health o their
people, animals and plants.
SPS measures must be necessary and based on scientifc
principles. They must not be maintained without scientifc
justifcation.
SPS measures must not discriminate unairly between
countries or between imported and domestically produced
goods.
SPS measures are to be based on international standardswherever possible, but WTO members can adopt a
measure that is more stringent than an international
standard, provided the measure is scientifcally justifed.
The SPS Agreement provides guidance on using precaution
when making decisions on SPS measures.
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The TBT Agreement a WTO agreement
The TBT Agreement covers all technical standards or regulations except where they are SPS measures as
defned by the SPS Agreement. While the two Agreements are undamentally dierent, they have some important
principles in common. These include:
basic obligations to not discriminate between oreign and local products o the same type;
requirements or notiying proposed measures in advance o implementing them (transparency); and
creating ofcial points or conveying and receiving inormation.
The SPS Agreement relates specifcally to regulations or protecting human, animal and plant lie or health.
Under the SPS Agreement, SPS measures must not be arbitrary or cause unjustifable dierences in the level o
protection considered appropriate in dierent situations. The SPS Agreement requires that regulations must be
scientifcally justifed.
In contrast, the TBT Agreement simply states that general technical regulations and standards including
packaging, marking and labeling requirements must not create unnecessary barriers to trade and must not
restrict trade more than necessary to ulfll a legitimate objective. Legitimate objectives include national security,
preventing deceptive practices, and protecting the environment.
Te term animal or plant lie includes marine andreshwater sh, bees, orests, and both native and
valued introduced auna and ora.
t ppp v p
k p
It is impossible or any country, even a
geographically remote island nation like
New Zealand, to isolate itsel rom all risks o
imported pests or diseases. Achieving zero risk
is impossible: tourism would have to be banned
completely, as would all imports o goods.
Even then, zero risk could not be assured. For
instance, pests and diseases could enter through
smuggling or by natural means such as wind-borne
movement, migratory birds, or via ocean currents
in the case o marine organisms.
rade increases some o these risks. For
New Zealand, which depends on both imports and
exports, the risks must be appropriately managed.
Recognising that zero risk is unattainable, the SPS
Agreement instead enshrines the right o each
country to determine the level o protection that itconsiders appropriate. While this appropriate level
o protection (ALOP) will be a judgement, the SPS
Agreement stipulates that the measures applied
to achieve it must be rmly based on scientic
evaluation.
Beore the SPS Agreement, governments could
respond to pressure rom domestic producers,
or example, by setting a high level o protection
against the entry o a commodity that would
compete with domestic products. At the same time,
they could set a lower level o protection against
similar risks posed by other imported commodities
that they considered economically benecial,
such as commodities not produced locally, or
new or superior varieties o plants or bloodlines
o livestock. But the SPS Agreement means that
governments may no longer apply discriminatory
measures. Tere must be consistency between
the levels o protection considered appropriatein like situations. Tis allows trade to ow more
predictably.
what iS the SPS
aGreement?
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?
riSK aSSeSSment
? ?
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Although the term appropriate level o protectionis relatively new (i.e. since the inception o the
SPS Agreement in 1995), the concept is not.
Governments and regulatory authorities in
New Zealand had, or many years, made decisions
on which risks to accept, and on the extent and
targeting o actions aimed at mitigating risk. Tese
decisions have, in eect, been about New Zealands
ALOP. Tese decisions are made aer
consulting interested parties such as consumers,
environmental organisations and industry, and
take into account, through the political process, the
views o all stakeholders.
Te ALOP reects judgements o the community
as well as science-based evidence. Tis means it can
change over time. It takes into account the benets
o trade, including peoples access to imported
goods, as well as the consequences o incursions
o pests or diseases on industries, biodiversity and
society.
rsk ssss sf ss
SPS ss
WO members are obliged to ensure that their
SPS measures are based on scientic evidence.
I they are not using international standards
this entails risk assessment. Risk assessment is a
scientic discipline (and one component o the
wider discipline o risk analysis which includesrisk management and risk communication). It
helps regulators assemble and analyse data in anobjective, transparent and consistent way, so that
decisions about managing risks can be made on a
sound technical basis.
Any WO member aected by a decision is usually
entitled to see the rationale or the decisions made
by another WO member in developing an SPS
measure.
Countries may conduct their own risk assessments
to evaluate risks and their possible consequences.When carrying out a risk assessment or SPS
measures, a country must take into account a range
o actors such as:
available scientic evidence;
relevant processes and production methods (or
example, or animal or plant products);
relevant inspection, sampling and testing
methods (in both the importing and exporting
countries);
prevalence o specic diseases or pests (in both
the importing and exporting countries);
existence o pest- or disease-ree areas (in both
the importing and exporting countries);
relevant ecological and environmental
conditions (in both the importing and exporting
countries); and
quarantine or other treatment (in both the
importing and exporting countries).
Te list is not exhaustive; other relevant actors
may be considered.
What could
go wrong?
How likely is it
to go wrong?
What would be the
consequences?
a sk ssss p ss qss:
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Risk analysis in New Zealand
Consumers in overseas markets supplied by New Zealand are increasingly concerned about protecting their
own health, and that o their animals and plants, and the saety o their ood. At the same time, consumers are
demanding access to new products rom new sources. This increases the volume and diversity o trade in primary
products. Because the sae movement o animals, plants and their products in and out o New Zealand is so
important to our economic well-being, the discipline o risk analysis plays a crucial role in trade.
These are some o the issues that play a part in decisions by New Zealand regulators:
Pg rom zoonotic and insect-borne diseases, and rom venomous species.
mg s: Assuring the saety o ood produced domestically or imported rom other countries is
essential or maintaining the health and confdence o consumers in New Zealand and overseas.
Pg n Zs p ss: New Zealands reedom rom many o the worlds most
harmul pests and diseases is an invaluable asset that must be protected.
mk ss: In order to preserve and enhance our access to overseas markets, New Zealand must be able
to assure other governments that our agricultural products are sae. The mutual acceptance or methods o
assessing risk by governments acilitates this assurance.
Qv qv sk
ssssIn some cases the risk o an adverse event is
expressed numerically. Tis is qv risk
assessment. In other cases the nature and severity
o the risk are assessed, but without quantication
and the risk estimate is not reported in quantitative
terms. Tis is qv risk assessment.
Risk assessment also evaluates the consequences
o an adverse event. Tis might be measured in
terms o the costs o controlling or eradicating
a new disease and the economic impact o lost
production or sales.
Once the level o risk has been identied, options
or managing the risk are evaluated. From those,
one or more options are chosen to mitigate risk to
the level considered acceptable.
what iS the
SPS aGreement?
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h SPS ag s pp
csg SPS s
Where there is a choice o SPS measures to reduce
risk to an acceptable level, WO members must
choose the one that restricts trade the least. Similar
risks associated with trade must be managed
consistently, even i the commodity comes
rom dierent countries. Countries must avoid
unjustiable distinctions between levels o SPS
protection applied to like situations. Tis means
that they must be able to justiy any dierences in
the way they treat imports rom dierent countries
with similar health status.
tspWO members are required to notiy each other
o proposed new regulations or ood saety and
protecting animal and plant lie or health. Tese
are open or comment and enquiry by other
WO members. Tis system is one o the key
innovations o the SPS Agreement and ensures a
no surprises approach to trade between WO
members.
Beore the SPS Agreement, one o the greatest
difculties or exporters was nding out all the
requirements o importing countries. An SPS
notication takes inormation sharing to an
international level and allows potential problems
to be identied early. Te results o a risk analysis
can also be open to scrutiny. Te risk analysis
process assembles available data in an orderly
and transparent ashion, providing a basis or
inormed and objective decision making. By
allowing other members to comment, WO
members ensure that their SPS measures will
withstand international scrutiny, while protecting
Communicating SPS information betweenNew Zealand and its WTO partners
The National Enquiry Point or SPS matters in New Zealand
plays an important role in acilitating compliance with
New Zealands obligations or transparency under the SPS
Agreement or example, passing on inormation about
New Zealand SPS measures and its systems to other WTO
members.
The National Notifcation Authority conveys inormation on
notifcations o New Zealands new SPS measures to WTO
trading partners through the WTO secretariat in Geneva, or
example, deciding whether a notifcation is necessary, when
to notiy, and processing and sending the notifcation. The
National Notifcation Authority also receives notifcations rom
other WTO members on their new SPS measures rom the
WTO secretariat and passes these on to interested parties in
New Zealand.
Both the National Enquiry Point and the National Notifcation
Authority are located in the Ministry o Agriculture and
Forestry in New Zealand.
the lie or health o their people, animals and plants.
ransparency is important to both importing and
exporting countries. Whenever a government
is proposing a new SPS regulation or modiying
an existing one that diers rom an international
standard and may aect trade, it must notiy
the WO Secretariat, which then circulates the
notication to all other WO member governments.
Tis process also allows other WO members to
submit comments on these SPS proposals. Te
systematic communication o inormation and
exchange o experiences among the WO members
provides a more transparent basis or national
standards, and in many cases makes harmonisation
o SPS measures easier. It also means that many
potential conicts are resolved inormally betweencountries, rather than through ormal processes
under the SPS Agreement.
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in situations where the health status o modern,commercial poultry industries has been protected
through stringent biosecurity programmes rom
diseases, such as avian inuenza, which may
be present in back yard poultry and wild bird
populations in the same geographic region.
eqv: s s
pss
Under the SPS Agreements provisions on
equivalence, WO members must accept the SPS
measures o other WO members as equivalent,
where this can be objectively demonstrated, even
when measures dier rom their own. When
trading in the same product, so long as they
achieve the same level o protection, there is
exibility in how that outcome can be achieved.
Equivalence allows exporters to adopt dierent
ways o reaching the required level o protection.
expg vg SPS ss:
ss g
What happens i a WO member country is not
satised that an SPS measure imposed on its
exports by another WO member is warranted?
WO members may introduce SPS measures that
are more stringent than international standards
i there is scientic justication to do so, and i
they determine a higher level o protection is
appropriate in accordance with the SPS Agreement.
WO members can challenge a proposed
SPS measure i they have reason to believe
that the measure could unjustiably constrain
their exports, and the measure is not based on
relevant international standards, guidelines or
recommendations. Te rst step is to ask why the
measure has been imposed. Te explanation should
show how the SPS measure is justied using the
provisions o the SPS Agreement.
In particular, it should show that it is:
applied only to the extent necessary to protect
against identied risks;
based on scientic principles and evidence;
not used to discriminate against imported goods
in avour o domestically produced ones;
consistent with the members appropriate level
o protection;
as least trade restrictive as possible; and
generally applied consistently with the SPSAgreement.
I a measure does not meet these criteria, the
country applying it may be required to review
it and adjust it to make it conorm to the SPS
Agreement.
dsp s
I a dispute remains unresolved aer attempts to
resolve it bilaterally, it can be raised ormally in the
SPS Committee o the WO. Te good ofces
provisions enable the chair o the SPS Committee
to mediate through ad hoc consultations.
Equivalence in action
New Zealands meat and seaood industries have traditionally
borne heavy costs in meeting the inspection requirements
o overseas countries. The technical justifcation or these
has sometimes been doubtul, and the eects have been
to increase regulatory and other costs associated with
maintaining market access.
Scientifc research and risk analysis has enabled a marked
reduction in the human resources needed or routineinspection o meat and seaood. This has increased processing
options, reduced wastage, and improved the integration o
public and animal health activities. The net result has been
savings to the ood industry, and ultimately consumers, o
millions o dollars a year, while maintaining and enhancing
standards o ood saety.
Equivalence has the potential to save exporters
millions o dollars per year, by allowing them to
determine the most cost-eective and efcient
way to ulll the agreed health requirements o the
importing country.
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I there is still no mutually agreeable solution,the aggrieved WO member can start ormal
WO dispute settlement procedures. First,
consultations (ormal discussions) take
place. I these do not lead to a mutually
acceptable solution then, at the request o the
aggrieved country, a panel o qualied people
is established. I the panel nds that the SPS
measure under dispute is inconsistent with
the SPS Agreement, it can recommend that
the WO member bring the measure into
conormity with the SPS Agreement.
Panel decisions can be appealed on points o law.
Te appeals are heard by a standing Appellate
Body established by the WO. Te decision o
the Appellate Body is binding.
Te dispute settlement understanding
emphasises that prompt compliance with
(dispute settlement) recommendations
or rulings... is essential to ensure eective
resolution o disputes to the benet o all
members. Tere are procedures or retaliation
o trade measures or compensation i the WO
member losing its case does not comply with
a dispute settlement ruling, but these are a last
resort.
Many complaints involving SPS-related matters
are ormally raised in the SPS Committee.
Examples are: procedures or inspecting resh
ruits, regulations or the shel-lie o processed
meat products, a ban on the use o growth-
enhancing hormones in meat production,
and restrictions on methods or processing
poultry. Panels established by the WO Dispute
Settlement Body, however, have heard only ve
issues that have been argued primarily on SPS
grounds. Tese involved the entry o salmon to
Australia, bee rom hormone-treated cattle into
the EU, certain varieties o plants into Japan,
apples into Japan, and marketing o products o
biotechnology in the European Union. In 2007,
a case involving entry o New Zealand apples toAustralia was initiated.
hs s sg s
Harmonisation means that countries should
base their SPS measures on relevant standards,
guidelines or recommendations developed by the
appropriate international organisations identied
in the SPS Agreement. Tese are the standard-
setting bodies or ood saety, animal health
and zoonoses (diseases transerred to humansrom animals), and plant protection. Tese three
organisations are known colloquially as the three
sisters, and New Zealand belongs to all o them:
Te FAO/WHO Codex Alimentarius
Commission (Codex), responsible or protecting
The WTOs SPS Committee
The Committee on Sanitary and Phytosanitary Measures(the SPS Committee) is made up o representatives o all
WTO members; there are also some observer countries and
organisations. It has a mandate to provide a regular orum
or consultations, and to do anything necessary to implement
the provisions o this Agreement and the urtherance o its
objectives.
The SPS Committee:
encourages ad hoc consultations or negotiations among
members on specifc SPS implementation issues;acilitates training on specifc issues, especially or
developing countries and new members (or example,
transparency, and risk analysis); and
maintains close contact with the relevant international
organisations (or example, the FAO/WHO Codex
Alimentarius Commission (Codex), the World Organisation
or Animal Health (OIE), and the relevant international and
regional organisations operating in the ramework o the
International Plant Protection Convention (IPPC).
The SPS Committee does not set international standards:
these are handled by Codex, OIE and IPPC (see
Harmonisation and the three sisters).
what iS the
SPS aGreement?
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consumer health and acilitating air practices inood trade. Codex had 178 members in 2008.
Te World Organisation or Animal Health
(OIE), covering animal health and zoonoses.
Te OIE had 172 members in 2008.
Te ramework o the FAO International
Plant Protection Convention (IPPC), covering
international and regional organisations,
responsible or plant health. Te IPPC had 170
members in 2008.
Harmonisation helps ensure a consistent approach
to addressing risks and can reduce costs when
members ollow standards that have been agreed
internationally rather then having to undertake
specic risk assessments.
Harmonisation does not restrict a countrys ability
to select and implement any SPS measures it sees
as necessary to protect its human, animal or plant
health.
A country is ree to deviate rom an international
standard, guideline or recommendation and
introduce an SPS measure that will give a higher
level o protection, provided that there is scientic
justication, or a risk assessment is undertaken
that shows a higher standard is necessary to meet
the members appropriate level o protection.
WO members are encouraged to play a ull part
in the standard-setting organisations. In doing
so, countries have the opportunity to inuence
the way standards are set, and help ensure that
international standards take account o their
circumstances.
Biosafety Protocol
a United Nations agreement
The Cartagena Protocol on Biosaety, concluded in January 2000
under the United Nations Convention on Biological Diversity, aims
to protect biological diversity rom the potential risks posed by
transboundary movement o living modifed organisms (LMOs)
resulting rom modern biotechnology.
The Biosaety Protocol sets out procedures or advance inormed
agreement or the intentional transboundary movement o LMOs
that are likely to have adverse eects on the conservation andsustainable use o biological diversity. The Biosaety Protocol
came into orce on II September 2003. New Zealand ratifed the
Biosaety Protocol in 2005.
W kgsTe SPS Agreement ocuses on managing the trade
o goods. Tere are however, other international
organisations and agreements that New Zealand
is active in that are relevant to the movement o a
variety o organisms (including pests) particularly
where they afect the environment. For example,
the United Nations Convention on Biological
Diversity has a work programme that considers
the impact o invasive alien species on biodiversity.Similarly, the International Maritime Organization
has work programmes to manage the transer
o aquatic invasive species on ships. Another
international agreement, the Biosaety Protocol
to the United Nations Convention on Biological
Diversity, governs the international movement
o living (genetically) modied organisms. In
each o these cases, there are potential overlaps
with the operation o the SPS Agreement. Care is
taken to ensure that the work undertaken in these
other organisations and agreements supports the
operation o the SPS Agreement and that there is
consistency between all o these agreements.
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the SPS Agreement
and new Zealand Ever since the invention o rerigerated shippinglate in the 19th century, trade in animal and
plant products has underpinned New Zealands
economy. But it is an inescapable act that trading
in animals, plants and their products poses a risk
o introducing any pests, diseases or hazards they
may sometimes carry. Protecting the lie and health
o New Zealanders, and our native and introduced
animals and plants is a key goal o the New Zealand
government. New Zealands biosecurity and ood
saety activities also directly support our export
industries, whose continued access to overseas
markets depends on their products continuing to
meet the standards o importing countries.
t s s: pg
n Zs , v
pp
Biosecurity or biological security reers
to measures to keep out, remove, or eectivelymanage the harm that pests or diseases can do to
New Zealands economy, environment or people.
New Zealand has a world-leading biosecurity
system that does this by:
preventing harmul organisms rom crossing
New Zealands borders and establishing here
while, at the same time, ensuring trade and
tourism are maintained;
reducing the harm caused by organisms already
established in New Zealand; and
supporting New Zealanders being inormed and
involved participants in the biosecurity system.
In the last een years, the biosecurity system
has evolved rom a strong ocus on protecting
primary production to a broader ocus that
includes protecting native and valued introduced
ora and auna (including marine and reshwater
biodiversity), and human health. Tis began when
parliament passed the Biosecurity Act 1993, that
takes account o the nature and eect o introduced
organisms on people, plants and animals, and the
New Zealand economy.
Te strategic direction and strategies or
biosecurity aim to improve leadership, consistency
and perormance across the whole biosecurity
programme toward a uture state whereby:
New Zealanders, our uniquenatural resources, our plants
and animals are all kept sae and
secure rom damaging pests and
diseases1Border controls will remain a critical part o
maintaining biosecurity as more tourists arrive and
more goods are imported, increasing the risk that
harmul organisms enter New Zealand and establishthemselves here. Climate change may also extend
the host range o pests and diseases that need to
be managed. Te SPS Agreement will continue to
guide how New Zealand sets standards and makes
decisions related to biosecurity. In particular, it
will be important to maintain the standards o
transparency and scientic rigour required by the
SPS Agreement, and to make decisions as quickly
as possible. Tis will encourage other countries to
comply with the rules o the SPS Agreement, and
also demonstrate that New Zealands strict controls
are justied to countries that challenge them.
1 Tiakina Aotearoa Protect New Zealand The Biosecurity Strategy for New Zealand(2003).
the SPS aGreement
and new Zealand
3
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t s s: sWorld ood production and consumption practices
are rapidly changing. New Zealand needs a ood
regulatory programme that is risk-based and that
protects consumers o ood and related products
produced in New Zealand, as well as imports and
exports o ood products. Te challenges include:
emerging causes o ood-borne disease;
changing technologies or production and
processing;increasing complexities within the ood chain;
the ever-increasing volume o international ood
trade; and
changing consumer habits and choices.
New Zealand has responded to these challenges
with a change in approach to regulating
primary production. Te traditional command
and control regime, based on prescriptive
requirements, is being replaced by a risk-basedapproach aimed at ensuring that products are
t or purpose. Tis means that industries are
taking more responsibility or meeting outcomes
described in ood saety standards through the
use o risk-based management plans that are
independently audited.
t s: gxps
As a small country trading in global markets,
New Zealand gains much rom the WO trading
system because it is transparent and based on
objective rules. In the WO, even the smallest
member states have the same rights as the
heavyweights o international aairs and trade.
Except or sheepmeat and dairy products,
New Zealand is a small player in world trade terms.
But in many o our markets, armer and grower
lobbies and politicians are opposed to imports
rom New Zealand, despite good consumer
demand. Restrictions that are not genuinely
required or biosecurity or ood saety reasons can
be very eective devices to protect local industries
rom export competition. Tey are difcult to
challenge because o their complexity and lack
o transparency about how a decision has beenreached. Te SPS Agreement enables New Zealand
to challenge attempts by other countries to
erect unjustied trade barriers. Prior to the SPS
Agreement, SPS measures aecting trade could
be imposed with little accountability. But the SPS
Agreement means that members are now required
to justiy scientically the SPS measures they
impose.
Te SPS Agreement helps New Zealand exportersto achieve:
b k ss
Te SPS Agreement is making it easier or
New Zealanders to sell their primary produce
on world markets, because the signatories have
undertaken to scientically justiy the SPS
measures they impose. Te measures imposed
must stand up to international scrutiny.
l p ss
New Zealand has an excellent reputation or
meeting the requirements o importing countries,
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but this has oen come at a high cost. Stringentinspection requirements or meat products
imposed in the past by overseas markets are prime
examples. Complying with unnecessarily rigid SPS
requirements can marginalise an otherwise viable
export operation. As unjustied requirements
are stripped away, these costs will be reduced.
Standards will be increasingly brought into line
with international ones, making costly special
production runs or individual markets less
necessary. Te concept o equivalence enables
exporters to meet the saety outcomes required by
importing countries in cost-eective ways.
n ks
Te SPS Agreement opens up markets previously
closed to New Zealand exporters, as governments
bring their trade practices into line with the rules
o the SPS Agreement.
cTe SPS Agreement provides export industries with
the condence to plan ahead. New measures are
signalled in advance, and their reasons explained.
WO members can no longer justiy imposing
arbitrary and unexpected import restrictions with
the potential to cripple an export industry.
o
Te SPS Agreement means that New Zealandis now less at risk rom the danger o other
countries unilaterally imposing barriers against our
exports disguised as SPS rules. In the absence o
a multilateral agreement like the SPS Agreement,
New Zealand would need to devote more resources
to negotiating a large number o bilateral trade
agreements with individual countries. Tis would
place an enormous strain on resources and impose
signicant costs on exporters and the Government.
Te SPS Agreement has already brought benets
to New Zealand. Te existence o a ormal rules-
based agreement together with an emphasis on
using science to establish and challenge tradeconditions has meant that there is now much more
transparency about the intent o SPS measures.
At the same time, being party to the SPS
Agreement has not aected our ability to protect
our native and introduced auna and ora. By
signing up to the SPS Agreement (and the B
Agreement) New Zealand is able to welcome the
liberalising o world trade without compromising
our hard-won status as being ree rom the
worlds most serious pests and diseases. Te SPS
Agreement supports our export trade in primary
products and our pursuit o the highest levels o
ood saety.
F sss
pss
I you are an exporter you might encounter
unair trade restrictions in the international
marketplace. Te problem may not just be customs
duties, but barriers at or behind the border, such
as discriminatory product standards, labeling
requirements, unjustied quarantine restrictions
and other government regulations or red tape.
Te SPS Agreement includes mechanisms through
which governments may resolve dierences
over barriers to trade. MFA, MAF and NZFSA
negotiate with oreign government trade ofcials,
questioning and challenging such barriers. Temain aim is to keep doors open beore resorting
to ormal dispute settlement procedures. Any
New Zealand exporter encountering sanitary or
phytosanitary restrictions that appear unjustied
should discuss them with MFA, MAF or NZFSA
so that they can work to remove any unjustied
measures.
the SPS aGreement
and new Zealand
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challenGeS For the Future 3While there have been successes and benets romthe SPS Agreement, there are also challenges or
the uture. Tese challenges will ocus attention on
the SPS Agreement, its role and coverage, and its
eectiveness or WO members.
dvpg s s-
vp s
One provision o the SPS Agreement commits
Members to acilitate providing technical
assistance to other Members, especially developing
country Members, either bilaterally or through the
appropriate international organisations. Te FAO,
OIE and WHO have considerable programmes
to assist developing countries with respect to
ood saety, and capacity building with respect
to the maintenance o animal and plant health.
Various countries also have extensive bilateral
programmes with other WO Members in these
areas. By December 2007, the WO Secretariathad undertaken 158 SPS technical assistance
and training activities with the main objective
being to increase the awareness o participants
about Members rights and obligations under the
SPS Agreement and the implications o the SPS
Agreement or national policy making.
Tere is a growing interest rom developing
countries in strengthening national ood control
systems, reormulating national ood regulationsto align them with international standards, and
establishing import/export ood inspection and
certication programmes to ensure compliance
with SPS and B requirements.
Te Standards and rade Development Facility was
established as a joint initiative between the WO,
WHO, World Bank, OIE and FAO in 2002. Te
Facility is a global programme in building capacity
and technical cooperation. One o its strategic
aims is to assist developing countries enhance their
expertise and capacity to analyse and to implement
international SPS standards, which in turn would
improve their human, animal and plant healthsituation, and their ability to gain and maintain
access to markets or their products.
t p g
Te SPS Agreement was part o a package o
agricultural measures included in the Uruguay
Round o multilateral negotiations (see Glossary
or more detail). Other reorms rom that Round
o trade talks included the gradual stripping
away o export subsidies and domestic price
support policies by WO members something
New Zealand had already largely done by the late
1980s. Even while the ink was still drying on the
Uruguay Round negotiations, it was expected that
the ull benet o the trade reorms would take up
to a decade to ow through to the New Zealand
arm gate.
For New Zealand armers and growers, opening
up international market access cannot come soonenough. Te slow pace o change is rustrating,
but not unexpected. In some countries overnight
exposure to the ull blast o international
competition could have negative social and
economic consequences or domestic producers.
Within the WO, the more developed nations
are helping developing nations comply with the
requirements o multilateral agreements such as
the SPS Agreement.
Despite the apparent slowness, regulatory agencies
around the world are increasingly conorming
with the SPS Agreement. International agreements
giving trading partners improved market access
while maintaining acceptable levels o protection
in ood saety and biosecurity, are becoming
increasingly common (.fa.ov.z/tad-
ad-ecooc-rlaos/tad-As/dx.pp
provides more inormation on how New Zealand
implements this in bilateral, regional, and
multilateral trade agreements).
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ms ag FsTe mission o the New Zealand Ministry
o Agriculture and Forestry is to enhance
New Zealands natural advantage. It does this
by: encouraging high-perorming sectors;
developing sae and reer trade; ensuring healthy
New Zealanders; and by protecting New Zealands
natural resources or the benet o uture
generations.
For urther inormation or assistance contact:
MAF Biosecurity New Zealand
PO Box 2526
Wellington 6140
New Zealand
el: +64 4 894 0431
Fax: +64 4 894 0733
Email: [email protected]
Internet: .boscu.ov.z/sa-ad-
cosulao/sa/aoal-as/saa-
ad-posaa-sps-a
n Z F S a
Te mandate o the New Zealand Food Saety
Authority is to protect consumers by providing an
eective ood regulatory programme covering ood
produced and consumed in New Zealand as well as
imports and exports o ood products.
For urther inormation or assistance contact:New Zealand Food Saety Authority
PO Box 2835
Wellington 6011
New Zealand
el: +64 4 894 2500
Fax: +64 4 894 2501
Email: [email protected]
Internet: .zfsa.ov.z
ms Fg as t
Te Ministry o Foreign Aairs and rade
(MFA) is the Governments principal adviser
and negotiator on oreign and trade policyissues. Te Ministry conducts the New Zealand
Governments business with oreign governments
and international organisations, including the
World rade Organization.
For urther inormation or assistance contact:
Ministry o Foreign Aairs and rade
Private Bag 18-901
Wellington 6011
New Zealand
el: +64 4 439 8000
Fax: +64 4 472 9596
Email: [email protected]
Internet: .fa.ov.z
wss
World rade Organization: www.wto.org
SPS-related issues in the WO:
.o.o/ls/aop_/sps_/sps_.
Full text o the SPS Agreement: .o.o/ls/
docs_/lal_/15sps_01_.
MAF gateway site to inormation on exports and
imports o live animals and germplasm, plants and
plant products, and orest products:
.boscu.ov.z
World Organisation or Animal Health (OIE):
.o.
International Plant Protection Convention (IPPC):
.ppc.
Codex Alimentarius Commission:
.codxalaus.
New Zealand Codex Strategy:
.zfsa.ov.z/polc-la/codx/publcaos/z-
objcvs-ad-sa/dx.
iakina Aotearoa Protect New Zealand Te
Biosecurity Strategy:
.boscu.ov.z/bosc/ss/sa/bosa/
bosaz
contactS
contactS
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appp v p (aloP) Te level o protection deemed appropriate by the WO memberestablishing a sanitary or phytosanitary measure to protect human,
animal or plant lie or health within its territory.
bs Protection rom the risks posed by organisms to the economy,
environment and peoples health through exclusion, eradication and
control.
cx as css (cx) Codex is the internationally recognised standards setting body or
ood saety. Its ull name is the Joint FAO/WHO Codex Alimentarius
Commission. Codex Alimentarius is Latin or ood code. Codex
standards, recommendations and guidelines are recognised asinternational standards or the purposes o trade.
eqv Te establishment, recognition and application o common sanitary
and phytosanitary measures by dierent Members. Equivalence relates
to the situation where SPS measures which are not identical but are
recognised as having the same health outcome and are accepted as
equivalent by another WO member.
hs WO members should base their SPS measures on relevant
international standards guidelines or recommendations where these
exist. For instance harmonisation with international ood saety
standards means basing national requirements on standards developed
by Codex.
i P P cv Te IPPC is an international treaty to secure action to prevent the
(iPPc) spread and introduction o pests o plants and plant products, and to
promote appropriate measures or their control.
mss Measures include all relevant laws, decrees, regulations, requirements
and procedures and are usually based, where possible, on international
standards under the SPS Agreement. Tey are also commonly reerred
to as standards.
Ps sss Health issues involving the pest and disease status o plants and plant
products.
S sss Health issues involving the pest and disease status o animals and
animal products, and human health.
t sss A colloquial term or the three international standard-setting bodies
or ood saety, animal health and zoonoses and plant protection, whose
guidance is recognised under the SPS Agreement. Te Joint FAO/WHO
Codex Alimentarius Commission is responsible or ood saety. Animalhealth and zoonoses are covered by the OIE and the international
and regional organisations operating under the ramework o the
International Plant Protection Convention have responsibility or plant
health and protection.
GloSSary
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tsp Te extent to which agreements and government regulations
aecting trade are open, clear and measurable. ransparency under
the SPS Agreement has three main components notications,ofcial enquiries and the publication o regulations.
ug r Te eighth round o GA multilateral trade negotiations, which
began in Punta del Este, Uruguay, in 1986, and was concluded in
April 1994 at Marrakesh, Morocco.
w ogs a h (oie) Te OIE, until 2004 known as the Ofce International des
Epizooties, deals with animal health and zoonoses (human
diseases that are caught rom animals), and sets sanitary standards
or the international trade o animals or animal products.
w t ogz (wto) Te international organisation established by the Uruguay Round
to oversee and provide a single administrative and legal umbrella
or all o the Rounds Agreements.
Zss Diseases that can be transmitted rom animals to humans.
GloSSary
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Crown copyright Ministry of Agriculture and Forestry, Ministry of Foreign Affairs and Trade, New Zealand Food Safety Authority 2009
ISBN 978-0-478-33880-5 (Print)
ISBN 978-0-478-33881-2 (Online)
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