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

Transcription

1 Technical Barriers to Trade Role of BIS as WTO-TBT Enquiry Point & Relevance to Automobile Sector Rachna Sehgal International Relations & Technical Information Services Department Bureau of Indian Standards

2 Contents TBT Agreement TBT Notifications Role of Enquiry Point Handling of Trade Concerns Recent TBT Notifications in Automobile Sector Expectations from Stakeholders

3 Objectives of WTO To ensure Free, more transparent and more predictable trade Confidence in International Trade amongst the WTO member countries

4 Barriers to Trade- Trends Reduction in: Tariffs Quotas Rise in: Barriers such as regulations, conformity assessment procedures, labelling requirements, etc

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

6 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.

7 What measures are subject to TBT provisions? Technical Regulation Standard Mandatory Measures Voluntary Measures Conformity Assessment Procedure

8 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.

9 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.

10 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.

11 Main Disciplines of the TBT Agreement Non - Discrimination Avoidance of unnecessary obstacles to trade Harmonization

12 Non-Discrimination Art Conditions no Less Favourable to Access of Suppliers of Like Products Originating Of national origin From any other country National Treatment Most-Favoured Nation (MFN)

13 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

14 The Harmonization Principle 2 key requirements Relevant guides or or recommendations issued by by international standardizing bodies shall be be used as as a basis for the elaboration of of Standards/ Regulations/CAPs Shall play a full part in in the preparation by by appropriate international standardizing bodies of of guides and recommendations for Standards/ Regulations/CAPs

15 The Harmonization Principle: Use of International Standards Except Such guides or or recommendations or or relevant parts are inappropriate for the Members concerned For, inter alia, such reasons as national security requirements fundamental infrastructural problems fundamental technological problems fundamental climatic or or other geographical factors prevention of of deceptive practices protection of of the the environment protection of of human health or or safety protection of of animal or or plant life or or health

16 Code of Good Practice for the Preparation & Application of Standards Use International Standards as basis for development of national standards-unless deviation is justified Participate in International Standards Setting Process Avoid duplication/ Overlap of Work Allow Period of 60 days for COMMENTS Publish PROGRAMME OF WORK-once in 6 months Indicate ICS classification

17 Notification Conditions? Members must notify a measure when both sets of conditions apply A relevant international standard does not exist OR The measure is not in accordance with the standard The measure may have a significant effect on trade of of other Members

18 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.

19 The Notification Format

20 11 Sections in a Notification Form Item 1 - Government making the notification Item 2 - Body elaborating a proposal (TR or CAP) Item 3 - Relevant provision of the Agreement Item 4 Products covered (HS no./ ICS no.) Item 5 - Title of proposal, number of pages, language. Indicate translations or summaries

21 11 Sections in a Notification Form Item 6 - Abstract, main features of the proposed/adopted measure Item 7 - Legitimate objective Item 8 - Any relevant document (publications). Reference to international standards Item 9 -Adoption and entry into force Item 10 - Final date for comments - normal timelimit of 60 days! Item 11 - Where to find the text of the measure

22 How much time is allowed for 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

23 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

24 WTO TBT Enquiry Point Role of BIS- Enquiry Point under TBT Agreement Answering Enquiries pertaining to Standards Technical Regulations Conformity Assessment Procedures Dissemination of TBT Notifications Preparing Country s stand on TBT Notifications Arranging Workshops/ Seminars for sensitizing other relevant agencies

25 WTO TBT Enquiry Point- Work being done Dissemination of Information Creation of databank of stakeholders Downloading & Classification of TBT Notifications based on ICS codes Electronic Dissemination of TBT Notifications to identified Stakeholders Receipt of Responses from Stakeholders

26 BIS -TBT ENQUIRY POINT- PRESENT STATUS. Webpages on BIS website for 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

27 TBT Notifications since

28 Notifications by Objective Animal plant life or health 2% Harmonization 2% Quality requirements 5% National security 0% Cost saving 0% Lowering / removal of trade barriers 1% Others 2% Not specified 0% Consumer information and labelling 6% Adoption of new domestic law 5% Protection of environment 13% Prevention of deceptive practices 14% Protection of human health or safety 50%

29 Sector wise Distribution -Top six sectors Health, Safety & Environment Food & Agro Products Electrical Engg. Chemical Tech/ Cosmetics Civil Engg./ Construction Domestic Equipments

30 Trade concerns: what can we do? Comment on notification - new measure Request explanation of measure from Enquiry Point or Member Request consultations Bilateral consultations Raise issue at the TBT Committee Dispute settlement provisions

31 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

32 Roadmap for the solution of trade concerns However,Toy s industry in country A considers that the modified Country B s regulation is still more trade restrictive than necessary Toy s industry pressures the government to do something about it

33 Roadmap for the solution of trade concerns The government of Country A raises the concern at the multilateral level in the TBT Committee Country B answers that concerns will be transmitted to capital and replied to at the next meeting

34 Roadmap for the solution of trade concerns Country B enters into consultations with Country A Country B amends its draft technical regulation to reflect Country A s concerns

35 Roadmap for the solution of trade concerns 2 possibilities... Country A can now export to Country B its toys Country B does not share Country A s concerns and eventually adopts the draft regulation as it is Country A requests consultations with Country B before the DSB A panel is established...

36 Specific trade concerns raised in the Committee from How Many? Approximately 170 concerns raised Who? On measures taken by 35 Members

37 Typical trade concerns raised in the Committee Food products, beverages and spirits On What? Chemical products Textiles products Machinery and mechanical appliances /electrical equipment Vehicles, aircraft, vessels and associated transport equipment

38 Some typical type of concerns More 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

39 TBT Notifications -Key Countries ( ) (approx figures) China 560 Korea 200 USA 460 Mexico 160 Brazil 320 El Salvador 130 Thailand 300 Switzerland 130 EC 290 Columbia 110 Japan 290 Philippines 100 Israel 280 France 95 Canada 260 Australia 60 Argentina 250 Uganda 40

40 Recent TBT Notifications -Automobile Sector UNITED STATES G/TBT/N/USA/170 Product -Automobile safety equipment Issues - 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

41 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

42 Recent TBT Notifications -Automobile Sector 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

43 Recent TBT Notifications -Automobile Sector 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

44 Recent TBT Notifications -Automobile Sector THE PEOPLE S REPUBLIC OF CHINA G/TBT/N/CHN/143 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

45 Recent TBT Notifications -Automobile Sector THE PEOPLE S REPUBLIC OF CHINA G/TBT/N/CHN/192 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.

46 Recent TBT Notifications -Automobile Sector EQUADOR G/TBT/N/ECU/9 Product - pneumatic tyres Issues - 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, lowspeed 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.

47 Recent TBT Notifications -Automobile Sector 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.

48 Recent TBT Notifications -Automobile Sector REPUBLIC OF KOREA G/TBT/N/KOR/105 Product -Electrical/Electronic Products, Automobiles Issues - 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.

49 Recent TBT Notifications -Automobile Sector 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

50 BIS -TBT Enquiry Point Notifications from other countries -Comments not forthcoming Constraints Lack of awareness The right stakeholder Getting full texts of TBT Notification Different Language-Translation Time for comments

51 BIS -TBT Enquiry Point Notifications from India Few Notifications from India Constraints Lack of awareness of TBT Agreement RBs may not be aware with the obligatory clauses of WTO Notifying authority not made aware of draft regulations by other national authorities.

52 Expectations from Industry & Stakeholders Examination of TBT Notifications Aspects 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 safety Animal or Plant life or health Environment Are these Scientifically Justified?

53 Expectations from Industry & Stakeholders Awareness of TBT Agreement and obligations of member countries Industry to be proactive to TBT Notifications Study 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 stakeholders Based on feedback from stakeholders, send comments to BIS-TBT Enquiry Point within stipulated time

54 Expectations from Industry & Stakeholders Identification of need to conduct Trainings/ Workshops/ Seminar for all concerned with in their domain Identification of trade related problems in their area Discussion with traders, manufacturers, exporters, importers, other key players Active Interaction with MOC/BIS-TBT Enquiry Point For Regulatory Bodies Send Draft Technical Regulations to Ministry of Commerce/ BIS Enquiry Point for notification at WTO in the required format

55 Expectations from Industry & Stakeholders Participate in International Standards Setting Be Proactive to TBT Notifications