• Significance of SPS measures
• Objectives of SPS measures
• Regulations or standards

Significance of SPS measures

The profile of SPS measures has risen in recent years partly as a response to increased consumer vigilance and concern about environment and food safety issues.  It is also because liberalisation in the agriculture sector has reduced tariff barriers; some countries are looking to non-tariff measures, such as import regulations, partly to compensate for the loss of trade protection through traditional means.  There has been a proliferation of technical measures, especially in the North.  The European market is becoming increasingly difficult for developing country exporters to access partly because of SPS requirements and the way in which they are being enforced. Indeed, Henson and Loader suggest SPS measures could well be the ‘most important impediment to agricultural and food exports to the EU’ (2000: 26).
 

Objectives

Regulation of trade on the basis of SPS measures requires an appropriate balance between two conflicting objectives:

a) protection of public health and the environment: substances regulated by SPS measures are potentially dangerous; and

b) free trade: measures should not be so stringent so that they unnecessarily restrict trade. 

In theory the SPS Agreement should protect against unnecessary regulations, however experience to date indicates that only relatively developed countries have been able to take advantage of its discipline.  Some SPS measures result from ‘green protectionism’ argues Bello, and they have potential for ‘tremendous negative consequences on the well-being of developing countries that are increasingly following export-oriented development strategies’ (1997).  However, in many cases SPS measures are established as legitimate controls.  In the forest sector, they are used to prevent ‘bio-invasions’ (Sizer et al, 1999).

Whatever their justification, SPS measures and other technical regulations present significant impediments to trade in many products, including forest products. Difficulties are experienced as a result of poor access to resources to ensures compliance (including information, finance and technical expertise), and also due to production and marketing methods in developing countries. 
 

Regulations or standards?

SPS measures are predominantly ‘regulations’ rather than standards, i.e. they are specified in national legislation and compliance is mandatory whereas standards: are voluntary and cannot be the basis for refusing market access. However, notes Zarrilli, ‘the distinction between standards and regulations is fading away, since adherence to standards is often a pre-condition for acceptability of products by consumers and/or distributors’.  And insurers ‘may request compliance with standards to reduce product liability exposure’ (1999: 1).

It is compulsory for an exporter to comply with SPS measures that are established and enforced by national governments and regional trading authorities.  Governments are the main players and so much of the literature is directed at government departments rather than traders and the private sector.  Nevertheless, private sector traders cannot afford to ignore this policy dialogue.