Trading with Conditions: The Effect of Sanitary and Phytosanitary Measures on the Agricultural Exports from Low‐income Countries

• Published date: 01 January 2017
• Author: Alessandro Nicita,Marina Murina
• DOI: http://doi.org/10.1111/twec.12368
• Date: 01 January 2017

Trading with Conditions: The Effect of

Sanitary and Phytosanitary Measures on

the Agricultural Exports from Low-income

Countries

Marina Murina and Alessandro Nicita

Division on International Trade in Goods and Services, and Commodities, UNCTAD, Geneva,

Switzerland

1. INTRODUCTION

ALTHOUGH the last few decades have been characterised by progressive trade liberalisa-

tion, market access for agricultural products has become increasingly determined by com-

pliance with a wide array of regulatory measures. Many of these measures fall in the category

of sanitary and phytosanitary (SPS) measures and include diverse conditions such as import

licences, inspection requirements, testing and certification requirements, labelling and packag-

ing requirements, and quarantines. The increase in the use of such measures has largely been

driven by non-trade policy objectives, such as the increase in consumers’ demand for the

quality and safety of products and the needs of agri-food businesses to streamline food pro-

duction chains. Still, SPS measures have a critical role in determining market access, as com-

pliance with them is a necessary condition for entering developed countries’ markets (Henson

and Loader, 2001; UNCTAD, 2012).

From a trade perspective, one of the most relevant aspects of SPS measures is their pote n-

tial distortionary effect. SPS measures are generally applied in a non-discriminatory manner,

as they usually target products regardless of their origin. However, the costs of compliance

with SPS measures are often asymmetrical because compliance depends on technical know-

how, production facilities and an infrastructural base that, while usually available in devel-

oped and emerging markets, is often lacking in many low-income countries (Athukorala and

Jayasuriya, 2003). The effects originating from regulatory frameworks reflect in the increasing

relevance they take within trade negotiations. On a multilateral level, SPS measures are gov-

erned by the broad guidelines set in the World Trade Organization (WTO) Agreement on the

Application of SPS Measures (the SPS Agreement).

1

In regional and bilateral trade agree-

ments, the inclusion of provisions on SPS measures is motivated by a desire to remove barri-

ers to deeper economic integration through the harmonisation of each party’s regulatory

system and by means of technical assistance programmes.

The views expressed in this paper are those of the authors and do not necessarily represent the views of

the United Nations Conference on Trade and Development (UNCTAD) Secretariat or of UNCTAD

Members.

1

The WTO SPS Agreement stipulates that SPS measures should be based on international guidelines

and common risk assessment techniques and encourages standards based on participation and consensus.

However, the Agreement permits Members to introduce or maintain measures which result in a higher

level of protection than would be achieved by measures based on the relevant international standards,

guidelines or recommendations, if there is a scientific justification.

©2015 John Wiley & Sons Ltd

168

The World Economy (2017)

doi: 10.1111/twec.12368

The World Economy