THE SPS AGREEMENT: TRADE IN PLANTS AND PLANT PRODUCTSSPS Agreement • June 24th, 2005
Contract Type FiledJune 24th, 2005With increasing trade in plant and plant products, the risk of the spread of harmful pests and diseases has also increased. The negative impact on plant health and plant products could be substantial, e.g. an imported harmful pest could destroy entire orange production in a country or a region, or could result into re- duced yield, quality deterioration and environmental pollution. All these lead to in- creased cost of production and reduced market share, and thus undermine com- petitiveness in both domestic and export markets. In view of the Transboundary na- ture of these effects and potential trade disruptions, GATT Members negotiated comprehensive phytosanitary rules as part of the Uruguay Round Agreement. The result was the WTO Agreement on the Application of Sanitary and Phytosanitary Measures or the SPS Agreement in short, with additional relevant disciplines in the TBT Agreement. The main objective was to establish and follow a set of standards on phytosanitary measures in the