WTO Rules for Standards
In the new trade regime, previously voluntary standards are gaining quasi- legal
status and being integrated in international and national legislations to create
quality culture. Two WTO agreements have special significance with reference to
quality and standards namely Sanitary and Phyto-Sanitary Agreement (SPS) and
Technical Barriers to Trade (TBT). These agreements are binding on the
Member countries. SPS agreement allows the Member countries to enforce such
measures, which are necessary to protect human, animal and plant life or health,
provided these requirements are based on scientific principles and do not
constitute a means of arbitrary or unjustifiable discrimination between the
Members where the same conditions prevail. The agreement encourages the
Member countries to capitalize on international standards and regulations for the
sake of harmonization with standards and safeguard measures of other
countries and to reduce the risk of disputes. TBT also recognizes the need to
enforce standards, provided they do not cause unnecessary barriers to trade.
The standards under this agreement take into account quality aspects, packing,
and labeling etc.
Although the SPS and TBT Agreements encourage adoption of international
standards, they do not prevent Members from adopting national standards
according to local conditions. This flexibility in WTO rules provides a space to
develop indigenous specifications and take safeguard measures. This can
prevent inflow of low quality products and services on one hand, and enhance
export potential of domestic industry by making it competitive with the
international market actors. Pakistan will have to create conditions that allow
compliance with quality-related provisions of these agreements.