Question

Explain by using the GATT Agreement  what are the following:

Enabling Clause, Precautionary principle, special and differential treatment and the risk assessment in the context of SPS measures

Answer 1

GATT Agreement

"General Agreement on Tariffs and Trade"

Let us understand the terms:

• Enabling clause: It focuses more on the developing countries. It mentions that developing countries should be given differential treatment, and more favorable conditions, reciprocal behavior and greater opportunities to participate in the international trade. This will hold true in both tariff and non-tariff measures. They also suggest more liberal measures for the least developed countries.

• Precautionary principle: In certain areas of trade, such as when there are environmental concerns, a safety first approach is the only way forward. The member countries of GATT would be allowed to follow certain international standards or guidelines, if they are available. They are doing so for their own precaution, and such measures are only temporary. In doing so, they are given legal immunity. They are allowed not to wait for enough scientic proof. The other country can't object to this. Suppose country A feels that trade with country B will cause environmental harm in country A, they can suspend such activities, without further delay.

• Special and differential treatment: In simple words, the special and differential treatment rules give certain powers to the developing countries. These rules also suggest developed countries to treat developing countries with a certain amount of responsibility. The list of such provisions is quite long. To get an idea however, they include: relaxations with respect to time limits in contracts, favorable grounds for more trade and protection of rights, capacity building in legal, technical, administrative etc. areas, and assistance to the weakest countries. These provisions are monitored and revised periodically.

• Risk assessment in context of SPS measures: This refers to a special area, called Sanitary and Phytosanitary measures. It includes certain rules and guidelines for food products, plant produce and animal products. This is a sensitive issue in international trade, because each country wants to have utmost safety in the products they are consuming directly. Hence, each country has been given the power to frame their own guidelines, as they deem fit. These guidelines should be scientific, and non-discriminatory. The risk assessment used by any country, should be fair and transparent. For example, we can observe many western countries have very strict guidelines in this regard.