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impact exporters’ possibilities to engage in trade. There are a few issues pertaining to the impact of NTMs on exporters. There are issues like the continuation of discrepancies between NTMs in different countries despite international coordination, compliance cots of standards and regulations and their impact on trade, the impact of private standards as distinguished from mandatory regulations and their impact on trade, the impact of NTMs on developing countries’ exports, among others.

 

Multilateral versus Country Regulatory Measures

 

Import requirements continue to differ from country to country despite international coordination and the development of multilateral regulations and common conformity assessment by institutions like the Codex Alimentarius, the World Organisation for Animal Health, and the International Plan Protection Convention. National authorities have the right to set country-specific national regulatory measures, if these measures are not inconsistent with the multilateral provisions.

 

One major issue in the evaluation whether national measures are justifiable is the distinction of “like products” and “unlike products”. The principles of most favoured nation treatment (GATT – Article I; The MFN) and national treatment (GATT – Article III) command that “like products” must not be treated differently neither when comparing imports originating from different countries not when comparing imports with domestic products. Hereby no NTM on “like products” would be allowed. Therefore an important question is what attributes lead to products becoming “unlike” which is a necessary condition for the establishment of potentially justifiable NTMs.

 

Traditional dominance of physical aspects is repeated in the World Trade Organisation’s (WTO) interpretation of risk, as in the definition of risk assessment given in the sanitary and phytosanitary (SPS) agreement. Such risk assessment is required if national food safety levels are higher than those that are recommended by international bodies.

 

The dominance of the pure physical aspect of risk gives also room for criticism. The WTO rules do not balance expected costs and benefits for society but worry about establishing the evidence of risks on producers, consumers, or the environment. This becomes clear when examining specific articles of the SPS and technical barriers to trade (TBT) agreements.

 

Policies have to be least trade-restrictive and costs have to be minimised, but the societal costs and benefits of measures are not systematically considered, thus measures have not to be necessarily welfare-enhancing. Beghin et al. (2009) suggest replacing the mercantilist focus on foregone trade by a framework that thoroughly accounts for the economic costs and benefits of NTMs.

 

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