RESTRICTEDWORLD TRADE
ORGANIZATIONG/TBT/W/150
2 November 2000
(00-4596)
Committee on Technical Barriers to Trade Original:  English
LABELLING
Submission from the European Communities
I. INTRODUCTION
1. The EC believes that there is a need to clarify the relationship between labelling and the
provisions of the TBT Agreement.  Such clarification could be pursued through a threefold approach
in the TBT Committee based on (A) promoting the flow of information on labelling issues;
(B) examining relevant work in international fora; and (C) clarifying how best to apply
TBT provisions to labelling.  The EC supports the inclusion of such a work programme in the SecondTriennial Review of the TBT Agreement.
2. The issue of non-product related process and production method labelling, including eco-
labelling, is excluded from the scope of this paper.  The paper also only considers labelling
requirements from the perspective of the TBT Agreement and not other WTO Agreements.
II. LABELLING REQUIREMENTS FALL WITHIN THE SCOPE OF THE
TBT AGREEMENT
3. Annex 1 of the TBT Agreement defines a "technical regulation" as:
"Document which lays down product characteristics or their related processes and production
methods, including the applicable administrative provisions, with which compliance is
mandatory .  It may also include or deal exclusively with terminology, symbols, packaging,
marking or labelling requirements  as they apply to a product, process or production method
(italics added)";
4. Annex 1 of the TBT Agreement defines a "standard" as:
"Document approved by a recognized body that provides, for common and repeated use,
rules, guidelines or characteristics for products or related processes and production methods,
with which compliance is not mandatory .  It may also include or deal exclusively with
terminology, symbols, packaging, marking or labelling requirements  as they apply to a
product, process or production method" (italics added)".
5. Labelling requirements falling within the definition of a technical regulation are subject to the
relevant TBT provisions.  These include: Non- discrimination (Article 2.1);  Necessity and
proportionality (Article 2.2);  Use of international standards (Article 2.4);  Notification requirements
(Article 2.9);  Provision of information (Article 10);  Technical assistance (Article 11) and;  Specialand differential treatment (Article 12).
6. Labelling requirements falling within the definition of a standard are subject to the provisions
of the Code of Good Practice for the Preparation, Adoption and Application of Standards (Annex 3).
A number of these provisions reflect those for technical regulations, including those on non-G/TBT/W/150
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discrimination, necessity, and the use of internati onal standards.  In addition, the TBT provisions on
technical assistance and special and differential treatment also apply.
III. LABELLING PROBLEMS PERSIST AND RISK BECOMING INCREASINGLY 
IMPORTANT
7. Labelling can generally be seen as a "trade friendly" approach to regulation, tending to be less
restrictive to trade than many other regulatory measures.  Nevertheless, and in spite of the
TBT provisions set out above, a significant number of trade problems persist in the field of labelling.
This is reflected in the TBT Committee by the number of specific labelling issues raised by
WTO Members.
8. The concerns arising from labelling appear to  be primarily the result of requirements to
provide excessively detailed information on a label, which go beyond what is necessary to achieve the
public policy objective being pursued.  Such concerns arise across a wide number of sectors,including textiles and clothes, food and beverages, the automotive sector, and general product safety
legislation, as well as in many different countries.  Problems concerning labelling also arise from
requirements which are unjustifiably difficult to respect, provisions which lack transparency and
excessively long procedures to follow before being granted the right to use a label.  The variety and
scope of the problems are illustrated by the large number of complaints received by the EuropeanCommission concerning trade barriers arising from labelling requirements.
9. Overall, views about the level and type of information which should be included on a label
vary considerably from country to country, and sector to sector.  Although legitimate in many cases,
these differences contribute to a risk that labelling requirements are perceived as arbitrary barriers to
trade, or indeed act as arbitrary barriers.  In addition, there is a risk that trade disputes arising fromlabelling requirements will increase as regulators respond to growing consumer demand for
information through labelling.
IV. THE WAY FORWARD
10. To address the above problems in the field of labelling, the EC believes that the
TBT Committee should aim to clarify the relatio nship between labelling and the TBT Agreement.
The objective of clarification would be to improve the application of all TBT provisions relevant to
labelling.  This would help to ensure that labelling is not abused as a protectionist measure, with
regulators benefitting from guidance on the provisions of the TBT Agreement when devising and
applying labelling measures.  In addition, it would help minimise unnecessary differences between
national/regional labelling requirements.  As noted above, the EC supports a 3-pronged approach in
the TBT Committee to achieving this objective.
A. T
O PROMOTE THE FLOW OF INFORMATION
11. Labelling issues already account for a large percentage of the specific trade cases raised in the
TBT Committee.  To some extent, a flow of inform ation on labelling can already be seen to exist.
However, this could be broadened to address more general issues, rather than simply specific cases.
By exchanging views and experiences, Members would benefit from a greater understanding of
different approaches to labelling.  In addition, they would gain a clearer picture of the needs of andany difficulties encountered by developing countries.  The EC is ready to contribute actively to this
exercise, drawing on its experience of labelling requirements both in Member States and in the
Internal Market.G/TBT/W/150
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B. TO EXAMINE RELEVANT WORK IN INTERNATIONAL FORA
12. The EC proposes that the TBT Committee examine and draw lessons from work resulting
from international co-ordination and co-operation on labelling goals and policies.  Of particular
relevance could be work in the Codex Alimentarius and ISO.
C. TO CLARIFY HOW BEST TO APPLY TBT PROVISIONS TO LABELLING REQUIREMENTS
13. As a possible means to reduce suspicions and the risk of trade restrictive or subjective
regulation, further consideration could be given to the development of multilateral guidelines on
labelling. Such guidelines could aim to clarify how best to apply the existing TBT provisions so as to
help Members ensure labelling fulfils the consumer’s need for information while minimizing
restrictions on industry, including small and medium sized enterprises, within the context of
international trade.  Technical assistance measures to provide advice to developing countries
concerning the development of regulatory initiatives in the field of labelling, as well as on methods bywhich labelling requirements can best be met, could be specific topics to be addressed.
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