RESTRICTED
WORLD TRADE G/SPS/W/79
7March 1997
ORGANIZATION(97-0919)
Original: English Committee onSanitary andPhytosanitary Measures
BSEAND THE SPSAGREEMENT
Paper prepared bySwitzerland
Meeting of19-20 March 1997
Introduction
1. Bovine spongiform encephalopathy (BSE) isaserious disease affecting bovines. Reports on
apossible linkwiththeCreutzfeld-Jacob Disease affecting thehuman brain (CJD) make government
attention inallcountries allthemore necessary. Itistherefore onlynatural andindeed legitimate that
measures aretaken inorder toprotect human andanimal health and,inparticular, toprevent the
spreading ofBSEintohitherto unaffected countries andregions.
2. Thisbeing said,themeasures described below arealsotrade-related; intheopinion oftheSwiss
authorities, there isahighprobability thatsome areincompatible withtheobligations entered intoby
allWTO Members, primarily butnotexclusively under theSPSAgreement. Given theactual orpotential
impact oftheBSEproblem onagricultural trade, onconsumer attitudes andontherural economy,
theSPSCommittee should therefore examine andaddress itasamatter ofhighpriority.
3. Intheterms oftheInternational Animal Health Code oftheOIE,Switzerland isalowincidence
BSEcountry; asaresult ofsanitary measures introduced since 1990, itisexpected thatSwitzerland
willbecompletely freeofBSEwithin aforseeable future (cf.Annex). Nevertheless, asoneofthe
countries having beenaffected bothbythedisease andbytrade-related BSEmeasures ofitstrading
partners, Switzerland hasasubstantial interest inthismatter andtrusts WTO Members willcooperate
togetherinordertostrictlyavoidmeasureswhichcouldaffectagriculturaltradebeyondwhatisnecessary
andlegitimate inthefightagainst BSE.
Trade Measures taken byWTO Members /Available Scientific Evidence
4. Some WTO Members presently apply orhaveapplied import bansaffecting thefollowing
products:
(a) Livecattle (HS0102)
Such prohibitions apply toimportation forbreeding orslaughtering purposes, for
pasturing during thesummer months and,inseveral cases, eventotransit.
(b) Semen, eggs, embryos (e.g.HS0511)
(c) Meat andmeatproducts (e.g.HS0201, 0202, 0206, 0210)
Different types ofbeefaresometimes treated differently, according totheirrisklevel;
however, insome cases, allmeatimports areprohibited, often without anyscientific
evidence being offered forthereasons ofsuchprohibitions.
(d) Hides andskins (including fortechnical purposes) (e.g.HS0507, 4101)G/SPS/W/79
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(e) Horns, bones, fats,meat andbone meal (including fortechnical purposes) (e.g.
HS0210, 0506, 0507, 1502, 1518)
(f) Milk andmilkproducts, Lactose (despite thefactthat,according toWHO experts,
milkandmilkproducts havetobeconsidered safeandthatthere isnointernational
standard recommending torestrict theimport ofdairy products from lowincidence
countries) (e.g.HS0401-0406); some countries evenapply restrictions toprocessed
agricultural products containing milkproducts.
5. Insomecountries,therearenoorlessextensiveimportbans,butveryrigoroushealthcertificates
arerequired which insome cases areextremely demanding (e.g.cattle fromherds without BSEduring
thelastsixyears).
6. According toinformation available toSwiss veterinary authorities, 24countries arepresently
applying atleastoneoftheabove measures. Switzerland ’strade-relevant measures aswellastheactual
status ofBSEinSwitzerland aredescribed intheAnnex.
Preliminary Assessment inthelightofWTO Obligations
7. Theabove measures havetobeassessed inrespect ofanumber ofWTO provisions, namely,
butnotexclusively,GATT1994,theSPSAgreementandtheAgreementonImportLicensingProcedures.
8. GATT 1994 contains anumber ofprovisions which maybeofrelevance here:
- Article III(national treatment) applies to"internal taxesandother internal charges and
laws, regulations andrequirements affecting theinternal sale,purchase, transportation,
distribution oruseofproducts." Incasuthisimplies thatcertificates, controls and
standards "should notbeapplied toimported ordomestic products soastoafford
protection todomestic production."
- Article V(freedom oftransit) seems toprohibits alltransit impediments, atleastfor
goods which cannot endanger theanimal orhuman health while intransit. BSEbeing
anon-contagious disease andnoneofthequalifying provisions toArticle Vbeing of
relevance inthiscontext, ameasure suchastheGerman prohibition ofcattle transiting
onlorries isinclear contradiction withtheprovisions ofthisArticle.
- Article VIII: Border procedures aretobelimited toaminimum. Thisprovision may
beviolated bymeasures requiring health certificates reaching backformany years and
entire herds when, asisthecasewithBSE, nocontagion orother form ofspreading
from oneanimal totheother hasbeenestablished.
- Article Xrequires theprompt publication ofthese measures "insuchamanner asto
enable governments andtraders tobecome acquainted withthem". Most ofthese
measures havenotbeennotified toWTO, andinmany instances thepublication at
thenational levelhasnotbeenimplemented inconformity withArticle X,without there
being sufficient urgency oranother reason justifying thedelay.
- Articles XIandXIIIcontain procedural obligations inconnection withArticle I(MFN);
according toGATT practice, theyalsoapply toimport bans(cf.Art.XIII:1: "no
prohibition orrestriction shallbeapplied ...unless theimportation ofthelikeproduct
toallthirdparties issimilarly prohibited orrestricted").G/SPS/W/79
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9. TheSPSAgreement allows allWTO Members "totakesanitary measures necessary forthe
protection ofhuman, animal orplant lifeorhealth" (Art.2.1). Suchmeasures mustbeinconformity
inter aliawithArticles 2(rights andobligations), 3(harmonization), 4(equivalence) and5(risk
assessment andappropriate levelofsanitary protection) andbenotified according toArticle 7.Different
supplying countries andregions maybetreated according totheirspecific situation, according to
Article 6,buttheabove principles aretoberespected ineachcase, inother words differentiating but
notdiscriminatory treatment isallowed.
- Atpresent there arefewinternational standards relating toBSE. Insuchcases, the
establishment ofanappropriate level ofsanitary protection must takethefollowing
elements intoaccount (Art.5): riskassessment techniques developed bytherelevant
international organizations, available scientific evidence, relevant processes and
production methods, prevalence ofspecific diseases etc.
- Protection measures taken byother countries mustbeconsidered asequivalent ifthey
allow forthesame appropriate level ofsanitary protection "even ifthese measures
differ from theirown" (Art.4.1).
- Inaddition, economically relevant factors suchas"thepotential damage interms of
lossofproduction" must betaken intoaccount (Art.5.3).
- Notification andconsultation procedures asperArticle 7andAnnex Bprovide for
information tobesupplied onrequest, andsuchinformation must contain interalia
theriskassessment methods usedandthelevelofprotection considered appropriate.
10. TheAgreement onImport Licensing Procedures (ILA) mayhavebeenviolated inanumber
ofinstances aswell, evenwhen oneallows forahighdegree ofriskandurgency surrounding theBSE
problem. Indeed, according toArticle 3.2oftheILAtheadministrative procedures (non-automatic
licensing) "shall nothavetrade- restrictive or-distortive effects onimports additional tothose caused
bytheimposition oftherestriction" (even when those conditions arejustifiable under theother WTO
provisions) andthey"shall benomore administratively burdensome thanabsolutely necessary" for
theirimplementation. Incasuthefollowing violations oftheILAmayhaveoccurred:
- notification andconsultation obligations havenotbeenobserved (Art.3.3; Art.5.1,
5.2etc.);
- measures havebeenmaintained foralonger period thannecessary (Art.3.2);
- possible exemptions havenotbeencommunicated (Art.3.4);
- fullandprompt information wasnotprovided (Art.3.5);
- health certificate requirements (forwhole regions andherds and/or foraverylong
timeback) arenotalways commensurate withtheriskinvolved (Art.3.2).
11. ThequestionariseswhetherArticleXXofGATT1994mayjustifysomeorallofthesemeasures,
since thisprovision allows foranymeasure protecting thehealth ofhumans andanimals. However,
thisgeneral exception applies under twoconditions:
- "such measures arenotapplied inamanner which would constitute ameans ofarbitrary
orunjustifiable discrimination between countries where thesame conditions prevail"
- "oradisguised restriction oninternational trade" (emphasis added).G/SPS/W/79
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12. Itisobvious thattherelevance oftheseconditions hastobeexamined inrespect ofeachmeasure
(cf.Art.3.2 SPS). However, itcanbepresumed inapreliminary manner that,atleast, measures affecting
imports more rigorously thandomestic products andapplying toproducts without anyriskofspreading
BSEdonotfulfil theconditions laiddown inArticle XX,inother words suchmeasures cannot be
exempted, bywayofArticle XX,from theother WTO obligations mentioned above (e.g.products
which arenotforhuman oranimal consumption suchashides andskins, theimport ofwhich is
prohibited, interalia,intheCzech Republic; prohibitions ofsemen andembryo, forinstance byAustria
andItaly, areanother caseinpoint, since theOIEhasdeclared trade inthese products assafe).
Conclusions
13. Atthispointintime, nofinalconclusion hasbeenreached withregard totheindividual measures
taken byeachcountry -perhaps including Switzerland ’sownmeasures. Itcanhowever besaidthat,
atleast, thefollowing measures seem tobeclearly incompatible withoneorseveral WTO obligations:
(a) measures discriminating against imported goods anddeviating without scientific
justification from either national orinternational standards;
(b) measures affecting products which areneither forhuman oranimal consumption;
(c) transit prohibitions;
(d) measures affecting goods where nodanger ofspreading BSEcanbepresumed, and
where noscientific evidence whatsoever allows fortheconclusion thatmeasures
preventing suchimports should betaken.
14. TheSPSCommittee should dealwiththese problems onapriority andurgency basisinorder
toavoid anescalation oftrade restrictions. Switzerland isconcerned thatsuchrestrictions could well
undermine thewhole rationale oftheSPSAgreement which isnamely toallow forallsanitary measures
which arenotaform ofdisguised protectionism.
15. TheSPSCommittee should invite allMembers having taken BSEtrade-related measures in
thisarea, whether ornottheyarerelated toBSE, tonotify them urgently.
16. TheSPSCommittee Chair should beinvited toholdconsultations assoonaspossible between
allinterested WTO Members -attheleastwiththose presently applying relevant border measures.
Thepurpose ofthese consultations would betoenable theCommittee toarrive ataconclusion asto
which oftheaforementioned border measures arelegalunder theWTO obligations.
17. Switzerland iswilling toprovide alistwithallrelevant information onsuchcountry measures
atitsdisposal. While reserving alltheirWTO rights, theSwiss authorities arealsocommitted toactively
work towards asolution withourtrading partners under theauspices oftheChair.G/SPS/W/79
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Annex: Switzerland andBSE
Statistical Information
Bovine spongiform encephalopathy wasidentified inSwitzerland forthefirsttimein1990.
Until 1994thenumber ofcases doubled fromoneyeartothenext.From 1994to1995, when thecurve
reached itspeakwith68cases, theincrease ofBSEcases wasmarkedly smaller thaninprevious years.
In1996, thenumber ofcases receded to45,which corresponds toareduction by33%. Thisrecession
wasmore accentuated inthesecond halfoftheyear, when only10cases occurred, compared with
35cases during thefirstsixmonths.
With atotalcattle inventory ofapproximately 1.75million, theincidence ofBSEamounts to
0.26casesper10’000animalsin1996.Therefore,inaccordancewithinternationalstandards,Switzerland
isratedamong thecountries withlowBSEincidence. Among thelowincidence countries (e.g.France,
Germany, Ireland, Portugal), Switzerland istheonlyonewhere aconsiderable reduction ofthenumber
ofcases wasobserved in1996. Afurther characteristic ofthedisease inSwitzerland isthatonlyone
single animal wasaffected in97%oftheaffected herds. Uptonowtherearenoindications ofvertical
(from thecowtothecalf)orhorizontal transmission (from oneanimal toanother).
AsofFebruary 1997, only19outofthetotalof240animals affected byBSEsince 1990were
bornafterthefeedbanwasintroduced (BAB), mostofthem within 12months aftertheintroduction
oftheban.
Internal Measures
Intensified control ofcentral nervous diseases continues
Already in1989adiagnostic laboratory wasinstalled andresearch ondiagnostic methods and
onepidemiology ofBSEwaspromoted. Compared toother countries, Switzerland haspractised ever
sinceanintensified control ofcentral nervous disorders incattle. Atotalofmorethan600BSEsuspected
cases incattle havebeeninvestigated bytwoassigned institutes since 1990, including 95suspicions
intheyear1996.
Good discipline ofnotification duetogenerous payment ofcompensation
Astimulus tocomplete notification ofBSEcasesshowing clinical signswascreated bygenerous
payment ofcompensation (upto5400 CHF i.e.US$3800 peranimal) forslaughtered BSEaffected
orsuspected animals.
Tightened measures in1996
Even though themeasures taken in1990 arehighly effective, andtheriskforconsumers is
minimal, thefollowing additional measures were adopted in1996:
On17April 1996, theFederal Council (government) decreed thatdomestic animal carcasses
ofallspecies aswellascertain parts ofcows (brain within theskull, spinal cord, eyes) must notbe
processed anylonger intofeedforcommercial stock. Henceforward, carcasses ofcows havetobe
incinerated.
On16September 1996, theFederal Council decided thatalldirect offspring ofcows affected
byBSEmust beidentified andkilled.G/SPS/W/79
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On13December 1996, theFederal Parliament decided additional measures tobetaken inherds
where ananimal diedorhadtobekilled because ofBSE, andinholdings where suchanimals were
born orraised. These measures include theslaughter anddestruction ofallanimals born before
1December 1990, i.e.priortotheimplementation oftheruminant feedban,andinthecaseofholdings
affected byaBAB case, ofallbovines intheholding.
Border Measures
On3April 1996, theFederal Council decided -asaconfidence-building measure -tomake
compulsory thedeclaration oftheproducer country formeatandmeatproducts onopensale,effective
May1,1996.
On17April 1996, theSwiss Federal Veterinary Office stopped theimport offeedingstuff until
allsuppliers havebeencontrolled. Henceforward, onlysuppliers producing according todomestic
standards willberecognised.
On29November 1996, theSwiss Federal Veterinary Office decided toaccept forimportation
onlybovines,ovinesandcaprinesoriginatingformcountrieshavingprohibitedthefeedingofmammalian
protein (except milkderived protein) toruminants. Theanimals tobeimported mustbebornnotearlier
than18months aftertheimplementation ofsuchafeedban.Simultaneously, theOffice decreed new
conditions fortheimport ofmeatproducts withaviewtopreventing theimport ofproducts containing
specified bovine offal. These measures became effective on1January 1997.