G/SPS/GEN/1399
18 March 2015
(15-1549)  Page: 1/2
Committee on Sanitary and Phytosanitary Measures  Original: English
 
RECENT ACTIVITIES BY THE OECD OF INTEREST TO THE SPS COMMITTEE 
COMMUNICATION FROM THE OECD 
The following communication, received on 16 March 2015, is being circulated at the request of the 
OECD. 
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1  VOLUNTARY ENVIRONMENTAL STANDARDS IN AGRICULTURE: POLICY IMPLICATIONS 
1.1.  A new OECD report on voluntary environmen tal standards, about to be published within the 
Food, Agriculture and Fisheries Papers series1, focusses on the linkages between voluntary (often 
private) environmental standards and public policies. In particular, the work examines possible 
roles of public authorities in the area of enviro nmental standards, with the ambition to answer 
three related questions: 
• What objectives can be pursued by government interaction with environmental standards? 
• What options are available to governments for taking a role in environmental standards? 
• How can governments make use of environmental standards for achieving public policy 
objectives? 
1.2.  The report is based on an extensive litera ture review, a number of case studies on specific 
environmental standards in different countries, and an OECD-wide survey on organic agriculture standards. 
1.3.  A key role of governments in the area of environmental standards is to ensure the proper 
functioning of markets for both food and the certification of food. This in particular includes the protection of consumers and the avoidance of excessive transaction costs: 
• Protecting consumers and preventing fraud an d free-riding by competitors represent a key 
rationale for public authorities for intervening with standards. This goal is pursued mainly through the protection of trademarks and bran ds, the banning of fraudulent or misleading 
claims, or the obligation of private companies to disclose certain information. 
• Reducing transaction costs and facilitating market access for all producers also represent 
an important motivation for public intervention. This can be achieved by harmonising existing standards, stimulating the creation of standards or developing a public standard. 
1.4.  In addition, governments can make use of environmental standards to improve efficiency in 
the design, implementation and monitoring of publ ic policies. This can include building regulations 
on existing private standards; endorsing standards,  stimulating the growth of the certified sector, 
or using standards as an option to comply with regulations; and the recognition of private audits 
and certification for compliance to policy requirements. 
1.5.  Costs to taxpayers can be reduced by rely ing on existing standards or their certification 
systems. Benefits can also include the reduction of farmer transaction costs through reduced 
public monitoring of compliance with policies and regulations. However, there is a potential risk to lose control. To mitigate that, it is important to develop procedures to screen private standards of 
                                               
1 http://www.oecd-ilibrary.org/content/workingpaperseries/18156797 . G/SPS/GEN/1399 
 
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  the level required for general interest purpose, as well as to maintain mechanisms to oversee 
operators and auditors. 
1.6.  Concerning organic agriculture standards,  which frequently are seen as a subset of 
environment-related standards, countries have taken different approaches. The choices range from 
largely allowing private standards to self-regulate the market for organic food products with 
intervention mainly limited to exports of domestic produce, to the development of a public standard on organic food products. In addition to ensuring well-functioning markets for organic 
food by protecting consumers and facilitating tr ade, more active intervention by many OECD 
governments also reflects the perceived environmental (and hence societal) benefits of organic agriculture and frequently includes specific support provided to the producers of certified organic food products. 
2  INTERNATIONAL REGULATORY CO-OPERATION 
2.1.  Work on global value chains by the OECD has stressed the importance of reducing 
protectionist measures, improving inefficient and unnecessary customs and reducing the cost of 
"behind-the-border" measures that constrain tr ade in goods and services. In addressing the 
increasing concerns raised by "behind-the-border " measures, the OECD is carrying out horizontal 
work on international regulatory co-operation, which entails close collaboration among the trade, 
agriculture and regulatory divisions. 
2.2.  From a trading perspective, the OECD is currently developing a practical tool to help 
countries diagnose regulatory divergence and gu ide policy makers in reaching a policy decision 
implementing the most favourable international regulatory co-operation mechanisms. Some of 
these mechanisms are well known in the SPS cont ext, for example alignment on international 
standards or mutual recognition. The work is intended to provide a step-by-step approach to identify and analyse types and magnitudes of trade costs associated with regulatory divergence as 
well as the domestic objectives for regulations. Applicable to both new regulations and existing 
regulations that countries may want to update or change, this tool will be drawing on theoretical economic and empirical analysis. By studying existing regulatory co-operations, the empirical 
analysis will investigate the process that led to the selection and implementation of a specific 
regulatory co-operation mechanism. 
2.3.  While first and preliminary results are ex pected for fall 2015, final outcomes are scheduled 
for the second half of 2016. 
3  WORKSHOP ON TRADE FACILITATING EFFECTS OF INTERNATIONAL REGULATORY 
CO-OPERATION IN FOOD AND AGRICULTURE 
3.1.  On 21 November 2014, OECD held a workshop on Trade Facilitating Effects of International 
Regulatory Cooperation in Food and Agriculture. The Workshop aimed at highlighting the actual 
trade implications of increased international regulatory cooperation in food and agriculture. It was designed to bring together private-sector representatives who are engaged in food-trade, including 
importing and exporting companies, and trade related international organizations. From the 
discussion, it emerged the importance of the simplifi cation of border inspection services from an 
information flow perspective and in terms of risk-based inspection and control. Participants also acknowledged the role of private companies and industry associations in RTA negotiations and in 
regulatory design, as well as in RTA dialogue mechanisms. 
3.2.  Speakers from the private sector and international organizations (including STDF) shared 
their experiences on a wide-array of concrete examples and concerns that are raised by non-tariff 
barriers to agriculture and food trade. In part icular, participants discussed the relevance of 
existing and new RTAs for trade in agri-food, the risks involved in "zero-tolerance" policies and the concerns arising from SPS requirements that are not science-based. 
Contact: Martin von Lampe (E-mail: martin.vonlampe@oecd.org ) 
 
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