WORLD TRADE  
ORGANIZATION  G/SPS/GEN/778 
7 June 2007 
 (07-2385) 
Committee on Sanitary a nd Phytosanitary Measures Original:   English 
  
 
SECOND REVIEW OF THE OPER ATION AND IMPLEMENTATION 
OF THE AGREEMENT ON THE APPLICATION OF SANITARY 
AND PHYTOSANITARY MEASURES 
 
Transparency enhancement proposal
 
 
Submission by Canada 
 
 The following communication, received on 5 June 2007, is being circulated at the request of the Delegation of Canada.  
 
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I. INTRODUCTION 
1. Transparency is a cornerstone of the Agre ement on the Application of Sanitary and 
Phytosanitary Measures (the SPS Agreement).  The tr ansparency provisions can facilitate Members in 
attaining a greater degree of predictability and cl arity with respect to the adoption of sanitary and 
phytosanitary (SPS) measures by trading partners. 
2. In the context of the Second Review of the Operation and Implementation of the Agreement 
on the Application of Sanitary and Phytosanita ry Measures (Second Review), the SPS Committee has 
previously discussed expanding current reco mmended notification procedures to enhance 
transparency, including proposals that Members notify all regulations
1 that have a significant effect on 
trade, including those based on international standa rds, guidelines or recommendations (hereinafter 
referred to as "international standards") (see comments by New Zealand: G/SPS/W/157, Canada: 
G/SPS/W/158, and EC: G/SPS/W/159).  One recommendation stemming from the Second Review was that "the Committee should consider whether fu rther recommendations could be beneficial, inter 
alia: … to encourage transparency regarding the use of the relevant international standards" 
(G/SPS/36, paragraph 39). 
3. The purpose of this paper is to propose a revision to the Recommended Procedures for 
Implementing the Transparency Obligations of the SPS Agreement (Article 7) (G/SPS/7/Rev.2).  
Canada proposes that Members notify all regulations that are based on, conform to, or are 
substantially the same as the content of interna tional standards if they are expected to have a 
significant effect on trade (Article 3.2, Article 3.1, and Annex B, paragraph 5). 
 
                                                     
 
1 In this paper, the word “regulations” is defined as per footnote 5 in Annex B of the SPS Agreement: 
“Sanitary and phytosanitary measures such as laws, de crees or ordinances which are applicable generally.” G/SPS/GEN/778 
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  II. BACKGROUND AND RATIONALE 
4. Under the SPS Agreement, Members are obligated  to notify new or changed regulations that 
may have a significant effect on trade only if either the content of such regulations is not substantially 
the same as the content of an international standard , or where an international standard does not exist 
(as per Annex B, paragraph 5).  The rationale und erlying this provision appears to be that if a 
regulation is substantially the same as an interna tional standard, the effect on trade would not be 
significant, as Members are presumed to have notice of the international standard. 
5. However, if a Member adopts a new regulation th at is substantially the same as, or even 
identical to, an international st andard, without advance notice to trading partners, there could 
nonetheless be significant trade implications.  The mere act of changing a Member’s SPS regulations 
can affect trade, regardless of whether that change is based on international standards.   
6. The implementation of the International St andard for Phytosanitary Measures on wood 
packaging material (ISPM 15) is an example of the potential for trade disruption associated with 
implementing international standards.  ISPM 15 is an international standard for ensuring that the 
wood packaging used extensively to transport goods is treated (chemically or with heat) to ensure that 
it does not transport pests from one country to another.  If WTO Members implement ISPM 15 
requirements without issuing a WTO notification, shipments could be refused and trade could be 
disrupted while exporters adjust to the new requireme nts.  In such a case, a notification could provide 
essential information for trading partners seek ing to avoid disruptions in trade.   
7. Canada’s proposal aligns with Annex B, paragraph 5, which states that " significant effect on 
trade of other Members"is a necessary condition fo r requiring a notification.  Notifying a regulation 
with a significant effect on trade of other Members,  regardless of whether it is based on international 
standards, should be considered a good transparency practice. 
8. The guidelines on transparency contai ned in the Secretariat’s handbook How to Apply the 
Transparency Provisions of the SPS Agreement  (November 2000) recognize and welcome the fact 
that, “for the sake of improved transparency, some countries also notify regulations which conform to 
international standards, a practice which is welcomed".
2 
9. As noted in the Secretariat’s more recent Analysis of Replies to the Questionnaire on the 
Operation of Enquiry Points and National Notification Authorities  (G/SPS/GEN/751, February 2007), 
a significant proportion of respondents preferred that Members notify, on a voluntary basis, "some" or "all" new or changed regulations, whether or not they are based on an international standard.   
10. Canada agrees with the New Zealand proposal (G/SPS/W/157) that Members not be expected 
to retroactively notify all SPS regulations alr eady in place that conform to or are based on 
international standards. 
11. Canada notes the importance of granting a reasonabl e period, except in urgent circumstances, 
for the entry into force of the new domestic regul ation to allow for exporting Members to make the 
necessary adjustments.   
12. Certain Members have expressed concern with addi ng to the volume of notifications that they 
must process domestically.  To minimize unnece ssary work for Members, Box 4 (Regions or 
Countries Likely to be Affected) on the notification fo rm should, to the extent relevant or practicable, 
be carefully drafted to include only those countries that may be affected by the regulation.  In addition, the Secretariat has an obligation to brin g to the attention of developing country Members 
                                                     
 
2 Handbook available online at http://www.wto.org/english/tr atop_e/sps_e/spshand_e.pdf   G/SPS/GEN/778 
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  WTO notifications that are of special interest or have a significant impact on their export markets 
(Annex B, paragraph 9).  Canada welcomes further information or proposals from Members regarding 
best practices for transparency and streamlining pr ocesses within the national notification authorities. 
III. PROPOSED REVISION TO G/SPS/7/REV.2 
13.  The Recommended Procedures for Implementing the Transparency Obligations of the SPS 
Agreement (G/SPS/7/Rev.2) are intended to help countries improve transparency practices to facilitate 
trade between Members.   
14. Canada proposes to add the following text to be placed before the existing paragraph 6 under 
Section A of G/SPS/7/Rev.2: 
6. Members are obligated to notify all regulations the content of which are "not 
substantially the same as the content of" an international standard, guideline or 
recommendation, if such regulations are expected to have a significant impact on trade.  
Members are encouraged to notify all regulati ons that are based on, conform to, or are 
substantially the same as an international st andard, guideline or recommendation, if they are 
expected to have a significant impact on trade.  Members should still grant a reasonable 
period, except in urgent circumstances, for the en try into force of the new regulation, to allow 
for exporting Members to adapt to its application.  
 
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