Source: https://www.lexology.com/library/detail.aspx?g=f2ada363-854b-4e68-89fd-b9523c843371
Timestamp: 2019-04-26 10:04:42+00:00

Document:
Chapter 11 of the US-Mexico-Canada Agreement (USMCA), which covers Technical Barriers to Trade (TBT), represents a wholesale overhaul of the North American Free Trade Agreement's (NAFTA) Chapter on Standards-Related Measures. While the chapter draws upon elements of the Trans-Pacific Partnership (TPP) – notably as relating to incorporation of the WTO Agreement on Technical Barriers to Trade (TBT Agreement), compliance periods, cooperation, and contact points – the new USMCA TBT provisions are closest in substance to the TBT Agreement itself.
The NAFTA TBT provisions were negotiated prior to the TBT Agreement and subsequent decisions and recommendations adopted by the WTO TBT Committee, and are comparatively narrow in scope. The rewritten USMCA Chapter – by incorporating not only basic TBT Agreement substantive disciplines, but also decisions of the TBT Committee (while eschewing other bodies) – is meant to bring the trilateral trade relationship in line with international best practices. An article-by-article overview follows.
The only definition found in both NAFTA Chapter 9 and USMCA Chapter 11 is "international standard," which the former defines as "standards-related measure, or other guide or recommendation, adopted by an international standardizing body and made available to the public." The USMCA, however, specifically ties the definition to Annex 2 to Part 1 (Decision of the Committee on Principles for the Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 and Annex 3 of the Agreement) in the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade Since 1 January 1995 (G/TBT/1/Rev.13) as may be revised, issued by the WTO Committee on Technical Barriers to Trade. TPP Art. 8.1 only shares "mutual recognition agreement." The USMCA also offers definitions for "international conformity assessment systems," "mutual recognition arrangement or multilateral recognition arrangement;" "proposed technical regulation or conformity assessment procedure;" and "TBT Committee Decision on International Standards."
While significantly shorter, this Article is similar to its TPP equivalent in that it (1) establishes the Chapter's application to the "preparation, adoption and application" of standards, technical regulations, and conformity assessment procedures which may affect trade in goods between the Parties; and (2) expressly excludes technical specifications prepared by a governmental body for production or consumption requirements and sanitary or phytosanitary (SPS) measures. The USMCA also covers "any amendment thereto," but removes the TPP's reference to "government bodies at the level directly below that of the central level of government."
Art. 2.9 (Establishing the procedure for the introduction of new technical standards where an international standard does not exist).
Paragraph J of Annex 3 (Reporting requirements of standardizing bodies).
Paragraph F of Annex 3 ("Where international standards exist or their completion is imminent, the standardizing body shall use them, or the relevant parts of them, as a basis for the standards it develops, except where such international standards or relevant parts would be ineffective or inappropriate").
As is the case under the TPP, the Parties to the USMCA do not have recourse to the agreement’s dispute settlement mechanism for disputes exclusively arising under the provisions of the TBT Agreement as incorporated. However, the USMCA also bars recourse where the dispute concerns an alleged inconsistency with the Chapter that (1) was referred or is subsequently referred to a WTO dispute settlement panel; or (2) was taken to comply in response to the recommendations or rulings from the WTO Dispute Settlement Body (or bears a close nexus, such as in terms of nature, effects, and timing, with respect to such a measure). This may relate to longstanding WTO disputes among the parties on tuna (US-Mexico) and country of origin labelling (COOL) (US-Mexico/Canada).
This Article also builds upon equivalent TPP provisions by stating that "each Party shall ensure that any obligation or understanding it has with a non-Party does not facilitate or require the withdrawal or limitation on the use or acceptance of any relevant standard, guide, or recommendation developed in accordance with the TBT Committee Decision on International Standards or the relevant provisions of this Chapter."
Ensure that technical regulations concerning labels "accord treatment no less favorable than that accorded to like goods of national origin" (i.e., national treatment) and "do not create unnecessary obstacles to trade between the Parties." This provision again could relate to past disputes on US COOL measures, which some groups in the United States have recently sought to renew.
The basic tenet of national treatment stated in this Article, that "each Party shall accord to conformity assessment bodies located in the territory of another Party treatment no less favorable than that it accords to conformity assessment bodies located in its own territory or in the territory of the other Party," is similar to that in NAFTA Art. 906 and TPP Art. 8.6. "Conformity assessment body" is not defined in the Agreement. The USMCA, like the TPP, goes further to specify that a Party shall not require conformity assessment bodies be located or operate an office within its territory.
This Article also includes TPP-like provisions on (1) transparency (i.e., the requirement of Parties to respond to requests for information regarding assessment procedures and body accreditation); (2) allowing conformity assessment bodies to use subcontractors; and (3) broadening the scope of permissible accrediting bodies.
This Article grants all Parties and other stakeholders the opportunity to comment on the proposed adoption or modification of a Party’s technical regulation. Similar to the NAFTA and the TPP, the USMCA requires that Parties "shall normally allow" 60 days for comment prior to adopting/modifying technical regulations, with certain exceptions. The USMCA requires electronic transmission/posting of the notification and regulation text, as well as posting of written comments on the regulatory authority's website.
Whereas the NAFTA and the TBT Agreement require a "reasonable" interval between publication of requirements concerning conformity assessment procedures and their entering into force, the USMCA interprets this to mean "normally a period of not less than six months." The TPP contains the same language. If possible, Parties shall endeavour to provide a longer interval.
Similar to TPP Art. 8.9, this Article establishes additional criteria by which a Party may accept another Party's sector-specific proposal for cooperation, such as by (1) implementing mutual recognition or recognizing existing mutual recognition arrangements to accept results by conformity assessment bodies with respect to specific technical regulations; (2) using accreditation to qualify conformity assessment bodies; (3) unilaterally recognizing the results of conformity assessment procedures performed in the other Party's territory; and (4) accepting a supplier's declaration of conformity. The Article recognizes a range of other cooperative activities to better align technical regulations, such as exchange of information and technical assistance.
This Article establishes the procedure for requesting that another Party engage in technical discussions or provide information on proposed or final technical regulations. Once the request is made, the Parties shall discuss the matter within 60 days, or sooner if the matter is urgent. NAFTA Art. 911 establishes similar procedures, but without any time limit.
This Article establishes a TBT Committee composed of government representatives of each Party, and identifies its functions. There is significant overlap in scope and operations with the NAFTA's Committee on Standards-Related Measures, as well as the TBT Committee envisioned under the TPP. The NAFTA, however, establishes subcommittees focusing specifically on land transportation standards, telecommunications standards, automotive standards, and labelling of textile and apparel goods.
Unlike the NAFTA, this Article requires that each Party designate a contact point for matters arsing under the TBT Chapter.
TBT Chapter Annexes that were in the TPP have been revised and moved to "Sectoral Annexes" for cosmetics, information and communications technology, pharmaceuticals, medical devices. These annexes can be reviewed separately upon request.
Overall, responses to the new TBT provisions have been positive. Industry groups have applauded the USMCA’s expansion of technical regulation and conformity assessment acceptance; its requirements relating to regulatory transparency and stakeholder input; and its focus on harmonization of TBT regimes and overall efficiency.

References: Art. 8

Art. 2
 Art. 906
 Art. 8
 Art. 8
 Art. 911