INTERNATIONAL ECONOMICS ASSIGNMENT WTO agreement on technical barriers to trade

MINISTRY OF EDUCATION AND TRAINING
DA NANG UNIVERSITY OF ECONOMICS


REPORT
INTERNATIONAL ECONOMICS
WTO Agreement on Technical Barriers to
Trade (TBT)

Supervisor: Phạm Hồ Hà Trâm
Class: 46K01.1
Group 1:

Da Nang, November, 2022


Table of Content


Abstract
Vietnam is currently a major trading partner of numerous nations. We
have also had free trade agreement with countries throughout the
world, which offers great opportunities for Vietnamese enterprises
through preferential tariffs. However, in order to capitalize on these
opportunities, our products must conform to their requirements which
are relatively complex and detailed and not all exporters know how to
comply with, especially non-tariff measures such as Technical Barriers
to Trade (TBT) and Sanitary and Phytosanitary (SPS) measures in WTO
agreements.
This report set out to make a brief introduction of the WTO Agreement
on TBT. Then, we examine the trends of application of TBT of countries

in the world and some TBT regulations for several main export
products of Vietnam in major export markets, namely the EU, the US,
Japan and Korea. Furthermore, the report presents some responses of
Vietnamese exporters in dealing with Technical Barriers to Trade.
1. Overview of TBT:
1.1.
Definition:

TBTs are mandatory technical regulations and voluntary standards that
define specific characteristics that a product should have, such as its
size, shape, design, labelling, marking, packaging, functionality or
performance.
These regulations can act as trade barriers, especially when they are
unnecessarily trade-restrictive and/or unjustifiably discriminatory. TBTs
are governed by the World Trade Organization’s Agreement on
Technical Barriers to Trade and its Committee on Technical Barriers to


trade.
1.2.
Three categories of TBT measures:
1.2.1. Technical regulations

Pursuant to paragraph 1 of Annex I of the TBT Agreement a “technical
regulation” is a1: “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.”
1.2.2. Standards

Pursuant to paragraph 2 of Annex I of the TBT Agreement a “standard”
is defined as a: “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.”
1.2.3. Conformity assessment procedures (CAPs)

Pursuant to paragraph 3 of Annex I of the TBT Agreement, a
“conformity assessment” procedure is: “Any procedure used, directly
or indirectly, to determine that relevant requirements in technical
regulations or standards are fulfilled.”
They

include

procedures

for

sampling,

testing

and

inspection;

evaluation, verification and assurance of conformity; and registration,
1 Annex I.1 TBT, />

accreditation and approval.
1.3.

Purposes

The TBT Agreement is intended to ensure that technical regulations,
standards, and CAPs does not create unnecessary or discriminatory
obstacles to international trade.
In the meantime, it recognizes WTO members' right to implement
measures to achieve legitimate objectives, such as the protection of
human health and safety, or protection of the environment and other
undefined

objectives.

Besides,

this

Agreement

also

encourages

members to base their measures on international standards as a
means to facilitate trade. Through its transparency provisions, it also
aims to create a predictable trading environment.
1.4.

Scope

In terms of “type” of measure. The TBT Agreement covers three types
of defined measures: technical regulations, standards and conformity
assessment procedures (CAPs)2.
The TBT Agreement does not apply to services, SPS measures,
government procurement specifications. It probably does not apply to
non-product-related processes and production methods (NPR-PMS).
NPR-PPMs refers to manufacturing processes that are not detectable in
the final product.
2. Notifications

of

technical

assessment procedures
2.1.
Trends
2 Available at: />
regulations

and

conformity

The trend of applying TBTs continues to rise over time. In 2020, WTO
Members notified about 2095 new or revised technical regulations and
CAPs, as well as submitted 1257 addenda and corrigenda to previous
notifications3. There are more than 3,000 notifications submitted
annually to the TBT Committee for the past three years (Chart 1). This
is synonymous with WTO members’ commitment to increasing
transparency about trade measures. A great majority of these
procedures and regulations have been introduced by developed
nations such as the US, Uganda and EU.4

Chart 1. Number of TBT notification since 1995

3 Notifications are a form of advance notice. They give an opportunity for the WTO membership to comment on the
draft measures before they come into force.
4 />Year=2021&YearFrom=1995&YearTo=2021&FilterType=0


Source: WTO, Reports on TBT
Chart 2. Ten members submitted most notifications during 2020

African Members were amongst the most active in submitting TBT
notifications in 2020, with four East African Community Members in the
top ten. The US submitted the most notifications of any Member in
2020.(Chart 2)


Chart 3. Ten members submitted most during 1995-2020

According to the data from 1995-2020, it is obvious that the US is
again the top notifier among the members of the WTO, followed by
Brazil and Uganda. (Chart 3)

2.2.

Objectives of notifications

The primary objective stated in new notifications submitted in 2020
was "Protection of human health or safety". "Quality requirements" was
the second most cited objective, followed by "Consumer information,
labelling",

"Prevention

of

deceptive

practices

and

consumer

protection", and "Protection of the environment". When comparing this
with the most cited objectives for the period from 1995 to 2020, the
top five objectives remain unchanged, despite in a different order.
Chart 4. Notification by objective, 1995-2020

2.3.

TBT measures by sectors in 20195

TBTs are widely used to regulate international trade in most
economic sectors. The presence of TBT is largely linked to
performance and safety requirements in terms of energy products
and motor vehicles. For other sectors these measures often take
the form of conformity assessments or registration requirements.
This is the case for most TBT applied to textiles and apparel, as
well as many agricultural products.

5 p.30


Source: UNCTAD secretariat calculations based on UNCTAD TRAINS data

3. Some TBT regulations that Vietnamese exporters face in
major export markets for some key export products

I will discuss footwear exported to the EU market and fruits and
vegetable in China market.
Firstly we come to footwear exported to the EU
3.1.1. The EU
The EU is a choosy market. Consumers have high demands on product
quality.

Mandatory

requirements

on

food

safety,

labeling,

environment… of the EU are very stringent and difficult to meet. SMEs
in

Vietnam

confront

various

challenges

meeting

the

technical

regulations of the EU market. Here are several common technical
barriers:
 First one is Product safety: All products consumed in Europe,

including footwear, are required to conform to the regulations of
the Directive No. twenty oh one ninety-five EC. National
governments will check whether or not product imported meets
the applicable safety requirements. If it is considered unsafe, it
will be withdrawn or rejected from the European market.6
 The second one Labeling Regulations: According to the EU
Directive No. ninety-four eleven EC, footwear exported to the EU
market must conform to the regulations on labeling of the
materials used in the main components (uppers, in-soles, outer
soles). The label must be stuck, printed, legible, , embossed, or
affixed to at least one of each pair of shoes.
6 />

 Next

CITES

(Convention

on

International

Trade

in

Endangered Species of Wild Fauna and Flora): According to
the Council Regulation No. three hundred thirty-eight on the

protection of wildlife, exporters of footwear to the EU need to
check the list of animals and plants restricted from use

fruits and vegetable in China market.
Fresh fruit or vegetables

3.1.

3.1.1. China

Largest export market of VN is China.
 Good Manufacturing Practices:

The

haɪˈdʒen.ɪk

hygienic

requirements

for

food

production

and

operation, or good manufacturing practices (GMP), compose one of the

four pillars of China’s national food safety standard
 Traceability

Food producers and operators are requested to establish food safety
traceability systems to record information such as incoming inspection,
pre-delivery inspection, and food sales. China has pledged to establish
a unified edible agricultural food traceability platform and to develop
standards and /prəˈsiː.dʒɚ for the traceability of agricultural products and
foods.
4. Solutions applied by Vietnam exporters to overcome TBT

regulations:
4.1.

Government:

Government involved in disputes concerning TBT in the WTO when


necessary. This involvement includes attending TBT cases as the third
party to have experience in TBT cases or taking legal actions
concerning SPS and TBT to the WTO. By doing this, Vietnam can make
other WTO members understand that Vietnam is aware of TBT issues
and can use the WTO dispute mechanism to protect its exports.
Vietnam has made more efforts to sign agreements or treaties which
harmonize TBT measures. This is to reduce conformity costs and give
Vietnamese exports more opportunities to export to other markets. In
addition, the government has supported enterprises, especially SMEs
ones,

by

developing

and

implementing

programs

and

projects

investing in technological innovation, enhancing equipment and new
techniques, and applying international standards.
For example: the government supported the application of models and
tools to improve labor productivity at Ha Nam Textile and Garment
Joint Stock Company, such as: ISO 9000, 5S, TPM, Lean, KPI, Lean 6
Sigma, Kaizen, overall productivity of the company has increased by
23% compared to the previous one.
4.2. Enterprises
In order to survive and develop in highly demanding and competitive
markets, they have proactively done research on the required criteria
and procedures, and invested in technology. Moreover, encountering
the technical barriers posed by import nations has made them pay
high attention to the quality of the product and production process.
They also make efforts to balance consumers’ interests and economic
profits.
Enterprises in Vietnam have enlisted the support of relevant agencies

and organizations, including the Vietnam TBT Office and the TBT
network, for overseas Vietnamese deals, the Vietnam Chamber of
Commerce and Industry, consulting organizations, to improve their
capacity to meet and overcome technical barriers. Besides, enterprises
have

participated

in

international

standard-setting

activities

to

understand the content of standards, learn from the experiences of
relevant parties, and ensure the legitimate interests of Vietnamese
enterprises.
For example, in recent years, thanks to cooperation programs between
Vietnam and Japan, Japan has helped Vietnam with upgrading training
facilities for agricultural officials, sponsoring technique-improving
programs for cooperatives of agriculture, cooperatives of fruit crops,
and supporting rice seed proposals, etc.

References
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