Hostname: page-component-8448b6f56d-dnltx Total loading time: 0 Render date: 2024-04-23T23:42:12.296Z Has data issue: false hasContentIssue false

Private Standards and the WTO: Reclusive No More

Published online by Cambridge University Press:  04 October 2016

PETROS C. MAVROIDIS*
Affiliation:
Columbia Law School and EUI
ROBERT WOLFE*
Affiliation:
School of Policy Studies, Queen's University, Kingston, Canada

Abstract

Private standards are increasing in number, and they affect trade, but their status in the WTO remains problematic. Standards-takers are typically countries with little bargaining power, who cannot affect their terms of trade, and, thus, even if they possess domestic antitrust laws, will find it hard to persuade standard-setters to take account of their interests. Our concern is to bring more of these standards within the normative framework of the trade regime – that is, we worry that these private forms of social order can conflict with the fundamental norms of transparency and non-discrimination. The WTO membership has consumed itself in endless discussions regarding mundane, legalistic issues, and has not moved at all towards addressing the real concerns of developing countries. We discuss one aspect of the problem: How reclusive should the WTO allow product standards to be? We argue that the WTO should adopt a ‘Reference Paper’ that would encourage its members to apply WTO rules for adopting those standards that already come under the aegis of the WTO to private standards. In the absence of centralized enforcement, utopia in the WTO legal paradigm, transparency disciplines imposed on standard-setters is the best the WTO could offer to those who are negatively affected by private standards.

Type
Review Article
Copyright
Copyright © Petros C. Mavroidis And Robert Wolfe 2016 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abbott, K. W. and Snidal, D. (2009), ‘Strengthening International Regulation through Transnational New Governance: Overcoming the Orchestration Deficit’, Vanderbilt Journal of Transnational Law, 42: 501578.Google Scholar
Alvarez, G. and Hagen, O. von (2011), ‘The Impacts of Private Standards on Producers in Developing Countries’, International Trade Centre (ITC), Literature Review Series on the Impacts of Private Standards, Part II March 2011.Google Scholar
Antràs, P. and Staiger, R. W. (2012), ‘Trade Agreements and the Nature of Price Determination’, American Economic Review, 102(3): 470–6.Google Scholar
Arcuri, A. (2013), ‘The TBT Agreement and Private Standards’, in Epps, T. and Trebilcock, M. J. (eds.), Research Handbook on the WTO and Technical Barriers to Trade, Cheltenham: Edward Elgar, pp. 485524.Google Scholar
Baddeley, S., Cheng, P., and Wolfe, R. (2012), ‘Trade Policy Implications of Carbon Labels on Food’, Estey Centre Journal of International Law and Trade Policy, 13(1): 5993.Google Scholar
Baldwin, R. E. (1970), Nontariff Distortions of International Trade, Washington, DC: Brookings Institution.Google Scholar
Beghin, J. C., Maertens, M., and Swinnen, J. F. (2015), ‘Nontariff Measures and Standards in Trade and Global Value Chains’, Annual Review of Resource Economics, 7(1): 425450.Google Scholar
Bremer, E. S. (2013), ‘Incorporation by Reference in an Open-Government Age’, Harvard Journal of Law and Public Policy, 36(1): 131210.Google Scholar
Djelic, M. L. and Hond, F. den (2014), ‘Introduction: Multiplicity and Plurality in the World of Standards’, Business and Politics, 16(1): 67.Google Scholar
Fliess, B., Gonzales, F., Kim, J., and Schonfeld, R. D. (2010), ‘The Use of International Standards in Technical Regulation’, Organisation for Economic Co-operation and Development, OECD Trade Policy Working Paper No. 102 TAD/TC/WP(2009)12/FINAL, 19 July 2010.Google Scholar
Freeman, J. (1999), ‘Private Parties, Public Functions and the New Administrative Law’, in Dyzenhaus, D. (ed.), Recrafting the Rule of Law: The Limits of Legal Order, Oxford: Hart, pp. 331369.Google Scholar
Hobbs, J. E. (2010), ‘Public and Private Standards for Food Safety and Quality: International Trade Implications’, Estey Centre Journal of International Law and Trade Policy, 11(1): 136152.Google Scholar
Hoekman, B. (2014), Supply Chains, Mega-Regionals and Multilateralism: A Road Map for the WTO, London: CEPR Press.Google Scholar
Hoekman, B. M. and Mavroidis, P. C. (2015), ‘Embracing Diversity: Plurilateral Agreements and the Trading System’, World Trade Review, 14(1): 101116.Google Scholar
Hoekman, B. M. and Mavroidis, P. C. (2016), ‘MFN Clubs and Scheduling Additional Commitments in the GATT: Learning from the GATS’, European University Institute, EUI Working Paper RSCAS 2016/06, January 2016.Google Scholar
Irwin, D. A., Mavroidis, P. C., and Sykes, A. O. (2008), The Genesis of the GATT, New York: Cambridge University Press.Google Scholar
ISEAL (2014), ‘Setting Social and Environmental Standards: Iseal Code of Good Practice’, ISEAL Alliance, Version 6.0, December 2014.Google Scholar
ISO (2010), ‘International Standards and “Private Standards”’, International Organization for Standardization, 2010.Google Scholar
Jansen, M. (2010), ‘Developing Countries, Standards and the WTO’, The Journal of International Trade and Economic Development, 19(1): 163185.Google Scholar
Kennedy, S. (2006), ‘The Political Economy of Standards Coalitions: Explaining China's Involvement in High-Tech Standards Wars’, Asia Policy, 2(1): 4162.Google Scholar
Keyes, J. M. (2004), ‘Incorporation by Reference in Legislation’, Statute Law Review, 25(3): 180.Google Scholar
Latouche, K. and Chevassus-Lozza, E. (2015), ‘Retailer Supply Chain and Market Access: Evidence from French Agri-Food Firms Certified with Private Standards’, The World Economy, 38(8): 13121334.Google Scholar
Liu, H.-W. (2014), ‘International Standards in Flux: A Balkanized ICT Standard-Setting Paradigm and Its Implications for the WTO’, Journal of International Economic Law, 17(3): 551600.CrossRefGoogle Scholar
Macdonald, R. A. (1985), ‘Understanding Regulation by Regulations’, in Bernier, I. and Lajoie, A. (eds.), Regulations, Crown Corporations and Administrative Tribunals, Toronto: University of Toronto Press, pp. 81154.Google Scholar
Macdonald, R. A. (2002), Lessons of Everyday Law, Montreal and Kingston: McGill-Queen's University Press for the School of Policy Studies and the Law Commission of Canada.Google Scholar
Maertens, M. and Swinnen, J. (2015), Agricultural Trade and Development: A Value Chain Perspective, WTO Working Paper ERSD-2015-04, April, 2015, Geneva: World Trade Organization.Google Scholar
Marx, A. and Wouters, J. (2013), ‘Competition and Cooperation in the Market of Voluntary Sustainability Standards’, United Nations Forum on Sustainability Standards UNFSS Discussion Papers No. 3, April 2013.Google Scholar
Mavroidis, P. C. and Neven, D. (1999), ‘Some Reflections on Extraterritoriality in International Economic Law: A Law and Economic Analysis’, Melanges En Homage De Michel Waelbroeck, Brussels: Bruylant, pp. 12971325.Google Scholar
Mendelson, N. A. (2014), ‘Private Control over Access to the Law: The Perplexing Federal Regulatory Use of Private Standards’, Michigan Law Review, 112(March): 737807.Google Scholar
Organisation for Economic Co-operation and Development (OECD) (1997), Report on Regulatory Reform, Paris: Organisation for Economic Co-operation and Development.Google Scholar
Pauwelyn, J. (2014), ‘Rule-Based Trade 2.0? The Rise of Informal Rules and International Standards and How They May Outcompete WTO Treaties’, Journal of International Economic Law, 17(4): 739751.Google Scholar
Peña, A. M. (2015), ‘Governing Differentiation: On Standardisation as Political Steering’, European Journal of International Relations, 21(1): 5275.Google Scholar
Potts, J., Lynch, M., Wilkings, A., Huppé, G., Cunningham, M., and Voora, V. (2014), The State of Sustainability Initiatives Review 2014: Standards and the Green Economy, Winnipeg: International Institute for Sustainable Development.Google Scholar
Sabel, C. (2014), ‘Regulatory Equivalence: What It Is and Why It Is Equivalent to a New Kind of Regulation’, paper delivered to the conference on Private Standards and (Transatlantic), Trade Integration, European University Institute, Florence, 1011 November 2014.Google Scholar
Schepel, Harm (2005), The Constitution of Private Governance: Product Standards in the Regulation of Integrating Markets, Oxford: Hart.Google Scholar
Thorstensen, V., Weissinger, R., and Sun, X. (2015), ‘Private Standards – Implications for Trade, Development, and Governance’, WEF/ICTSD, E15 Task Force on Regulatory Systems Coherence August 2015.Google Scholar
Timmermans, S. and Epstein, S. (2010), ‘A World of Standards but Not a Standard World: Toward a Sociology of Standards and Standardization’, Annual Review of Sociology, 36: 6989.Google Scholar
Wijkström, E. and McDaniels, D. (2013), ‘Improving Regulatory Governance: International Standards and the WTO TBT Agreement’, Journal of World Trade, 47(5): 10131046.Google Scholar
Wolfe, R. (2015), ‘How Can We Know (More) about the Trade Effects of Regulation?’, WEF/ICTSD, E15 Task Force on Regulatory Systems Coherence August 2015.Google Scholar
Wouters, J. and Geraets, D. (2012), ‘Private Food Standards and the World Trade Organization: Some Legal Considerations’, World Trade Review, 11(3): 479489.Google Scholar
WTO (2000), ‘Decision by the Committee on Principles for the Development of International Standards, Guides and Recommendations in Relation to Articles 2, 5 and Annex 3 of the Agreement; Found in Annex 4 of Second Triennial Review of the Operation and Implementation of the Agreement on Technical Barriers to Trade’, World Trade Organization, Committee on Technical Barriers to Trade, G/TBT/9, 13 November 2000.Google Scholar
WTO (2005), ‘Summary of the Meeting Held on 2930 June 2005: Note by the Secretariat’, World Trade Organization, Committee on Technical Barriers to Trade, G/SPS/R/37/Rev.1, 18 August 2005.Google Scholar
WTO (2007a), ‘Private Industry Standards: Communication from Saint Vincent and the Grenadines’, World Trade Organization, Committee on Technical Barriers to Trade, G/SPS/GEN/766, 28 February 2007.Google Scholar
WTO (2007b), ‘Private Standards and the SPS Agreement’, Committee on Sanitary and Phytosanitary Measures, World Trade Organization, G/SPS/GEN/746, 24 January 2007.Google Scholar
WTO (2008), ‘Private Standards – Identifying Practical Actions for the SPS Committee – Summary of Responses: Note by the Secretariat’, Committee on Sanitary and Phytosanitary Measures, World Trade Organization, G/SPS/W/230, 25 September 2008.Google Scholar
WTO (2009), ‘Fifth Triennial Review of the Operation and Implementation of the Agreement on Technical Barriers to Trade under Article 15.4’, World Trade Organization, Committee on Technical Barriers to Trade, G/TBT/26, 13 November 2009.Google Scholar
WTO (2010a), ‘Market Access for Non-Agricultural Products: International Standards, Communication from the United States’, World Trade Organization, Negotiating Group on Market Access, TN/MA/W/138, 28 June 2010.Google Scholar
WTO (2010b), ‘Summary Report of the Information Session on Product Carbon Footprint and Labelling Schemes, 17 February 2010: Note by the Secretariat’, World Trade Organization, Committee on Trade and Environment, WT/CTE/M/49/Add.1, 28 May 2010.Google Scholar
WTO (2011a), ‘Disciplines on Domestic Regulation Pursuant to GATS Article VI:4: Chairman's Progress Report’, World Trade Organization, Working Party on Domestic Regulation, S/WPDR/W/45, 14 April 2011.Google Scholar
WTO (2011b), ‘International Standards in Support of Trade and Economic Development: Strengthening the Contribution of the Committee Decision; a Proposal from the United States’, World Trade Organization, Negotiating Group on Market Access, TN/MA/W/141, 29 March 2011.Google Scholar
WTO (2011c), ‘Actions Regarding SPS-Related Private Standards: Decision of the Committee’, World Trade Organization, Committee on Sanitary and Phytosanitary Measures, G/SPS/55, 6 April 2011.Google Scholar
WTO (2012a), United States – Measures Concerning the Importation, Marketing and Sale of Tuna and Tuna Products, Report of the Appellate Body, World Trade Organization, WT/DS381/AB/R, 16 May 2012.Google Scholar
WTO (2012b), ‘Sixth Triennial Review of the Operation and Implementation of the Agreement on Technical Barriers to Trade under Article 15.4’, World Trade Organization, Committee on Technical Barriers to Trade, G/TBT/32, 29 November 2012.Google Scholar
WTO (2012c), ‘Proposed Working Definition of SPS-Related Private Standards: Note by the Secretariat’, World Trade Organization, Committee on Sanitary and Phytosanitary Measures, G/SPS/W/265/Rev.2, 28 September 2012.Google Scholar
WTO (2012d), Trade and Public Policies: A Closer Look at Non-Tariff Measures in the 21st Century, World Trade Report 2012, Geneva: World Trade Organization.Google Scholar
WTO (2014a), ‘Review of the Operation and Implementation of the SPS Agreement: Draft Report of the Committee’, World Trade Organization, Committee on Sanitary and Phytosanitary Measures, G/SPS/W/280/Rev.1, 18 September 2014.Google Scholar
WTO (2014b), ‘List of Standardizing Bodies that Have Accepted the Code of Good Practice for the Preparation, Adoption and Application of Standards since 1 January 1995: Note by the Secretariat’, World Trade Organization, Committee on Technical Barriers to Trade, G/TBT/CS/2/Rev.20, 26 February 2014.Google Scholar
WTO (2015a), ‘Seventh Triennial Review of the Operation and Implementation of the Agreement on Technical Barriers to Trade under Article 15.4’, World Trade Organization, Committee on Technical Barriers to Trade, G/TBT/37, 3 December 2015.Google Scholar
WTO (2015b), ‘Summary of the Meeting of 15–16 July 2015: Note by the Secretariat’, World Trade Organization, Committee on Sanitary and Phytosanitary Measures, G/SPS/R/79, 4 September 2015.Google Scholar
WTO (2015c), ‘Report of the Co-Stewards of the Private Standards E-Working Group on Action 1 (G/SPS/55)’, World Trade Organization, Committee on Sanitary and Phytosanitary Measures, G/SPS/W/283, 17 March 2015.Google Scholar
Zúñiga Schroder, H. (2009), ‘Definition of the Concept “International Standard” in the TBT Agreement’, Journal of World Trade, 43(6): 12231254.Google Scholar