Codex and the World Trade Organization

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Background Paper
Codex and the World Trade Organization (WTO)
Issue: Codex Alimentarius was established in 1963 and is jointly funded by the Food and
Agricultural Organization (FAO) and the World Health Organization (WHO) of the United
Nations (UN). Codex was established to develop international food standards. Although the
standards development process was initiated in 1963, its importance and relevance to trade law
and, consequently, the political implications of the standard setting work of Codex increased
considerably in 1995 with the creation of the World Trade Organization and the ratification of
the WTO agreements. The WTO Agreement on Sanitary and Phytosanitary Measures (SPS
Agreement) in which Codex is referenced several times.
Background: Article 3 of the SPS Agreement requires members to base their sanitary or
phytosanitary measures on international standards, guidelines or recommendations, where they
exist. It deems measures which conform to international standards to be necessary to protect
human, animal or plant life or health, and presumed to be consistent with the WTO Agreement
and it requires more restrictive measures to have a scientific justification.
The Agreement specifically requires that members participate, to the extent of their resources, in
the relevant international organizations and specifically references the Codex Alimentarius
Commission (Codex), the International Office of Epizootics (OIE), and the International Plant
Protection Convention (IPPC).
In this regard, if a dispute should arise among WTO members relative to the justification of their
measures, parties would have recourse to the procedures for dispute settlement under the 1994
Dispute Settlement Understanding (DSU) to the General Agreement on Tariffs and Trade. The
source of law under consideration in such a dispute would be the specific texts of the SPS
Agreement including those of Codex Alimentarius.
Even though, the adoption of Codex standards by national governments is voluntary and many
member nations do not adopt Codex standards, delegations work to ensure that Codex decisions
are consistent with national standards and regulations because of Codex’ WTO status and fear of
a dispute challenge. WTO decisions have been influenced by Codex standards. For example, a
WTO appellate body upheld a claim by Peru against the European Commission that related to
difference in the trade description of sardines that resulted in blocking Peruvian sardines from
the EU market. The WTO affirmed that the Peruvian species is included in the Codex standard
for sardines and sardine-like products.
Industry Engagement: The WTO status of Codex standards has also enhanced their credibility
to the food industry which is likely to use Codex standards as purchasing specifications or
training tools. However, industry has also found it more difficult to gain Codex consensus on
standards that may involve new or controversial products. This is particularly true in the case of
veterinary drugs or food additives where national standards are likely to vary widely and where
societal or cultural practices may be taken into consideration in the national context. For
example, the European countries are very opposed to the use of growth enhancing drugs in
animals and Asian countries often restrict the use of food additives. Codex decisions that are
caught in a political stalemate can block market access of safe food products.
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