ACDE Working papers (49092)

The SPS Agreement and the related WTO dispute settlement mechanism are an
important first step in strengthening the global trade architecture, bringing in greater
transparency and orderly conditions to world food trade. However, implementation of the new
trade rules has turned out to be a more complex task than the traditional market access issues
handled by the WTO. Several factors, including inadequate financial and technical resources,
have constrained developing countries from becoming effective participants in the
implementation process, and there is widespread suspicion that SPS regulations are being
used as hidden protectionist devices by developed countries. However, it must be noted that,
despite all the problems, some developing countries have been quite successful in penetrating
developed country food markets; they have done so by accepting the consumer preferences
and standards in quality-sensitive high-income markets and implementing domestic supplyside
measures. The best strategy for developing country food exporters is to learn from the
experiences of these successful exporters, while making full use of available international
assistance initiatives. Most importantly, the task of complying with SPS standards should be
viewed not just as a barrier but also as an opportunity to upgrade quality standards and market
sophistication in the food export sector.