ADB moves to harmonise SPS, TBT in SASEC bloc

Talha Bin Habib | Published: October 04, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

The Asian Development Bank (ADB) has mooted a process of removing roadblocks to intra-regional trade, officials said.
Harmonising two technical non-tariff measures (NTMs) slowing trade among the South Asian Sub-regional Economic Cooperation (SASEC) countries is on top of the ADB agenda, they added.
The two technical NTMs are: Sanitary and Phytosanitary (SPS) Measures and Technical Barriers to Trade (TBT).
As part of this initiative, the Manila-based financial institution will soon send a team to Bangladesh to do a diagnostic study on SPS and TBT along with Pre-Shipment Inspection (PSI) and other formalities.
These three measures are classified as technical NTMs in the classification of NTMs by the United Nations Conference on Trade and Development (UNCTAD).
Six countries of South Asia are grouped in the SASEC. The forum members are Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka.
After the latest postponement of SAARC (South Asian Association of Regional Cooperation) Summit, scheduled to be held in November in Islamabad, following pullout of five member-countries last week, a regional bloc sans Pakistan is now in discussion. SASEC may be considered one such substitute, sources said.
The ADB last week consulted government officials, experts and business leaders in Dhaka on the diagnostic study on SPS measures, TBT, PSI and other formalities.
"The government will form a core committee. After the formation of the core committee the ADB will send experts for carrying out diagnostic study on SPS and TBT," a high official of the ministry of commerce (MoC), who is involved with the process, told the FE.
He also said the ADB would conduct similar study in Bhutan, India, Nepal, the Maldives and Sri Lanka.
On completion of the studies in those countries, the Asian Bank development-financing bank will prepare a unified method of harmonising SPS and TBT within SASEC realms.
All SASEC countries have series of SPS and TBT measures. But a few accept certificates from exporting countries, and on limited products.
Currently, the South Asian Regional Standards Organisation (SARSO) is working to develop common SAARC standards to deal with NTMs in the region. The body has already finalised seven common standards. But, member-countries are yet to approve these.
"It is a good initiative taken by the ADB and the government. It will help increase trade and business among the countries of South Asia," acting president of Dhaka Chamber of Commerce and Industry (DCCI) Humayun Rashid told the FE.
TBTs are implemented by various government agencies under various laws.
Status paper of the consultation meeting showed that Bangladesh imposes TBT measures on 218 product categories, mostly related to packaged food, household and consumer goods.
The World Trade Organisation (WTO) has separate agreements on TBT and SPS. These, however, don't bind the member-countries legally to adopt any unique set of standards. Neither do the agreements bar all or some of the members from doing so.
TBT generally refers to measures such as labelling requirements, standards on technical specifications and quality standards and other measures protecting the environment. It also includes all conformity-assessment measures related to technical requirements such as certification, testing and inspection.
Rules for product weight, size or packaging; ingredient or identity standards and self-life restrictions and import testing and certification procedures are included in TBT.
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