Harmonising sanitary measures and resolving trade disputes through the WTO–SPS framework. Part II. a case study of the US–Australia determination of equivalence in meat inspection

Abstract

The Agreement on the Application of Sanitary and Phytosanitary Measures (the SPS Agreement) and the World Trade Organisation (WTO), working together as the WTO–SPS framework, seek to prevent the arbitrary and unjustified use of sanitary measures as barriers to trade. Using a bilateral trade issue between the US and Australia regarding meat inspection, this study examines the influence of the third WTO–SPS framework provision (the provision for equivalence determinations to accommodate the use of different measures that achieve the same health objectives). This analysis yields three conclusions regarding the influence of the provision in regulatory harmonisation and trade dispute resolution. First, the WTO–SPS framework's provision for equivalence determination is effective in promoting harmonisation and dispute resolution because it encourages bilateral collaboration – even in the absence of international guidelines for equivalence. Second, political considerations may hamper equivalence determination processes and therefore frustrate regulatory harmonisation and dispute resolution efforts. Finally, economic factors may actually promote regulatory harmonisation and, as in this case, encourage the pre-emption of trade disputes.