Technical requirements are specific conditions that a product or service must meet, such as its size, shape, design, functions and performance, or the way it is labelled or packaged before it is put on the market. These requirements may pursue several legitimate objectives, such as:
- The protection of human/animal safety or health;
- The protection of the environment;
- The provision of information to consumers; or
- The prevention of deceptive practices.
Such measures almost invariably create obstacles to trade, and as such are referred to as Technical Barriers to Trade (TBT). TBT measures can be justified and necessary to regulate markets, but can also be considered as non-tariff barriers if they are disproportionate to the objective being pursued, discriminatory and/or not scientifically justified.
Technical requirements play a crucial role in international trade by ensuring product quality, safety, and compatibility. By establishing clear standards and guidelines, technical requirements may facilitate trade. They help to minimise trade barriers, reduce the risk of product recalls or disputes, and promote fair competition. Additionally, technical requirements can foster innovation and technological advancement by driving the development of new products and processes. However, they can also represent obstacles to trade.
Technical Barriers to Trade can be grouped into three broad categories, namely technical regulations, standards, and conformity assessment procedures.
The United Nations Conference on Trade and Development’s (UNCTAD) International Classification of Non-Tariff Measures provides a number of categories that can be helpful to define specific measures:
- Technical regulations: Documents laying out mandatory rules regarding product characteristics, related processes, or production methods. These regulations may also encompass terminology, symbols, packaging, marking, or labelling requirements and ca be grouped into the following types of measures:
- Import authorization/licensing related to technical barriers to trade;
- Tolerance limits for residues and restricted use of substances;
- Labelling, marking and packaging requirements;
- Production or post-production requirements;
- Product identity requirements; and
- Product quality, safety or performance requirements.
- Standards: Documents established by recognised bodies that provide guidelines or characteristics for products, processes, or production methods, with which compliance is not mandatory.
Standards may also include or focus on terminology, symbols, packaging, marking, or labelling requirements. A well-known example are the standards issued by the International Standardisation Organisation’s (ISO); and
- Conformity assessment procedures: Procedures used to verify that products, processes, or production methods comply with the requirements outlined in technical regulations or standards. Such measures can be grouped into the following types of measures:
- Product registration/approval requirements;
- Testing requirements;
- Certification requirements;
- Inspection requirements;
- Traceability requirements; and
- Conformity assessment related to other technical measures.
CEFTA aims at reducing technical barriers to trade. Although not all CEFTA Parties are WTO Members, Article 13 of the CEFTA 2006 provides that “the rights and obligations of the Parties relating to the application of technical barriers to trade, shall be governed by the WTO Agreement on Technical Barriers to Trade, except as otherwise provided for in this Article”.
Chapter IV of the CEFTA 2006 on ‘Technical Barriers to Trade’ specifically addresses technical regulations, standards, and conformity assessment procedures. The commitments under the CEFTA 2006 aim at facilitating trade by promoting cooperation, mutual recognition, and the use of international standards. Notably, the commitments contained in the CEFTA 2006 focus on:
- Recognition: Encouraging CEFTA Parties to recognise each other’s conformity assessment results, reducing the need for multiplied testing and certification (Article 13(4) of the CEFTA 2006);
- Transparency: Promoting transparency in regulatory processes through information exchange and the notification of any “measure constituting an unnecessary technical barrier to trade” (Article 13(5) of the CEFTA 2006); and
- International standards: Encouraging the use of international standards to harmonise technical requirements and facilitate trade, particularly by harmonising them “with those in the European Community unless their use would be an ineffective or inappropriate means for the fulfilment of the legitimate objective pursued by the Parties” (Article 13(3) and 13(4) of the CEFTA 2006).
The WTO Agreement on Technical Barriers to Trade (TBT Agreement) aims to strike a balance between facilitating trade and protecting legitimate policy objectives. The TBT Agreement aims at ensuring that technical regulations, standards, and conformity assessment procedures are:
- Non-discriminatory; and
- Do not create unnecessary obstacles to trade.
While recognising the right of WTO Members to implement measures to protect public health, safety, and the environment, the TBT Agreement strongly encourages the adoption of measures based on international standards to minimise trade barriers. To promote transparency and predictability, the agreement requires WTO Members to establish enquiry points and notify the WTO and other WTO Members of any new or amended technical regulation that they adopt.
The TBT Agreement pursues to foster cooperation and mutual recognition among WTO Members, with the aim of simplifying trade processes, reduce costs, and, ultimately, stimulate economic growth and development.
The CEFTA 2006 recognises the potential negative impact of technical barriers to trade on CEFTA Parties’ trade and economic activities, and actively pursues to reduce such barriers. CEFTA’s efforts in this area are focused on:
- Recognition programmes
- Promoting the acceptance of products that comply with the standards and regulations of one CEFTA Party in another; and
- Reducing the need for multiple conformity assessments, saving time and resources for businesses.
- Enhanced transparency
- Improving the transparency of technical regulations and standards through the use of information and communication technology tools; and
- Facilitating access to relevant information for businesses and stakeholders.
- Cooperation with the private sector
- Engaging with businesses to identify emerging TBT issues and potential solutions; and
- Gathering inputs from the private sector to inform CEFTA Parties’ policy development and decision-making.
By implementing these initiatives, CEFTA aims at creating a more favourable business environment, stimulating trade, and contributing to the overall economic development of CEFTA Parties.
CEFTA Parties have established the Committee of Trade Facilitation and a Subcommittee on Non-Tariff Measures, which are geared towards facilitating trade through the elimination of Non-Tariff Barriers (NTBs).
- Committee of Trade Facilitation
- Its primary goal is to reduce costs and delays associated with Customs procedures and other trade barriers; and
- To achieve this, the Committee works to balance the need for efficient trade facilitation with the growing demands for safety and security in global supply chains.
- Subcommittee on Non-Tariff Measures
- The Subcommittee on Non-Tariff Measures is responsible for identifying and addressing NTMs within CEFTA. This includes sanitary and phytosanitary (SPS) measures, technical barriers to trade, and other regulatory obstacles;
- The Subcommittee is supported by three working groups:
- Working Group on Technical Measures: it focuses on specific technical issues, such as standards and regulations, to identify and eliminate discriminatory measures that hinder trade;
- Working Group on Risk Management: This Working Group aims at enhancing cooperation in areas like sanitary and phytosanitary regulation, technical barriers to trade, and Customs administration. It seeks to improve the efficiency of controls, while maintaining high standards of safety and security; and
- Working Group on Information Exchange: This Working Group promotes the use of information technology to facilitate trade. It works to improve the interoperability of Customs systems and other relevant IT tools, thereby reducing administrative burdens and speeding up border clearance processes.
Sanitary, phytosanitary and veterinary measures refer to regulations, standards, and procedures designed to protect human, animal, and plant life or health from the risks associated with the importation of diseases, pests, and contaminants through trade.
Sanitary, phytosanitary and veterinary measures are crucial because they may be needed to prevent the spread of diseases and pests through trade, as well as the exchange of unsafe goods, build consumer confidence, and ensure an equilibrium between free and safe trade.
Sanitary, phytosanitary and veterinary measures can be grouped into two broad categories, as identified by the United Nations Conference on Trade and Development’s (UNCTAD) International Classification of Non-Tariff Measures, namely technical regulations and conformity assessment procedures.
These two categories can be further divided into the following types of measures:
- Technical regulations
- Prohibitions and/or restrictions of imports for sanitary and phytosanitary reasons;
- Limits for residues and restricted use of particular substances;
- Labelling, marking and packaging requirements;
- Hygienic requirements related to sanitary, veterinary and phytosanitary conditions;
- Treatment for elimination of plant and animal pests and disease-causing organisms in the final product or prohibition of treatment; and
- Other requirements relating to production or post-production processes.
- Conformity-assessment procedures
- Product registration and approval requirements;
- Testing requirements;
- Certification requirements;
- Inspection requirements;
- Traceability requirements;
- Quarantine requirements; and
- Conformity assessment related to other sanitary and phytosanitary conditions.
The implementation of sanitary and phytosanitary measures, including veterinary matters, is regulated in Article 12 of the CEFTA 2006 on ‘Sanitary and Phytosanitary Measures’. CEFTA, in alignment with the WTO SPS Agreement, aims to enhance cooperation among its Parties for the purposes of:
- Implementing regulations in a non-discriminatory manner in the region; and
- Negotiations to conclude agreements on harmonization or mutual recognition, in accordance with the relevant WTO provisions.
Although not all CEFTA Parties are WTO Members, Article 12(1) of the CEFTA 2006 provides that “The rights and obligations of the Parties, relating to the application of sanitary and phytosanitary measures, shall be governed by the WTO Agreement on the Application of Sanitary and Phytosanitary Measures”.
CEFTA Parties established the Subcommittee on Agriculture and Sanitary and Phytosanitary Issues, which reports to the CEFTA Committee of Trade Facilitation, and whose task is “to contribute to the promotion of trade and facilitate trade in agricultural products within the region” and “discuss and coordinate to the maximum extent the policies on agriculture and the protection of plant health, animal health and food safety and other relevant areas” (see Annex 7 to Decision No. 1/2015). Further information is available here.
The WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) is an international treaty that sets rules for food safety and animal and plant life and health standards. It aims to balance the right of WTO Members to protect human, animal, and plant health and life, with the need to avoid unnecessary barriers to trade.
Key features of the SPS Agreement include:
- Scientific basis: Requires regulations to be based on science and applied only to the extent necessary;
- International standards: Encourages the use of international standards, but allows for higher (stricter) standards if justified;
- Risk assessment: Promotes the use of risk assessment to justify SPS measures;
- Transparency: Requires the notification of new or amended measures and provides mechanisms for information exchange among WTO Members; and
- Dispute settlement: Offers a framework for resolving disputes related to SPS measures.
By promoting transparency, scientific justification, and international cooperation, the SPS Agreement seeks to ensure fair and open trade, while safeguarding human, animal, and/or plant life and health.
The Additional Protocol 5 (AP5) to the CEFTA Agreement provides the legal basis for the adoption of mutual recognition programmes to facilitate market access and promote trade. On 25 February 2020, the CEFTA Joint Committee adopted Decision No. 1/2020 on Facilitating Trade for Fruit and Vegetables. The objective of the Decision is to facilitate trade between the CEFTA Parties.
More specifically, Decision No. 1/2020 aims at facilitating trade in fruit and vegetables by:
- Simplifying inspections through risk-based assessments and certificate recognition, enabling the mutual recognition of phytosanitary documents on the safety of fruits and vegetables;
- Creating a system for sharing information and notifying each other of data relevant to the trade in fruit and vegetables;
- Mutually recognising the professional operators registered in a Register of Professional Operators trading in Fruit and Vegetables, which is to be created in each CEFTA Party, to allow professional operators to trade in the CEFTA region with a single registration; and
- Establishing a CEFTA Common List of Fruit and Vegetables for which phytosanitary certificates are mandatory to gain transparency and streamline compliance by operators.
Furthermore, Decision No. 1/2020 imposes specific obligations on CEFTA Parties to ensure the effective implementation of official controls and to facilitate trade in fruit and vegetables. These obligations include the establishment in each CEFTA Party of a Multi-Annual Control Plan for Fruit and Vegetables to verify compliance with the rules for the production and trade of fruit and vegetables.
CEFTA Decision No. 1/2015, as amended by Decision No. 9/2024, sets up a “Veterinary Working Group” with the mission to “contribute to the promotion and facilitation of trade in agri-food products within CEFTA, as well as to discuss and coordinate the related policies on agriculture and the protection of animal health and food safety and other relevant areas in accordance with Articles 11 and 12 of the CEFTA 2006”. Further information is available here.
The Systematic Exchange of Electronic Data (SEED) and, in its current iteration, the CEFTA SEED+ project, aim to facilitate trade within CEFTA by improving the exchange of data between CEFTA Parties. One of the main outcomes concerns the development of CEFTA TRACES NT (CEFTA Trade and Control Expert System New Technology), which is based on the EU’s TRACES NT. The CEFTA TRACES NT pursues the objectives to:
- Facilitate Certification: CEFTA TRACES NT enables CEFTA Parties to generate and process phytosanitary, veterinary, pharmaceutical certificates, and entry documents for CEFTA Parties specified in Annex 1 to the CEFTA Additional Protocol 5, aligning them with EU standards and practices. Furthermore, CEFTA TRACES NT allows the sharing of relevant data, information, and trade documents; and
- Enable Rapid Notifications: Quickly exchange information on non-compliant consignments of animals and goods related to food safety, veterinary, and phytosanitary issues, similar to the EU’s RASFF (Rapid Alert System for Food and Feed) and EUROPHYT (a combination of the words “European” and “Phytosanitary”) systems. This is intended to contribute to the management of risks associated with rejected shipments.