Agreement On Technical Barriers To Trade

The Agreement on Technical Barriers to Trade (TBT Agreement) is a central component of the World Trade Organization’s treaty framework. Entering into force in 1995 after renegotiation during the Uruguay Round of the General Agreement on Tariffs and Trade, it is binding on all WTO members. The agreement regulates the design and application of technical regulations, standards, and conformity assessment procedures to ensure that they do not create unjustified or discriminatory obstacles to international trade. Its foundation lies in balancing the promotion of trade liberalisation with members’ legitimate regulatory autonomy in areas such as environmental protection, consumer safety, and human and animal health.
The TBT Agreement operates alongside the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement), with each instrument governing distinct categories of regulatory measures. While SPS measures pertain specifically to food safety and animal and plant health, the TBT covers all other technical requirements affecting traded goods. Together, these frameworks form an essential pillar of modern trade governance.

Purpose and Objectives

The principal aim of the TBT Agreement is to prevent governments from using technical requirements as disguised restrictions on international trade. Members retain the sovereign right to adopt regulations to meet legitimate public policy objectives; however, such measures must be no more trade restrictive than necessary and must respect principles of transparency, non-discrimination, and international harmonisation.
Legitimate objectives under the TBT include, but are not limited to:

• protection of human, animal, and plant health and safety
• environmental protection
• national security
• prevention of deceptive practices
• consumer protection
• quality assurance and technical compatibility

The list of legitimate objectives is not exhaustive, granting members significant flexibility while ensuring oversight against disguised protectionism. The agreement encourages reliance on international standards wherever appropriate, thereby facilitating regulatory convergence and reducing compliance burdens for producers.

Structure of the Agreement

The TBT Agreement comprises five main parts:

• Part I – Scope and Definitions: Establishes the range of products covered (all industrial and agricultural goods), while excluding services, SPS measures, and government procurement specifications.
• Part II – Technical Regulations: Outlines obligations concerning the preparation, adoption, and application of mandatory technical requirements.
• Part III – Conformity Assessment: Governs procedures used to determine compliance with technical regulations or standards, such as inspections, testing, and certification.
• Part IV – Information and Assistance: Creates transparency obligations, including publication of proposed regulations and the establishment of national enquiry points.
• Part V – Institutional Provisions: Establishes the Committee on Technical Barriers to Trade and sets out dispute settlement procedures.

These structural components reflect the agreement’s emphasis on predictability, cooperation, and the reduction of unnecessary administrative burdens.

Scope of Application

The TBT Agreement applies to all industrial and agricultural products, excluding SPS measures and government procurement specifications prepared for public consumption requirements. Its scope can be analysed through three dimensions:

• Substantive scope: The types of measures covered—technical regulations, standards, and conformity assessment procedures.
• Personal scope: Obligations of WTO members and their governmental bodies.
• Temporal scope: Application to existing and forthcoming regulations.

Annex 1 distinguishes among the three categories of substantive measures.

Technical Regulations

A technical regulation establishes mandatory product characteristics or related processes and production methods (PPMs). It may also lay down requirements relating to terminology, labelling, symbols, packaging, or marking.
Examples include regulations mandating:

• that batteries be rechargeable
• that wine be sold in green glass bottles
• specific safety or performance requirements for electronics

A key issue in WTO jurisprudence concerns the determination of whether a measure qualifies as a technical regulation. In EC–Asbestos, the Appellate Body established criteria including:

• the measure must set product characteristics or related PPMs
• compliance must be mandatory
• the measure must apply to an identifiable product or group of products

This distinction is essential because technical regulations trigger the full set of obligations under Articles 2 and 3 of the TBT Agreement.

Standards

Standards, by contrast, are non-mandatory documents approved by recognised bodies that provide guidelines on product characteristics or related PPMs. While voluntary in law, standards often exert de facto influence due to market expectations, supply chain requirements, or certification incentives. Article 4 and the Code of Good Practice govern the development and application of standards.
Standards may cover:

• labelling and packaging practices
• product quality specifications
• environmental performance guidelines

Their voluntary nature distinguishes them from technical regulations; however, the practical impact of standards on market access remains significant.

Conformity Assessment Procedures

Conformity assessment encompasses processes used to ensure compliance with technical regulations or standards. These may include:

• sampling and testing
• inspections
• certification schemes
• supplier declarations

Articles 5 to 9 aim to prevent conformity assessment procedures from becoming disguised barriers to trade by ensuring that they are fair, non-discriminatory, and no more restrictive than necessary.

Issues of Scope and Classification

Determining whether a measure constitutes a technical regulation or a standard often turns on the question of mandatory compliance. WTO case law, particularly the Tuna–Dolphin disputes, has illustrated the complexities involved. Although dolphin-safe labelling was not legally required to sell tuna in the United States, the panel and Appellate Body considered the measure to be a technical regulation because the criteria for obtaining the label were binding and because producers required access to the label for commercial viability.
This interpretation attracted criticism for broadening the meaning of “mandatory” and potentially eroding the distinction between standards and technical regulations.
Another interpretative challenge concerns non-product-related processes and production methods (NPRP-PPMs), such as labels for “organic”, “free-range”, or “fair trade”. These labels indicate characteristics not physically embodied in the product. While Annex 1 refers to PPMs “related” to product characteristics, some textual elements suggest that NPRPs may also be covered. Panels have addressed the issue cautiously, often assessing measures on a case-by-case basis due to the sensitive intersection of trade norms and ethical or environmental considerations.

Core Principles and Obligations

Non-Discrimination

Members must ensure that imported products receive treatment no less favourable than that accorded to like domestic products. This principle applies equally to technical regulations, standards, and conformity assessment procedures. Equal competitive opportunities must be maintained for foreign suppliers, and procedures must not impose differential burdens that would disadvantage imported goods.

Avoidance of Unnecessary Obstacles to Trade

Article 2.2 requires that technical regulations should not create unnecessary trade barriers. Measures must be proportionate to legitimate objectives and no more restrictive than necessary. Article 2.5 establishes a presumption of WTO-consistency when technical regulations are based on relevant international standards and are designed to achieve legitimate policy goals.
This principle ensures that measures are grounded in rational regulatory objectives rather than protectionism.

Harmonisation with International Standards

To facilitate global trade, members are required to use international standards as a basis for their regulations unless such standards are ineffective or inappropriate due to climatic, technological, or other relevant factors. This obligation encourages regulatory compatibility, reduces duplication, lowers costs for producers, and helps integrate developing countries into global value chains.
International standardisation bodies—such as the ISO, IEC, and Codex Alimentarius Commission—play an influential role in shaping global regulatory norms under the TBT framework.

Transparency and Technical Assistance

The TBT Agreement requires members to publish proposed technical regulations and to allow time for comments. They must establish national enquiry points responsible for providing information and cooperating with other members. Developing countries receive special support, including technical assistance in drafting regulations and establishing conformity assessment infrastructure, thereby promoting inclusive participation in global trade.

Institutional Framework and Dispute Settlement

The Committee on Technical Barriers to Trade facilitates dialogue, monitors implementation, and provides a forum for discussing specific trade concerns (STCs). WTO members frequently raise issues regarding proposed or existing regulations, making the TBT Committee a vital mechanism for preventing disputes and fostering regulatory cooperation.
Where consultation fails, disputes may be escalated through the WTO’s dispute settlement system, which plays a significant role in interpreting the agreement and refining its application.

Significance and Contemporary Relevance

The TBT Agreement is integral to managing the interface between trade and domestic regulation in a globalised economy. As technology evolves and consumer expectations rise, governments increasingly rely on technical regulations to address issues such as digital product safety, environmental sustainability, energy efficiency, and ethical sourcing. The TBT therefore has expanding relevance in contemporary policy debates, particularly regarding digital trade, climate change mitigation, and green industrial policies.