SPS Agreement Principles

Risk Assessment

The SPS Agreement emphasizes the use of scientific principles as a basis for health-related protection measures in trade. This means basing phytosanitary measures on a risk assessment (or some comparable evaluation of scientific evidence). The SPS Agreement defines some basic terms related to risk assessment, including risk assessment, risk assessment factors,and economic consequences.

Risk Assessment--The SPS Agreement defines risk assessment as:

"the evaluation of the likelihood of entry, establishment or spread of a pest or disease within the territory of an importing Member according to the sanitary or phytosanitary measures which might be applied, and of the associated potential biological and economic consequences; or the evaluation of the potential for adverse effects on human or animal health arising from the presence of additives, contaminants, toxins, or disease-causing organisms in food, feedstuffs and beverages"

Risk Assessment factors--The SPS Agreement identifies a number of factors which countries must take into account the following factors when conducting a risk assessment:

"relevant processes and production methods, relevant inspection, sampling and testing methods; prevalence of specific diseases or pests; existence of pest- or disease-free areas; relevant ecological and environmental conditions; and quarantine or other treatments"

Economic Consequences--The SPS Agreement requires countries to take the following economic factors into account when evaluating risks to plant or animal health:

"potential damage in terms of loss of production or sales in the event of the entry, establishment or spread of a pest or disease; the costs of control or eradication in the territory of the importing Member; and the relative cost-effectiveness of alternative approaches to limiting risk"

This does not preclude the consideration of other relevant consequences associated with pest introductions, including non-quantitative impacts on the environment (e.g., harm to wild flora and forests).

The SPS Agreement does not include other basic terms from the field of risk, including risk analysis, risk management, and risk communication. It is expected that the usage and definitions of these terms are to be guided by the appropriate standard setting bodies (i.e., Codex, OIE, and IPPC). In this regard, the SPS Agreement encourages countries to take into account risk assessment standards and techniques of the relevant standard setting body.