DISPOSITIONS ON SANITARY AND PHYTOSANITARY (SPS) MEASURES IN THE NEW GENERATION OF FREE TRADE AGREEMENTS OF VIETNAM

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS DISPOSITIONS ON SANITARY AND PHYTOSANITARY (SPS) MEASURES IN THE NEW GENERATION OF FREE TRADE AGREEMENTS OF VIETNAM Specialization: International Trade Policy and Law FULL NAME: LE NGOC TRAM Hanoi – 2019 MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS DISPOSITIONS ON SANITARY AND PHYTOSANITARY (SPS) MEASURES IN THE NEW GENERATION OF FREE TRADE AGREEMENTS OF VIETNAM Major: International Economics Specialization: International Trade Policy and Law Code: 8310106 Full name: Le Ngoc Tram Supervisor: Dr Nguyen Ngoc Ha Hanoi - 2019 STATEMENT OF ORIGINAL AUTHORSHIP I hereby declare that this master thesis is my own scientific research which is made under the guidance of my supervisor, Dr Nguyen Ngoc Ha The contents and results of this research are completely honest The information, data and documents which are collected from various sources for analysis and evaluation have been fully cited in the main content and in the references list of this master thesis as well Student, Le Ngoc Tram CONTENTS ACKNOWLEDGEMENTS i LIST OF TABLES ii LIST OF ABRREVIATIONS iii ABSTRACT v INTRODUCTION 1 Research rationale Literature review 2.1 Analysis of new generation free trade agreements and SPS measures within the framework of WTO .2 2.2 SPS measures in the context of free trade agreements and dispositions of SPS measures in the new generation free trade agreements of Vietnam 2.3 Vietnam’s legislation in compliance with SPS commitments in NGFTAs Research objectives Research questions Scope of research .9 Research methodology .9 Structure of thesis 10 CHAPTER 1: OVERVIEW OF SPS PROVISIONS IN THE NEW GENERATION FREE TRADE AGREEMENTS .11 1.1 Overview of new generation free trade agreements .11 1.1.1 Definition of new generation free trade agreements 11 1.1.2 Legal basis of new generation free trade agreements 12 1.1.3 Characteristics of new generation free trade agreements 13 1.1.4 Roles of new generation free trade agreements .16 1.1.5 New generation free trade agreements of Vietnam 19 1.2 Legal basis of SPS provisions in the new generation free trade agreements 24 1.2.1 SPS Agreement in WTO .24 1.2.2 Legal basis of SPS measures in the new generation free trade agreements 35 1.2.3 Criteria to assess Vietnam’s legislation on SPS measures .36 CHAPTER 2: DISPOSITIONS ON SPS MEASURES IN THE NEW GENERATION FREE TRADE AGREEMENTS OF VIETNAM 38 2.1 A confirmation of WTO’s SPS obligations 40 2.1.1 Definitions, rights and obligations 40 2.1.2 Special and differential treatment 41 2.1.3 Dispute settlement in accordance with WTO’s provisions 41 2.2 Supplements beyond WTO’s SPS obligations .43 2.2.1 Equivalence 43 2.2.2 Risk assessment 45 2.2.3 Regionalized concept 46 2.2.4 Transparency, competent authorities and contact points .48 2.2.5 Dispute settlement beyond WTO’s obligations .51 2.2.6 SPS Committee .52 2.2.7 Emergency measures .53 2.2.8 Cooperation 54 2.2.9 Control, inspection and approval procedural specifics 57 2.2.10 Tobacco control measures and Halal requirements .62 2.3 General evaluations on SPS measures in the new generation free trade agreements 63 2.3.1 Having broader scope 63 2.3.2 Being more specific and comprehensive .64 2.3.3 Containing more specific procedures 65 2.3.4 Enhancing the transparency 66 CHAPTER 3: VIETNAM’S SPS MEASURES LEGISLATION AND RECOMMENDATIONS FOR VIETNAM IN THE IMPLEMENTATION OF SPS PROVISIONS IN ITS NEW GENERATION FREE TRADE AGREEMENTS 67 3.1 SPS measures legal framework of Vietnam 67 3.1.1 Overview of Vietnam’s SPS measures legislation 67 3.1.2 Sources of SPS measures legislation in Vietnam 71 3.2 The compatibility of Vietnam’s legal framework with its new generation free trade agreements’ SPS commitments 74 3.2.1 New generation free trade agreements’ commitments that Vietnam’s legislation is compatible 74 3.2.2 New generation free trade agreements’ commitments that Vietnam’s legislation has not been compatible with 82 3.3 Effects of SPS measures in the new generation free trade agreements’ on Vietnam’s legislation 88 3.4 Recommendations for Vietnam in the implementation of SPS dispositions in the new generation free trade agreements 89 3.4.1 Improving provisions in Vietnam’s legislation in accordance with regulations of new generation free trade agreements 89 3.4.2 Raising awareness of SPS measures in the new generation free trade agreements 95 3.4.3 Taking advantage of cooperation and technical support in SPS measures 96 CONCLUSION 97 LIST OF REFERENCES 99 ACKNOWLEDGEMENTS In order to complete this master thesis, I have been received enthusiastic guidance and support from my lectures, family and friends From the bottom of my heart, I would like to express my thanks to them Firstly, I would like to express the sincerest thanks to my supervisor, Dr Nguyen Ngoc Ha who has supported, guided and encouraged me during the completion of this master thesis from choosing the topic, outlining the main ideas, turning those ideas into this thesis to editing this paper Without his enthusiastic and excellent guidance and support, I could not have completed this master thesis Also, I would like to express my special thanks to all lectures of the Master of International Policy and Law program, Foreign Trade University as well as World Trade Institute who gave me the chance to broaden my humble horizon in the field of economics and laws Last but not least, I would like to express my warm thanks to my family, my colleagues and my friends who never stop supporting, encouraging and giving me the favorable conditions to complete this master thesis LIST OF TABL Table 2.1: A confirmation of WTO's obligations 38 Table 2.2: Supplements beyond WTO’s SPS obligations 39Y Table 3.1: Vietnamese legal documents regulating SPS measures 71 LIST OF ABRREVIATIONS Abbreviatio Full name n APEC ASEAN CODEX CPTPP Asia – Pacific Economic Cooperation Association of South East Asian Nations Codex Alimentarius Commission Comprehensive and Progressive Trans – Pacific Partnership CSR CTC DSU EAEUFTA EU EVFTA FAO FTA GATS GATT IICA IPPC MFN NGFTA NT OIE PTA SPS STDF TPP VKFTA WTO Agreement Corporate social responsibility Cooperative Technical Consultation Dispute Settlement Understanding Vietnam – the Eurasian Economic Union FTA European Union EU – Vietnam Free Trade Agreement Food and Agriculture Organization Free Trade Agreement General Agreement on Trade in Services General Agreement on Tariffs and Trade Inter – American Institute for Cooperation on Agriculture International Plant Protection Convention Most Favored Nation New generation Free Trade Agreement National Treatment Organization for Animal health Preferential Trade Agreement Sanitary and Phytosanitary Standards and Trade Development Facility Trans – Pacific Partnership Agreement Vietnam – Korea Free Trade Agreement World Trade Organization 99 although Law on Law on Food Safety (2010), Law on Animal Health (2015) and Law on Plant protection and Quarantine (2013) were imposed in order to replace Ordinances after Vietnam became the official member of WTO in 2007, after that, Vietnam participated in several NGFTAs which come into force after the time when those laws are issued Furthermore, SPS chapters of NGFTAs of Vietnam have provisions which are beyond provisions regulated in SPS Agreement Therefore, there is still gap between regulations on human, animal or plant life or health between Vietnam’s legislation and NGFTAs Thirdly, based on analysis of differences between regulations on SPS measures of SPS Agreement and four NGFTAs of Vietnam, and the gap between Vietnam’s legislation on SPS measures and Vietnam’s commitments on NGFTAs, this thesis gives several recommendations for Vietnam in the implementation of SPS provisions in its NGFTAs, such as amending domestic laws, raising awareness of SPS measures in NGFTAs and taking advantage of cooperation and technical support in the field of SPS measures, in order to fully comply with SPS commitments in those NGFTAs LIST OF REFERENCES LITERATURES, PUBLICATIONS AND ARTICLES Abdul Raufu Ambali and Ahmad Naqiyuddin Baka, “Halal food and products in Malaysia: People awareness and policy implications”, Intellectual Discourse, Vol.21 No.1, 6/2013, p.7 – 32 Alfonso Torres, “Role of Sanitary and Phytosanitary measures within the context of Free Trade Agreements”, Rev Colom Cienc Pecua, Vol.26 No.1, 3/2013, p.43 – 47 Andrew L Stoler, “Preferential Trade Agreement Policies for Development, Chapter TBT and SPS measures, in practice”, in Jean – Pierre Chauffour and Jean – Christophe Maur, Preferential Trade Agreement policies for development, World Bank Publication, Washington DC, 2011, p.217 – 233 100 Bernadette Andreosso, O’Callaghan and Francoise Nicolas, “What scope for an EU – ASEAN Free Trade Agreement?”, Journal of World Trade, Vol 42 (issue 1), 2018, p.105-128 European Commission, Sanitary and Phytosanitary (SPS) issues Global Agenda Council on Trade and FDI, Will the Trans – Pacific Partnership Agreement reshape the global Trade and Investment system? What’s in and What’s new: Issues and Options, Switzerland, 2016 Hadi Akhbar Dhahlan and Norrakiah Abdullah Sani, “Comparison and challenges in the implementation of Halal food laws in Malaysia, the Netherlands and United States of America”, Malaysia Journal of Law and Society, Vol.21, 2017, p.53 – 62 Deborah K Sy, Robert K Stumberg, TPPA and Tobacco control: Threats to APEC countries, Harrison Institute, Georgetown University, Washington DC, USA, 2015 Jason Grant and Shawn Arita, Sanitary and Phyto – Sanitary Measures: Assessment, Measurement, and Impact, International Agricultural Trade Research Consortium, 2017 10 J.W Looney, “The effect of NAFTA (and GATT) on animal health laws and regulations”, 48 Oklahoma Law Review 367, 1995 11 Markus Wagner, “The future of SPS Governance: SPS – Plus or SPS – Minus”, Journal of World Trade, Vol.51 (issue 3), 2017, p.446 – 469 12 Martin Russell, Briefing international Agreement Progress: EU – Vietnam free trade agreement, European Parliament Research Service, 2018 13 Ministry of Industry and Trade of Vietnam, World Bank Group, Vietnam: Seizing the opportunities of new – generation free trade agreements, Proceedings of a joint event organized by Ministry of Industry and Trade and the World Bank, 2016, p.99 – 135 101 14 O’Callaghan and Nicolas, “What scope for an EU – ASEAN Free Trade Agreement”, Journal of World Trade, Vol.42 (issue 1), 2008, p.105 – 128 15 O’Connor, Sanitary and Phytosanitary Measures and Non – Tariff Barriers to Trade under the WTO and Cotonou Agreements, Proceedings of Meeting the challenge of effective ACP participation in agricultural trade negotiations: the role of Information and Communication, 2002 16 Office of the US Trade Representatives, 2014 Report on Sanitary and Phytosanitary Measures, Washington D.C, the USA, 2014 17 Ravindra Pratap, “The first WTO Appellate Body Report on Regional adaptation under the SPS Agreement”, Manchester Journal of International Economic Law, Vol.13 (issue 1), 2016, p.81 – 96 18 Robert Stumberg, “Safeguards for Tobacco control: Options for the TPPA”, American Journal of law and medicine, Vol.39, 2013, p.382 – 441 19 Sergio Puig, “Tobacco litigation in international courts”, Harvard International Law Journal, Vol.57 (number 2), 2016, p.384 – 401 20 Sergio Puig and Gregory Shaffer, “A Breakthrough with the TPP: The Tobacco Carve – Out”, Yale Journal of health policy, law and ethics, Vo.16 (issue 2), 2016, p.327 – 333 21 Sergio Puig, “The international of tobacco tactics”, Duke Journal of comparative and international law, Vol.28 (No.3), 2018, p.496 – 501 22 Sidley, SPS measures and the TPP – Removing barriers to agricultural exports, 2016 23 Sikina Jinnah and Julia Kennedy, “A new era of Trade – environmental Politics: Learning from US leadership and its consequences abroad”, Journal of Diplomacy & International Relations; Winter 2011, Vol 12, 2011, p.95 – 109 24 Sofia Boza, “Sanitary and Phytosanitary measures in the context of the CPTPP Agreement”, Firenze University Press, Vol.7 (1), 2018, p.87 – 98 102 25 Le Thi Thuy, “Hiệp định thương mại tự hệ mới: Cơ hội thách thức Việt Nam” (New generation FTAs: opportunities and challenges for Vietnam), Journal on science and society of Vietnam, Vol.5 (114), 2016, p.19 – 29 26 Tsai – yu Lin, “Preventing tobacco companies’ interference with tobacco control through investor – state dispute settlement under the TPP”, Asian Journal of WTO & International Health Law and Policy, Vol 8, No 2, 2013, p 565 – 582 27 US International Trade Commission, TPP Agreement: Likely Impact on the US Economy and Specific Industry Sectors, Chapter 6: Assessment of Cross – cutting and Procedural Provisions, Washington DC, 2016, p 416 – 425 28 World Trade Organization, The WTO Agreements Series: Sanitary and Phytosanitary Measures, Report of The WTO Agreement series, Switzerland, 2010 LEGAL TEXT 29 General Agreement on Tariff and Trade (GATT) 30 Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) 31 Comprehensive and Progressive Trans – Pacific Partnership Agreement (CPTPP) 32 Vietnam – EU FTA (EVFTA) 33 Vietnam – Korea FTA (VKFTA) 34 Vietnam – the Eurasian Economic Union FTA (EAEUFTA) 35 WTO, Decision on the implementation of Article of the Agreement on the application of Sanitary and Phytosanitary measures, 2004 36 WTO, Guidelines to further the practical implementation of Article of the Agreement on the application of Sanitary and Phytosanitary measures, 2008 37 WTO, Recommended procedures for implementing the transparency obligations of the SPS Agreement (Article 7), 2008 38 Luật Điều ước quốc tế 2016 (Law on Treaties No 108/2016/QH13 (2016)) 103 39 Luật An toàn thực phẩm 2010 (Law on Food Safety No.55/2010/QH12 (2010)) 40 Luật phòng, chống tác hại thuốc 2012 (Law on Tobacco harm prevention No.09/2012/QH13 (2012)) 41 Luật bảo vệ kiểm dịch thực vật 2013 (Law on Plant protection and Quarantine No.41/2013/QH13 (2013)) 42 Luật thú y 2015 (Law on Animal Health No.79/2015/QH13 (2015)) 43 Luật dược 2016 (Law on Pharmacy No.105/2016/QH13 (2016)) 44 Luật Quản lý ngoại thương 2017 (Law on Foreign Trade Management No.05/2017/QH14 (2017)) 45 Pháp lệnh số 36/2001/PL - UBTVQH10 bảo vệ kiểm dịch thực vật (Ordinance on Plant protection and Quarantine (2001)) 46 Pháp lệnh số 12/2003/PL - UBTVQH11 vệ sinh an toàn thực phẩm (Ordinance on Food safety (2003)) 47 Pháp lệnh số 18/2004/PL - UBTVQH11 Thú y (Ordinance on Animal health (2004)) 48 Nghị định số 54/2017/NĐ – CP Chính phủ: Quy định chi tiết số điều biện pháp thi hành Luật dược (Decree on guidelines for implementation of the Law on pharmacy) 49 Nghị định số 15/2018/NĐ – CP Chính phủ: Quy định chi tiết thi hành số điều Luật an toàn thực phẩm (Decree on elaboration of some articles of the Law of food safety) 50 Quyết định số 99/2005/QĐ – TTg Thủ tướng Chính phủ: QĐ thành lập văn phòng thơng báo điểm hỏi đáp quốc gia vệ sinh dịch tễ kiểm dịch động thực vật Việt Nam (Decision on establishment of Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point) 104 51 Quyết định số 147/2008/QĐ – TTG Thủ tướng Chính phủ : Về việc phê duyệt Kế hoạch hành động quốc gia đẩy nhanh thực cam kết Hiệp định vệ sinh an toàn thực phẩm kiểm dịch động thực vật đáp ứng nghĩa vụ hành viên WTO (Decision on acceleration of the implementation of commitments under the Agreement on the application of sanitary and phytosanitary measures in performing the WTO member obligations) 52 Quyết định số 13/VBHN – BNNPTNT ban hành vùng, sở an toàn dịch bệnh động vật (Circular on pest and diseases free zones) 53 Quyết định 5272/QĐ – BNN – TCCB Bộ NN & PTNT: Quyết đinh 5272/QĐ-BNN-TCCB Quy định chức năng, nhiệm vụ, quyền hạn, cấu tổ chức Văn phòng Thơng báo Điểm hỏi đáp Quốc gia vệ sinh dịch tễ kiểm dịch động thực vật Việt Nam (Decision on detailed function, responsibilities and structure of Vietnam SPS Notification Authority and Enquiry Point) 54 Thông tư số 33/2014/TT – BNNPTNT quy định trình tự, thủ tục kiểm dịch thực vật nhập khẩu, xuất khẩu, cảnh sau nhập vật thể thuộc diện kiểm dịch thực vật (Circular for procedures for plant quarantine for import, export and post – import of articles subject to plant quarantine) 55 Thông tư số 35/2014/TT – BNNPTNT ban hành Danh mục đối tượng kiểm dịch thực vật nước Cộng hòa xã hội chủ nghĩa Việt Nam (Circular on the list of living things subject to plant quarantine in Vietnam) 56 Thông tư số 36/2014/TT – BNNPTNT Bộ Nông nghiệp Phát triển nông thôn: Ban hành Quy định quy trình phân tích nguy dịch hại vật thể thuộc diện kiểm dịch thực vật phải phân tích nguy trước nhập vào Việt Nam (Circular on process of pest risk analysis for plant quarantine targets before being imported to Vietnam) 57 Thông tư 30/2014/TT – BNTPTNT ban hành danh mục vật thể thuộc diện kiểm dịch thực vật; Danh mục vật thể thuộc diện kiểm dịch thực vật phải phân tích nguy dịch hại trước nhập vào Việt Nam (Circular on the list of plant 105 quarantine 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Analysis of new generation free trade agreements and SPS measures within the framework of WTO .2 2.2 SPS measures in the context of free trade agreements and dispositions of SPS measures in. .. the reasons mentioned above, the topic Dispositions on Sanitary and Phytosanitary (SPS) measures in the new generation of Free Trade Agreements of Vietnam is chosen to reveal the disposition