WTO Agreements: Impact on Developing Countries

When the World Trade Organization (WTO) established its framework for global trade, it created both opportunities and challenges for developing nations. The intersection of international trade rules and food safety standards has become one of the most consequential issues for countries striving to participate in global markets while protecting public health. Understanding how WTO agreements affect developing countries is essential for anyone involved in food safety, trade policy, or international development.

The dual role of WTO trade agreements 🔗

Two key WTO agreements shape how countries regulate food safety and product standards: the Sanitary and Phytosanitary (SPS) Agreement and the Agreement on Technical Barriers to Trade (TBT). The SPS Agreement covers measures applied to protect human, animal, and plant life from food-borne risks, pests, and diseases. The TBT Agreement addresses technical regulations, voluntary standards, and conformity assessment procedures that might restrict trade.

These agreements aim to prevent governments from using health and safety regulations as disguised protectionism while preserving each country’s right to set appropriate protection levels. For developing nations, this creates a complex balancing act between market access and regulatory capacity.

Challenges faced by developing countries 🔗

Developing countries encounter significant obstacles in meeting the requirements established by these agreements. The challenges are multifaceted and interconnected.

Limited technical and institutional capacity 🔗

Many developing nations lack the infrastructure, laboratories, and trained personnel needed to implement and enforce stringent food safety measures. According to the WTO’s technical information on TBT, implementing and enforcing international standards may require technical and financial resources beyond the capabilities of developing countries. This includes establishing testing facilities, certification bodies, and inspection systems that meet international requirements.

Resource constraints for compliance 🔗

The financial burden of compliance weighs heavily on developing economies. Countries must invest in monitoring new regulations in their export markets, maintaining notification systems to keep fellow members informed, and demonstrating sufficient scientific evidence to justify their own measures or challenge those of others. These obligations require sustained funding that many nations struggle to provide.

Disparate maximum residue limits 🔗

Different importing countries often maintain varying maximum residue limits (MRLs) for pesticides and other substances. Exporters from developing countries frequently face challenges navigating these inconsistent requirements across multiple markets. Products like bananas, grapes, mangoes, oilseeds, and rice are particularly affected by differing MRL standards in various export destinations.

Limited participation in standard-setting 🔗

Although participation in international standard-setting bodies is crucial, developing countries have historically been underrepresented. According to the UN Sustainable Development Knowledge Platform, developing countries have on average constituted around 30 percent of total delegations in Codex technical committees over a five-year period. This limited voice in creating the standards they must meet creates an inherent disadvantage.

Opportunities created by WTO agreements 🔗

Despite these challenges, the WTO framework also provides meaningful opportunities for developing nations.

An international framework for fair trade 🔗

The SPS Agreement provides an international framework for sanitary and phytosanitary arrangements among countries, regardless of their political and economic strength or technological capacity. Without such an agreement, developing countries could be at a significant disadvantage when challenging unjustified trade restrictions imposed by more powerful trading partners. The rules-based system gives smaller economies recourse against protectionist measures disguised as health regulations.

Recognition of equivalent measures 🔗

Countries do not necessarily need to adopt identical measures to access international markets. The agreements recognize that different approaches can achieve equivalent levels of protection. Governments must accept imported products that meet their safety requirements, whether these products result from simpler, less sophisticated methods or the most modern technology. This flexibility allows developing countries to find cost-effective solutions that still satisfy importing countries’ requirements.

Driving improvements in domestic food safety 🔗

Meeting international standards often catalyzes broader improvements in domestic food safety systems. The SPS Agreement helps ensure and often enhances food safety by encouraging the systematic use of scientific information, reducing the scope for arbitrary and unjustified decisions. Countries that strengthen their regulatory systems to meet export requirements frequently see benefits for their own consumers as well.

Special and differential treatment provisions 🔗

Recognizing the unique circumstances of developing nations, both agreements include provisions for special treatment. The TBT Agreement explicitly acknowledges that developing country members may face special problems, including institutional and infrastructural problems, in preparing and applying technical regulations, standards, and conformity assessment procedures.

Key provisions include extended transition periods for implementing certain obligations, the ability to request time-limited exceptions from specific requirements, and commitments from developed countries to provide technical assistance. During consultations, developed country members are expected to consider the special difficulties experienced by developing countries and take account of their specific needs regarding financing, trade, and development.

The pivotal role of Codex Alimentarius 🔗

The Codex Alimentarius Commission, jointly administered by the Food and Agriculture Organization (FAO) and World Health Organization (WHO), plays a central role in helping developing countries navigate these complexities.

Setting science-based international standards 🔗

Codex standards are based on the best scientific and technical knowledge available. FAO works in collaboration with WHO to provide scientific advice in support of Codex standard-setting activities through expert committees on food additives, microbiological risk assessment, and nutrition. These standards provide developing countries with ready-made benchmarks they can adopt, avoiding the need to duplicate expensive scientific work already completed by international experts.

Capacity building initiatives 🔗

FAO’s food safety capacity development activities support developing countries in participating more effectively in Codex processes and translating Codex standards into national legislation. This includes assisting countries in formulating national legislation based on Codex, strengthening national consultation processes, establishing policy frameworks, and developing countries’ capacities to contribute data and expertise to scientific opinions that underpin Codex discussions.

The Codex Trust Fund 🔗

The FAO/WHO Codex Trust Fund represents a significant initiative to address participation gaps. The fund helps experts from developing countries attend and participate in Codex standard-setting processes. In its first year of operation, the Trust Fund helped experts from more than 90 developing countries participate in Codex activities. The aim is to develop sustainable national Codex structures that will allow all countries to participate fully and effectively in this important work.

The Standards and Trade Development Facility 🔗

The Standards and Trade Development Facility (STDF) represents a collaborative approach to building SPS capacity. This global partnership works to strengthen food safety, animal, and plant health capacity in developing countries by encouraging good practices and facilitating safe trade worldwide.

The STDF brings together public and private sector stakeholders from agriculture, health, trade, and development. It supports developing countries in complying with international SPS requirements as outlined in the WTO’s SPS Agreement. Exporters must meet standards for food safety and animal and plant health to gain and maintain access to agricultural food markets. The facility provides grants of up to US$1 million for projects tackling food safety and animal and plant health challenges, as well as smaller grants for project preparation.

Recent developments and ongoing efforts 🔗

The WTO continues to address developing country concerns through its committee work. A recent 2024 report on SPS Agreement implementation emphasized the importance of providing technical assistance, capacity building, and fostering South-South cooperation to help developing economies comply with SPS requirements and expand their export opportunities. The report also highlighted the need to adapt SPS measures to regional conditions and build capacity to align domestic regulatory frameworks with international guidance.

South-South cooperation-where developing countries share knowledge and resources among themselves-has emerged as an increasingly important mechanism for building capacity. Countries with stronger systems in specific areas can assist neighbors facing similar challenges, creating regional networks of expertise and support.

Moving forward: balancing compliance and development 🔗

The relationship between WTO agreements and developing countries continues to evolve. Success requires sustained investment in institutional capacity, meaningful participation in international standard-setting, and effective use of available technical assistance programs. Countries that strategically engage with these systems can transform compliance challenges into opportunities for improving domestic food safety and expanding market access.

The key lies in viewing food safety standards not merely as barriers to overcome but as investments in public health and market competitiveness. Countries that build robust, science-based food safety systems position themselves for long-term success in international trade while better protecting their own populations.

What do you think? How can international organizations better support developing countries in building sustainable food safety systems? What role should regional cooperation play in helping smaller economies meet international standards?

References

1. https://www.wto.org/english/tratop_e/sps_e/sps_e.htm
2. https://www.wto.org/english/tratop_e/tbt_e/tbtagr_e.htm
3. https://www.wto.org/english/tratop_e/tbt_e/tbt_info_e.htm
4. https://sustainabledevelopment.un.org/index.php?page=view&type=30022&nr=183&menu=3170
5. https://www.wto.org/english/docs_e/legal_e/17-tbt_e.htm
6. https://www.fao.org/food-safety/food-control-systems/codex-alimentarius/en/
7. https://www.wto.org/english/tratop_e/dtt_e/dtt-stdf_e.htm
8. https://www.wto.org/english/news_e/news24_e/sps_26jun24_e.htm