Overcoming the SPS concerns of the Bangladesh fisheries and aquaculture sector. From compliance to engagement

• Date: 19 June 2017
• Pages: 70-91
• DOI: https://doi.org/10.1108/JITLP-01-2017-0002
• Published date: 19 June 2017
• Author: Shawkat Alam,George F. Tomossy
• Subject Matter: Strategy,International business,International business law,Economics,International economics,International trade

Overcoming the SPS concerns of

the Bangladesh f‌isheries and

aquaculture sector

From compliance to engagement

Shawkat Alam and George F. Tomossy

Macquarie Law School, Macquarie University, North Ryde, Sydney, Australia

Abstract

Purpose –The purpose of thispaper is to address the challenges developing countriesface in attempting to

balance sanitary and phytosanitary measures (SPS) health and safety measures against concerns about

protectionism, illustrated by the impact of trade barriers on the f‌isheries and aquaculture sector in

Bangladesh.The paper then provides recommendations toovercome the effects of these trade barriers.

Design/methodology/approach –The author uses a close doctrinalapproach for the f‌irst three parts of

the paper by analysingthe provisions of the World Trade Organisation (WTO) SPS Agreement and the effect

of those provisionsin creating domestic compliance gaps in the Bangladeshif‌isheries and aquaculture sector.

A qualitative approach is then adopted in suggesting potential reforms and future directions to assist the

Bangladeshif‌isheries and aquaculture sector overcomeSPS trade barrier issues.

Findings –To overcome the market access issues created by SPS trade barriers, Bangladesh and other

developing countries require multilateral assistance, accommodation by trading partners and internal

reforms. This includes reforming internal governance structures, improving trade participation and

negotiation, increasing infrastructure investment and learning from similar countries who have improved

their supplychain management.

Research limitations/implications –This paper will have signif‌icantimplications by contributing to

law and policy reform debates involving international trade law and domestic compliance gaps. It will also

assist other developing countries that experience SPS trade barriers to learn from the experience of the

Bangladeshif‌isheries and aquaculture sector.

Practical implications –This paper has practical implicationsby providing recommendations for how

Bangladesh can overcome SPS trade barriers and improve its market access. This will help Bangladesh

integrateinto the global trading system by enhancing its participation in the SPS framework.

Social implications –By addressing and providing recommendations for the SPS trade barrier

challenges faced by Bangladesh f‌isheryand aquaculture sector, this paper provides a framework to improve

the economicdevelopment and global competitiveness of the industry. This willcontribute the gross domestic

product growth and help increase the overall living standards of the people involved in the f‌isheries and

aquaculturebusiness in Bangladesh.

Originality/value –This paper is an original work that has notbeen published elsewhere. It is the f‌irst

time a paper hasdealt with the legal, policy and compliance challengesfaced by the f‌isheries and aquaculture

sector in Bangladesh.

Keywords Bangladesh, WTO, Trade, Fisheries, Compliance challenges, SPS agreement

Paper type Research paper

This paper is a result of research carried out in connection with the Australian Leadership Awards

Fellowship Program, Rounds 12 and 14, administered by AusAID (now part of the Department of

Foreign Af‌fairs and Trade, Australian Government). The authors gratefully acknowledge the

insights provided by the Fellows who participated in both programmes. All views and opinions

expressed in this paper remain those of the authors.

JITLP

16,2

70

Received 20 January 2017

Revised 9 May 2017

Accepted 9 May 2017

Journalof International Trade

Lawand Policy

Vol.16 No. 2, 2017

pp. 70-91

© Emerald Publishing Limited

1477-0024

DOI 10.1108/JITLP-01-2017-0002

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/1477-0024.htm

1. Introduction

Market access is vital for developing countries and least developed countries (LDCs) to

stimulate economic development through trade. LDCs such as Bangladesh are in a

vulnerable position, given their immediate need to address widespread poverty while

responding to ever-growing social and environmental concerns that are reconciled under a

principle of sustainable development. While emerging economies haverecently experienced

exponential economicgrowth in recent decades, developing economies and LDCs have often

lagged behind. This is a result of, inter alia, numerous trade barriers that have often been

imposed by developed countries in response to genuine concerns towards environmental,

health and safetyissues associated with global trade.

The international trade law regime, including the General Agreement on Trade and

Tariffs (GATT) and the Agreement on sanitary and phytosanitary measures (SPS

Agreement) allow countriesto establish their own appropriate levels of protection(ALOP) in

response to these concerns. However, international trade law, and the SPS Agreement in

particular, presents certain challenges for developing countries and LDCs wishing to use

their comparative advantages to trade their waytowards sustainable development. As this

article will consider, and using the experience of the Bangladeshi f‌isheriesand aquaculture

sector as a case study, a central issueconcerning SPS challenges faced by Bangladesh is the

lack of capacity that is required to achieve access to developed markets and effectively

participate in trade negotiation. Without full cooperation by developed countries as well as

efforts to reform Bangladeshi governance structures and infrastructure investment, SPS

measures will continue to form a barrier for the Bangladeshi f‌isheries and aquaculture

sector to the detrimentof development aspirations.

Part 2 of this article will brief‌ly outline the international trade and SPS regime and

provide an overview of the challenges that developing countries and LDCs face in

overcoming SPS measures established by developed country markets. Part 3 will then

discuss the nature of the Bangladeshi f‌isheries and aquaculture sector. Part 4 will then

examine how the SPS challenges, including capacity constraints, faced by LDCs are

evidenced in the Bangladeshi f‌isheries and aquaculture sector and outline the measures

which inhibit the growthof that sector. Part 5 proposes recommendationsthat address these

challenges, drawing upon lessons from similar industries in developing and LDC markets.

In keeping with the scope of this article of examining the Bangladeshi f‌isheries and

aquaculture sector, this article identif‌ies several opportunities to reform Bangladeshi

governance structures, improve its trade participation and negotiation and increase

infrastructureinvestment towards peak scientif‌ic institutions fromvarious stakeholders.

2. World Trade Organisation agreement on the application of sanitary and

phytosanitary measures

The WTO Agreement on the Applicationof SPS Agreement aims to regulate the application

of food safety, animal and plant health regulations, which may directly or indirectly affect

international trade[1]. This includes the use of packaging and labelling requirements that

relate to food safety, which may strongly inf‌luence demandfor a given product[2]. The SPS

Agreement attempts to strike a balance between achieving adequate health and safety

standards in food, animal and plant health while recognising that such standards could, if

unregulated, become an unjustif‌iable barrier to trade. The SPS Agreement tries to achieve

this balance, f‌irstly, by affording members discretion to set an ALOP based on an

assessment of acceptable risk (Spreij, 2007). The measures must not be protectionist,

inconsistent, unilateral or discriminatory. The SPS Agreement encourages its members to

use international standards and guidelines, if applicable, with Article 5.5, requiring

Bangladesh

f‌isheries and

aquaculture

sector

71