Trade
It was envisaged when Codex was founded, that if all countries harmonized with internationally agreed standards, there would be no barriers to trade, and food products would naturally move more freely among countries. This would benefit farmers and their households and contribute to food security and economic growth. A fundamental part of Codex work, therefore, ensures fair practices in food trade. If a country aligns its domestic food standards with Codex standards, then trading partners can operate on a level playing field.
The World Trade Organization's (WTO's) Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and Agreement on Technical Barriers to Trade (TBT Agreement) encourage WTO Members to harmonize national regulations with international standards.
The SPS Agreement specifically identifies Codex standards and related texts as the benchmark for food safety. Codex standards are also considered under the TBT Agreement, to address trade issues related to product identity, including composition, quality, labelling and nutrition-related requirements.
Therefore, national regulations that align with international standards, such as Codex standards, for food safety and quality, are deemed to meet the requirements of the WTO SPS and TBT agreements.
Key facts
The Codex statutory purpose includes working to ensure fair practices in food trade
With respect to SPS and TBT agreements, Codex standards have become an integral part of the legal framework within which international trade is being facilitated through harmonization. Codex standards help to prevent, and assist in the resolution of, trade concerns or disputes brought to the SPS or TBT committees or WTO settlement dispute panels
An example of a WTO dispute settlement that relied on a Codex standard is the WTO TBT case on sardines, in which the Codex Standard for canned sardines and sardine‑type products (CXS 94‑1981) was recognized as the “relevant international standard” for resolving the dispute—a landmark decision in international food standards and trade law
Codex and trade
This video is part of the Understanding Codex video series. It examines the importance of globally agreed standards to eliminate barriers to global trade.