NLIU LAW REVIEW

The TBT and the PPE Conundrum: Is the WTO equipped to effectively enforce standards?

This article is authored by Ashutosh Arvind Kumar, a fifth-year student at National Law University, Jodhpur. In this article, the author has analyzed the possibility of having a redressal mechanism for states that have imported substandard PPE kits in their fight against the COVID-19. The author then explores the possibility of introducing a reference paper regarding the regulation of standards for trade.

Abstract

In the battle against the COVID-19 virus, it is essential that the frontline workers are protected from the risk of infection. PPEs act as a barrier between the user and the virus. However, there have been several cases where the PPEs imported were faulty and not of the recommended international standard. The usage of these faulty PPE kits is hazardous to the health of the healthcare workers and in order to control the impact of the virus, the need of the hour is a healthy healthcare working force. As of now, there has not been an international dispute regarding such non-conformity of standards in the healthcare equipment market. Thus, we must look for a forum to address such issues if need arises. While the World Trade Organization sets the rules of international trade, it is not equipped to enforce these recommended international standards within its framework. This leaves an aggrieved State without any relief. In this article, the author has analysed the possibility of redressal mechanisms being made available to the States that have imported these substandard PPEs. The issue of non-conformity to standards can be addressed in
the World Trade Organisation‘s Dispute Settlement Mechanism if it is brought under the aegis of a Covered Agreement. For this purpose, the article explores the possibility of negotiating and introducing a reference paper regarding the regulation of standards. The author contends that a reference will bind the members to adhere to the prescribed standards and provide a forum in the Dispute Settlement Mechanism, if a Member State violates the standards. The article finally argues that the Regulatory Chill effect and the Reputational Cost effect of the Dispute Settlement Mechanism ensure effective enforcement of these standards.