Science and Precaution in the Trading System
Summary
The document examines the tension between the precautionary principle—which advocates for protective action despite scientific uncertainty—and WTO rules that often require risk assessments and the least trade-restrictive measures. It highlights divergent North American and European approaches to risk assessment and discusses how the principle interacts with GATT, the TBT Agreement, and the SPS Agreement. The text argues that the WTO's current framework is ill-equipped for scientific uncertainty and suggests potential guidelines for applying precaution, including proportionality, transparency, and regular review.
Key insights
- The precautionary principle is defined by the premise that decision-makers should not wait for full scientific proof before taking protective measures when human activities may have damaging effects, effectively placing a "high price on inaction."
- There is a marked contrast in how risk assessment is utilized: the U.S. views it as a "tool of governance" and a means of keeping a record, whereas the EU views it more as an "academic exercise."
- The precautionary principle interacts with the WTO in three primary ways: through its impact on domestic regulation (via the deference principle), its status as a general principle of international law, and its potential to reverse the burden of proof in dispute settlements.
- The SPS Agreement allows for temporary protective measures under Article 5(7) when scientific evidence is inadequate, provided the measure is based on available pertinent information and reviewed within a reasonable period.
- Developing countries face significant challenges in utilizing the SPS Agreement because they may lack the capacity to access and assess the science and risk assessments required for precautionary action.
- Proposed criteria for practical guidelines on applying the precautionary principle in trade include ensuring measures are proportionate to the risk, erring on the side of caution during uncertainty, conducting cost-benefit analyses, and maintaining transparency.
Cite the original document
- APA
- Ward, H. (n.d.). Science and Precaution in the Trading System. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/sci_precaution.pdf
- Chicago
- Ward, Halina. Science and Precaution in the Trading System. International Institute for Sustainable Development, n.d. https://www.iisd.org/system/files/publications/sci_precaution.pdf.
- Wikipedia
- {{cite report |last1=Ward |first1=Halina |title=Science and Precaution in the Trading System |publisher=International Institute for Sustainable Development |url=https://www.iisd.org/system/files/publications/sci_precaution.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{wardndscience, author = {Ward, Halina}, title = {{Science and Precaution in the Trading System}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/sci_precaution.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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