Science and precaution in the trading system
Summary
This seminar note, authored by Halina Ward of the Royal Institute of International Affairs, examines the tension between the precautionary principle—which advocates for protective action before full scientific proof of risk—and the rules of the World Trade Organization (WTO). It explores differing regional interpretations of risk assessment, the legal status of precaution in international law, and the specific WTO agreements (GATT, TBT, and SPS) that intersect with environmental and health regulations.
Key insights
- The precautionary principle is defined as a decision-making guide for situations with significant uncertainty, asserting that decision-makers should not wait for full scientific proof before taking protective measures, thereby placing a "high price on inaction."
- There are distinct regional differences in how risk assessment is institutionalized: the U.S. views it as a "tool of governance" with a strong emphasis on record-keeping, whereas the EU views it more as an "academic exercise."
- While the precautionary principle is difficult to apply in domestic tribunals, it is considered an "emerging principle of international environmental law" and potentially a "general principle" within that context.
- The WTO's General Agreement on Tariffs and Trade (GATT) Article XX is described as ill-equipped to balance trade and policy objectives under uncertainty because it was written in the 1940s, before scientific uncertainty became a key policy issue.
- The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) allows for temporary measures under Article 5(7) when scientific evidence is inadequate, provided the measure is based on "available pertinent information" and is reviewed within a reasonable timeframe.
- The Agreement on Technical Barriers to Trade (TBT Agreement) requires that measures be the "least trade restrictive" necessary to achieve policy goals, a requirement currently being tested in a WTO dispute regarding a French ban on asbestos.
- Developing countries face a significant challenge in utilizing the SPS Agreement's opportunities for precautionary action due to a lack of capacity to access and assess the necessary science and risk assessments.
Cite the original document
- APA
- -1, & 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
- -1, and Halina Ward. 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=-1 |last2=Ward |first2=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{1ndscience, author = {-1 and 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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