In-Depth Interpretation of Risk Assessment
What is Risk Assessment?
*First review the above information under Risk Analysis Overview.
Risk assessment is one of the key methods used to determine whether an
animal or plant commodity can be approved for importation into the United
States or to other countries. In addition to assessing risk factors
associated with the export area, the commodity itself, and the commodity's
area of destination, the SPS Agreement (covered in Modules One and Two) stipulates
that in assessing the risk to animal or plant life or health and determining the
measures to be applied for achieving the appropriate level of sanitary and
phytosanitary protection from such risk, WTO members must take into account
relevant economic factors.
The relevant economic factors include:
- The potential damage due to loss of production or sales in the event of the
entry, establishment or spread of a pest or disease;
- The costs of control and eradication in the territory of the importing Member
(of the WTO); and
- The relative cost-effectiveness of alternative approaches in limiting risks.
In assessing risk and determining measures, WTO members shall ensure that SPS measures
are not more trade-restrictive than required to achieve their appropriate level of
sanitary or phytosanitary protection, taking into account technical and economic
feasibility (SPS Agreement Article 5.6).
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