The World Trade Organization (WTO) Agreement on Pre-Shipment Inspection (PSI) is a key document that governs the procedures and guidelines for the implementation of PSI programs in international trade.
PSI is a process by which an independent inspection company is hired by the importing country to inspect the goods before they are shipped. The objective of PSI is to ensure that the goods being shipped meet the quality, safety, and other standards specified by the importing country.
The main purpose of the WTO Agreement on PSI is to ensure that PSI programs are conducted in a transparent and non-discriminatory manner, and that they are not used as a tool for protectionism.
The agreement also lays down guidelines for the selection of inspection companies, the procedures for conducting inspections, and the reporting requirements for the inspection results.
One of the key provisions of the agreement is the requirement that PSI programs should be implemented in a manner that is consistent with the principles of non-discrimination, transparency, and predictability.
Another important provision is the requirement for the importing country to notify the exporting country of its intention to conduct a PSI program. This notification must be provided in advance of the shipment and must include all the relevant information about the inspection program.
The WTO Agreement on PSI has been in force since 1995, and it has been instrumental in promoting fair and transparent trade practices. The agreement has also helped to reduce the risk of fraudulent practices in international trade by providing a framework for the inspection of goods before shipment.
In conclusion, the WTO Agreement on PSI is an important document that governs the implementation of PSI programs in international trade. The agreement has been instrumental in promoting fair and transparent trade practices, and it has helped to reduce the risk of fraudulent practices in international trade. As such, it is an essential tool for ensuring that international trade is conducted in a manner that is beneficial to all parties involved.