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This chapter assesses the applicable standard of review in sanitary and phytosanitary (SPS) disputes with complex factual issues. In particular, the chapter analyzes how the new deferential standard, set out by the Appellate Body (AB) in US/Canada - Continued Suspension of Obligations in the EC – Hormones Dispute, is actually applied in practice (determining reasonableness of risk assessment, not its correctness). To this end, the AB report in Australia – Measures Affecting the Importation of Apples from New Zealand is scrutinized. The conclusion is reached that although the applicable standard of review under the SPS Agreement (particularly under Articles 2.2 …

Although the applicable standard of review under Articles 2.2/5.1 of the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) is not de novo, investigation by WTO panels is nevertheless quite intrusive in terms of objectivity and coherence of risk assessment. Moreover, the panel’s review does not end with the final conclusion reached by the WTO Member in its risk assessment; it also extends to the quality of the reasoning employed and the intermediate interferences that led to the conclusion. If a WTO Member relies on expert judgment in its risk assessment, this needs to be sufficiently transparent …