INTERNATIONALIZATION OF STANDARDS WITHIN THE WTO-TBT CONTEXT
Presentation to Parliamentary Portfolio on Trade and Industry
Dr. Randall Carolissen
South African Bureau of Standards
20 September 2000
ROADMAP
Introduction
WTO-TBT
Role of Standards in Trade
Trends in International Trade
Ramifications for SA
Implications for regionalisation
Structural requirements
WTO agreement on TBT
Commits members, SA included, to use international standards and conformity assessment procedures as integral tools for the development of free trade worldwide.
WTO & STANDARDS
- Technical Barriers to Trade Agreement
- Code of Practice for development of Standards
- Time for comment
- Transparency
- Notification of National Programmes for:
- Technical Regulations
- Standards
- Annual Conference on Technical Regulations
- Developing Countries have a say
STANDARDS IN REGULATORY DOMAIN
Current Status & Trends
- Governments need to protect society in a rapidly changing technological market place
- Technical Regulations - Essential Requirements
- Standards - Deem to Satisfy Rules
- WTO/TBT position papers for re-negotiation
- Strengthen use of international standards
- Rule based system enhanced
- Involvement of developing world enhanced
STANDARDS IN REGULATORY DOMAIN
The case for Standards
- Transparent process
- Combines democracy with technological state of the art
- Kept up to date with technological developments
- Cost of production in private sector
- Better reflect realities in the market place
- Easy vehicle to comply with WTO/TBT requirements
Administrative procedures for technical regulations require;
- Imported goods are treated no less favourably than local products
- Do not create unnecessary obstacles to international trade
- Are based on international standards where available
- Exceptions only considered if able to demonstrate for reasons of inappropriateness of climatic conditions, geographic location, fundamental technology or for level of protection of consumer/environment
ISO/TMB BUSINESS PLAN
Environment
- Globalization of markets is increasing need for internationally accepted standards
- Failure to deliver standards in ever decreasing time frames will stimulate alternate structures
- Economic trends are forcing rationalization, flexibility, and responsiveness
- Social trends (e.g. aging, population growth, environmental awareness) are placing new demands on society
- New and emerging technologies require rapid standardization
- Converging technologies (information technology, telecommunications, consumer electronics) are straining traditional delineation of standards organisations
- The regulatory domain progressively making use of standards
- WTO/TBT to be re-negotiated next 3 years
Trends within WTO and ISO 1
- Decrease in tariffs balanced by increased focus on technical trade barriers such as standards, accreditation, conformity assessment and technical regulations
- Promotion of "International Standards by developed economies. SABS as founder member of ISO champion interest of developing world. – Add to competitive advantage
- Pressure to conform to WTO best practice regulatory regime
- Internationally acceptable certification both from import and export perspectives
- Having local ("lower") standards will be retrogressive step Must bridge gap between our skills/knowledge base and international standards requirements
Some perspective
The US department of Commerce estimated that at least $150 billion in US
exports are affected by standards and that they serve as a barrier to trade for
an additional $20 to $40 billion of US exports.
Ramifications for SA Industries
- Price of admission to international trade determined by compliance to standards.
- Shortcomings in SA system of conformity assessment increasingly result in duplicate, time consuming overseas testing that detracts from SA competitiveness
- Effectiveness of regulatory regime govern cross-border flow of trade and investor confidence
Standards scenario in SA
- 5500 National standards published
- ~ 54 Compulsory standards – frameworks of which are in place
- ~250 reference in legislation and hence compulsory, however framework not in place which create tremendous confusion.
SQAM identified shortfall in latter and will be addressed in our recommendations.
SABS WTO Enquiry point
Serves as SA enquiry point under WTO agreement on TBT which require the timely notification of proposed technical regulations that could impact on international trade. Each WTO member is required to report proposed government regulations to the WTO secretariat in Geneva which provides for a 60 day comment period for other WTO members.
Important that trends within trade partners be monitored for timely intervention.
SADC Standards Base
(Information as at May 1999 - PMG Ed. Note: table not included)
WTO-TBT Best Practice Model - PMG Ed. Note: model not included