WTO/TBT Workshop on the Different Approaches to Conformity

WTO/TBT Workshop on the Different Approaches to Conformity

WTO/TBT Workshop on the Different Approaches to Conformity Assessment Geneva, 16 17 March 2006 Establishment of conformity assessment schemes in developing countries Otto Loesener Diaz - Gerardo Patacconi Trade Capacity Building Branch UNIDO Specific LDCs problems Poor physical facilities/infrastructure Limited academic and research capabilities and technical/scientific know-how/skills Inefficient institutional set up (Standards and conformity assessment functions, when exist, are scatters among too many institutions) Early focus on mandatory standards and inspection Revenues generated could not be retained due to the public law status

Specific LDCs problems Labs established (even with donor support) not sustainable nor related to demand Donation of equipment with poor planning, training, and lacking adequate local physical infrastructure/staff, absorption capacity instability Lack of funding Lack of demand Low-level of manufacturing due to focus on commodities Exposed to barriers to trade especially SPS measures Specific LDCs problems Poor and uneven quality of local products National quality infrastructure lacks credibility and tests and certificates by local laboratories not recognized in export countries.

Inability of LDCs to utilize preferential treatment/ market access concessions (2) (2) A report from the WTO secretariat to the LDC Sub-Committee emphasizes the extremely low level of utilization of market access preferences due to problems with the supply side) CONFORMITY ASSESSMENT INFRASTRUCTURE IN Is DCs needed? Is there a minimum requirement? Return on Investment? Public vs. Private? National/Regional/Foreign? WHY A CA INFRASTRUCTURE IS NEEDED FOR DCs To reduce risk that domestic market could

easily be the dumping ground for substandard and unsafe products. To ensure protection of the environment and achieve higher social responsibility To allow the performance of consumer safety function (availability of testing facilities, particularly microbiology and chemical testing laboratories and legal metrology). WHY A CA INFRASTRUCTURE IS NEEDED FOR DCs To facilitate trade, access to export markets and generate hard currency To increase custom revenue generation. (i.e. Trade and revenue are based on standards and ability of ascertaining the quantum of trade through measurements (weight, volume etc.). National capacity in the area of standards and metrology are the necessary prerequisites).

To overcome risk of rejection of products in export markets due to lack of conformity (TBS and SPS). To prevent unscrupulous traders from taking advantage of a poor QC infrastructure enforced legal system for inspection, custom control. WHY A CA INFRASTRUCTURE IS NEEDED FOR DCs To allow integration of producers/traders in the global economy To help private sector to solve quality, compliance and certification problems hampering its aspiration to gain access to

export markets and avoid multiple testing. . To reach rural areas where there is no system to test or conduct even basic quality control. To facilitate (re)construction infrastructure of physical (i.e. utilization of safe construction materials complying with country defined standards, use of accurate measuring devices and testing facilities reducing also vulnerability of houses and physical infrastructure to natural events). WHY A CA INFRASTRUCTURE IS NEEDED FOR DCs Is there a minimum requirement? Return on Investment? Public vs. Private? (public good?)

National/Regional/Foreign? In-house/outsourced What variables should be selected for making the right choice? UNIDO is carrying out a research project to develop a model for determining size, cost and impact of the quality infrastructure in developing countries LDCs in the international scene 27 out of 50 LDCs are members of ISO just 4 are full members. 3 out of 50 LDCs are members of OIML No LDC is member of ILAC or IAF Only the SADC is a special recognition regional group through its Southern African Development Community in Accreditation (SADCA): Angola, Lesotho, Malawi, Mozambique, Tanzania, and Zambia.

31 out of 50 are members of the WTO and just 9 have adopted the code of practice on Standards of the TBT agreement UNIDO IN ACTION UNIDO APPROACH SUPPLY CAPACITY DIVERSIFICATION: / Assist selected productive sectors (export-oriented) ABILITY TO COMPLY WITH REQUIRED STANDARDS AND

REGULATIONS: TO SECURE GREATER MARKET ACCESS: Upgrading of the Technical, physical and institutional infrastructure: Standards and Conformity Assessment OVERCOME TRADE: Analysis, advice and technical solutions to TBT and SPS problems of developing countries

BARRIERS TO TRADE CAPACITY BUILDING Products to Market D U C T S Compete Prove Conformity with Market Requirements Conform

MARKETS Develop Competitive Manufacturing Capability Connect to the Market Connect .by upgrading supply capacities and CA infrastructures UNIDO ongoing TCB Projects Syria Afghanistan

Lebanon Tunisia Algeria Libya Pakistan Egypt Ethiopia Senegal CAM Guatemala UEMOA Colombia

Ecuador Nepal Bangladesh SAARC MEKONG Vietnam EAST AFRICA Nigeria Cambodia Sri Lanka Tanzania CAN

Mozambique Uruguay Argentina Regional Programmes Country Programmes UNIDO Funding 2001-2006: TCB projects implemented by UNIDO have increased from $7.6 of 2002 to almost $40 million in 2004 as reported by the OECD/WTO Doha Development Agenda Trade Capacity Building Database (TCBDB). In 2006, funds reached $71 million. The TCBDB shows UNIDOs main focus on upgrading standards and conformity assessment infrastructure and supply-side capacity to foster access to export markets

UEMOA Trade Capacity Building Programme The Challenge: No accreditation bodies, and the quality and conformity assessment infrastructure that did exist, was in a precarious situation. Testing laboratories did not comply with international standards and health and safety regulations. No regional harmonization of standards. Specific objective: To enhance participation in regional and international trade, by improving capacities in accreditation, standardization and quality promotion, thus enabling the regional harmonization of standards and technical regulations, and international recognition of laboratories. Results: Regional databases, one each on laboratories, standards, and quality have been set up and are available at the national level in all UEMOA Member States; Three UEMOA regional conformity assessment bodies: the West African

Accreditation System (SOAC); the Regional Secretariat for Metrology (SRM); and the Regional Committee for Quality Coordination (CRCQ); Lifting of the ban on shrimp exports from Benin and Togo to the European Union; Development, in cooperation with SOSEA and the African Cotton Association, of a cotton standard for Western and Central Africa and upgrading testing labs/classification; The programme is strengthening the capacities of some 50 laboratories. Six standards bodies have been assisted. This includes the formulation, adoption and dissemination of around 500 harmonized national standards for specific products; CENTRAL AMERICA Trade Capacity Building Programme The Challenge: Export capacity hindered by weak conformity assessment infrastructure Specific objective: Help develop the capacity to fulfill international commitments and overcome the technical and other non-tariff barriers that hinder the dynamic expansion of export trade, particularly in third markets.

Expected Results: Capacity building in the area of standards, metrology, testing and accreditation to overcome TBT/SPS constraints; Enhancing the competitiveness of enterprises through quality and productivity improvements, and supporting the development of mechanisms to assist them in accessing global subcontracting and supply chains and networks. MOZAMBIQUE Enhancing the Capacities of the Food Safety and Quality Assurance System for Trade The Challenge: To overcome technical barriers to trade in food products; upgrade the existing food safety and quality assurance system, which is severely underdeveloped; limited maintenance and calibration capacity. Specific objective: Strengthening the national system for food safety analyses, certification

and inspection with a view to enhance compliance with international standards as well as with the TBT/SPS WTO agreements. Expected Results: To establish a food safety system that is compliant with international requirements with special focus on the public institutions; To develop and implement the required technical infrastructure (standards, metrology and conformity assessment) suitable for product compliance with market entry requirements. I.R. AFGHANISTAN Support for Establishing the Afghan National Standards, Metrology and Quality Authority (Phase I) Emergency Customs Modernization and Trade Facilitation Project The Challenge: No standardization and conformity assessment systems to conduct control of imported products or exported goods with serious risks for consumers Specific objective:

To establish the legal and institutional framework for quality standardization, metrology and testing to ensure protection of consumers and of the environment and to facilitate trade (import and export). Results: ANSA created and member in ISO, ASTM and bilateral agreements Mobile labs for metrology and POL Design of labs to serve also customs Baseline surveys of fuels (+ cement and pharmaceuticals)/tests outsourced Regulatory framework being defined Example Tanzania exported $140 million worth of fish in

1998 Due to hygiene and other safety concerns a major market banned imports, resulting in 50% loss of exports and 60,000 job losses. Integrated assistance (cost approx. $ 700,000) to improved processing/handling, better quality inspection and setting up recognized laboratory services enabled restart of exports in 1999 PARTNESHIP UNIDO-WTO MoU Module I Remove supply side constraints Introduce supporting legislation,

policies and institutional reform Module II Prove Conformity with Technical Requirements Set up Strengthen Support supply capacity accreditation/ compliance with to improve certification international standards competitiveness systems

UNIDO Module III Integrate into the multilateral trading system Strengthen capacity for implementation of the WTO agreements and trade negotiations WTO Pilot Countries: Armenia, Bolivia, Cambodia, Cuba, Egypt, Ghana, Jordan, Kenya and Mauritania. Plus: The Cotton Initiative Conformity Assessment Structure

Peer Evaluation MRA Pre-Peer Accreditation Bodies Mutual Recognition Accreditation Calibration, Testing Analytical, Calibration, Laboratories and Testing Laboratories and Inspection Inspection

Bodies Bodies User User User User User Joint Committee on Coordination of Assistance to Developing Countries in Metrology, Accreditation and Standardization UNIDO

ITU-T OIML IAF JCDCMAS BIMP IEC ILAC ISO ITC JCDCMAS: Building Capacity National/Regional/Outsourced Needs assessment of all parts of the economy

No ready-made model for the quality/technical infrastructure Sequencing of assistance is important Articulation of resources and funding requirements National quality/technical infrastructure should not preclude bilateral/regional delivery options THANK YOU Trade Capacity Building Branch Tel. (+43) 1 / 26026 3605 or 3518 Fax 6840 e-mail: [email protected] or [email protected]

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