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Trade Capacity Building of ECO/SPECA Member States

Ministerial Conference Aid-for-Trade Roadmap for SPECA Baku Business Center, Azerbaijan, 1-2 December 2010 UNIDO Projec t Concept:. Trade Capacity Building of ECO/SPECA Member States in Standards, Metrology, Testing and Quality Infrastructure. Ouseph Padickakudi Programme Manager

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Trade Capacity Building of ECO/SPECA Member States

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  1. Ministerial ConferenceAid-for-Trade Roadmap for SPECABaku Business Center, Azerbaijan, 1-2 December 2010UNIDO Project Concept: Trade Capacity Building of ECO/SPECA Member States in Standards, Metrology, Testing and Quality Infrastructure Ouseph Padickakudi Programme Manager Trade Capacity Building Branch UNIDO

  2. UNIDO – Key Thematic Priorities

  3. Trade Figures: SPECA 2009 Trade balance gap: oil & gas exporters and other SPECA countries • Trade Surplus - Oil & Gas Exporters: Azerbaijan, Kazakhstan and Turkmenistan • Trade Surplus – Uzbekistan • Trade Deficit – Kyrgyzstan and Tajikistan

  4. Key Exports in 2008 & 2009 *Harmonized Commodity Description and Coding System

  5. Selected Export Rejections of SPECA

  6. Trade Patterns • High dependence on natural resources export • Trade flows (95%) mainly outside SPECA’s area • Untapped intra-regional trade potential • High level of product and market concentration: • 62% of SPECA exports destined to • China, Italy, France, Russia, Germany and USA • Shifting trade paradigm necessary: • Intra-regional trade integration and harmonization policies • Export diversification • Targeted promotion of specific sectors with high export potential • Improvement of quality standards • Improvement of business conditions and trade infrastructure • Promotion of export consortia

  7. Metrology Testing Certification National Quality Infrastructure Accreditation Standardization National Quality Infrastructure & International Linkages CODEX No.7

  8. Integrating into Global Trade: UNIDO 3 Cs UNIDO projects & initiatives on trade development in SPECA countries Compete • SPECA Regional Network for Conducive Business Environment * • Agro processing and marketing for small-scale producer groups, Kyrgyzstan* • Strengthening Damu Center for Development of Industrial Enterprises, Kazakhstan • Fostering competitive clusters, Uzbekistan Conform • Trade Capacity Building of ECO Member States in Standards, Metrology, Testing and Quality Infrastructure* • Market surveillance project proposal in cooperation with UNECE, Azerbaijan* Connect • Trade capacity – building for Azerbaijan to reap the benefit of accession to WTO * Included in SPECA Project Portfolio

  9. UNIDO Project Concept: Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality Infrastructure Reasons for UNIDO Assistance: Lack of harmonization of standards to enforce regional and international trade Lack of internationally recognized conformity assessment systems Necessity to enhance human resources in conformity assessment Weak quality culture Non membership of WTO (except Kyrgyzstan)

  10. UNIDO SMTQ Needs Assessment in SPECA Region Comprehensive report on SPECA infrastructure needs assessed by UNIDO in 2008 -2009 Azerbaijan • National quality policy benchmarking and review • Quality management systems certification bodies • Development, application and audit of management • system of labour protection • Pressure, temperature, mass, force, physical, food and • chemical laboratories accreditation • Personnel certification body • Product certification scheme accreditation • Development of inspection organizations Selected assessed needs STRENGTHEN NATIONAL/REGIONAL CONFORMITY ASSESSENT SYSTEM

  11. UNIDO Project Concept: Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality (SMTQ) Infrastructure • Outcome • Efficient SMTQ set up to support market surveillance and contribute to : • Health and safety of people • Conserving environment • Strengthening the control of imported substandard goods • Trade growth with quality: Prosperity and HAPPINESS Objective To strengthen SMTQ infrastructure of SPECA member states through enhancing capacity of conformity assessment system including laboratories and building technical staff capacity on implementation of standards relevant to WTO requirements

  12. Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality Infrastructure Outputs- National standards formulated, harmonized and published - Quality Management System certification bodies accredited- Product certification scheme strengthened at national standards bodies- Food, chemical and microbiology testing laboratories accredited- TBT/SPS enquiry points, standards library and documentation centre established/strengthened- Fuel testing laboratories capacity enhanced and strengthened - Legal and industrial metrology laboratories strengthened/accredited

  13. Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality Infrastructure Activities• Enhancement of managerial & technical capacities• Overcoming Technical Barriers to Trade and SPS constraints meeting WTO requirements• Fostering integration of ECO members into regional and international trading systems• Mutual recognition agreements to strengthen trade• Enforcement of quality management systems at manufacturing processes• Strengthening testing and calibration capacities

  14. SPECA Project Counterparts • Azerbaijan • State Committee on Standardization, Metrology and • Patents of the Republic of Azerbaijan (AZSTAND) • Kazakhstan • Kazakhstan Institute of Standardisation (KazInSt) • Kazakhstan Institute of Metrology (KazInMetr) • National Accreditation Centre • Kyrgyzstan • National Institute of Standards and metrology (NISM - Kyryzstandart) • Kyrgyz Centre of Accreditation • Tajikistan • Agency of Standardisation, Metrology, Certification, Trade & Inspection • Turkmenistan • The Major State Service "Turkmenstandartlary“ (MSST) • Uzbekistan • Uzbek agency of Standardisation, metrology and Certification (UzStandart)

  15. Government Ownership Commitment • Resources for availability of laboratory buildings • Hiring of professional and support staff • Conformity assessment sustainability plan • Promotion of services within country: public goods • Pursue WTO membership

  16. Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality Infrastructure Project budget and resources sought from donors Total: $ 4 500 500

  17. Regional Integration and Intra-Regional Trade Growth with Quality through SMTQ Capacity Building UNIDO is at your service for SPECA national happiness 18

  18. Thank You for your attention!

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