Fabrizio Sacchetti Kong Xiaobang European Commission China’s General

1. WORKSHOP ON REGULATORY COOPERATION BETWEEN MEMBERSWTO Committee on Technical Barriers to Trade Geneva, 8-9 November 2011Working Together to Make Consumer Products Safer: the China-EU example Fabrizio Sacchetti Kong Xiaobang European Commission China’s General DG Enterprise and Industry Administration for Quality Supervision, Inspection and Quarantine

2. Outline • General Framework for China-EU Cooperation • China-EU Regulatory Cooperation in the TBT field: Tools and Objectives • The global product safety challenge • Practical tool: RAPEX-China • Case study: Toys • Lessons Learned and Future Challenges

3. General Framework for China-EU Cooperation • 1985 China-EU Trade and Cooperation Agreement (currently undergoing revision and transformation into a comprehensive Partnership and Cooperation Agreement) • Bilateral cooperation steadily increased over the years => demand-led process => more than 50 areas now covered => widening and deepening of bilateral relations since China joined the WTO in 2001

4. General Framework for China-EU Cooperation • Technical assistance activities in support of China’s integration in the world trading system following WTO accession => EU-China Trade Project (2004-2009) => EU-China Trade Project II (2010-2015 – Support to China’s Sustainable Trade and Investment System) Five components: 1. Services 2. Quality Infrastructure and TBT 3. Agriculture and SPS 4. Customs 5. Cross Cutting Issues(e.g. competition and investment policies, general WTO issues, transparency, sustainable trade, public procurement, CSR, Market Access)

5. General Framework for China-EU Cooperation • Political oversight: => High-Level Economic Dialogue (2007) => High-Level Strategic Dialogue (2007) => Annual China-EU Summits

6. China-EU Regulatory Cooperation in the TBT Field: Tools and Objectives 3 main dialogues: • DG ENTR- AQSIQ Regulatory Dialogue «Consultation Mechanism on Industrial Products and WTO/TBT » (2002, building on the first 4 sectoral cooperation agreements on product safety concluded in 2001) • DG ENTR-MIIT Industrial Policy Dialogue « Memorandum of Understanding on a Dialogue and Consultation Mechanism on Industrial Sectors » (2009) • DG SANCO AQSIQ Consumer Product Safety Dialogue « Memorandum of Understanding on Administrative Cooperation » (2006, expanded in 2008 and 2010)

7. China-EU Regulatory Cooperation in the TBT Field: Tools and Objectives DG ENTR- AQSIQ Regulatory Dialogue Objectives • Enhance industrial product safety • Eliminate obstacles to trade and investment • Promote regulatory convergence Industry stakeholders, standardisers and consumers’ organisations actively participate in the dialogue

8. China-EU Regulatory Cooperation in the TBT Field: Tools and Objectives DG ENTR- AQSIQ Regulatory Dialogue 10 Working Groups 3 Cross-cutting: Conformity Assessment, Standardisation (G2G dialogue mirrored by MoU between SAC and the 3 European Standardisation Organisations), TBT 7 Sectoral: Electrical & Mechanical, Toys, Automobile, Chemicals, Pressure Equipment, Textiles, Wines and Spirits Oversight Annual Plenary Meetings at AQSIQ Vice-Minister and ENTR Director-General level

9. China-EU Regulatory Cooperation in the TBT Field: Tools and Objectives DG ENTR-MIIT Industrial Policy Dialogue Objectives • Promote sustainable industrial development • Exchange of information and experience on industrial policy issues (framework conditions and specific sectoral policies) • Echange of information on legislative and standardisation initiatives in the industrial sectors / policy areas covered Industry stakeholders actively participate in the dialogue

10. China-EU Regulatory Cooperation in the TBT Field: Tools and Objectives DG ENTR-MIIT Industrial Policy Dialogue Five Working Groups Automotive, Shipbuilding, SME Policy, Raw materials, Industrial Energy Efficiency. Oversight Annual Plenary Meeting at MIIT Vice-Minister and ENTR Director-General level

11. China-EU Regulatory Cooperation in the TBT Field: Tools and Objectives DG SANCO- AQSIQ Consumer Product Safety Dialogue Objectives • Enhance safety of consumer products exported to the EU => exchange of information on unsafe products originating from the other Sides’ jurisidiction via the RAPEX-China on-line system => regular exchanges of information on scientific, technical and regulatory matters: emerging risks, market surveillance, border control and enforcement, risk assessment, product testing

12. China-EU Regulatory Cooperation in the TBT Field: Tools and Objectives DG SANCO- AQSIQ Consumer Product Safety Dialogue Objectives • Enhance safety of consumer products exported to the EU (continued) => awareness raising campaigns, training of AQSIQ/CIQ staff, exchange of officials, outreach events => cooperation on consumer product traceability => cooperation on product safety standards issues (applicable standards, international standardisation) => joint enforcement actions => involvement of EU Member State market surveillance authorities

13. China-EU Regulatory Cooperation in the TBT Field: Tools and Objectives DG SANCO- AQSIQ Consumer Product Safety Dialogue Working Groups 2 Cross-cutting: RAPEX-China, Consumer Products / Market Surveillance 2 Sectoral: Medical Devices, Cosmetics (also parallel cooperation in these two sectors with SFDA) Industry stakeholders, standardisers and consumers’ organisations actively participate in the dialogue

14. The global product safety challenge Product Safety is a global challenge, a common concern and a shared responsibility • Globalisation of supply chains and of trade: increasingly interdependent markets • Ensure consumer confidence that goods, no matter where they are produced, are safe • Businesses and public authorities at every point in the supply chain have a responsibility for ensuring that goods are safe

15. The global product safety challenge Product Safety is a global challenge, a common concern and a shared responsibility • Businesses: each economic actor bears a responsibility commensurate with his role in the supply chain. Prime responsibility lies with manufacturers and importers.

16. The global product safety challenge Product Safety is a global challenge, a common concern and a shared responsibility • Governments: provide for adequate legal frameworks and ensure effective enforcement • Enforcement is no longer a national issue: need for enhanced international cooperation (bilateral, trilateral EU-US-China and multilateral, e.g. APEC, OECD, UNECE, IPSC, ICPHSO)

17. RAPEX-CHINA See separate set of slides presented by Mr. Kong

18. TOYS Framework for cooperation • Toys WG under the DG ENTR-AQSIQ Regulatory Dialogue • DG ENTR-DG SANCO-AQSIQ Guidelines for Action on Co-operation for Strengthening EU-China Toy Safety (« Roadmap for Safer Toys », 2006)

19. TOYS Objectives • Ensure a high level of toy safety • Ensure consumer confidence • Ensure best conditions for trade in the toy sector

20. TOYS Activities and Achievements • Regular meetings between European and Chinese toy safety experts (regulators, standardisers, industry, market surveillance authorities) • Raise awareness about applicable requirements in the EU • targeted outreach events for manufacturers in China and manufacturers / importers / distributors in the EU • training of AQSIQ / CIQ officials including through traineeships with EU Commission and Member States) • Legislation and guidance documents translated into Chinese

21. TOYS Activities and Achievements • Exchange of information on unsafe Chinese-origin toys found in the EU market (via RAPEX-China and safeguard procedure under the Toy Safety Directive) => link with preventive enforcement activities carried out by AQSIQ / CIQ • Closer cooperation on standards • Chinese experts invited to attend CEN TC 52 meetings as observers • Coordination at ISO level

22. TOYS Activities and Achievements • 2008 Report on « Evaluating Business Safety Measures in the Toy Supply Chain » • Need to create a « product safety culture » and to embed it in the entire supply chain • 2008 voluntary agreements between European Commission and European Associations of toy manufacturers (TIE), importers and retailers

23. TOYS Current priorities • Training on implementation of the EU new Toy Safety Directive (applicable as from 20 July 2011) • Joint outreach events with U.S. CPSC during week of 14/11 • Extensive training materials in Chinese, «train the trainer » initiatives • Focus on central role of toy designers and manufacturers and on the importance of the safety assessment to be integrated in the design phase • Closer cooperation on market surveillance issues • Facilitate greater involvement of EU Member States (see e.g. the example of the Netherlands and Germany)

24. TOYS Current priorities • Intensify cooperation on standards • Promote greater convergence EN and GB standards for toy safety • Promote global solutions based on a high level of safety at ISO level • Promote compatible traceability requirements and solutions, capable of fulfilling the needs of EU and Chinese toy safety legislation

25. Lessons Learned • First lesson: learn from each other! • Education, create a « product safety culture » • Need for effective tools to disseminate relevant information to concerned operators • Information tool mix: outreach event targeting manufacturers and importers, « train the trainer » events, E-learning tools • Prevent better than cure: importance of linking results of market surveillance in the EU with export controls carried out by Chinese authorities • Effective supply chain management is essential to achieve high levels of compliance

26. Future Challenges • Internationalisation of the supply chain • international dimension of product safety • International cooperation need to intensify • Intensify information exchange on new scientific evidence on emerging risks, upcoming regulations and standards, product recalls worldwide and best practices on enforcement initiatives

27. Future Challenges • Product traceability • mix of mandatory requirements and voluntary systems that each manufacturer needs to implement based on the characteristics of his products, manufacturing process and distribution system • Greater convergence / harmonisation of safety requirements and standards would be desirable for optimal levels of consumer protection and effective international cooperation • Education: continue to invest in informing businesses about their obligations under product safety legislation

28. WEB ADDRESSES More information can be found at: AQSIQ: CN: http://www.aqsiq.gov.cn/ EN: http://english.aqsiq.gov.cn/ DG SANCO -RAPEX: RAPEX: http://ec.europa.eu/consumers/safety/rapex/index_en.htm International Cooperation / China-EU relations: http://ec.europa.eu/consumers/safety/int_coop/index_en.htm DG ENTR - Toys: Toys: http://ec.europa.eu/enterprise/sectors/toys/index_en.htm International Cooperation / China-EU relations:http://ec.europa.eu/enterprise/policies/international/cooperating-governments/china/index_en.htm

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