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CHALLENGES AND OPPORTUNITIES FOR STANDARDISATION IN THE REGION

DEALING WITH TECHNICAL BARRIERS AND STANDARDS. CHALLENGES AND OPPORTUNITIES FOR STANDARDISATION IN THE REGION. ISSUES FOR THE REGION. WHAT - Understanding standards and standardisation in context of regional and international trade

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CHALLENGES AND OPPORTUNITIES FOR STANDARDISATION IN THE REGION

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  1. DEALING WITH TECHNICAL BARRIERS AND STANDARDS CHALLENGES AND OPPORTUNITIES FOR STANDARDISATION IN THE REGION

  2. ISSUESFOR THE REGION WHAT - Understanding standards and standardisation in context of regional and international trade WHY – Factoring the increasing importance of standards to facilitate development and gain economic advantage, in strategic planning. HOW – Application for benefit to Caribbean countries Implications of failing

  3. WHAT:STANDARDISATION Why the CARICOM Regional Organisation for Standards and Quality (CROSQ) was established The relationship between Standards, Trade Facilitation and Economic Development The Link between the National, Regional and International processes

  4. WHY CROSQ WAS ESTABLISHED WHAT IS CROSQ? The CARICOM Regional Organisation for Standards and Quality is: An intergovernmental (Caribbean Community) organisation Established in December 2002 by the Treatyof Chaguaramas, which established the Caribbean Community, CARICOM in 1973.

  5. DEVELOPMENT ROADMAP 1975 - 2002 The Caribbean Common Market Standards Council) 2002 - 2003 2003 - 2006 Agreement Establishing CROSQ signed by Governments CROSQ Secretariat in place; Regional Quality Infrastructure (RQI) being established 2006 - 2009 International Recognition of the RQI (MSTQ

  6. CROSQ FACILITATING TRADE& ECONOMIC DEVELOPMENT Conformity assessment mechanisms are generally referred to as the Quality Infrastructure (QI): ‘The organisations, structures and systems for the regulatory and harmonising activities in countries; and activities that conformto stated requirements (including - laws, regulations, standards and contracts)..’ RQI = Regional Quality Infrastructure

  7. GLOBAL STANDARDISATION MODEL.. FAILURE as NON CONFORMANCE Conformity Assessment Procedures defined as - ‘..any procedure used directly or indirectly to determine that relevant requirements in technical regulations or standards are fulfilled..’. Standards- embedded in market decision making as neutral and objective indices for decision making Certification- a mark of objective verification of compliance. The agents of certification- the compliance gatekeepers The certification process- based on standards to ensure legitimacy across public and private sector boundaries The certification mark - a mark of conformity which enables mutual recognition.

  8. STRATEGIC BUILDING BLOCKS IN ESTABLISHING THE RQI Stakeholders in Region Metrology Standards Testing Quality CROSQ Processes and Support Systems (including IT) Member States National Infrastructure

  9. Government Relations The CROSQ REGIONAL (RQI) Model(Interdependent State Partnership Model) Developing the standards and technical specifications REGION’SPublics /Civil society Ensuring participation through policy and training, Access of all Member States to Internationally recognised Regional resources REGIONS Private Sector REGION’S Member States Ensuring compliance with mandatory regulations

  10. Customers Wants Integrated Solutions The CROSQ REGIONAL (RQI) Model(Interdependent Resource Sharing Model) Based on Regional Auditing, Assessing & Verification REGIONAL Quality Assurance Mechanism Implementation at National levels REGIONAL Standards Infrastructure REGIONAL Testing Infrastructure Caribbean testing laboratories in collaboration REGIONAL Metrology Infrastructure Regional application of National competencies with International recognition

  11. RQI ESTABLISHED WITH SUPPORT FROM INTERNATIONAL FUNDING & PARTNERSHIPS (CGPM, SADACSTAN, CODEX, etc), THROUGH CROSQ: 2006 to 2009 2005- 2008 Harmonised Regional Standards Development Infrastructure 2006- 2009 A recognised and traceable Regional Metrology Infrastructure 2006 -2009 Establishing an internationally recognised certification and accreditation mechanism

  12. ISSUESFOR THE REGION, reminder.. WHAT - Understanding standards and standardisation in context of regional and international trade WHY – Factoring the increasing importance of standards to facilitate development and gain economic advantage, in strategic planning. HOW – Application for benefit to Caribbean countries Implications of failing

  13. REGIONAL STANDARDISATION… HARMONISED REGIONAL QUALITY INFRASTRUCTURE (RQI), and CONFORMITY ASSESSMENT PROCEDURES Definitions of ‘Standards’, ‘Standards Related Matters’ and ‘their applications’ are harmonised with/equivalent to international definitions and norms.

  14. STANDARDISATION… ARTICLE 1 of Agreement Establishing CROSQ defines: Standards - approved guidelines, rules, or characteristics (Including terminology, symbols, packaging, marking or labelling), for products or related processes and production methods, that provide for common and repeated use. Compliance is not mandatory

  15. STANDARDISATION… ARTICLE 1 defines: Standards Related Matters - include technical regulations, conformity assessment procedures and metrology Technical Regulations - specify product characteristics or their related processes and production methods, including applicable administrative provisions, terminology, symbols, packaging, marking or labelling requirements Compliance is mandatory

  16. CROSQ - a CARICOM RESPONSE TO HARMONISATION FOR ENSURING PARTICIPATION FOR SUPPORTING TRANSPARENCY TO MAKE MOSTOF SCARCE TECHNICAL RESOURCES FOR PROMOTING INTERNATIONAL ACCEPTANCE OF THE REGIONAL PROCESS

  17. HARMONISATION: CROSQ CROSQ – The CARICOM Regional Organisation for Standards and Quality An intergovernmental (Caribbean Community) organisation Established by the Treatyof Chaguaramas(July 4,1973) revised to establish the Caribbean Community, including the CARICOM Single Market and Economy (CSME)

  18. CROSQ: HARMONISATION & ECONOMIC DEVELOPMENT The Agreement Establishing CROSQ (2002, signed by Heads of Government of CARICOM): PREAMBLE establishes the basis: Region’s vulnerability to entryof sub-standard products Implications for consumer welfare and the environment; Efficient operation of the CSME(CARICOM Single Market and Economy)

  19. CROSQ: HARMONISATION & COMPETITIVENESS The Preamble …... The international competitiveness of goods and services produced or provided in the Caribbean Community Recognition by competent international standardising organisations Benefits to the Member States of the Caribbean Community (eg. technical assistance)

  20. ROLE OF CROSQ The establishment and harmonisation of standards for the enhanced efficiency and improved quality in the production of goods and services in the Community. (Agreement Establishing CROSQ, signed by Heads of Government of CARICOM, December 2001)

  21. THE CROSQ MANDATE… To support the establishment of the CSME To promote the development and harmonisation of standards, metrology, technical regulations To promote the mutual recognition of conformity assessment procedures and accreditation/certification systems based on internationally accepted criteria

  22. THE CROSQ MANDATE… To promoteconsumer welfare and safety To promote and protectthe interests of States Parties and Associate Members in regional and international standardising fora, including external negotiations; To facilitate the achievement of international competitiveness of regional goods and services by fostering a culture of quality in regional enterprises

  23. THE CROSQ MANDATE… Tocontribute to the preservation of the environment and conservation of the natural resources of the Community; To promote awareness of standards and standards-related matters in governments, commerce, industry and consumers To facilitate trade

  24. FACILITATING IMPLEMENTATION CROSQ has full juridical personality ‘States Parties shall in their jurisdictions accord to CROSQ the same capacity accorded to legal persons under their national laws, including the capacity to contract, acquire, hold and transfer property and to sue and be sued in its own name…’ Agreement Establishing CROSQ; Article 14

  25. Member States • Antigua & Barbuda • The Bahamas • Barbados • Belize • Dominica • Grenada • Guyana • Haiti • Jamaica • Montserrat • Saint Kitts and Nevis • Saint Lucia • St. Vincent and the Grenadines • Suriname • Trinidad and Tobago • Associate States • Anguilla • Bermuda • British Virgin Islands • Cayman Islands • Turks and Caicos, • Dominican Republic (ACS) THE CARIBBEAN COMMUNITY (The CARICOM Single Market and Economy (CSME))

  26. LIMITATIONS OFCOMMUNITY RESOURCES Member States at different economic levels (Strongest in Trinidad and Tobago, the Bahamas, Barbados) High public debt levels,(92% of GDP in 2003, up from 56% in 1997, exceeding 100% in Antigua, Grenada, Dominica, Guyana, Jamaica and St. Kitts-Nevis) , Slow economic growth(GDP growth was estimated at between 5% and 2% in 2004) Growing trade imbalances

  27. COMMUNITY RESOURCES…. Realitively weak industrial base Vulnerable service based economies Lack of economies of scale and Global structural reforms limiting advantage CHARACTERISTICS OF SMALL ISLAND STATES (SIDS)

  28. USING STANDARDS TO FACILITATE TRADE Trade liberalization is related to development of the capacity to meet standards (for product, practices and processes) The obligations of our Small Island Developing States (SIDS) include rules defined by - WTO, FTAA, EU/EPA, CSME

  29. CARICOMCONFORMITY ASSESSMENT IN CONTEXT OF TBT The TBT Articles 5 and 6 refer inter alia to: ..non discrimination and the prevention of unnecessary obstacles to internationaltrade; harmonisation; transparency; And Articles 7 to 9 refer to: …local government bodies, non governmental bodies and international and regional systems

  30. CARICOMCONFORMITY ASSESSMENT .. CARICOM conformity assessment procedures are related to TBT Article 9 which deals with: ..international and regional systems .. .. CROSQ is established as an Intergovernmental Regional organisation, and shall support, inter alia: Mutual recognition of the CARICOM region’s conformity assessment procedures and accreditation/ certification systems

  31. CARICOMCONFORMITY ASSESSMENT .. Conformity assessment procedures (TBT Annex 1.3) Procedures for sampling, testing and inspection; Evaluation, verification and assurance of conformity; and Registration, accreditation and approval To build trust/support confidence that the products being traded conform to applicable standards and technical regulations

  32. CARICOMCONFORMITY ASSESSMENT .. Conformity assessment procedures (TBT Annex 1.3) based on… Harmonisation(‘One standard one test..’, ‘One certification, one time..’ to ensure ‘Portability of certification..’) Demonstrating harmonisation/equivalence(The use of common/similar procedures) Transparency (Information requirements) Notification Obligations

  33. FACILITATION: SIDS and RULES OF TRADE Trade liberalization is related to development of the capacity to meet standards (for product, practices and processes). Trade agreements may facilitate non reciprocal trading arrangements The international community will assist SIDS, once they play by the rules

  34. FACILITATION: The RULES • In supportof a level, secure and predictable cross border environment in which to do business: • Tariff reductions in manufactured products • Reduction of agricultural protection & elimination of quotas • Safeguards, anti-dumping, countervailing duty measures; • Trade-Related Investment Measures (TRIMs); • Trade-Related Aspects of Intellectual Property Rights (TRIPS), • General Agreement on Trade in Services (GATS)customs valuation.

  35. FACILITATION RULES: STANDARDS AS TOOLS (DEFINED RULES) Standards used as reference documents in national, regional and international trade. Standards developed transparently, With input of all interested parties, By a process of consensus Process managed by standards institutions operating at the national, regional and international levels

  36. TRADE FACILITATION: WTO Agreements WTO RuleAgriculture SPS TBT TRIPS GATS GATT Issues Infectious Disease X X X Food Safety X Tobacco Control X X X X X Environment X X X Access to Drugs X Health Services X Food Security X X X Biotechnology X X X X Information Tech. X X Traditional Knowledge X

  37. TRADE FACILITATION: STRATEGIC SECTORS & STANDARDS • ICT-Service/product (GAT/GATS) • Trade investment – Service (processes /practices) (TRIMS) • Disaster management – Service/ product • Environment - Service/product • Food and agriculture – Service/ product • Oceans; water – Service/product • Energy - Service/product • Health; Education – Service/product • Culture diversity, traditions- Service/ product (TRIPS) • Customs - Service/product • Labour - Service/product

  38. FACILITATION & ECONOMIC DEVELOPMENT: STANDARDS AS ‘SOFT LAW’ Old approach international treaties(‘hard law’)which impose conditionality on emerging economies, eg.structural adjustment programmes. New emphasis ‘soft law’(regulations, standards and norms) which are extensively diffused and entrenched in transforming domestic economic, social, and political governance NB: The standardisation process is not new. What is new is the pervasive imposition of standards across all sectors and in Trade rules.

  39. FACILITATION & ECONOMIC DEVELOPMENT: STANDARDS AS ‘SOFT LAW’… As entry requirements in a broad range of international regimes and organisations -Accession partnership agreements in the EU – domestic governance preconditions -Entry into the WTO..standards in respect of market access, financial liberalistion and regulatory norms and processes. -World Bank – rules of law and anticorruption guidelines tied to lending -IMF data dissemination standards -Environmental Accords -Labour treaties -Social standards

  40. FACILITATION & ECONOMIC DEVELOPMENT: Standards as ‘Soft Law’ - RESPONSIBILITIES Trade agreements based on non binding commitments; Compliance and delegation depend on the domestic authority; Autonomous regulatory institutions manage the process - THE STATE ROLE MOVES FROM GOVERNMENT (direct intervention)TO GOVERNANCE(facilitatory intervention – with policy separated from operations and services contracted to private sector) THE PRIVATE SECTORLEADS THE PROCESS THE CONSUMER/BUYER DICTATES THE MARKET

  41. GLOBAL STANDARDISATION MODEL.. IMPLICATIONS FOR FAILURE Model managed byrulesbased onmutualrecognition Globalisation -a microeconomic process to ensure that domestic regulation fit or is harmonised with the external international process. Thus with economic integration (CSME; WTO; FTAA), failure to harmonise standards and regulations blocks international recognition of the domestic process

  42. GLOBAL STANDARDISATION MODEL.. IMPLICATIONS FOR FAILURE ….Mutualrecognition Based on TRUST Process of TRANSPARENCY Process ofINCLUSIONandCONSENSUS (Standards’ preparation must comply with the Code of Good Practice for the Adoption and Application of Standards(WTO/TBT Rules) FAILURELIMITS INTERNATIONAL RECOGNITION LIMITED INTERNATIONAL RECOGNITION RESTRICTS CROSS BORDER EXCHANGE OF GOODS AND SERVICES

  43. ESTABLISHING THE REGIONAL QUALITY INFRASTRUCTURE (eg. METROLOGY) 2004 Strengthening of relationship between CROSQ and CARIMET (CROSQ responsible for Metrology) 2004-2005 Approval of projects to deepen Regional Technical Capacity in Metrology 2005 Recognition of the Regional model(CARICOM membership in CGPM; CROSQ signs the CGPM/CIPM MRA) 2006- 2009 Establishing an internationally recognised Regional Metrology Infrastructure (With grant funding)

  44. Thank you for your attention CAMELLA RHONE Executive Secretary, CROSQ crosq.caricom@crosq.org

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