United States Standards Strategy

1. United StatesStandards Strategy Updating a Standards Strategy for Manufacturers in the Global Marketplace March 30, 2005 National Assn. of Manufacturers

2. Agenda I.Welcome and introductions II.Overview on importance of the U.S. standards system   III.How the USSS was developed IV.Key elements of the updated USSS V. What manufacturers should do in the USSS VI.Open discussion and comments VII.Conclusions

3. Welcome and Introductions • Participation by manufacturers and their associations • Discussants: • Bill Primosch—NAM • Joe Bhatia—USSS Committee Chair • USSS Committee Members • ANSI President Mark Hurwitz

4. Overview on Importance ofthe U.S. Standards System • Consumer acceptability of products • Tools for meeting regulatory requirements (health, environment, safety) • Facilitates interoperability of products • Determines market access for products worldwide

5. Why Manufacturers Should Care about the Standards System • U.S. system assures fair participation by manufacturers & other stakeholders • Standards the key to introducing innovative technology • Standards assure consumer and market acceptability • Increasingly critical for foreign market access and exports

6. How USSS Was Developed • Presentation by Joe Bhatia Chairman of the NSS/USSS Drafting Committee and Executive VP, Underwriters Laboratories

7. Key Elements of the USSS • Reaffirming principles of U.S. system • Refocusing national priorities • Addressing trade & market access • Improving standards education and outreach • Strengthening funding, patents & IPR

8. How Updated USSS Differs From Current National Standards Strategy • Global in outlook—not just a “national” • Focus on application of principles worldwide • Embracing all standards’ community—also consortia and ad hoc groups • Emphasis on trade & market access concerns • Greater stress on outreach & education

9. Structure of USSS • Introduction: Global setting, principles, strategic vision & moving forward • 12 Strategic goals • Tactical initiatives to advance goals • Architecture for longer-term effort

10. Strategic Goals • Goals 1-3 and 8-9—Strengthen the U.S. standards system • Goals 4-7—Address international concerns • Goal 10—Improve standards education • Goal 11—Maintain stable funding • Goal 12—Meet new priorities (security)

11. Good Principles of Standards-Setting I • Transparency • Openness • Impartiality • Effectiveness and relevance • Consensus • Performance-based

12. Good Principles of Standards-Setting II • Flexible • Timely • Balanced • Coherent • Due process • Technical Assistance

13. Unique Aspects of U.S. System • Decentralized: Bottom-up • Private-public partnership, led by private sector • Dispersed • Sectoral approach Benefits: Market-responsive, adoptable to new technology, meets industry needs

14. European and Other Models • Top-down • Government driven and funded • Centralized standards organizations • “One-size-fits-all” approach Benefits: Meets needs for single standard in diverse 25-member EU Costs: Inflexible, less market-responsive

15. Global Trade, Market Access and Standards • Growing importance of standards for trade and market access • Standards and their application cited as market access barriers • Increasingly standards set by regulatory policies (e.g., health, safety, environment) limit market access

16. Current Issues of Concern • European influence in international forums and foreign governments • Differing technical requirements resulting from regulatory differences-EU • Standards and conformity assessment procedures as protectionism • Industrial policy—growing China concerns

17. China Industrial Policies • “Third-class companies make products; second-class companies develop technology; and first-class companies set standards” (Chinese saying) • “The technological winner is now the one who manages to control …market standards..” Sangae Kim & Jeffrey Hart

18. Examples of China Problems • Efforts to establish unique Chinese “WIFI” encryption standards • Government procurement requirement to use Chinese software (“Kingsoft”) • Lack of foreign participation in Chinese standards forums • Lack of transparency in Chinese system • CCC mark –cost, delays, administration

19. USSS International Initiatives • Promote effective implementation of WTO Technical Barriers to Trade Agree. • Encourage common regulatory approaches • Work pro-actively with USG to eliminate standards-related foreign trade barriers • Strengthen international outreach and target emerging markets

20. Role of Manufacturers in USSS • Help raise awareness in government, business and public of US system • Engage senior management on standards issues • Establish guide on what Administration & Congress should do • Strengthen international outreach

21. ANSI’S Leadership Role on Standards and the USSS • Comments by Mark Hurwitz, President of ANSI

22. Open Discussion • How relevant is the strategy to manufacturers’ concerns? • Were major issues overlooked? • How can we use the USSS to raise awareness in senior management? • What can manufacturers do to improve govt./private sector cooperation?

23. USSS Timetable • April 15 Public forum at U.S. Commerce Dept. HQ • April 18 Deadline for receiving public comments • May Approval by ANSI Board • June Publication of USSS

24. USSS Contacts • NAM Bill Primosch (202) 637-3145, bprimosch@nam.org • ANSI/USSS Committee Joe Tretler (212) 642-4977, jtretler@ansi.org • USSS text: www.ansi.org/usss