WTO AGREEMENTS ON STANDARDS & CONFORMITY ASSESSMENT AND THEIR by 75n5t0

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									   WTO AGREEMENTS ON
STANDARDS & CONFORMITY
  ASSESSMENT AND THEIR
      IMPLICATIONS
 INTERNATIONAL TRADE
      SCENARIO
• Establishment of WTO - dismantling of tariff
  barriers – quantitative restrictions - free flow of
  trade
• Creation of global market with equal access to all
  countries
• Tariff barriers replaced by non tariff barriers
• Quality & safety have acquired centrestage
• Role of Standards & Conformity Assessment (CA)
  procedures important
• Represent the biggest non-tariff barriers –non-
  acceptance of each others’ test and inspection
  results – 60 % on this account
• Necessary to lay down rules and disciplines.
           WTO REGIME
• Rules for international trade being written
  through various WTO agreements
• Rules pertaining to Standards and
  Conformity Assessment laid down in
     - Technical Barriers to Trade (TBT)
       Agreement
     - Sanitary and Phyto-sanitary (SPS)
       Measures Agreement
     - Agreement on Pre-shipment
       Inspection
     COMMON FEATURES
• Encourage adoption of Intl Stds – not
  deemed to be barriers
• Transparency –Opportunity to Comment to
  Interested Parties; procedures and systems
  to be public
• Freedom to prescribe Mandatory Standards
  from standpoint of National security,
  Prevention of deceptive practices, Health,
  Safety & Environment
• National treatment – Same standards for
  domestic and overseas Industry
  COMMON FEATURES (contd)
• MFN Principle – Standards to be applied
  equally to all countries
• Mutual Recognition of Conformity
  Assessment – Certification/ Inspection/ Test
  Reports
• Special and differential treatment to
  developing countries –provision for time
  limit exemptions
• Technical assistance to developing
  countries
• Dispute settlement
       TBT AGREEMENT
• Applies to all products incl industrial and
  agricultural-not to SPS measures
• Voluntary standards & Technical regulations
  (mandatory stds)-notification to all members
• Code of good practice for standards
  development
• Product requirements in terms of performance
  rather than design or descriptive
  characteristics
• Technical regulations of local governments
  below central govt to be similarly notified
IMPACT OF AGREEMENT-I
• Increased relevance of International Standards in
  trade – being not deemed to be barriers – both
  for products as well as systems
• Members free to install import controls to
  protect human, animal, plant health, safety &
  environment
• Countries implementing strong import controls
IMPACT OF AGREEMENTS-II
• Conformance to International/importing
  countries’ mandatory standards for access to
  overseas markets
• Provision for recognition of export control &
  certification systems of trading partners as
  equivalent
• Equivalence Agreements/MoUs/MRAs
• Legislative framework
• Accreditation of inspection/certification bodies
           INFRASTRUCTURAL
             REQUIREMENTS
•   Nodal point for participation in international stdzn- BIS
•   Domestic Regulatory Mechanism (BIS Act/Drugs/PFA)
•   Accreditation Mechanism (NABCB/NABL)
•   Information access (TBT enquiry points – BIS
•   Export certification system (EIC) for recognition
•   Conformity assessment bodies(BIS/STQC/EIAs/pvt
    certification/inspection bodies and labs)
           Emerging Structure
                        Government
                     (to enact legislation)
Regulatory Bodies – may be sector specific like Food, Drugs
                     (to enforce the law)
                    Accreditation Body
                (technical competence of CABs)
        Conformity Assessment Bodies (CABs)
(support regulation – voluntary certification/quality assurance)
      Manufacturers and Service providers
   Common man – recipient of goods and services
                    ISSUES
• Poor participation in int stdzn – conformity
  assessment stds being written in CASCO (ISO) –
  govern not only trade but domestic market - Lack
  of scientific data – no designated scientific
  institutions - testing technology driving safety
  limits – no challenge
• Industry indifferent to standards – no tangible/
  immediate financial benefits – misconception int
  stds only for exports – not enough consumer
  pressure – liability provisions weak
• Lack of information – stds/regulations –no single
  body
                ISSUES (contd)
• Need for regulation – govt’s responsibility to
  common man – subtly trade reasons – many
  sectors unregulated contrary to worldwide trend
  – toys/telecom/electronic/IT goods – Import
  controls in Nov 2000 – even Sri Lanka did better
• No check on CBs/Labs/IBs – anybody free to set
  up – foreign bodies free to operate - unethical
  practices – violation of international norms -
  credibility questionable – claims – ISO9000 on
  products/CE mark – no check – even
  enforcement of existing regulations weak
              ISSUES (contd)
• Multiplicity – being hopefully addressed in
  food – no of govt organizations wanting to
  do regulation/stds setting/
  certification/accreditation despite specific
  bodies for the purposes –when handholding
  (training/ consultancy) is dire need –
  promotional bodies getting into
  certification/accreditation
• Lack of coordination/synergy within govt
  bodies.
          ISSUES (contd)

INDIA REDUCED TO A NATION
     CHASING COMPLIANCE
Not only not leading developments
  internationally but generally not
 even anticipating or keeping pace
    – we are caught unprepared
 whenever new standards come in
               Conclusion
• WTO regime – an opportunity – also a
  challenge
• Standards are commerce
• International standards – influence them –
  or comply – industry – conformity
  assessment – leverage your strengths
• Learn to raise barriers in WTO-compliant
  ways
Thank you

								
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