Ministerial Conference
Aid-for-Trade Roadmap for SPECA
Baku Business Center, Azerbaijan, 1-2 December 2010
UNIDO 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
1
UNIDO – Key Thematic Priorities
Long-term
Goal
Thematic
Priorities
Programme
Components
To contribute to the achievement of the Millennium Development Goals (MDGs), in particular to
poverty eradication through sustainable industrial development.
Poverty reduction through
productive activities
Trade
capacity-building
Energy
and environment
Industrial Policy,
Business Environment and
Institutional Support
Enterprise Upgrading for
Trade Enhancement
Renewable Energy
Rural and Women’s
Entrepreneurship Development
Competitiveness Analysis and
Trade-related Policies
SME Cluster Development
Innovation Systems, Technology
Management and Foresight
Agro-processing and
Value Chain Development
Rural Energy for Productive Use
Sustainable Production in
Poor Communities
Modernization of Exportoriented Agro-industries
SME Export Consortia
Climate Change and
Industrial Energy Efficiency
Cleaner and
Sustainable Production
Water Management
Technology Diffusion
Corporate Social Responsibility
for Market Integration
Montreal Protocol
Promotion of Domestic
Investment, FDI and Alliances
Standards, Metrology,
Testing and Conformity
Stockholm Convention
2
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
Countries
Exports
(USD million)
Imports
(USD million)
Trade balance
(USD million)
Azerbaijan
21,097
6,154
14,583
Kazakhstan
43,839
28,774
15,065
Kyrgyzstan
1,726
2,987
-1,261
Tajikistan
1,038
2,770
- 1,732
Turkmenistan
6,736
4,109
2,628
Uzbekistan
10,735
9,023
1,712
SPECA total
85,172
54,177
17,707
3
Key Exports in 2008 & 2009
HS*
Product group
Share in
% 2008
Share in
% 2009
All products
100
100
27
Minerals, fuels, oils, distillation products, gas, coal, electricity
78,2
71,9
72
Iron and steel
4,6
4,7
28
Inorganic chemicals, precious metal compounds, isotopes
2,1
4,1
74
Copper and articles thereof
2,5
3,0
26
Ores, slag and ash
1,8
2,8
71
Pearls, precious stones, metals, coins etc.
1,3
2,7
52
Cotton
1,1
1,5
08
Edible fruit, nuts, melons
0,6
1,2
76
Aluminum and articles thereof
0,7
1,1
79
Zinc and articles thereof
0,6
0,7
10
Cereals
0,8
0,6
41
Raw hides and skins (other than fur skins) and leather
0,4
0,6
Source
Regional Review Aft, Oct 2010, p. 12-13
statistics;
code
Note: data partially based on mirror
reporting may have affected the totals
* Harmonized Commodity Description and Coding System
4
Selected Export Rejections of SPECA
BORDER REJECTIONS
DATE
NOTIFIED BY REF.
12/10/2010
PL
2010.BSR
24/06/2009
DE
2009.0811
7/8/2009
BE
2009.BLF
24/02/2010
BE
2010.AIJ
10/11/2010
NL
2010.BYQ
Source: http://ec.europa.eu/food/food/rapidalert
RASFF Portal 2010
REASONS FOR NOTIFYING
prohibited substance DDT (0.07 mg/kg - ppm) in hazelnut
kernels from Azerbaijan
unauthorised use of colour E 102 - tartrazine in pasta made
from durum wheat semolina from Kazakhstan
improper health certificate(s) for pistachios from Tajikistan,
dispatched from Turkey
aflatoxins (B1 = 101; Tot. = 138 / B1 = 61; Tot. = 78 / B1 =
61; Tot. = 80 µg/kg - ppb) in pistachios from Kyrgyzstan,
dispatched from Turkey
ochratoxin A (30 µg/kg - ppb) in dried raisins from
Uzbekistan
PRODUCT CATEGORY
Country
nuts, nut products and seeds
AZERBAIJAN (AZ)
cereals and bakery products
KAZAKHSTAN (KZ)
nuts, nut products and seeds
TAJIKISTAN (TJ)
nuts, nut products and seeds
KYRGYZSTAN (KG)
fruit and vegetables
UZBEKISTAN (UZ)
5
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
6
National Quality Infrastructure & International Linkages
Metrology
Certification
National
Testing
Quality
Infrastructure
Standardization
No.7
CODEX
Accreditation
7
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
8
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)
9
UNIDO SMTQ Needs Assessment in SPECA Region
Comprehensive report on SPECA infrastructure needs assessed
by UNIDO in 2008 -2009
Selected assessed needs
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
STRENGTHEN NATIONAL/REGIONAL CONFORMITY ASSESSENT SYSTEM
10
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
11
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
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
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)
14
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
15
Trade Capacity Building of SPECA Member States in Standards,
Metrology, Testing and Quality Infrastructure
Project budget and resources sought from donors
Outputs
USD
Formulation and publication of national standards
S
80 000
Development of ISO 9001, ISO 14001, and ISO 22000 certification services
Q
110 000
Accredited product certification scheme at national standards bodies
Total:
$ 4 500 500
Food, chemical and microbiology testing laboratories accredited
T
150 000
T
1 850 000
TBT enquiry point, standards library and documentation centre
S
320 000
Fuel testing laboratories enhanced and strengthened
T
710 000
Industrial and legal Metrology Laboratories strengthened / accredited
M
Total budget sought
SMTQ
1 470 000
$ 4 500 000
16
UNIDO SMTQ Projects: US$ 100 Mn (2007-2011)
European Union
Bangladesh, Cameroon, Cote D’Ivoire, Nepal, Pakistan,
ECOWAS, UEMOA
Norway
East Africa, Mekong, Sri Lanka, Bangladesh; SAARC,
Zambia, Uganda, GLOBAL FORUM
Switzerland
Vietnam, Tanzania, Ghana, Mozambique, Tanzania,
Lebanon, Egypt
Italy
Egypt, Iraq
Sweden
Trade Trust Fund, AIDMO
Poland
Ukraine, Moldova
Korea
Mongolia, South -South Metrology Centre
India
South-South Lab Testing Centre, Timor-Leste
Finland
Trade Trust Fund
Spain
China, Egypt
Regional Integration and Intra-Regional Trade Growth with
Quality through SMTQ Capacity Building
UNIDO is at your service
for SPECA national
happiness
18
Thank You
for your attention!
19