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 –nonacceptance 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