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Services Standardization: Strategic implications for Global Markets Presentation to ANSI CMCEC George Willingmyre January 28, 2002 Structure Of The Presentation What are Services? The GATS parallel to ATBT The Global Standards environment The US state of services standards activity

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Services Standardization: Strategic implications for Global Markets

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Services standardization strategic implications for global markets l.jpg

Services Standardization: Strategic implications for Global Markets

Presentation to ANSI CMCEC

George Willingmyre

January 28, 2002


Structure of the presentation l.jpg

Structure Of The Presentation

  • What are Services?

  • The GATS parallel to ATBT

  • The Global Standards environment

  • The US state of services standards activity


What are services l.jpg

What are Services?


Us private sector gross domestic product by sector 1998 total private sector gdp 7 7 trillion l.jpg

US Private Sector Gross Domestic Product by Sector 1998Total Private Sector GDP $7.7 Trillion


Us private sector employment by sector 1999 total full time equivalent 103 8 million l.jpg

US Private Sector Employment by Sector 1999 Total Full Time Equivalent 103. 8 Million


Us cross border trade by sector 1999 total trade volume 2 2 trillion l.jpg

US CROSS BORDER TRADE BY SECTOR 1999TOTAL TRADE VOLUME $2.2 TRILLION


World service exports by country 1998 total exports 1326 8 billion l.jpg

World Service Exports by Country, 1998 Total Exports $1326.8 Billion


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Services Trade Balances 1998 $Billions


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Services Trade Balances 1998 $Billions (include US merchandise)


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What are Services? North American Industry Classification System --

  • 23 Construction

  • 44-45 Retail Trade

  • 48-49 Transportation and Warehousing

  • 51 Information

  • 52 Finance and Insurance

  • 53 Real Estate and Rental and Leasing

  • 54 Professional, Scientific, and Technical Services

  • 55 Management of Companies and Enterprises


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What are Services? North American Industry Classification System --

  • 56 Administrative and Support and Waste Management and Remediation Services

  • 61 Educational Services

  • 62 Health Care and Social Assistance

  • 71 Arts, Entertainment, and Recreation

  • 72 Accommodation and Food Services

  • 81 Other Services (except Public Administration)

  • 92 Public Administration


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Who are Service Suppliers?…Many ANSI members you might not think

IBM 2000 Annual Report “IBM … Services Lead”

Second Quarter 2001 booked $16 Billion new Services Backlog…Total Services Backlog $95Billion

Second Quarter 2001 Income

Services $8.7 Billion

Hardware $8.6 Billion


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The GATS Parallel to ATBT


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SECOND TRIENNIAL REVIEW OF THE OPERATION AND IMPLEMENTATION OFTHE AGREEMENT ON TECHNICAL BARRIERS TO TRADE November 2000

  • The Committee noted that minimizing the use of mandatory technical regulations and utilising voluntary international standards, where appropriate, rather than preparing separate domestic standards, could reduce the regulatory burden and open-up market access opportunities. In cases where technical regulations were required, that in accordance with Article 2.4, Members were obliged to use relevant international standards or relevant parts of them as a basis for their technical regulations except when such international standards or relevant parts would be an ineffective


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TEXT from USTR Explanation of GATS at www.ustr.gov

Why is regulation important to services? What are the major barriers to services trade?

Service industries are heavily regulated. From telecommunications to finance to medicine, government regulation plays an integral role in defining the industry and determining how many firms can participate and under what terms and conditions. The ongoing waves of "deregulation" are indicative of a regulatory shift in favor of market mechanisms, but the fundamental regulatory functions endure.


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TEXT from General Agreement on Trade in Services (GATS)

with a view to ensuring that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, the Council for Trade in Services shall, through appropriate bodies it may establish, develop any necessary disciplines …

…the Member shall not apply licensing and qualification requirements and technical standards that nullify or impair such specific commitments …


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TEXT from General Agreement on Trade in Services (GATS)

In determining whether a Member is in conformity with the obligation under paragraph 5(a), account shall be taken of international standards of relevant international organizations[1] applied by that Member.

[1]The term "relevant international organizations" refers to international bodies whose membership is open to the relevant bodies of at least all Members of the WTO.


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TEXT from General Agreement on Trade in Services (GATS)

Members shall work in cooperation with relevant intergovernmental and non-governmental organizations towards the establishment and adoption of common international standards and criteria for recognition and common international standards for the practice of relevant services trades and professions.


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The Global Standards Environment


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ISO TC Activity

TC 212Clinical laboratory testing and in vitro diagnostic tests

TC 215Health informatics

TC 222Personal financial planning

TC 223Civil defence

TC 224Standardization of service activities relating to drinking water supply and sewerage - Quality criteria of the service and performance indicators

CASCO

JTC 1Information technology systems

TC 68Banking, securities and other financial services

TC 176Quality management and quality assurance

TC 154Processes, data elements and documents in commerce, industry and administration

TC 204Transport information and control systems


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Background on ISO Discussions regarding Services … Consumer Policy Committee (COPOLCO)

ISO COPOLCO's discussions on international standards in the services sector date to 1995

COPOLCO recommended high priority within ISO for intensive study

ISO General Assembly (GA) endorsed COPOLCO's recommendation and a proposal from the ISO Secretary-General that ISO work with WTO to identify service sectors interested in undertaking ISO work. 

GA approved a joint initiative with WTO for regional workshops


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Background on ISO Discussions regarding Services … Workshops 1998.

Singapore, hosted by PSB, focus on tourism: hospitality and exhibition management

Argentina, hosted by IRAM, focus on banking/insurance and tourism/hotel certification

France, hosted by AFNOR, focusing on a multisectoral approach (policy and concepts, success stories, opening up to international standardization)

USA, hosted by ANSI, focus on engineering consultancy


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  • Forum on standards for tourism

  • Forum on standards for financial services

  • Forum on standards for business and consumer services

  • ISO looks into standards for Corporate Social Responsibility

Web site jointly sponsored by the International Organization for Standardization (ISO) and the World Trade Organization, Services Division (WTO) www.iso.ch/forums/services


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Continuing COPOLCO interestA framework of consumer interests in the preparation of standards for services

The overlap and differentiation between product and service standards

Principles of Consumer participation and involvement in the development of service standards

The relationship of voluntary implementation of service standards to legislation and statutory consumer protection

Establishing consumer priorities in service standardisation


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Example of European strategic Link between Legislation and CEN standards

Directive 97/67/EC on common rules for the development

of the internal market of Community postal Services and the improvement of quality of Service

CEN shall be entrusted with drawing up technical

standards applicable in the postal sector – This

work shall take account of the harmonization

measures adopted at international level and in

particular – within the UPU


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Current CEN work Programme in the field of Services

CEN/TC 330 Qualification of Construction Enterprises™

CEN/TC 331 Postal Services™

CEN/TC 319 Maintenance™

CEN/TC 320 Transportation Services™

CEN/TC 328 Standard measuring system for cleaning performance™

CEN/TC 329 Tourism Services™


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ICT CEN-sponsored CWAs mainly on :

Technologies… Banking, Directories, Smart cards, Intelligent Transport Systems, Engineering Data Exchange

Public interest Learning technologies, Cultural requirements, Design for all, Assistive technology

CEN-Sponsored CWAs in support of European Legislation

Electronic signatures, Personal data protection/privacy, Digital rights management, Network security


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Other CEN Workshops Agreement Activity

Description of the types of counselling and support services provided to small enterprises in Europe (FFCGEA)

European Call Center standards for training and qualification (FEDMA)

Management system for security

Travel Agencies and Tour operators

Hotel and other kinds of tourist accommodation

Recreational Diving Services


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DIN Activity beyond national participation in ISO TCs

Standard Committee for Usability, Performance and Services coordination…coordination…NAGD

National participation for CEN projects

Application of ISO 9000 to road transport; railway transport; waste removal; public administration

Funeral services

Research Service-Standards for Global Markets


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Service Standardization in the United States

Overview of current activities and issues

 As component of the project

Service-Standards for Global Markets

Supported by the German Federal Ministry for Education and Research

http://www.gtwassociates.com/alerts/servicesproject.html

And

http://www.service-standards.com


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Standards in the Service Sectors: An Explorative Study Commissioned by: European Commission DG Enterprise

A prominent feature of the current structural change in the economy and society is the growing significance of the service sector, reflected in the growing share of services in the gross national product and employment. In line with this trend, standardisation is also extending its range beyond its traditional, technical fields to include the service sector.

http://www.isi.fhg.de/ti/Projektbeschreibungen/kb-serv_stand_e.htm


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The US state of services standards activity

  • What standards, specifications, regulations etc. exist in the US concerning services

  • 2)What standards, specifications, regulations etc. exist in the US in the following service branches?

  • 3) How many and which organizations, associations, institutions, companies etc. are dealing with service standardization in the US?


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The US state of services standards activity

4) How many working groups are dealing with service standardization in the US, what subjects do they treat, and who are the members?

5) Who is responsible for the co-ordination of standardization activities?

6) What specific problems and needs do the service industry, the standardization bodies and active organizations face in the standardization of services in the US?


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The US state of services standards activity

How many and which organizations, associations, institutions, companies etc. are dealing with service standardization in the US? Data Collection in process…some within ANSI constituency, many outside eg Financial Accounting Standards Board

Who is responsible for the co-ordination of standardization activities?… no horizontal broad based government or private sector organization yet views international, regional and foreign national service standards initiatives from a strategic “service industry sector” paradigm


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THANK YOU

GTW ASSOCIATES

1012 PARRS RIDGE

SPENCERVILLE, MD

USA 301.421.4138

FAX 301.421.0977

gtw@gtwassociates.com http://www.gtwassociates.com


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