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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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Presentation to ANSI CMCEC
January 28, 2002
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
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.
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 …
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 applied by that Member.
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.
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.
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
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
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
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
Web site jointly sponsored by the International Organization for Standardization (ISO) and the World Trade Organization, Services Division (WTO) www.iso.ch/forums/services
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
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
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™
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
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
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
Research Service-Standards for Global Markets
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
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.
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?
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
1012 PARRS RIDGE