WTO AGREEMENTS ON STANDARDS & CONFORMITY ASSESSMENT AND THEIR IMPLICATIONS

1. WTO AGREEMENTS ON STANDARDS & CONFORMITY ASSESSMENT AND THEIR IMPLICATIONS

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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)

10. 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

11. 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

12. 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

13. 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.

14. 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

15. 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

16. Thank you