UNIDO/TCB/LG/140910/ISO Oslo No.1 Ministerial Conference Aid for Trade Roadmap for SPECA 1-2 December 2010- Baku, Azerbaijan Emerging Standards Issues

UNIDO/TCB/LG/140910/ISO Oslo No.1

Ministerial ConferenceMinisterial ConferenceAid for Trade Roadmap for SPECAAid for Trade Roadmap for SPECA

1-2 December 2010- Baku, Azerbaijan1-2 December 2010- Baku, Azerbaijan

Emerging Standards Issues for Trade Capacity Building: Emerging Standards Issues for Trade Capacity Building: UNIDO Actions in Management Systems and Private UNIDO Actions in Management Systems and Private

StandardsStandards

Dr. Lalith Goonatilake Dr. Lalith Goonatilake DirectorDirector

Trade Capacity Building Branch Trade Capacity Building Branch United Nations Industrial Development OrganizationUnited Nations Industrial Development Organization

1


Presentation OverviewPresentation Overview

Role of Standards in Global value Chains

Quality Infrastructure for Conformance

Changing Drivers of Standards

Guide to Private standards

Trade Standards Compliance Report

Global Food safety Initiative

Certification -Impact of ISO 9001 Survey

Conclusions


Auditing the Value Chain – Compliance to Standards

Product/Process standards (ISO/IEC) Quality Standards (ISO 9001) Environment Standards (ISO 14001) Food Safety Standards (ISO 22000) Labour Social Standards (SA 8000)

Safety Standards (OSHAS) Testing (ISO/IEC 17025) Calibration Traceability (Farm-to-Fork) Private Standards (GlobalGAP)

Global Value ChainsGlobal Value Chains: : Defining Market AccessDefining Market Access

Consumer

Lead firm

Organization CustomerSupplier Organization CustomerSupplier


Source: UNIDO TCB

Quality & Conformity Assessment InfrastructureQuality & Conformity Assessment Infrastructure

Accreditation Accreditation BoardBoard

Standards Standards InstituteInstitute

Leg

al F

ram

ewo

rkL

egal

Fra

mew

ork

System System CertifiersCertifiers

System System AuditorsAuditors

Inspection Inspection BodiesBodies

Industrial Industrial Metrology Metrology InstituteInstitute

ISO 22000ISO 22000

ISO 14001ISO 14001

ISO 9001ISO 9001

Factory Factory MetrologyMetrology

Legal Legal MetrologyMetrology

Trade Trade TransactionTransaction

EN

TE

RP

RIS

ES

EN

TE

RP

RIS

ES

LABORATORIESLABORATORIES

Testing Services: Chemical, Microbiology,

Textile…

Lab Accreditation Lab Accreditation ISO 17025ISO 17025

Calibration

SA 8000SA 8000

QUALITY & CONFORMITY ASSESSMENT INFRASTRUCTUREQUALITY & CONFORMITY ASSESSMENT INFRASTRUCTURE


““Fair Trade for All”: Fair Trade for All”: Priority Areas to meet Product Standards RequirementsPriority Areas to meet Product Standards Requirements

“…many developing countries do not have the ability to assist “…many developing countries do not have the ability to assist their producers to meet product standards”their producers to meet product standards” which often act as a barrier to developing country exports. Significant assistance from developed countries is required to build up their capabilities to conform to product standard requirements.

““UNIDO recommends a number of priority areas for International assistance to the institutional development of developing countries:

1. A national/regional standards/standardization body1. A national/regional standards/standardization body

2. A national/regional metrology system2. A national/regional metrology system

3. A certification/conformity assessment system3. A certification/conformity assessment system

4. An accreditation system4. An accreditation system””

Source: J. Stiglitz & A. Charlton, Fair Trade for All – How Trade can promote Development, Oxford University Press, 2005

No.5


Changing Drivers of StandardsChanging Drivers of Standards

No.7

ISO 22000

ISO 9000

ISO 14000

Testing Services

Private GAPPrivate GAP

Private GMPPrivate GMP

Private GAPPrivate GAP

Private GMPPrivate GMP ENVIROMENTALENVIROMENTALENVIROMENTALENVIROMENTAL

EQUALITY & RIGHTSEQUALITY & RIGHTSEQUALITY & RIGHTSEQUALITY & RIGHTS

Business to Business

SOCIAL & LABOURSOCIAL & LABOUR

Business to Consumer

SOCIAL & LABOURSOCIAL & LABOUR

Business to Consumer Business to Society

1990 201020001990 20102000

ISO 14000

SA 8000


Emerging Multitude of Ethical/sustainability claims*Emerging Multitude of Ethical/sustainability claims*

* Presentation of Mr. Alan Bryden at UNIDO General Conference, December 2009

No.8


UNIDO GENERAL CONFERENCE 2009UNIDO GENERAL CONFERENCE 2009Round Table: “Sustainability Standards: Hurdles or Opportunities?Round Table: “Sustainability Standards: Hurdles or Opportunities?

Moderator: Mr. Paul HohenModerator: Mr. Paul Hohen - International expert on sustainable development & international standards

(Australian Diplomat)

Keynote speaker: Mr. Alan BrydenKeynote speaker: Mr. Alan Bryden - Former Secretary General - ISO

Panelists:Panelists: – Mr. Markus Arbenz (CEO, IFOAM)

– Ms. Yasemin Basar (Social Compliance Director, Yesim Textiles, Turkey)

– Mr. Echard Cordes (CEO, Metro Group) – Dr. Lalith Goonatilake (Director, UNIDO, Trade Capacity Building Branch)

9 December9 December 2009, Vienna2009, Vienna

No.9


Sustainability/ Private Standards Sustainability/ Private Standards Increasing role of private standardsIncreasing role of private standards

– Moving away from international standards !!Moving away from international standards !!

Can they be de-facto trade barriers?Can they be de-facto trade barriers?

Are they WTO Compliant? Are they WTO Compliant? – How to deal with dispute settlement? How to deal with dispute settlement?

(Role of TBT/SPS agreements)(Role of TBT/SPS agreements)

How objective/ How fair?How objective/ How fair?– FAIR TRADE FAIR TRADE

– Benefit vs. removing EU/ US Agriculture subsidies (CAP each cow $2 a day)– Carbon foot printCarbon foot print

– Is it only food miles? EU-Green houses; Africa less mechanized farming, less inputs; Loss of export jobs- more-deforestation

– If California has a public transport system lesser carbon footprint?


• EMERGING ROLE OF PRIVATE STANDARDS

Contents • The landscape of Private Standards in the

apparel, footwear and furniture sectors

• Buyer Codes of conducts

• Strategies for developing country suppliers

• Trends

UNIDO/TCB/LG/140910/ISO Oslo No.13No.13

• ISO Management SystemsISO Management Systems

– ISO 9001 Quality Management systemISO 9001 Quality Management system

– ISO 14001 Environment Management systemISO 14001 Environment Management system

– ISO 22000 Food Safety Management systemISO 22000 Food Safety Management system

• Significant benefits - quality Significant benefits - quality assuranceassurance

• Increasingly demanded in global tradeIncreasingly demanded in global trade

• Application in developing countries?Application in developing countries?

Developing Country System certification issues:Developing Country System certification issues:

Number of ISO 9000 certificates issued in Asian regionNumber of ISO 9000 certificates issued in Asian region


Joint UNIDO-ISO-IAF project:

Objective: To assess the ISO 9000 certification process in the SAARC and South East Asian countries through an impact assessment study and to build synergy in the certification process and to facilitate improvements in the accreditation scheme of the certification bodies.

Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka + Indonesia, Malaysia, Philippines, Thailand, Vietnam

Project Outcomes:

• Improved empirical evidence on economic impact of management system certification in industries in SAARC & South East Asian countries

• Best practices and policy guidelines for improvement of functioning of management system certification bodies and accreditation boards.

“Implementation of ISO 9001 Quality Management System in Asian developing countries: Survey covering system development, certification,

accreditation and impact”

Budget: € 450,000 Donor: Norway (Norad)ISO and IAF: in-kind

contribution


Global Food Safety InitiativeGlobal Food Safety Initiative GFSI Mission & ObjectivesGFSI Mission & Objectives

• GFSI launched at the CIES Annual Congress in 2000, following a directive from the food business CEOs.

“Continuous improvement ...Confidence in the delivery of safe food to consumers”

Convergence between food safety standards

Improve cost efficiency throughout the food supply chain

Provide a unique international stakeholder platform

“Once Certified, accepted everywhere”Convergence of Standards

means CONFIDENCE


GFSI Benchmarked Food Safety Standards? GFSI Benchmarked Food Safety Standards? ’Once certified, accepted everywhere’ ’Once certified, accepted everywhere’


GFSI Breakthrough – June 2007GFSI Breakthrough – June 2007 The following companies came to a common acceptance of GFSI The following companies came to a common acceptance of GFSI

benchmarked standardsbenchmarked standards


Trade Standards Trade Standards Compliance Report 2010Compliance Report 2010

Project Objective:

Design and establish an innovative annual publication on compliance challenges and advocating related technical assistance

Publication date: December 2010


Overview of contentsOverview of contentsChapter Content

Rationale

I – Perspectives and emerging priorities on compliance issues

Contributions from WTO, UNEP, FAO, ISO, ILO

II – What do border rejections tell us about compliance capacity?

Analysis of border rejection data (US-FDA and EU-RASFF data)

III – Big or small money – how significant are border rejections for developing countries

Quantification of export losses

IV – Can developing countries detect non-compliance?

• Standards Compliance Capacity Index• FVO Inspection Report analysis

V – How can technical assistance stimulate the integration into global value chains?

• Value chain analysis• Case study

VI – Towards measuring the impact of Trade Capacity-Building

Case study

Synthesis Cost/Benefit Model – Outline

No.19


Detention Analysis- US-FDA; EU-RAFFSDetention Analysis- US-FDA; EU-RAFFSExample: Country Analysis Indonesia

EU

Detentions

US

Detentions

Reason for detention

No.20


Standards Compliance Capacity IndexStandards Compliance Capacity Index

Array of compliance capacity, standard-setting

Array of compliance capacity in country 15

No.22

UNIDO/TCB/LG/140910/ISO Oslo No.23No.23

CONCLUSIONSCONCLUSIONS

• Standards & Conformity capacity Important for tradeStandards & Conformity capacity Important for trade

• Standards landscape and drivers changingStandards landscape and drivers changing

– Sustainability issuesSustainability issues

– Supplier driven private standardsSupplier driven private standards

• Certification & conformity capacity Certification & conformity capacity

• Important areas for AFT intervention in SPECAImportant areas for AFT intervention in SPECA


Thank YouThank Youfor your attention!for your attention!

Documents

UNIDO/TCB/LG/140910/ISO Oslo No.1 Ministerial Conference Aid for Trade Roadmap for SPECA 1-2 December 2010- Baku, Azerbaijan Emerging Standards Issues