Camella Rhone Executive Secretary, CROSQ CSME Caribbean Connect Barbados, 2006-06-30 CHALLENGES AND OPPORTUNITIES FOR STANDARDISATION IN THE REGION DEALING.

Camella Rhone Executive Secretary, CROSQ

CSME Caribbean ConnectBarbados, 2006-06-30

CHALLENGES AND OPPORTUNITIES FOR STANDARDISATION IN THE

REGION

DEALING WITH TECHNICAL BARRIERS AND STANDARDS



WHAT - Understanding standards and standardisation in context of regional and

international trade

WHY – Factoring the increasing importance of standards to facilitate development and

gain economic advantage, in strategic planning.

HOW – Application for benefit to Caribbean countries

Implications of failing

ISSUES FOR THE REGION



Why the CARICOM Regional Organisation for Standards and

Quality (CROSQ) was established

The relationship between Standards, Trade Facilitation and Economic

Development

The Link between the National, Regional and International processes

WHAT:STANDARDISATION



The CARICOM Regional Organisation for Standards and Quality is:

An intergovernmental (Caribbean Community) organisation

Established in December 2002 by the Treaty of Chaguaramas, which established

the Caribbean Community, CARICOM in 1973.

WHY CROSQ WAS ESTABLISHED

WHAT IS CROSQ?



DEVELOPMENT ROADMAP

International Recognition of the

RQI (MSTQ

2006 - 2009

2002 - 2003

2003 - 2006

CROSQ Secretariat in place;

Regional Quality Infrastructure (RQI) being established

Agreement Establishing

CROSQ signed by Governments

The Caribbean Common Market

Standards Council)

1975 - 2002



Conformity assessment mechanisms are generally referred to as the Quality Infrastructure (QI):

‘The organisations, structures and systems for the regulatory and

harmonising activities in countries; and activities that conform to stated requirements (including - laws,

regulations, standards and contracts)..’

RQI = Regional Quality Infrastructure

CROSQ FACILITATING TRADE & ECONOMIC DEVELOPMENT



Conformity Assessment Procedures defined as -

‘..any procedure used directly or indirectly to determine that relevant requirements in technical regulations or standards

are fulfilled..’.

Standards - embedded in market decision making as neutral and objective indices for decision making

Certification - a mark of objective verification of compliance.

The agents of certification - the compliance gatekeepers

The certification process - based on standards to ensure legitimacy across public and private sector boundaries

The certification mark - a mark of conformity which enables mutual recognition.

GLOBAL STANDARDISATION MODEL..

FAILURE as NON CONFORMANCE



STRATEGIC BUILDING BLOCKS IN ESTABLISHING THE RQI

Member States National Infrastructure

CROSQ Processes and Support Systems (including IT)

Me

tro

log

y

Sta

nd

ard

s

Te

stin

g

Qu

alit

y

Stakeholders in Region



Government Relations

The CROSQ REGIONAL (RQI) Model(Interdependent State Partnership Model)

REGION’SPublics /Civil

society

REGION’S Member States

REGIONS Private Sector

Ensuring participation

through policy and training,

Developing the standards and technical

specifications

Ensuring compliance with

mandatory regulations

Access of all Member States

to Internationally recognised Regional resources



REGIONAL Quality

Assurance Mechanism

REGIONAL Testing

Infrastructure

REGIONAL Standards

Infrastructure

REGIONAL Metrology

Infrastructure

Based on Regional Auditing, Assessing & Verification

Implementation at National

levels

Regional application of National competencies with International recognition

Caribbean testing

laboratories in collaboration

Customers Wants Integrated SolutionsThe CROSQ REGIONAL (RQI) Model

(Interdependent Resource Sharing Model)



RQI ESTABLISHED WITH SUPPORT FROM INTERNATIONAL FUNDING & PARTNERSHIPS (CGPM, SADACSTAN,

CODEX, etc), THROUGH CROSQ: 2006 to 2009

2005- 2008

2006- 2009

Harmonised Regional Standards

Development Infrastructure

2006 -2009 A recognised and traceable Regional

Metrology Infrastructure Establishing an

internationally recognised

certification and accreditation mechanism



WHAT - Understanding standards and standardisation in context of regional and

international trade

WHY – Factoring the increasing importance of standards to facilitate development and

gain economic advantage, in strategic planning.

HOW – Application for benefit to Caribbean countries

Implications of failing

ISSUES FOR THE REGION, reminder..



HARMONISED REGIONAL QUALITY INFRASTRUCTURE (RQI), and CONFORMITY

ASSESSMENT PROCEDURES

Definitions of ‘Standards’, ‘Standards Related Matters’ and ‘their applications’

are harmonised with/equivalent to international definitions and norms.

REGIONAL STANDARDISATION…



ARTICLE 1 of Agreement Establishing CROSQ defines:

Standards - approved guidelines, rules, or characteristics (Including terminology,

symbols, packaging, marking or labelling), for products or related

processes and production methods, that provide for common and repeated use.

Compliance is not mandatory

STANDARDISATION…



ARTICLE 1 defines:

Standards Related Matters - include technical regulations, conformity

assessment procedures and metrology

Technical Regulations - specify product characteristics or their related processes

and production methods, including applicable administrative provisions,

terminology, symbols, packaging, marking or labelling requirements

Compliance is mandatory

STANDARDISATION…



TO HARMONISATION

FOR ENSURING PARTICIPATION

FOR SUPPORTING TRANSPARENCY

TO MAKE MOSTOF SCARCE TECHNICAL RESOURCES

FOR PROMOTING INTERNATIONAL ACCEPTANCE OF THE REGIONAL

PROCESS

CROSQ - a CARICOM RESPONSE



CROSQ – The CARICOM Regional Organisation for Standards and Quality

An intergovernmental (Caribbean Community) organisation

Established by the Treaty of Chaguaramas (July 4,1973) revised to establish

the Caribbean Community, including the CARICOM Single Market and Economy

(CSME)

HARMONISATION: CROSQ



The Agreement Establishing CROSQ (2002, signed by Heads of Government of CARICOM):

PREAMBLE establishes the basis:

Region’s vulnerability to entry of sub-standard products

Implications for consumer welfare and the environment;

Efficient operation of the CSME (CARICOM Single Market and Economy)

CROSQ: HARMONISATION & ECONOMIC DEVELOPMENT



The Preamble …...

The international competitiveness of goods and services produced or provided in the

Caribbean Community

Recognition by competent international standardising organisations

Benefits to the Member States of the Caribbean Community (eg. technical assistance)

CROSQ: HARMONISATION & COMPETITIVENESS



The establishment and harmonisation of standards for

the enhanced efficiency and improved quality in the

production of goods and services in the Community.

(Agreement Establishing CROSQ, signed by Heads of Government of CARICOM, December 2001)

ROLE OF CROSQ



To support the establishment of the CSME

To promote the development and harmonisation of standards,

metrology, technical regulations

To promote the mutual recognition of conformity assessment procedures

and accreditation/certification systems based on internationally accepted

criteria

THE CROSQ MANDATE…



To promote consumer welfare and safety

To promote and protect the interests of States Parties and Associate Members in regional and international standardising

fora, including external negotiations;

To facilitate the achievement of international competitiveness of regional

goods and services by fostering a culture of quality in regional enterprises




To contribute to the preservation of the environment and conservation of the natural resources of the Community;

To promote awareness of standards and standards-related matters in

governments, commerce, industry and consumers

To facilitate trade




CROSQ has full juridical personality

‘States Parties shall in their jurisdictions accord to CROSQ the same capacity

accorded to legal persons under their national laws, including the capacity to

contract, acquire, hold and transfer property and to sue and be sued in its own

name…’Agreement Establishing CROSQ; Article 14

FACILITATING IMPLEMENTATION



Member States• Antigua & Barbuda• The Bahamas• Barbados• Belize• Dominica• Grenada• Guyana• Haiti• Jamaica• Montserrat• Saint Kitts and

Nevis• Saint Lucia• St. Vincent and the

Grenadines• Suriname• Trinidad and

Tobago

Associate States• Anguilla • Bermuda• British Virgin Islands• Cayman Islands• Turks and Caicos,• Dominican Republic (ACS)

THE CARIBBEAN COMMUNITY

(The CARICOM Single Market and Economy (CSME))



Member States at different economic levels (Strongest in Trinidad and Tobago, the

Bahamas, Barbados)

High public debt levels, (92% of GDP in 2003, up from 56% in 1997, exceeding 100% in Antigua,

Grenada, Dominica, Guyana, Jamaica and St. Kitts-Nevis)

,

Slow economic growth (GDP growth was estimated at between 5% and 2% in 2004)

Growing trade imbalances

LIMITATIONS OFCOMMUNITY RESOURCES



Realitively weak industrial base

Vulnerable service based economies

Lack of economies of scale and

Global structural reforms limiting advantage

CHARACTERISTICS OF SMALL ISLAND STATES (SIDS)

COMMUNITY RESOURCES….



Trade liberalization is related to development of the capacity to meet

standards (for product, practices and processes)

The obligations of our Small Island Developing States (SIDS) include

rules defined by -

WTO, FTAA, EU/EPA, CSME

USING STANDARDS TO FACILITATE TRADE



The TBT Articles 5 and 6 refer inter alia to:

..non discrimination and the prevention of unnecessary obstacles to international

trade; harmonisation; transparency;

And Articles 7 to 9 refer to:

…local government bodies, non governmental bodies and international

and regional systems

CARICOM CONFORMITY ASSESSMENT IN CONTEXT OF TBT



CARICOM conformity assessment procedures are related to TBT Article 9 which deals with:

..international and regional systems ..

.. CROSQ is established as an Intergovernmental Regional organisation, and shall support, inter alia:

Mutual recognition of the CARICOM region’s conformity assessment

procedures and accreditation/ certification systems

CARICOM CONFORMITY ASSESSMENT ..



Conformity assessment procedures (TBT Annex 1.3)

Procedures for sampling, testing and inspection;

Evaluation, verification and assurance of conformity; and

Registration, accreditation and approval

To build trust/support confidence that the products being traded conform to applicable

standards and technical regulations




Conformity assessment procedures (TBT Annex 1.3) based on…

Harmonisation (‘One standard one test..’, ‘One certification, one time..’ to ensure ‘Portability of

certification..’)

Demonstrating harmonisation/equivalence (The use of

common/similar procedures)

Transparency (Information requirements)

Notification Obligations




Trade liberalization is related to development of the capacity to meet

standards (for product, practices and processes).

Trade agreements may facilitate non reciprocal trading arrangements

The international community will assist SIDS, once they play by the

rules

FACILITATION:

SIDS and RULES OF TRADE



In support of a level, secure and predictable cross border environment in which to do

business:

•Tariff reductions in manufactured products•Reduction of agricultural protection &

elimination of quotas•Safeguards, anti-dumping, countervailing duty

measures; •Trade-Related Investment Measures (TRIMs); •Trade-Related Aspects of Intellectual Property

Rights (TRIPS), •General Agreement on Trade in Services (GATS)

customs valuation.

FACILITATION: The RULES



FACILITATION RULES: STANDARDS AS TOOLS (DEFINED RULES)

Standards used as reference documents in national, regional and international trade.

Standards developed transparently,

With input of all interested parties,

By a process of consensus

Process managed by standards institutions operating at the national, regional and international levels



TRADE FACILITATION: WTO Agreements

WTO Rule Agriculture SPS TBT TRIPS GATS GATT

Issues Infectious Disease X X X

Food Safety X

Tobacco Control X X X X X

Environment X X X

Access to Drugs X

Health Services X

Food Security X X X

Biotechnology X X X X

Information Tech. X X

Traditional Knowledge X



TRADE FACILITATION: STRATEGIC SECTORS & STANDARDS

• ICT- Service/product (GAT/GATS) •Trade investment – Service (processes

/practices) (TRIMS) •Disaster management – Service/ product

•Environment - Service/product •Food and agriculture – Service/ product

•Oceans; water – Service/product •Energy - Service/product

•Health; Education – Service/product •Culture diversity, traditions - Service/

product (TRIPS) •Customs - Service/product

•Labour - Service/product



Old approach international treaties (‘hard law’) which impose conditionality on emerging economies, eg.structural adjustment programmes.

New emphasis ‘soft law’ (regulations, standards and norms) which are extensively diffused and entrenched in transforming domestic economic, social, and political governance

NB: The standardisation process is not new. What is new is the pervasive imposition of standards across all sectors and in

Trade rules.

FACILITATION & ECONOMIC DEVELOPMENT: STANDARDS AS ‘SOFT LAW’



As entry requirements in a broad range of international regimes and organisations

- Accession partnership agreements in the EU – domestic governance preconditions

- Entry into the WTO..standards in respect of market access, financial liberalistion and regulatory norms and

processes.

- World Bank – rules of law and anticorruption guidelines tied to lending

- IMF data dissemination standards

- Environmental Accords

- Labour treaties

- Social standards

FACILITATION & ECONOMIC DEVELOPMENT: STANDARDS AS ‘SOFT LAW’…



Trade agreements based on non binding commitments;

Compliance and delegation depend on the domestic authority; Autonomous regulatory institutions manage the process -

THE STATE ROLE MOVES FROM GOVERNMENT (direct intervention) TO GOVERNANCE (facilitatory intervention – with policy

separated from operations and services contracted to private sector)

THE PRIVATE SECTOR LEADS THE PROCESS

THE CONSUMER/BUYER DICTATES THE MARKET

FACILITATION & ECONOMIC DEVELOPMENT: Standards as ‘Soft Law’ - RESPONSIBILITIES



Model managed by rules based on mutual recognition

Globalisation - a microeconomic process to ensure that domestic regulation fit or is

harmonised with the external international process.

Thus with economic integration (CSME; WTO; FTAA), failure to harmonise standards and

regulations blocks international recognition of the domestic process

GLOBAL STANDARDISATION MODEL..IMPLICATIONS FOR FAILURE



….Mutual recognition Based on TRUST

Process of TRANSPARENCY

Process of INCLUSION and CONSENSUS

(Standards’ preparation must comply with the Code of Good Practice for the Adoption and Application of Standards

(WTO/TBT Rules)

FAILURE LIMITS INTERNATIONAL RECOGNITION

LIMITED INTERNATIONAL RECOGNITION RESTRICTS CROSS BORDER EXCHANGE OF GOODS AND SERVICES

GLOBAL STANDARDISATION MODEL..IMPLICATIONS FOR FAILURE



ESTABLISHING THE REGIONAL QUALITY INFRASTRUCTURE (eg. METROLOGY)

2004-2005

2005

Strengthening of relationship between CROSQ and CARIMET

(CROSQ responsible for Metrology)

2004

Approval of projects to deepen Regional Technical Capacity

in Metrology

2006- 2009

Recognition of the Regional model (CARICOM membership in CGPM; CROSQ signs the CGPM/CIPM MRA)

Establishing an internationally

recognised Regional Metrology

Infrastructure(With grant funding)



CAMELLA RHONEExecutive Secretary, CROSQ

[email protected]

Thank you for your attention

Camella Rhone Executive Secretary, CROSQ CSME Caribbean Connect Barbados, 2006-06-30 CHALLENGES AND OPPORTUNITIES FOR STANDARDISATION IN THE REGION DEALING.

Documents

crosq csme caribbean

quality crosq

crosq secretariat

standardisation slide

conformance slide

caricom regional organisation

certification mark

context of regional