Contribution of International Standards to Facilitate Trade: UNIDO - - PowerPoint PPT Presentation

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Contribution of International Standards to Facilitate Trade: UNIDO Perspective 7th Meeting of the COMCEC Trade Working Group Mr. Raymond Tavares Industrial Development Officer Ankara, February 25, 2016 Outline Inclusive and Sustainable


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Contribution of International Standards to Facilitate Trade: UNIDO Perspective

7th Meeting of the COMCEC Trade Working Group

  • Mr. Raymond Tavares

Industrial Development Officer

Ankara, February 25, 2016

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SLIDE 2

Outline

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Inclusive and Sustainable Industrial Development Building Quality Infrastructure Integration into Global Trade – UNIDO Approach Value Chain Analysis – Role of Standards Rejection Analysis

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SLIDE 3

SDG’s and Inclusive and Sustainable Industrial Development (ISID)

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17 Global Goals for Sustainable Development

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World Leaders have committed to 17 Global Goals to achieve 3 extraordinary things in the next 15 years. End extreme poverty. Fight inequality & injustice. Fix climate change. The Global Goals for sustainable development could get these things

  • done. In all countries. For

all people.

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Production processes that are less carbon-intensive can save energy, reduce consumption of non-renewable resources, and minimize greenhouse gas emissions, while also stimulating innovation, technological change, diversification and job creation. New development approach, which looks at society, economy, industry and the environment as a whole.

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No one should be left behind. We should ensure that no person – regardless of ethnicity, gender, geography, disability, race or other status – is denied universal human rights and basic economic

  • pportunities.

Inclusive Sustainable Industrial Development

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SLIDE 6

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Building Quality Infrastructure for Economic Competitiveness

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Gender Equality Economic Competitiveness Trade Facilitation Environment Sustainability

Quality Cosmos

Good Governance Social Inclusiveness Food Safety Energy

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Quality Infrastructure System

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in line with private sector needs Systemic approach

Governance Quality Infrastructure Institutions Quality Infrastructure Services Enterprises Consumers

UNIDO 2015

Regulatory Framework Quality Policy Metrology Standardization Accreditation Quality Promotion Calibration & Verification Conformity Assessment Testing Certification Inspection Enterprise Upgrading Value Chain Upgrading Capacity Building Awareness Rising

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SLIDE 9

Quality Infrastructure Quality Promotion Quality Policy

UNIDO’s Approach: Building Quality Infrastructure

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Quality starts with the formulation and implementation

  • f the Quality Policy, which

sets the legal framework within which the Quality Infrastructure

  • perates.

Quality Promotion is the second step, serving to create a quality culture and demand among enterprises (both private and public) for quality services. Quality Infrastructure (Standardization, Metrology and Accreditation) is vital for internationally recognized conformity assessment of products and services supplied by local enterprises.

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Achieving good governance and sustainability through quality policy formulation in the ECO region – Phase III

  • Implementing counterpart: The Economic Cooperation Organization

and National standardization-related institutes of ECO Member states

  • Member States: 10 countries

Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyz, Pakistan, Tajikistan, Turkey, Turkmenistan, Uzbekistan

  • Project duration: 3 years (2014-2017)

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UNIDO’s Regional Approach: Regional Quality Policy

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SLIDE 11

Objective: Development of a Regional Quality Policy and guidelines for ECO Member states in formulating a National Quality Policy

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Overcome infrastructural barriers to trade Strengthen institutional capacity on WTO accession Enhance sustainable economic and social development of the region Foster international competitiveness and economic growth and development Achieving good governance and sustainability through quality policy formulation in the ECO region

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Regional Quality Policy

  • High-level

awareness workshop [Ankara]

  • High-level validation

workshop [Ankara]

  • Development of a

Regional Quality Policy

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Phase I [2007] Phase II [2009] Phase III [2014-2017]

Awareness creation and capacity building for Member States:

  • Training courses on

standardization, metrology, accreditation [multi- countries]

  • Needs assessment on

standardization, conformity assessment, metrology, testing and quality Guidelines on development of National Quality Policy

  • Develop guideline

document for formulation of NQP for ECO region

  • Expert group

meeting: validation of regional needs [Islamabad]

  • Regional workshops

to promote QI [member states] Awareness creation, Data collection + Analysis SMTQ assessment and recommendations for further cooperation:

  • Expert group

meeting organized at ECO secretariat [Tehran] Capacity Building

National QP

Guidelines Regional Quality

Policy

Achieving good governance and sustainability through quality policy formulation in the ECO region – Phase I - III

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Integration into Global Trade

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UNIDO’s 3 C-Approach

COMPETE

Develop competitive manufacturing capability

CONFORM

Prove conformity with market requirements

CONNECT

Connect to the market

Develop Productive Capacity Enhance capacity to meet standards Upgrade conformity assessment capacities Strengthen export promotion activities Promote business partnership and trade agreements Streamline custom procedures and mechanisms

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Challenges for SMEs

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Globalization Compliance with Standards Quality Infrastructure SMEs

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Assessing Conformity to Standards

  • Certification
  • Testing
  • Inspection

Standardization Process – UNIDO’s approach

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Launching a Standardization Process Stakeholder Engagement Implementation of Standards

Helping SMEs to engage in standardization

  • Provide substantive

inputs in the standardization process

  • Facilitate and promote

SME participation

  • Make sure that SMEs

views are represented in the standardization process Making standards work for SMEs

  • Promote and provide

technical assistance in the implementation of standards

  • Organize awareness

raising work shops

  • Support

dissemination of standards

Awareness

Bringing SMEs’ needs to the standardization process

  • Collect and

disseminate information

  • Organize Expert

Group Meetings (EGMs)

  • Organize

background documents

Advocacy Implementation Conformity Assessment

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SLIDE 17

Standardization Process – UNIDO’s approach

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Awareness Advocacy Implementation Conformity Assessment Evaluation Assessing Conformity to Standards

  • Certification
  • Testing
  • Inspection

Launching a Standardization Process Stakeholder Engagement Implementation of Standards

Helping SMEs to engage in standardization

  • Provide substantive

inputs in the standardization process

  • Facilitate and

promote SME participation

  • Make sure that

SMEs views are represented in the standardization process

Making standards work for SMEs

  • Promote and

provide technical assistance in the implementation

  • f standards
  • Organize

awareness raising work shops

  • Support

dissemination of standards

Bringing SMEs’ needs to the standardization process

  • Collect and

disseminate information

  • Organize Expert

Group Meetings (EGMs)

  • Organize

background documents

Evaluation of Standards

  • Evaluation studies
  • Implication of

standards

Post- Standardization

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Standardization Process – UNIDO’s approach

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Awareness Advocacy Implementation Conformity Assessment Evaluation Assessing Conformity to Standards

  • Certification
  • Testing
  • Inspection

Launching a Standardization Process Stakeholder Engagement Implementation of Standards

Helping SMEs to engage in standardization

  • Provide substantive

inputs in the standardization process

  • Facilitate and

promote SME participation

  • Make sure that

SMEs views are represented in the standardization process

Making standards work for SMEs

  • Promote and

provide technical assistance in the implementation

  • f standards
  • Organize

awareness raising work shops

  • Support

dissemination of standards

Bringing SMEs’ needs to the standardization process

  • Collect and

disseminate information

  • Organize Expert

Group Meetings (EGMs)

  • Organize

background documents

Evaluation of Standards

  • Evaluation studies
  • Implication of

standards

Post- Standardization

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Value Chain Analysis and Role of Standards

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Value Chain Analysis

UNIDO provides support for the development of a sustainable and targeted quality infrastructure that ensures competent institutions and guarantees that all processes and products along the value chain conform to international standards and regulations.

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What does the Quality Infrastructure related Value Chain Analysis tell us?

Through a comprehensive Value Chain Analysis UNIDO identifies standardization and testing needs for each step along the Value Chain. The Value Chain Analysis allows us to tackle challenges in production and help production lines become compliant with international requirements. Targeted Value Chain Analysis helps verify compliance and thus allows producers from developing countries to participate in global trade.

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Standards along the Value Chain – Coffee in Burundi

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Processing Pulping/ Washing Roasting Export Drying Cultivation

In any value chain, actors must always consider end-market requirements in terms of the process, product, quality and safety (TBT and SPS measures).

UNIDO Approach

UNIDO provides support for the development of a sustainable and targeted quality infrastructure that ensures competent institutions and guarantees that all processes and products along the value chain conform to international standards and regulations. UNIDO’s quality value chain approach ensures that all stakeholders benefit from value chain development at each stage of the chain. The best examples of successful programmes addressing the issue of quality and standards in value chains are the cases of Burundi, Ghana and Côte d'Ivoire.

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  • Lack of knowledge on

international standards

  • Lack of marketing

knowledge

  • Too many intermediaries
  • Local and international

marketing

  • Quality certifications
  • Insufficient drying
  • Inappropriate hulling

equipment

  • Unsuitable packaging-

transportation

  • High machining costs

Coffee Value Chain – Challenges

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  • Technical waste

management

  • Using contaminated water
  • Incorrect sorting cherries
  • Lack of equipment
  • Water treatment
  • Chemistry analysis OTA
  • Physics analysis
  • Sensory analysis
  • Packaging

Processing Pulping/ Washing Roasting Export Drying Cultivation

  • Low production and cyclical
  • Low productivity
  • Cramped storage warehouses
  • Lack of appropriate knowledge
  • Access to finance
  • Clear policy on cooperatives
  • Traceability
  • Access to inputs (high cost)
  • Failure of plants (seeds)
  • Not suitable fertilizers
  • Soil analysis
  • Pollination of coffee
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Coffee Value Chain – Standards

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Processing Pulping/ Washing Roasting Export Drying Cultivation Standards

  • Good hygiene practices
  • Good agricultural

practices

  • Biological standards
  • Organic Standards
  • Fair Trade
  • Fermentation Process
  • Drying condition
  • Water treatment
  • Storage condition
  • Application input standards
  • Quality standards for green coffee
  • Standards of quality management
  • HACCP, Organic, Biological
  • Country regulations
  • Food Safety Modernization

Act (FDA)

  • OTA 1 EU Regulation
  • Pesticide residue
  • SPS standards
  • Labeling
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SLIDE 24

Coffee Value Chain – Standards

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Processing Pulping/ Washing Roasting Export Drying Cultivation

Standards in Pulping and Washing ISO 6666:2011 Coffee sampling Fair Trade Work conditions, Environmental protection Utz Kapeh Environmental protection, Work conditions Organic Organic production ISO 22000:2005 Food safety management CAC/RCP 69-2009 Prevention of Ochratoxin-A contamination HACCP Food Safety ISO 9001:2008 Quality management

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Analytical Work – Rejection Analysis

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Rejection Analysis

What do import rejections tell us?

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Focus:

  • Import rejections by world region
  • Reasons for import rejection

Reasons and rate of rejection varies across markets Rejections at importing border are a good rough indicator of compliance capacity and for areas where and which improvement is needed UNIDO since 2008 works on rejection analysis as a tool for facilitating better policy decisions Import rejections have persisted to be a reality for developing country exporters. This indicates that developing country exporters continue to struggle to achieve compliance with SPS and TBT requirements in international markets. Analysis by commodity, sector such as fish, fruits and vegetables, nuts and seeds

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Rejection Analysis

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2000 4000 6000 8000 10000 12000

Frequency Reasons for Rejection Reasons for Rejection of Fish and Fishery products in 4 markets, 2003- 2013 US EU AU Japan

  • The rejection analysis data

uncovers the most common reason for rejection of fish and fishery products in the US, EU, Australian (AU) and Japanese markets.

  • Improved transparency of

information to exporters.

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Top 5 countries facing compliance issues in Fish/Fishery Products in the Four Markets

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Main candidates in all Four Markets:

  • Mexico
  • Chile
  • Brazil
  • US
  • Canada
  • Ecuador

50 100 150 200 250 300 350 400 450 500 Frequency

Reason for rejection

Example: Top five LAC countries with highest fish product rejections in US Market - example

Mexico Canada Brazil Ecuador Chile

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Meeting Standards, Winning Markets

  • EU DG Sanco, US FDA, Australia AQIS, Japan MHLW
  • Border Rejection Analysis
  • Trade Standards Compliance Analysis

Analytical Work

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More Information: http://www.unido.org/tradestandards compliance.html

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Contact info: UNIDO Department of Trade, Investment and Innovation United Nations Industrial Development Organization Vienna International Centre, P.O. Box 300, 1400 Vienna Austria Telephone: (+43-1)260264618, Fax: (+43-1)26926-69 Email: tcb@unido.org Internet: http://www.unido.org