IEC 2015 IEC 2015 IEC eLearning module M

© IEC 2015

© IEC 2015

IEC e-Learning module M 11 -01 2/20

Complexity of world trade Country… Country N Country 1 Economic strategy Trade balance Protectionism Openness Industry lobby Protection of consumers Regulations Tariffs Technical barriers IEC e-Learning module M 11 -01 2/20

Complexity of world trade IEC e-Learning module M 11 -01 3/20

Complexity of world trade IEC e-Learning module M 11 -01 3/20

Complexity of world trade IEC e-Learning module M 11 -01 4/20

Complexity of world trade WTO An organisation to allow • smooth • predictable • free trade Rules result from negotiations amongst members IEC e-Learning module M 11 -01 4/20

Complexity of world trade WTO IEC e-Learning module M 11 -01 5/20

Complexity of world trade WTO Geographical extent Member: European Communities Observer: ongoing accessions Observer Non-member: negotiations pending Non-members. IEC e-Learning module M 11 -01 5/20

Complexity of world trade WTO IEC e-Learning module M 11 -01 6/20

Complexity of world trade WTO • Established in 1995 • Located in Geneva, Switzerland • 159 member countries (January 2013) • Complex structure o o o Ministerial Conference General Council for Trade in Goods Council for Trade in Services Council for Trade in Intellectual property and more IEC e-Learning module M 11 -01 6/20

Complexity of world trade WTO IEC e-Learning module M 11 -01 7/20

Complexity of world trade WTO The TBT is the link with IEC e-Learning module M 11 -01 7/20

Complexity of world trade WTO IEC e-Learning module M 11 -01 8/20

Complexity of world trade before WTO Trade Barriers • Regulations, quotas, etc • Customs duties & tariffs IEC e-Learning module M 11 -01 8/20

Complexity of world trade WTO IEC e-Learning module M 11 -01 9/20

Complexity of world trade before WTO Trade Barriers • Regulations, quotas, etc • Customs duties & tariffs • Technical requirements Technical Barriers to Trade (TBT) Agreement IEC e-Learning module M 11 -01 9/20

Complexity of world trade WTO IEC e-Learning module M 11 -01 10/20

Complexity of world trade WTO Cost of Technical Barriers to Trade • Translation of foreign regulations • Experts foreign regulations • Changes to production • Additional testing • Additional certification and so on IEC e-Learning module M 11 -01 10/20

Complexity of world trade WTO IEC e-Learning module M 11 -01 11/20

Complexity of world trade WTO → TBT In a nutshell, the Technical Barriers to Trade Agreement (TBT) exists to ensure that technical regulations, standards, testing, and certification procedures do not create unnecessary obstacles to trade. The agreement prohibits technical requirements created in order to limit trade, as opposed to technical requirements created for legitimate purposes such as consumer or environmental protection. IEC e-Learning module M 11 -01 11/20

Complexity of world trade WTO → IEC e-Learning module TBT M 11 -01 12/20

Complexity of world trade WTO → TBT The TBT Agreement recognizes the important contribution that international standards can make to improving efficiency of production and facilitating international trade. It also aims at the harmonization of standards on as wide a basis as possible, encouraging all standardizing bodies to play as full a part as resources allow in the preparation of international standards by the relevant international body, including the IEC and ISO. IEC e-Learning module M 11 -01 12/20

Complexity of world trade WTO → IEC e-Learning module TBT M 11 -01 13/20

Complexity of world trade WTO → TBT Use of international standards Members shall use… (mandatory) Technical Regulations (Art. 2. 4) Conformity assessment procedures (Art. 5. 4) “relevant” international standards when ineffective or inappropriate for policy objectives (eg: fundamental climatic or geographical factors, or technological problems) IEC e-Learning module …as a basis for except ! M 11 -01 13/20

Complexity of world trade WTO → TBT Use of international standards Members shall use… (mandatory) Technical Regulations (Art. 2. 4) Conformity assessment procedures (Art. 5. 4) “relevant” international standards when ineffective or inappropriate for policy objectives (eg: fundamental climatic or geographical factors, or technological problems) IEC e-Learning module …as a basis for except ! M 11 -01 14/20

Complexity of world trade WTO → TBT Use of international standards Members shall use… (mandatory) Technical requirements Regulations Conformity assessment procedures When the (Art. 2. 4) with the are in accordance (Art. 5. 4) “relevant” international standards, standards …as a basis for there is a legal presumption of not creating an when ineffective or inappropriate for policy objectives unnecessary barrier to trade. except ! (eg: fundamental climatic or geographical (Art. factors, or technological problems) 2. 5) IEC e-Learning module M 11 -01 14/20

Complexity of world trade WTO → TBT Use of international standards IEC e-Learning module M 11 -01 15/20

Complexity of world trade WTO → TBT Use of international standards “Whenever possible, requirements shall be expressed in terms of performance rather than design or descriptive characteristics. This approach leaves maximum freedom to technical development. Primarily those characteristics shall be included that are suitable for world wide (universal) acceptance. Where necessary, owing to differences in legislation, climate, environment, economies, social conditions, trade patterns, etc. , several opinions may be indicated. ” IEC e-Learning module M 11 -01 15/20

Complexity of world trade WTO → IEC e-Learning module TBT M 11 -01 16/20

Complexity of world trade WTO → TBT Principles for CA Procedures (CAP) Members shall use… (mandatory) Technical sampling, Regulations Conformity assessment procedures Including: (Art. 2. 4) testing and inspection; (Art. 5. 4) evaluation, verification and “relevant” international standards assurance of conformity; …as a basis for registration, accreditation when ineffective or and inappropriate approval. for policy objectives except ! (eg: fundamental climatic or geographical factors, or technological problems) IEC e-Learning module M 11 -01 16/20

Complexity of world trade WTO → TBT Principles for CA Procedures (CAP) IEC e-Learning module M 11 -01 17/20

Complexity of world trade WTO → TBT Principles for CA Procedures (CAP) • Non-discrimination Access for (foreign) suppliers under conditions no less favourable than accorded to suppliers of like products in a comparable situation • Avoid unnecessary barriers to trade CAP shall not be more strict than necessary to give the importing Member adequate confidence of conformity IEC e-Learning module M 11 -01 17/20

Complexity of world trade WTO → TBT Principles for CA Procedures (CAP) IEC e-Learning module M 11 -01 18/20

Complexity of world trade WTO → TBT Principles for CA Procedures (CAP) § Equal treatment for domestic and foreign suppliers § Harmonizing effect on standards across different countries § National conformity assessment requirements are appropriate § Lower cost and higher quality products IEC e-Learning module M 11 -01 18/20

Complexity of world trade WTO → TBT Principles for CA Procedures (CAP) § Equal treatment for domestic and foreign suppliers § Harmonizing effect on standards across different countries § National conformity assessment requirements are appropriate § Lower cost and higher quality products IEC e-Learning module M 11 -01 19/20

Complexity of world trade WTO → TBT Principles for CA Procedures (CAP) § Equal treatment for domestic and foreign suppliers § Harmonizing effect on standards across different countries § Nationalconformity assessment requirements areappropriate requirements are but not harmonized § Lower cost and higher quality products IEC e-Learning module M 11 -01 19/20

IEC e-Learning module Module 11 – unit 01 World trade END With thanks to : Mr Michel Brénon Mr Devin Mc. Daniels Sources : WTO website Wikipedia WTO TBT © IEC 2015

IEC e-Learning module Module 11 – unit 01 World trade END With thanks to : Mr Michel Brénon Mr Devin Mc. Daniels Sources : WTO website Wikipedia WTO TBT © IEC 2015