Transcript TRADE CAPACITY BUILDING

14th Meeting of APMP Developing Economies’ Committee (DEC)
Xi ‘An, 10 June 2006
UNIDO’s TRADE CAPACITY BUILDING
INITIATIVE
and
METROLOGY ACTIVITIES IN ASIA
Ouseph Padickakudi
Programme Manager
Trade Capacity Building Branch
[email protected]
TRADE CAPACITY BUILDING
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PRESENTATION OVERVIEW:
• Trade challenges and opportunities
• Tariffs replaced by non-tariffs
• TBT- SPS agreements
• Trade barriers facing developing countries
• UNIDO 3 C’s approach
• UNIDO Metrology Activities in Asia
• UNIDO – WAITRO Initiative: LABNET Portal
• Conclusions
TRADE CAPACITY BUILDING
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UN Specialized Agency with three thematic areas:
• Trade Capacity Building
• Poverty Reduction through Productive
Activities
• Energy and Environment
TRADE CAPACITY BUILDING
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Global Trade Growth & Marginalisation
10,000
World exports, 1980-2004 (US$ billion)
9,000
8,000
World
7,000
Developed
economies
billion US$
6,000
5,000
4,000
Developing
economies
3,000
2,000
1,000
LDCs
0
1980
Source: UNCTAD, 2005
1985
1990
1995
2000
2001
2002
2003
2004
 Total global trade 76% in manufactures (Industrial goods)
 Share of developing countries in global trade only 26%
 Every 1% growth in Trade, LEADS TO one-half % Income increase
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Global Trade Challenges
TARIFFS REDUCED - OTHER BARRIERS
“for 168 out of 216 US trading partners, transport cost barriers clearly
outweigh tariff barriers. For the majority of Sub-Saharan African countries,
tariffs amounted to less than 2%, while transport cost incidence often
exceeded 10%. Since the introduction of AGOA, transport costs have risen
relative to tariffs.
World Bank Trade Note 15; May 10, 2004
US$ 1.75 bn. exports from developing countries have been disrupted in
2004, due to SPS non-compliance. While only US$ 53 mn. spent by donors
on SPS support.
World Bank 2004, Steven Jaffee & Spencer Henson, Standards and Agro-Food Exports from Developing Countries – Rebalancing the Debate
COST OF COMPLIANCE TO FOOD SAFETY RULES - UNIDO Estimates
Shrimp exports to the EU - Testing and Compliance cost adds 2.8%
Enterprise Quality/safety set up cost – adds 5% to product cost
National Quality & Testing infrastructure – US$ 5.0 mn. to US$ 25.0 mn.
BUILDING BLOCKS FOR EFFECTIVE GLOBAL TRADE - UNIDO APPROACH
Compete
Conform
Connect
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UNIDO’s TCB Approach: The 3 Cs
“Countries must have marketable products for export”
 COMPETITIVITY
of productive capacities
“Products must conform to requirements of clients and
 CONFORMITY
markets”
with standards
“Rules for trade applied and simplified cross border transactions”
 CONNECTIVITY
Compete
to markets
Conform
Connect
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Trade Capacity Building: Key Inputs
Productive Supply Capacities (UNIDO)
• Industrial policy and supportive institutional structure
• Investment and technology transfer
• SME development and access to finance
• Productivity and quality
• Industrial upgrading, sectoral technology support
• Cleaner production, energy efficiency
Standards & Conformity Assessment (UNIDO)
• Development and harmonization of standards
• Development of testing services including RM & PT
• Certification and accreditation schemes
• Training of auditors and inspectors
• Calibration chain
Integration into the MTS (WTO, UNCTAD, ITC, WB)
• WTO rules, negotiations
• Trade facilitation (customs, documentation)
• Infrastructure (transport, ports)
www.unido.org
TBT /SPS Agreement (Jan 1995)
TBT – Agreement on Technical Barriers to Trade
SPS – Agreement on Application of Sanitary & Phytosanitary Measures
 Recognises country rights to ensure:
Quality of imports/exports, Product Safety
Protection of human, animal, plant life, health, environment
 Aims to prevent standards/technical regulations creating obstacles to trade
 Recognises special problems of developing countries in this area
 Members shall, if requested ...grant assistance to developing country members
Key Challenges:
 Developing countries lack capacity to implement agreements
 Conformity assessment technology and standards evolve
 More technical assistance is needed
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WTO ACCESSION REQUIREMENTS
NO TA
PROVIDED
NO TA
PROVIDED
Forming Strategic Partnerships for Trade Capacity Building
UNIDO - WTO Agreement
September 2003
“The WTO – UNIDO agreement is a formal
recognition that assisting developing
countries to build capacities to produce
exportable goods is an important part of
“trade-related” technical assistance and
capacity building” Cancun, September 2003
Programme Modules
Module I
Module II
Remove
supply side
constraints
Prove
Conformity
with Technical
Requirements
Introduce
supporting
legislation,
policies and
institutional
reform
Strengthen
supply capacity
to improve
competitiveness
Support
compliance with
international
standards
Set up
accreditation/
certification
systems
UNIDO
Module III
Integrate
into the multilateral
trading
system
Strengthen
capacity for
implementation
of the WTO
agreements
and trade
negotiations
To be defined
by WTO
WTO
The resulting technical cooperation programme
involves focus on:
 Supply Chain Constraints
 Lack of Conformity Capacity to Int’l
Standards and Technical Requirements
 Marginalization in the Multilateral Trading
System
Pilot countries involved are Armenia, Cambodia, Cuba,
Egypt, Ghana, Kenya, Mauritania.
UNIDO - ISO Agreement
December 2003
Cooperation to ensure that
LDCs, developing countries and
economies in transition will be
able to reap the benefits of the
world trading system which is
made freer and fairer based on
international standards.
The team work will focus on
awareness creation and
competency building in the
respective countries. This will
materialize through workshops,
seminars and training on
standards development.
UNIDO - ILAC Cooperation
May 2004
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BIPM - OIML
• Draft MoU signed
• UNIDO - JCDCMAS
Joint Committee on Coordination of Assistance to Developing Countries in Metrology,
Accreditation and Standardization (JCDCMAS)
UNIDO is currently holding the JCDCMAS Secretariat for two years, 2006-2007
TRADE CAPACITY BUILDING
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“Fair Trade for All”:
Priority Areas to meet Product Standards Requirements
• “Developing countries lack the ability to assist 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 the following priority areas for assistance
1. A national/regional standards/standardization body
2. A national/regional metrology system
3. A certification/conformity assessment system
4. An accreditation system”
Source: J. Stiglitz & A. Charlton, Fair Trade for All – How Trade can promote
Development, Oxford University Press, 2005
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METROLOGY - a requirement for:
Scientific Research:
Accurate calibration of scientific instruments
Food Safety:
Calibrated thermometers, balances, a requirement
Laboratory Accreditation:
Calibration status of test equipment a requirement under ISO 17025
ISO 9001, ISO 14001 certification:
Calibration status of equipment
a clause under ISO 9001, ISO 14001
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MAJOR UNIDO TCB PROJECTS APPROVED DURING 2002 to 2006 (ONGOING)
Region/Country
Afghanistan
Algeria
Algeria
Argentina
Bangladesh
Cambodia
Central America
EAC
Ecuador
Egypt
Egypt
Ethiopia
Global
Global
Guatemala
Guatemala
Lebanon
Lebanon
Libya
Mekong
Mozambique
Nigeria
Pakistan
Senegal
South Asia (SAARC)
South Asia (SAARC)
South Asia (SAARC)
Sri Lanka
Syria
Tanzania
Tunisia
UEMOA
UEMOA (upgrading)
UNIDO Trust Fund
Uruguay
Vietnam
ONGOING - TOTAL:
Amount (US$ millions)
Donor
$1.00
$1.50
$1.00
$3.50
$9.00
$0.60
$0.50
$2.60
$0.20
$2.50
$3.10
$0.10
$0.30
$0.01
$1.80
$0.20
$2.00
$0.30
$1.00
$2.50
$2.00
$0.40
$2.80
$1.40
$0.20
$2.50
$0.50
$2.40
$2.66
$2.00
$3.00
$11.97
$10.00
$0.70
$1.21
$1.00
$78.45
World Bank (UNOPS)
France
Italy
Italy
EU
Austria
UNIDO
UNIDO/Norway
UNIDO
EU
Egypt
Denmark (DANIDA)
UNIDO (Trust fund)
UNIDO
Guatemala
Guatemala
Swiss (SECO)
Italy
UNDP
Norway (NORAD)
Swiss (SECO)
Nigeria + UNIDO
EU
France
India
Norway (NORAD)
UNIDO (Trust fund)
Norway (NORAD)
Italy
Swiss (SECO)
Italy
EU
EU
UNIDO
Italy
Swiss (SECO)
TCB PROJECT
PORTFOLIO
Total funding for
TCB recent &
ongoing projects:
US$ 78.45 mn.
SIGNIFICANT
FUNDING
MOBILIZED
TRADE CAPACITY BUILDING
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UNIDO Metrology Activities in Asian Countries
AFGHANISTAN
MALDIVES
BANGLADESH
NEPAL
BHUTAN
PAKISTAN
CAMBODIA
SRI LANKA
Lao PDR
VIETNAM
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Metrology Projects in ASIA: Sri Lanka
UNIDO’s SUCCESS QUOTED
Sri Lanka Project Typical TRTA Case Study
WTO/OECD Report on Trade-Related Technical
Assistance and Capacity Building (TRTA/CB)
Box 3: Sri Lanka - Quality, Standardization and Metrology Project
UNIDO
The Quality, Standardization and Metrology (QSM) Project, funded by
Norway (US$ 1.8 million) and UNIDO (US$ 500,000), which aims to develop
the metrology, testing and ISO 14000 capacity in Sri Lanka.
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Metrology Projects in ASIA: Sri Lanka
 Laboratories accredited in Sri Lanka through
• Microbiology (2)
• Chemical Testing (2)
• Garment/Textile (1)
• Metrology (1)
• Rubber testing (1) (assessment January 2007)
• Food Testing (1) (assessment January 2007)
 Support to environmental conditioning (USD 120,000)
 Training expertise provided
 Total: US$ 1.8 mn.
TRADE CAPACITY BUILDING
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Metrology Projects in ASIA: Sri Lanka
Sustainability
ITI Sustainability assured
Number of services
Income (LKR Mn.)
5000
4000
3000
2000
1000
0
50
40
30
20
10
0
2004
2005
2006 - projected
figures
Chemical and Microbiology
Lab.
2004
2005
2006 - projected
figures
Industrial Metrology Lab.
– New accreditation fees paid by labs
– Income rising, number of services increasing
sustainable
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Metrology Projects in ASIA: Sri Lanka
Sustainability
TT&SC Laboratory Performance (2002-2005)
Textile Training and Services Centre Laboratory
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2000
2001
2002
Number of tests
2003
2004
2005
Income (LKR 1,000)
80% of revenues are derived from the Private Sector testing activities
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Metrology Projects in ASIA: Sri Lanka
Laboratories targeted for accreditation to ISO/IEC 17025:2005
Food Testing Laboratory:
 Histamine in Fish
 Lead, Arsenic, Mercury & Cadmium in Fish
 Vitamin A in Milk powder
 Vitamin E in Margarine
Metrology Laboratory (expanded):
Rubber Product Testing Laboratory:
 IRH Hardness
 Shore A Hardness
 Heat ageing
 Change in volume (Effects of liquids)
 Density
 Dimensions
 Abrasion Test
 Tensile Properties
 Calibration of digital multimeters
 Calibration of volumetric glassware by the gravimetric method
 Calibration of Gauge Blocks
 Calibration of micrometers (External measurement)
 Calibration of Micrometers (Internal measurement)
 Calibration of Vernier Calipers
 Calibration of Dial Gauges
 Calibration of Meter rules
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Metrology Projects in ASIA: Pakistan
National Physical & Standards Laboratory (NPSL)
Lab upgrading, international accreditation, etc.:
• Expertise for assessing gaps against ISO 17025 standard
• Accreditation of calibration services
• Provision of equipment (mass comparator, weights, etc.)
• Study tours to NPL (UK), Sri Lanka, Malaysia on
environmental conditioning
• Support to environmental conditioning (€ 200,000)
• Proficiency testing scheme participation
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Metrology Projects in ASIA: Pakistan
Laboratories targeted for accreditation
in Pakistan through
(19 public sector testing laboratories)
 Microbiology (6)
 Chemical (6)
 Metrology (1)
 Textiles and leather (5)
 Electrical (1)
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Metrology Projects in ASIA: Vietnam
Laboratories targeted for accreditation
in Vietnam through
(assessment first quarter of 2007)
 Metrology (4)
 Microbiology (1)
 Chemical (1)
 Food Testing (1)
 Textile (1)
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Metrology Projects in ASIA: Vietnam
Metrology Laboratories targeted for accreditation to
ISO/IEC 17025:2005 through:
Quality Assurance and Testing Centre 3
(QUATEST 3), Ho Chi Minh City
 Mass Measurement laboratory
 Temperature Measurement laboratory
Vietnam Metrology Institute (VMI), Hanoi
 Mass Measurement laboratory
 Temperature Measurement laboratory
TRADE CAPACITY BUILDING
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Metrology Projects in ASIA: Vietnam
Testing Laboratories targeted for accreditation to
ISO/IEC 17025:2005 through:
Quality Assurance and Testing Centre 1 (QUATEST 1), Hanoi
 Textile testing laboratory:
Carries out physical and compositional
testing of textiles and garments.
Quality Assurance and Testing Centre 3 (QUATEST 3), Ho Chi Minh City
 Food testing laboratory:
Carries out a wide range of testing of
products, food and animal feedstuffs.
 Microbiology testing laboratory:
Carries out tests on fruits & vegetable
products, fish & fish products, milk &
milk products, and water.
National Fisheries Quality Assurance and Veterinary Directorate Branch 1
(NAFIQAVED 1), Hai Phong City
 Microbiology testing laboratory:
Carries out tests on fish & fish
products, and potable water.
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Metrology Projects in ASIA: Cambodia
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Metrology Projects in ASIA: Cambodia and Lao PDR
•
•
•
•
•
Metrology legal framework put in place
Metrology laboratories developed
Chemical & microbiology labs developed
Equipment supplied
Staff trained
• Legal metrology launched by UNIDO
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Metrology Projects in ASIA: Bangladesh
BANGLADESH QUALITY SUPPORT PROGRAMME
Bangladesh Standards and Testing Institute (BSTI)
capacity strengthened through:
- upgrading of laboratory equipment (30 years old) - USD 700,000
- assistance to comply with ISO 17025 requirements
- participation in inter-laboratory comparisons
- provision of staff hands-on training and overseas fellowships
- support to achieve international accreditation
TRADE CAPACITY BUILDING
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Metrology Projects in ASIA: Nepal
EC - NEPAL ASSISTANCE PROGRAMME
Nepal Bureau of Standards and Metrology (NBSM)
capacity strengthened through:
- support to laboratory environmental conditioning
- critical laboratory equipment gaps closed
- assistance to comply with ISO 17025 requirements
- participation in inter-laboratory comparisons
- provision of staff hands-on training and overseas fellowships
- support to achieve international accreditation
TRADE CAPACITY BUILDING
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Metrology Projects in ASIA: Afghanistan
SUPPORT FOR ESTABLISHING THE AFGHAN NATIONAL
STANDARDS AND METROLOGY AUTHORITY
Legal and institutional framework for quality, standardization,
metrology and testing established in the country, through
the Afghanistan National Commission on Standards,
Metrology and Quality (NCSMQ):
- assistance in the development of metrology and
standards laws provided
- metrology laboratory designed
- mobile testing laboratory developed
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Metrology Projects in ASIA: Bhutan and Maldives
MARKET ACCESS AND TRADE FACILITATION SUPPORT
FOR SOUTH ASIAN LDCs, THROUGH STRENGTHENING
INSTITUTIONAL AND NATIONAL CAPACITIES RELATED
TO STANDARDS, METROLOGY, TESTING AND QUALITY
- National standards and metrology
organization for Bhutan and Maldives established
- training expertise provided
- laboratory equipment gaps identified and selected legal
metrology equipment supplied
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LABNET: PORTAL
http://www.vimta.com/projects/labnet_recent
A UNIDO & WAITRO Initiative
Laboratory Development
‘CONCEPT TO REALIZATION’
Partners: BIPM, ILAC, ISO
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LABNET: PORTAL
Vision
• A one stop shop for all lab related development &
information activities
• Customized info by lab types
• Act as a common platform wherein students,
scientists, experts, entrepreneurs & vendors can
share their knowledge and expertise
• Provide seamless access to a range of lab related
information resources for users throughout the world
• In a nutshell, it will be a comprehensive online guide
for all lab related activities
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LABNET: PORTAL
Features
• Broad array of resources and services brought
together to one single source
• Sense of community
• Dynamic interface integration
• Integrated email alert functionality
• Interactive discussion forum
• Revenue generation features
• Event & Training Calendar
• Optimized search engine integrated
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LABNET: PORTAL
Benefits
Users and beneficiaries of LABNET features:
•
•
•
Registered Users
– Access to:
• Knowledge base
• Jobs & Trainings, etc.
Laboratories
– Guide for:
• Accreditation process
• PT programs
• Lab development, etc.
Vendors
– Showcase:
• Major lab equipment
• Support equipment e.g. lab
furniture etc.
•
Experts
– Provide:
• Consulting opportunities
• Knowledge sharing
• Networking, etc.
•
Member Organsations
– Offer:
• PT Programmes
• Training Sessions
• HR Management, etc.
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CONCLUSIONS
 TCB: a holistic approach to Trade Development - the 3 Cs
 Supply Competitivity
 Demand Conformity
 Market Connectivity
 Metrology – important for:
 Precision/Quality
 Accreditation
 Certification
 Testing
 Willing partner for APMP activities in the region
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