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Keynote
Address |
Dr. Hidetaka IMAI, Chairman of the Asia-Pacific Metrology Programme,
His Excellency Mr. Pornthep Techapaibul, Chairman of the Board of the National Metrology,
Distinguished participants,
Ladies and Gentlemen,
1) First and foremost, I must express my sincere appreciation to the National Institute of Metrology of Thailand for inviting me to deliver a keynote address at this special event. Indeed, it is a great pleasure and privilege for me to speak before this distinguished audience at the16th Asia-Pacific Metrology Program (APMP) Symposium. And, I am truly confident that this symposium will be successful in achieving its goals and objectives.
2) My topic today is “Technical Barriers to Trade and Roles of Metrology and Standardization”.
Ladies and Gentlemen,
3) In the history of mankind, civilization has closely been associated with the development of trade. As we embark on the Millennium, the world is becoming increasingly connected by trade and financial flows. Evidence can be seen as more than US$1.5 trillion is now exchanged in the global currency markets each day, and nearly a fifth of the goods and services produced are traded each year.
History of Metrology
4) Most of us may be aware that ever since people began trading with their neighbours, measurements have been necessary. Yet, during the early days of history, measurements were not very accurate or reliable. For instance, our foot-rule started out as the length of a man's foot. But human bodies come in different sizes so ‘a foot length’ in the early period could vary sometimes as much as 3 or 4 inches.
5) In order to ensure smooth trade transactions, a form of standard measurement agreed upon by trading parties is essential. At the end of the 18th century during Napoleon's time, the French government adopted a new and better system of standards called the metric system. The metre was supposed to be one ten-millionth part of the distance from the North Pole to the Equator when measured on a straight line running along the surface of the earth through the capital of France, Paris. The British, on the other hand, came up with the Imperial system of weights and measurements based on inches and pounds but later converted to the International System of Measurements or SI.
[Note: SI units are Meter, Kilogram, Liter].
6) Across the ocean, in 1821, John Quincy Adams - the Secretary of State who later became the sixth U.S. President - wrote a comprehensive report for the United States Congress based on a four-year study of a measurement system. The following is an excerpt from the report:
"Weights and Measures may be ranked among the necessaries of life to every individual of human society. They enter into the economical arrangements and daily concerns of every family.
The knowledge of them, as in established use, is among the first elements of education, and is often learned by those who learn nothing else, not even to read and write. This knowledge is riveted in the memory by the habitual application of it to the employments of men throughout life."
Standardization
Ladies and Gentlemen,
8) Standardization is by all means necessary to ensure the reliable quality and safe operation of products. However, different levels of technology, economic development, cultural traits, market environments and industrial policies in nations have led to disparities and inconsistencies in the development of standards. As such, we frequently witness varying standards in different countries for the same product. The existence of these non-harmonized standards can contribute to the so-called “technical barriers to trade” which can partially impede the international trade flows. Therefore, there is a pressing need for the world community to agree upon the same world standards in order to help facilitate the international trading process.
International Standardization
9) In this light, the International Organization for Standardization (ISO) – a non-governmental organization - was founded in 1947 to promote the development of standardization. It aims at facilitating the international exchange of goods and services, and developing cooperation in intellectual, scientific, technological and economic activity. Its work, however, does not include electrical and electronic engineering standards, which fall within the scope of the International Electrotechnical Commission (IEC).
Technical Barriers to Trade
Ladies and Gentlemen,
10) The world in the 21st century will unequivocally be even more integrated and more trade interdependent. The volume of international trade has been rising, and much of this is due to the combination of advanced information and communication technologies and the remarkable efforts of the GATT/WTO to dismantle trade barriers, especially in tariffs, over the past eight rounds of multilateral trade negotiations. Nevertheless, a number of cleverly disguised non-tariff barriers such as Anti-Dumping, unnecessary standards and technical regulations are instead being frequently adopted.
TBT Agreement
11) To remedy this problem, the WTO’s Agreement on Technical Barriers to Trade (TBT) - a modification of the code negotiated in the 1973-79 Tokyo Round- prohibits the uses of technical regulations, product standards and conformity assessment as unnecessary obstacles to international trade. The Agreement requires that technical regulations and product standards shall be applied on a non-discriminatory and national treatment basis to imported products. However, product standards are not considered as unnecessary barriers to trade if they are based on internationally agreed standards. In Annex 3 of the TBT Agreement, there exists the Code of Good Practice for the Preparation, Adoption and Application of Standards for standardizing bodies in central governments as well as local governments and non-government bodies.
12) Under article 10, all WTO members are required to establish national enquiry points to ensure availability and convenience in obtaining the information concerning technical regulations or standards in their countries. This will enhance transparency and manufacturers and exporters will be able to know the latest standards in their prospective markets.
13) The
procedures used to decide whether a product conforms with national standards
must be fair and equitable. Under Article 9 of the TBT Agreement, the WTO
Members are required, whenever appropriate, to formulate and adopt international
systems of conformity assessment. Nonetheless, the Agreement does not exactly
specify which international organizations are to be used as the basis for
adopting such technical regulations. But the following organizations are the key
institutes in developing standards applicable to industrial products:
- International Organization for Standardization (ISO);
- International Electrotechnical Commission (IEC); and
- International Telecommunication Union (ITU).
Ladies and Gentlemen,
14) The TBT Agreement also encourages countries to recognize each other’s Conformity Assessment Procedures (CAPs). International trade agreements are increasingly calling for mutual recognition of measurements and tests between trading nations. Thus, a product can be assessed to see if it meets the importing country’s standards through testing in the country where it is made.
15) The mutual recognition agreement (MRA) is an intergovernmental stipulation by which each signatory recognizes the others' competence to test and assess the standards. Hence, the purpose of an MRA is to reduce the need for multiple testing resulting in lower costs and decreasing the time taken to bring new products to the market.
16) The mutual recognition arrangement between organizations within the region or between regional organizations has been proceeding at a satisfactory pace. And, I am delighted to hear that the metrology community has reached a consensus and signed the Global Mutual Recognition Arrangement in Paris in October last year. It will certainly set a good framework for the recognition of the measurement results of different national metrology institutes. Although actual implementation of the global MRA remains to be fulfilled, this event truly marks a milestone in our metrology history. I would like to take this opportunity to congratulate the metrology community for such a successful endeavor.
Ladies and Gentlemen,
17) As for the regional level, the Asia-Pacific Metrology Program (APMP) has undoubtedly played a critical role in promoting the coordination of metrological activities and services within the region. Its goals are to achieve greater harmony of measurement and testing within Asia-Pacific and build mutual confidence in measurement between members. It also attaches great importance to improving the national level of metrology through international traceability. The APMP’s technical and financial assistance is to heighten international recognition and credibility for its Members. I would also like to commend their noteworthy efforts.
18) Within
ASEAN, work is under way in an attempt to harmonize all these different
standards. ASEAN member states acknowledge that the MRAs for conformity
assessment activities could be an important means of eliminating technical
barriers to trade and enhancing market access. Such mutual recognition could be
of particular interest to small and medium-sized businesses in ASEAN. The
successful harmonization of such standards would certainly help cut down
unnecessary costs (in testing and inspection) for exports among ASEAN nations.
National Level
19) With the emergence of the global economy, Thailand is fully aware of the increasing importance of measurement standards between international trading partners. The National Institute of Metrology (Thailand) was established in 1998 as the key provider of internationally traceable measurements. It plays a pivotal role in underpinning Thailand’s industrial competitiveness by providing vital elements of the measurement standards as well as a calibration service for laboratories. Hence, a chain of traceability becomes possible. Measurements of time, length, mass, electric current, thermodynamic temperature, and luminous intensity are included in the institute’s scope of responsibilities. Their service contribution is of inestimable value.
Ladies and Gentlemen,
20) Regarding international standards, developing countries are clearly at a disadvantage. They are lacking both the full capacity to engage in standard development and the necessary infrastructure to meet obligations to international standards set by the ISO and IEC. Under Article 11 of the TBT Agreement, Members are held to provide advice and “grant technical assistance on mutually agreed terms and conditions regarding the establishment of national standardizing bodies, and participation in the international standardizing bodies.”
Special and Differential Treatment
21) Article 12 of the TBT Agreement includes provisions to help ease the difficulties that developing countries may encounter in meeting the requirements of the Agreement. These include the obligation on developed country members to take into account the special development and trade needs of developing countries in the implementation of the Agreement.
Ladies and Gentlemen,
22) In conclusion, with industrial products representing an increasingly larger share of the world’s total export volume, quality control to meet international standards has become a critical issue. As more developing countries are integrated into the world market, their success will depend on the abilities to conform with the standards under the multilateral disciplines and internationally recognized measurement system.
However, developing countries’ weaknesses in terms of technical capability, human resources and financial resources are clearly evident. These shortcomings have prevented these countries from realizing the full benefits of international trade. Hence, I feel it is incumbent upon the industrialized nations to help the national metrology institutes of the developing countries improve their technical capability.
It is also crucial that developing countries strive to have a more active role in setting the international standards. More effective representation by developing countries in the international standardizing bodies will help ensure world standards to be more realistic and relevant to the actual needs. Standards should not be set unnecessarily high so as to create technical barriers to exported products from developing countries. This, in turn, will reduce the unnecessary costs to the producers of exporting goods. International standards must therefore reflect the real needs of consumers.
Regional cooperation in the metrology field can be very useful in assuring our future uniformity and harmonization progress. I am convinced that international uniformity in measurement standards will play a vital role in ensuring smooth transactions in international trade.
Thank You.