OECD Project
addresses
standards-related barriers in telecommunication equipment
Following its previous efforts
on technical barriers to trade, the Organization for Economic
Cooperation and Development (OECD) Trade
Committee undertook a project in 2001/2002 addressing the
telecommunications equipment sector.
The study examines
potential costs/benefits of international harmonisation as a means
for addressing standards-related trade barriers.
The OECD work
complements activities underway within the World Trade Organization (WTO)
Committee of Participants on the Expansion of Trade in Information
Technology Products (ITA Committee) examining the economic and
development impacts of Non tariff trade measures on trade in ITA
products)
The OECD project includes the
following elements.
An inventory of regulatory objectives
Possible objectives for regulation in this sector
(interoperability, avoidance of radio-interference, protection of public
network, health, safety, environment, etc) are examined to help understand
differences in national regulation and options for overcoming problems.
Standards
OECD Members' practises on use of standards in technical regulation
are surveyed according to the identified regulatory objectives. This
provides a factual basis for analysing the costs/benefits of international
harmonisation.
Conformity assessment
OECD
Members' practises on conformity assessment are also surveyed according to
the identified regulatory objectives. The various types of procedures are
analysed with a view to their effectiveness as tools for conformity
assessment: Suppliers Declaration of Conformity (SDoC), Third Party
Certification, accreditation, market surveillance and product liability
schemes.
Contributions
The OECD secretariat
requested ANSI member GTW Associates
to contribute to the
preparation of the staff paper. GTW Associates’ role is to
leverage contacts and relationships with government,
industry and private sector
organizations to discover
resources and information relevant to the study
objective. GTW
submitted preliminary findings Potential
for International Co-operation and Reduction of Trade Barriers arising
from Technical Requirements and Conformity Assessment procedures in the
Telecommunications Sector
GTW
Findings
1) The
Telecommunications ITA definitional scope of the effort could be expanded to include Information and Communications Technology products
with small impact on the complexity of the effort and major benefits to
industry sectors not presently included but within the scope of the WTO ITA
Committee work programme Initiated November 13, 2000 on non-tariff
measures
2) Costs of meeting technical regulations and related standards in the global telecommunications market are hard to quantify but are
significant. There exists significant potential costs savings to governments;
industry and consumers though any number of reform measures that reduce
unnecessary differences in technical regulations in various markets and ease the
burdens of multiple tests and certifications even to the same standard in
different markets. Economic savings accrue not only from the elimination of
duplicative activities, but significantly in reductions in time to
market for new products that need not meet different and potentially
conflicting standards
3) Many government; academic and industry groups have labored on this
issue. There are major common themes among the variety of groups' efforts,
results and plans. There also exist many strong "best
practice" examples implementing these themes. At the same time there are
significant opportunities to extend these best practice examples
to issues at hand.
a. Mutual Recognition Agreements where one country agrees to accept the results of another country's conformity assessments to the first
country's technical requirements offer one means of advancing International
Co-operation and Reduction of Trade Barriers arising from Technical Requirements and Conformity Assessment procedures in the
Telecommunications Sector But MRAs are resource intensive in creation in time
and professional effort. In the case of the US/EU MRA applicable to EMC and
Telecommunications, some industry representatives contend the best
outcome of the MRA was not the MRA text itself, but the regulatory
reform that occurred for the RTTE in Europe and FCC part 68 requirements in
the USA. In the case of the APEC MRA significant Implementation
hurdles remain.e.g. .For economies to fully realize the benefits that can
be gained from the MRA, it may be necessary for them to consider what is an
appropriate degree of regulation, taking into consideration the risk
that the regulated equipment poses
FCC's recent revision of Part 68 requirements offers a best
practice model in this regard. FCC revised its previous mandatory
requirement for a third party certification to provide the opportunity of market choice
between a third party certification and supplier Declaration of Conformity as the supplier may elect. The action frees up FCC resources for
enforcement efforts and preserves the important expert role for the testing and
certification community when called for.
Another best practice model is the APEC SCSC Collective Action Plan,
Whereby APEC members acting on a voluntary basis will consider permitting
information technology products (specifically, computers and computer peripherals, such as printers, monitors, and storage devices) to be
marketed in their economy on the basis of supplier's declaration of conformity.
Two final best practice models for consideration are the IEC CB
scheme which might facilitate the global acceptance of tests and
certifications to telecommunications standards and the South African regulatory model
where by compliance certifications are accepted from any laboratory within the
IEC CB scheme or accredited by EA (if such model could be extended to a global
counter part of EA such as ILAC).
In all instances, regulatory systems and reform measures should
contemplate the TBT obligations of "national treatment" not only with
respect to the products subject to regulation, but also with respect to the testing and
certification services that the regulatory system recognized or invokes.
b. To assist industry; regulators and consumers in verifying
information set forth in conformity declarations and certifications global
databases or Internet Web sites should be encouraged. Initiatives underway that
could serve as "best practice" models include DeclareNet; MRAMS; and
the FCC data base of part 68 certified equipment in transition to the private
sector.
c. Regardless of conformity assessment system used to show compliance to
its regulation, a country has to maintain a market surveillance system to
protect against Illegal and unsafe products Fair market conditions
should prevail. Suppliers which follow the rules and bear the administrative
costs and delays due to regulations should not be disadvantaged compared to
those who do not comply with the rules. Best practice
considerations in such market surveillance systems include:
· Costs should be viewed against the benefits for the whole economy, especially when supporting regulatory initiatives such as suppliers
declaration
· Some costs can be shifted to guilty parties
· Market surveillance must include communication as part of its
strategy
· Market surveillance must be backed by technical competence.
There may be considerable gains from co-operation through electronic technologies.
4) A major distinction must be made between the Technical
Regulations and standards applicable to products and the conformity assessment
requirements to be used to ensure that the products placed on the market conform to
the characteristics required. The maturity of the regulatory
objective and its implementation in various national regulatory systems dictates in any
specific case whether it is the "differences" in the standards
or the "duplications" of the conformity assessments that deserves
higher priority from the policy perspective.
a. In the case of "mature" regulatory objectives such as EMC
and electrical safety .there are by and large reasonably well accepted International
standards (see for example list of IEC Telecommunications
Standards in references) that can serve as a basis for technical regulations
(the exception being the current US/EU controversy over low frequency
conducted emissions) .and there will be therefore greater return for
investment in global solutions to the problem of multiple tests and
certifications to the same standard in different markets.
Best practice models here include the IEC work of CISPR on
electromagnetic compatibility and the new work underway in IEC TC 106 Methods for the
assessment of electric, magnetic and electromagnetic fields associated
with human exposure
b. In the case of "less mature" regulatory objectives such as
accessibility and environment.there do not exist international norms.and some means
and strategic policy attention to the importance of not creating
unnecessary requirements in the first place and then not creating unnecessary
differences in requirements is demanded. A prime example of
the issue is the treatment of accessibility requirements telecommunications
products as epitomized by Dale Hatfield's statement in 1999. there are many very
important standards-making efforts underway in this arena.
However, it is my understanding that there exists no single coordination point or
international clearinghouse for information on these efforts.
The Conclusions of the UN/ECE WORKSHOP ON THE ROLE OF INTERNATIONAL STANDARDS AND TECHNICAL REGULATIONS IN INTERNATIONAL TRADE in November,
2000 captures what would be a "best practice" global
approach to this problem.
Calls on UN/ECE Governments and international organizations:
to show their commitment to the facilitation of international trade by
wider
participation in international regulatory cooperation and international
standardization and effective implementation of the results;
to encourage effective coordination and cooperation between Governments
and regulatory authorities and economic operators, and different
international organizations and intergovernmental forums and to follow up on practical
proposals on regulatory cooperation, in particular sectors/product
areas; to involve, where appropriate, private-sector representatives in such
activities thus promoting a public-private partnership approach.
5) One initial objective of this project of completing a
"structured" inventory of the variety of potential regulatory objectives and their
implementation in various markets has been only partially achieved
by this study. Such a comprehensive survey remains a worth while task in
defining the dimensions of the current situation since it is the foundation for
concluding where priority attention may be best placed for the maximum positive results. This project effort could not have
produced the results contained in this report were it not for the considerable support and
cooperation GTW received from those parties noted in the Acknowledgments
section and in particular the APEC Implementation Project
Team
ICSCA
encouragement
Members of the Industry Cooperation for Standards and
Conformity Assessment (ICSCA) reviewed
the project at their February, 2001 meeting
in Singapore and passed the supportive resolution below:
ICSCA VII Resolution 6.8
welcomes the OECD ongoing initiative on Potential for International
Co-operation and Reduction of Trade Barriers arising from Technical
Requirements and Conformity Assessment procedures and encourages OECD to
expand the scope of the project to include Information Technology products
in order that the OECD work will have the greatest positive impact on the ongoing WTO ITA
initiative on NTMs. ICSCA members offer their continued cooperation for
further OECD efforts in this regard including potential for additional
product sectors.
Interim
analysis
The analysis so far has identified
three areas that appear to be candidates for international harmonisation:
Electrical Safety, EMC and Avoidance of Radio Interference. The research
is discovering that the OECD Members covered in this study tend to use
international standards in their technical regulations on Electrical
Safety and EMC, while many
challenges remain for achieving international harmonisation in the area of
avoidance of Radio
Interference, particularly reflecting the desirability of technology-neutral
standards.
The difficulties found in the
harmonisation approach for other possible regulatory objectives
(Environment, Health, Protection of Public Network, Interoperability, etc)
raise questions about whether international harmonisation would be a
preferred option for addressing trade problems associated with standards.
Next
Steps
The initial findings are contained in
a preliminary paper: Standards-Related
Barriers and Trade Liberalisation: Telecommunications Sector Study-
Interim Report
The
OECD secretariat will refine the analysis
by consulting with interested parties based on the interim report
and issue a final report before the end
of 2001. Any parties
who desire further information are
invited to contact Keiya Iida
OECD staff to the project or George Willingmyre at GTW Associates.
George
Willingmyre is President of GTW Associates. GTW Associates
(www.gtwassociates.com
) is an international standards and conformity assessment trade policy
consultancy. GTW consults for companies, organizations and governments on
the strategic impacts of standards and conformity assessment in the global
market. Mr Willingmyre was
Vice President of the American National Standards Institute from 1989
through 1995. George
Willingmyre (gtw@gtwassociates.com)
301.421.4138 GTW Associates 1012 Parrs Ridge Drive, Spencerville, MD 20868
Previous OECD work is available at the OECD
site (Regulatory Reform and International Standardisation [TD/TC/WP(98)36/FINAL],
An Assessment of The Costs For International Trade In Meeting
Regulatory Requirements [TD/TC/WP(99)8/FINAL] and Standardisation and
Regulatory Reform: Selected
Cases [TD/TC/WP(99)47/FINAL].