International Trade Forum - Issue 3/2010
In this issue of International Trade Forum, we address the need
for exporters from developing countries to conform to international
standards as a prerequisite for entering new markets - whether they
be in the North or the South. ITC believes this is a fundamentally
important part of export competiveness and, for this reason, we
invest in capacity building for small and medium-sized enterprises
in this area.
With the globalization of production and supply chains,
complying with international standards is vital. Export businesses
must develop the capability to conform to requirements in terms of
quality, safety, health and the environment if they are to
participate successfully in global markets.
The gradual reduction of tariff barriers to facilitate trade has
been accompanied by an increase in non-tariff barriers consisting
of technical regulations and sanitary and phytosanitary measures,
imposed by governments to protect the health and safety of their
citizens and the environment.
In addition, the proliferation of voluntary and private
standards dealing with environmental and social issues, established
by national, regional and international standards setting bodies,
as well as retailers and consortiums, has also resulted in complex
challenges for exporters. Environmental and social concerns have
led to standards for carbon footprints and environmental management
systems, social accountability, labour standards, food safety and
specific sectoral requirements.
The rise of the 'conscious consumer' in developed markets and
the corresponding demand for ethically produced, eco, 'green' and
organic goods has also seen a parallel increase in the demand from
consumers for products to comply with voluntary standards and prove
conformity through certification marks.
Exporters need support from their national quality
infrastructure to meet increasingly stringent and constantly
changing mandatory and voluntary technical requirements.
Unfortunately, the quality infrastructure in many developing
countries is often inadequate and does not meet exporter's needs.
Despite this, exporters are often reluctant to work with foreign
service providers due to high costs and administrative
difficulties.
Setting up quality infrastructure is complex, expensive and
time-consuming, but it is a crucial element of export
competitiveness. As establishing such infrastructure requires a lot
of investment, consideration could be given to regional approaches.
It is also vitally important to engage the private sector. A
concerted public-private partnership can go a long way to
establishing infrastructure of the required quality.
Adopting a proactive approach to standards, through
participating in and influencing the development of standards for
products that are of national export interest, and taking the
specific needs of exporters into account, would place them in a
better position to meet the demands of international markets. It is
imperative for developing countries not only to comply but also to
assume the responsibility for being standard-makers for products of
export interest.
For countries yet to install the necessary quality
infrastructure to help their exporters meet market requirements,
the path to effective systems is well defined with the precedent of
many good examples to follow and opportunities to influence
standards. This highlights the need for information sharing and for
benchmarking performance between countries.
As many of the examples in this issue demonstrate, while there
are many challenges to overcome in meeting international
requirements, whether mandatory or voluntary, producers and
exporters have a lot to gain. The benefits range from better access
to global markets, to improved management and monitoring systems,
increased productivity, improved farming and production processes,
and better access to credit. But it is crucial that exporters and
producers understand the opportunities and risks involved in
complying with international standards.