International Trade Forum - Issue 3/2010
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More than 900 regulators and industry representatives were
trained and provided support
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Quality is a prerequisite for successful market access and
increasing revenues from export, but meeting technical requirements
in the international marketplace is a challenge for many
exporters.
According to ITC research, approximately 80% of the problems
faced by exporters are in the area of technical barriers to trade
(TBT) and sanitary and phytosanitary measures (SPS). ITC experience
suggests that exporters in developing countries experience four
main challenges to overcoming technical barriers to trade and in
accessing new markets:
- Obtaining information about the mandatory technical
regulations and voluntary standards applicable in the importing
country;
- Adapting their products to meet these requirements
efficiently;
- Demonstrating that the products meet the relevant
requirements; and
- Obtaining the necessary support at each step from the
national quality infrastructure, which in many developing countries
is not up to standard.
ITC's Export Quality Management Programme has developed an
integrated approach to overcoming these challenges with a two-part
strategy that includes capacity building through training
programmes and advisory services to enterprises, conformity
assessment bodies and policy-makers.
Knowing
Technical Requirements
Standards and conformity assessment play a key role in
facilitating trade but it can be difficult for small and
medium-sized exporters to understand the complex issues involved.
Through sector-specific workshops and practical guidebooks, ITC
seeks to inform exporters and trade support institutions about the
technical requirements in these sectors.
For example, the export potential of developing countries in
fisheries is hampered by the lack of awareness about requirements
for exporting fish and fishery products. To address this, workshops
were organized in many South Asian countries, where representatives
of the private sector and the competent authority gained a common
understanding of the issues involved. The workshops were supported
by an easy-to-understand Export Quality bulletin, entitled
Exporting Seafood to the EU.
The Association of Southeast Asian Nations (ASEAN) established a
Cosmetic Harmonized Regulatory Scheme that emphasizes post-market
surveillance instead of pre-market approval and good manufacturing
practice to facilitate trade in cosmetics in the region. The Asia
Trust Fund, a joint ITC-ASEAN Secretariat initiative, helped a
number of ASEAN member countries to implement this scheme through
the delivery of an in-depth mentoring and training programme for
more than 900 regulators and industry representatives. A network of
20 experts was established and trade in cosmetics was enhanced when
the scheme came into effect in January 2008.
In Bangladesh there was limited awareness about how the WTO
Agreements on TBT and SPS (see page 24) could be used to enhance
market access. A train-the-trainer programme focused on developing
training materials customized for local trainers in various
sectors, taking into account national needs. Workshops on these
agreements were conducted across a number of sectors including
fisheries, horticulture, agro-processed foods, textile and leather
products. More than 300 participants from the private sector and
government are now in a better position to obtain information on
and comply with technical requirements. Furthermore, after the
completion of the ITC programme, local trainers established STCG -
an SPS/TBT consulting group which aims to educate other
stakeholders through workshops and collaboration with trade
bodies.
Improving Quality and Meeting Complex Technical
Requirements
There is also a need for small and medium enterprises to
implement basic quality-control measures to enhance their export
readiness. In Bangladesh, ITC intervention had a positive impact in
the light engineering sector. For example, one particular business
saw a 30% increase in productivity combined with a 20% increase in
sales and a 4% reduction in product returns within six months.
In Kyrgyzstan and Tajikistan, ITC advisory services on the
implementation of ISO 22000 standards for food safety management
enabled the export of agro-processed foods to the German market.
This approach was further refined in Bangladesh where
trainer-cum-counsellor competencies were upgraded to ensure
sustainability after completion of the project.
Without managing the whole supply chain, it is becoming
increasingly difficult to do business in the international market.
In Bangladesh, ITC conducted workshops with 25 exporters to improve
the compliance rate of horticulture products with the requirements
of regions such as the Middle East and the European Union (EU).
Exporters were trained on various aspects of good agricultural
practice, cold-chain management, traceability, contract farming,
packaging, quality and marketing. As a result of the project, 10
exporters formed the Bangladesh Agro Produce Exporting Company
(BAPEXCO) Ltd, a joint venture applying the project recommendations
to contracted farmers and marketing their produce under a common
brand.
Demonstrating Conformity to Technical
Requirements
After meeting the requirements of target markets, exporters have
to demonstrate conformity that is acceptable to buyers and
regulators. Unfortunately, the lack of accredited conformity
assessment bodies in many developing countries results in
enterprises having to undergo costly recourse to foreign bodies.
ITC provides advisory services to existing conformity assessment
bodies to enable them to be accredited or recognized in target
markets. As an example, the competent authority for fisheries in
the Philippines was strengthened to enable it to maintain its
recognized status with the EU, thus the export of fisheries to the
EU, which was under threat, was maintained.
Upgrading Quality
Infrastructure
Strengthening quality infrastructure is complex, expensive and
time-consuming, but it is a crucial element in ensuring
competitiveness of the export sector. For example, countries which
were part of the former Soviet Union did not meet international
quality infrastructure requirements due to conflict of interest
because the same body was responsible for conformity assessment and
accreditation. The quality infrastructure was assessed in four
Central Asian countries, previously part of the former Soviet
Union, and technical assistance was provided to close some of the
gaps and bring them closer to international requirements.
The assessment indicated the need to develop a methodology which
resulted in the ITC publication Road Map for Quality -
Guidelines for the Review of the Standardization, Quality
Management, Accreditation and Metrology (SQAM) Infrastructure at
National Level. It was used recently in Chad where a road map
was set up for the development of a national quality system, with
emphasis on the establishment of a national standards body. The
road map has been accepted and resources are being mobilized for
its implementation.
Further reading: See the Directory on page 39 for relevant
ITC tools and publications. For information about ITC assistance in
Export Quality Management (Enterprise Competitiveness Section)
visit www.intracen.org/eqm or contact quality@intracen.org