Jeff Grove ASTM International WTO/TBT and Beyond Jeff Grove ASTM International On behalf of the 35,000 individuals members of ASTM International from 125 different countries, I would like to thank you for this opportunity to take part in this important dialogue.

Standards and Regulatory Objectives in the Global Economy We are all after the same things Reduce non-tariff barriers that impede the flow of goods and services Cut the cost of differences in regulation and standards Increase compatibility, transparency, and cooperation Foster innovation and technology transfer Boost the competitiveness of SMEs and companies We want policies that advance trade and promote greater prosperity In today’s global economy, companies, governments, and standards bodies all over the world are after the same objectives. Reduce non-tariff barriers that impede the flow of goods and services – by relying on globally recognized standards. Cut the cost of differences in regulation and standards so that our companies can produce safe and efficient products that are accepted in the global marketplace. Increase compatibility, transparency, and cooperation so that suppliers, manufacturers, customers and regulators can work together and make informed decisions on standards. Foster innovation and technology transfer so that we can commercialize new developments in technology in ways that our companies and consumer can benefit. Boost the competitiveness of SMEs and companies as we know how important they are to our economies. In summary - We all want more trade and greater prosperity that will result in a better quality of life for our people.

Standards Systems that Enable Open Engagement Deliver Global Standards Open and transparent process All are welcome to join and all votes are equal, regardless as to nationality Direct participation model Individuals vote, not official country delegations Reduce barriers to participation Low membership and access costs Provide translations as needed Utilize web-enabled standards development technology that facilitates global engagement Digital path for collaboration and standards development Virtual meetings make it possible to connect and share ideas Organizations such as ASTM International are taking many steps to invite the world to be part of our process.

Attributes of our Global Approach Our members and stakeholders find that the attributes of our Global Approach to Standardization serves their needs and helps them to accomplish their global business objectives. Direct and equal participation for everyone - Individuals vote, not official country delegations. It’s a Needs Drive Approach where the members decide priorities and shape and the technical content of the standards. We don’t get mandates from governments, and ASTM staff does not direct the process. We focus on keeping the science in the process, but the politics out of the process. This results is standards that are recognized around the globe for their technical quality and global relevance. We require balance and consensus – so that users of materials and products are equally represented as producers and manufacturers. To avoid unnecessary duplication of effort and resources, we seek to reference the work of others where possible. ASTM standards contain about 1000 references to ISO standards. In addition, there are about 100 references to EN's in many areas including amusement rides, sports equipment and consumer products. Finally, problems and disagreements are solved on an expert to expert basis on the basis of scientific discourse, nit on political pressures and other factors When parties object to the consensus based decision, the decision can be appealed to standing committees and even the ASTM Board of Directors. So its an open, transparent, and inclusive process.

Our Global Approach is Helping the World to Work Better We provide a global forum for standards development experts from 125 countries collaborate for global consensus We deliver global standards that enhance the health, safety and reliability of materials and products while facilitating trade 6,400 ASTM standards adopted or referenced in 80 countries UN/ECE, OECD, UNFCC, ICAO For over 115 years, ASTM International has been on the forefront of standardization. We are a leading member of the World Standards Community. Today, we are helping the world to work better by: We believe that today’s global market place demands technical solutions and standards that are grounded in quality and relevance, but that are blind to national boundaries.

ASTM Embraces WTO TBT Principles

Why it matters… Access, Knowledge, Influence and Cooperation between ASTM and Russia is important: ASTM looks to open more pathways for global business For Russian interests, ASTM standards serve as gateways to market access in North America and elsewhere as U.S. buys $27.0 billion in goods from Russia each year (2013): Mineral Fuel (oil) ($19.4 billion) Iron and Steel ($1.6 billion) Inorganic Chemical ($1.4 billion), Fertilizers ($815 million) Precious Stones ($813 million) ASTM standards and test methods are referenced in the regulations and procurement specs for all these goods

Moving Beyond WTO TBT: Current Challenges Trade Policies of the European Union Go Beyond WTO TBT and Could Threaten Openness and Choice in the Global Standards Marketplace We believe that the current system is working well and the needs of industry and consumers are being met.

Transatlantic Trade and Investment Partnership (T-TIP) EU-US Standards Systems Both the US and the EU are signatories to the WTO Technical Barriers to Trade Agreement. Divergent pathways to implementation. So now standards are front and center as the European Commission and US are negotiating the TTIP. While we share the same goals and objectives, we go about them much different when it comes to our respective systems of standardization. While the European system has been very effective to facilitate the workings of the Internal Market of Europe, it does not connect well with the U.S. system and the standards systems of our free trade partners. The primary differences are over important issues such as participation models, the recognition and use of international standards, and the indirect referencing of certain European standards.

Divergent Views on “International’ European View Officially designates international standards bodies as “the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC) and the International Telecommunication Union (ITU).” US View Promotes the view that there are multiple paths to the development of international standards and encourages the public and private sectors alike to make standards-related decisions through the interpretation and application of the WTO/TBT principles. Next, the U.S. promotes the view that there are multiple paths to the development of international standards. U.S. regulators fulfill their World Trade Organization commitments by referencing standards from ASTM and many other global standards bodies such as ISO, ASME, UL and others based upon important international principles articulated by the WTO Technical Barriers to Trade Committee. However, the European Regulation on Standardization (EU) No 1025/2012 takes a more proscriptive view by officially designating “the International Organisation for Standardisation (ISO), the International Electrotechnical Commission (IEC) and the International Telecommunication Union (ITU)” as international standards bodies. This conflicting policy complicates opportunities for EU-U.S. cooperation in standards unless it is pursued through the bodies officially recognized by EU regulation.

Divergent Views on “Openness” European View European experts working through European Standards Organizations to reach a European consensus. US interests are not allowed to participate directly in European standards organizations. US View Direct participation of individual experts from all countries to reach a global consensus. US standards organizations are open to direct European participation. 1,500 EU members When it comes to the important principle of “Openness”, the European system is limited primarily to European experts working through European Standards Organizations to reach a European consensus. US interests are not allowed to participate directly in European standards organizations. In some instances, the European standard is then harmonized with ISO and IEC under formal cooperation agreement. Under the system recognized in the US and many other countries outside of Europe, Direct participation of individual experts is encourage from all interested countries to reach a global consensus. US standards organizations are open to direct European participation. In fact ASTM has over 1,500 members from Europe – some of which sit on our Board of Directors and lead certain ASTM standards development activities.

Standards to Implement Legislation European Approach European standards and/or ENs harmonized within ISO, are indirectly referenced in New Approach Directives and are endowed with a presumption of conformity to the essential requirements. However, standards from outside the EU or ISO receive no equal treatment. US Approach US regulators choose from a broad portfolio of standards and reference standards from US domiciled organizations along with those of ISO, IEC, and European standards bodies such as DIN and BSI. The use of standards to implement legislation and technical regulations also complicates convergence. For instance, there are 4,000 European standards that are referenced as part of 30 New Approach Directives covering products and materials used in construction, packaging, toys, medical devices, equipment and machinery. The “indirect reference” of these European standards means that while their use is voluntary – doing so meets the essential technical requirements of a directive and provides certainty in the form of a presumption of conformity with such requirements. However – this indirect reference and presumption of conformity is exclusive to European standards and those European standards harmonized through ISO and IEC. There is no legal mechanism that exists to permit global standards from U.S. domiciled standards organizations to receive the same benefit or to be treated on equal footing. In the US - regulators have the flexibility to choose from a broad portfolio of standards and reference standards from US domiciled organizations along with those of ISO, IEC, and European standards bodies such as DIN and BSI.

Relationships with other Standards Development Bodies European Approach Offer NSBs observer status in CEN committees Encourage adoption of CEN standards as national standards and withdraw of conflicting standards Encourage adoption of an European regulatory structure like the “New Approach” ASTM Approach 85 NSBs can participate in ASTM standards committees as equals May choose to nationally adopt or reference ASTM standards as they see fit, including referencing more than one standard ROSSTANDART may request permanent observer status in CEN and/or CENELEC technical bodies. Under this observer status, Russia is encouraged to adopt European standards as national standards, and to withdraw conflicting national standards. This will further harmonise EU and Russian standards and catalyse increased cooperation and increased trade.

Moving Forward… ASTM seeks to enhance our level of cooperation and work with government and standards officials and industry to: Promote a global marketplace that is open, efficient, free of costly duplication, free of technical barriers, and free of national or regional limitations Produce high-quality and market relevant standards that advance R&D, product manufacturing, testing, quality assurance, marketing, and trade for both companies and SMEs Advance the ability of industries to choose the standards which best meet their needs, regardless of which side of the Atlantic they are developed Our global approach to standards development and use can help the world to work better through improved products, increased trade, and greater prosperity for the future. Whether its as part of a Free Trade Agreement or through enhancing our level of cooperation, ASTM seeks to work to: Seek a global marketplace that is open, efficient, free of costly duplication, free of technical barriers, and free of national or regional limitations Produce high-quality and market relevant standards that advance R&D, product manufacturing, testing, quality assurance, marketing, and trade for both companies and SMEs Promote the ability of industries to choose the standards which best meet their needs, regardless of which side of the Atlantic they are developed Together, we can help the world to work better and provide our citizens with greater prosperity and safety While growing as members of the World Standards Family

Thank you. Jeff Grove Vice President Global Policy ASTM International jgrove@astm.org