United Nations Economic Commission for Europe Symposium Towards a better regulatory environment in countries with economies in transition R.Pocthier -

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Presentation transcript:

United Nations Economic Commission for Europe Symposium Towards a better regulatory environment in countries with economies in transition R.Pocthier - October 23, 2007

Agenda n Our Industry: Earth Moving Machines n A better regulation environment  Use of International Standards  UN model legislation  WTO - TBT n Industry contribution n Conclusion

Our Industry: Earth Moving Machines

Our area of competency: Earth Moving Machines Machines for excavating, loading, transporting, spreading and compacting earth and other materials. Machines designed according to performance based specifications of ISO standards developed in ISO/TC 127

What is a better regulation environment?

A better regulation environment should lead to global Market Access. It should be based on international standards

Why are international standards so important? n Give a good foundation for the development of new regulations n Provide performance based specifications to design our machines n Widely accepted because developed by the very best international technical experts n Facilitate communication in an international market n … We are in a low volume and global market that needs global standards and regulations to avoid producing different machine models for Asia, Europe and North America

General Standards Strategy n Develop and maintain a complete set of reasonable ISO standards, and help promote the ISO standards as national standards and regulations for all countries.

Standards in National Regulations n The ISO/TC 127 Standards are used for compliance with regulations in the EU, the USA and in Japan. n The ISO/TC 127 Standards are being promoted as national standards and as the basis for regulations for China, Russia and India. n China is actively adopting the ISO standards and we are trying to work with Russia to encourage the adoption and use of UN/ECE Common Regulatory Objective (CRO) based on ISO standards.

A regulatory technique which make use of standards UN/ECE INTERNATIONAL MODEL A regulatory technique which make use of standards Essential safety requirements, Conformity assessment procedures, marking provisions etc TECHNICAL REGULATION: STANDARDS: making reference to

UN/ECE INTERNATIONAL MODEL n “An International Model for Technical Harmonisation based on Good Regulatory Practice for the preparation, adoption and application of technical regulations via the use of international standards” prepared by a team of specialists on STandardization And Regulatory Techniques (“START” Team) was finalised at the annual session of the UN/ECE - WP on Technical Harmonization and Standardization Policies, October 2001 n The UN/ECE – WP.6 agreed: that the “International Model” provides a voluntary framework which could contribute to the facilitation of market access through establishing sectoral agreements between interested UN member countries

WTO TBT Agreement and International Standards Art 2.4 states “Where technical regulations are required and relevant international standards exist….Members shall use them….as a basis for their technical regulations except when ….” Art 2.6 states: “With a view to harmonizing technical regulations on as wide a basis as possible, Members shall play full part, within the limits of their resources, in the preparation …. of international standards for products for which they either have adopt, or expect to adopt, technical regulations.”

Advantages for a regulatory technique which make use of standards – for cooperation with other countries At the 1st WTO/TBT Triennial Review, the TBT Committee reiterated that good regulatory practice for the preparation, adoption and application of technical regulations was a priority for Members to facilitate trade and the Committee agreed at the 2nd Triennial Review to continue an information exchange in this regard while noting that minimizing the use of mandatory technical regulations and using voluntary international standards, where appropriate, could reduce the regulatory burden and open up market access opportunities.

What is our industry doing to contribute to a better regulatory environment?

Russia – New Technical Legislation Background n Up to now:  no Technical Legislation ; State Standards regulate all Technical Regulation. They are mandatory documents.  In addition to State Standards we have Industry Standards and Regulations. Ministries do supervise the product compliance.  We have to work with 4 Certification Bodies Ministry of Communication (Gen Sets) Gosgortehnazor/Rostehnatzor (Safety Ministry – dangerous products) GostR Hygienic n Duma approved a new Russian Federal Law N on Technical Regulation in Y2002, which has been revised in Y2007

What did we do? Since the law did not provide a formal structure or process we had to find an acceptable course of action 1. Create an Industry Association in Russia? 1.Local Association? 2.Support from existing International Association (I.e: AEM, CECE)? 2. Write our own draft TR? 3. Create an International Working Council?

Course of Action n Creation of a RF President Expert Council in May 2005 n Success in building the foundation for the future of a National Industry Association n First meeting took place in Moscow June 1, 2005 n Council has 25 members / 4 foreigners. All very professional. Russian members represent Industry, Associations & Instituts/ Universities. The foreigners include: –European Trade Association (CECE chairman– Jan Mimer /Volvo) –Japanese Trade Association (CEMA chairman - Kenzo Tamake /Komatsu) –USA Trade Association (AEM– Dan Roley /Caterpillar) –Industry (Standards & Regs – Roger Pocthier /Caterpillar

Course of Action  Promoted the use of ISO Standards / UN ECE model legislation CAT translated ISO20474 in Russian language n Promoted to use of Manufacturer self declaration n In line with Western industry practices n Draft of TR written  We proposed to provide Training and Assistance for  Understanding of ISO Standards Process  Participating in the development of ISO/TC 127 Standards  Using the technical requirements in the ISO/TC 127 Standards in Regulations

Challenges n We must continue to explain the process in our council & at political level.  Some Russian are interested and convinced about the benefits of international regulatory convergence and the use of international standards but others still believe that the actual system is better for them. n Funding are required to work out draft TR  International community/Associations provided financial support  Caterpillar has spend substancial amount of resources to drive the process in the right direction n We are face with a very complex political situation. n Interpretation of the law is difficult and consensus is not always found even between Russian experts. n We have to overcome communication difficulties  Gaps enhanced by cultural disconnects  Inertia in exchanges

Conclusion n We are currently working with other manufacturers/ Trade Associations in Russia and elsewhere to have a better regulatory environment while using International Standards. Good progress are taking place. n We are providing training and assistance for  Understanding the ISO Standards Process  Participating in the development of ISO/TC 127 Standards  Using the technical requirements in the ISO/TC 127 Standards in Regulations n We recommend adopting international standards as national standards to aid manufacturers who want to export n We are in favor to add national variations to allow for the current level of technology and the social expectations

Thank You