United States Standards Strategy Updating a Standards Strategy for Manufacturers in the Global Marketplace March 30, 2005 National Assn. of Manufacturers

Agenda I. Welcome and introductions II. Overview on importance of the U.S. standards system III. How the USSS was developed IV. Key elements of the updated USSS V. What manufacturers should do in the USSS VI. Open discussion and comments VII. Conclusions

Welcome and Introductions Participation by manufacturers and their associations Discussants: Bill Primosch—NAM Joe Bhatia—USSS Committee Chair USSS Committee Members ANSI President Mark Hurwitz

Overview on Importance of the U.S. Standards System Consumer acceptability of products Tools for meeting regulatory requirements (health, environment, safety) Facilitates interoperability of products Determines market access for products worldwide

Why Manufacturers Should Care about the Standards System U.S. system assures fair participation by manufacturers & other stakeholders Standards the key to introducing innovative technology Standards assure consumer and market acceptability Increasingly critical for foreign market access and exports

How USSS Was Developed Presentation by Joe Bhatia Chairman of the NSS/USSS Drafting Committee and Executive VP, Underwriters Laboratories

Key Elements of the USSS Reaffirming principles of U.S. system Refocusing national priorities Addressing trade & market access Improving standards education and outreach Strengthening funding, patents & IPR

How Updated USSS Differs From Current National Standards Strategy Global in outlook—not just a “national” Focus on application of principles worldwide Embracing all standards’ community— also consortia and ad hoc groups Emphasis on trade & market access concerns Greater stress on outreach & education

Structure of USSS Introduction: Global setting, principles, strategic vision & moving forward 12 Strategic goals Tactical initiatives to advance goals Architecture for longer-term effort

Strategic Goals Goals 1-3 and 8-9—Strengthen the U.S. standards system Goals 4-7—Address international concerns Goal 10—Improve standards education Goal 11—Maintain stable funding Goal 12—Meet new priorities (security)

Good Principles of Standards- Setting I Transparency Openness Impartiality Effectiveness and relevance Consensus Performance-based

Good Principles of Standards- Setting II Flexible Timely Balanced Coherent Due process Technical Assistance

Unique Aspects of U.S. System Decentralized: Bottom-up Private-public partnership, led by private sector Dispersed Sectoral approach Benefits: Market-responsive, adoptable to new technology, meets industry needs

European and Other Models Top-down Government driven and funded Centralized standards organizations “One-size-fits-all” approach Benefits: Meets needs for single standard in diverse 25-member EU Costs: Inflexible, less market-responsive

Global Trade, Market Access and Standards Growing importance of standards for trade and market access Standards and their application cited as market access barriers Increasingly standards set by regulatory policies (e.g., health, safety, environment) limit market access

Current Issues of Concern European influence in international forums and foreign governments Differing technical requirements resulting from regulatory differences-EU Standards and conformity assessment procedures as protectionism Industrial policy—growing China concerns

China Industrial Policies “Third-class companies make products; second-class companies develop technology; and first-class companies set standards” (Chinese saying) “The technological winner is now the one who manages to control …market standards..” Sangae Kim & Jeffrey Hart

Examples of China Problems Efforts to establish unique Chinese “WIFI” encryption standards Government procurement requirement to use Chinese software (“Kingsoft”) Lack of foreign participation in Chinese standards forums Lack of transparency in Chinese system CCC mark –cost, delays, administration

USSS International Initiatives Promote effective implementation of WTO Technical Barriers to Trade Agree. Encourage common regulatory approaches Work pro-actively with USG to eliminate standards-related foreign trade barriers Strengthen international outreach and target emerging markets

Role of Manufacturers in USSS Help raise awareness in government, business and public of US system Engage senior management on standards issues Establish guide on what Administration & Congress should do Strengthen international outreach

ANSI’S Leadership Role on Standards and the USSS Comments by Mark Hurwitz, President of ANSI

Open Discussion How relevant is the strategy to manufacturers’ concerns? Were major issues overlooked? How can we use the USSS to raise awareness in senior management? What can manufacturers do to improve govt./private sector cooperation?

USSS Timetable April 15Public forum at U.S. Commerce Dept. HQ April 18Deadline for receiving public comments MayApproval by ANSI Board JunePublication of USSS

USSS Contacts NAM Bill Primosch (202) , ANSI/USSS Committee Joe Tretler (212) , USSS text: