1. ISO Regional Workshop on Conformity Assessment Conformity Assessment Supporting Development and Trade 12 – 13 June 2008 Kiev, Ukraine UNIDO activities in support of conformity assessment Ouseph Padickakudi Trade Capacity-Building Branch o.padickakudi@unido.org

2. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Presentation Outlines  Global Trade Participation Challenges  UNIDO Trade Capacity Building Approach  UNIDO’s Technical Assistance Project- Examples in Conformity Assessment

3. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Over 90% of total world merchandise exports is in Industrial Goods (2004) NO trade gains without Industrial Capacity! Share in Global MVA (2000-2006) Globalization & Trade Participation : Industrialisation – A Challenge for Developing Countries

4. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Developing Countries’ Trade Participation Challenges Micro & small enterprises - Cluster capacity-building - Mobilization of “collective efficiency” gains - Promoting the export of its members through joint actions - Aligning economic, social and environmental aspects of business - Promoting the CSR business case for value-chain integration Promote linkages among enterprises, between enterprises and institutions, and between large corporations and SMEs towards their integration into national and global value chains: Cluster and Network Development Export Consortia Corporate Social Responsibility and Business Partnerships Ensuring sufficient export VOLUME Ensuring sufficient export VOLUME Ensuring Uniform QUALITY Ensuring Uniform QUALITY Ensuring Timely DELIVERY Ensuring Timely DELIVERY  Industry comprises mostly of Micro & Small Enterprises  Challenges in accessing Global Value Chains

5. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Auditing the Value Chain – Compliance to Standards Product/Process standards (ISO/IEC) Quality Standards (ISO 9001) Environment Standards (ISO 14001) Food Safety Standards (ISO 22000) Labour Social Standards (SA 8000) Safety Standards (OSHAS) Testing (ISO/IEC 17025) Calibration Traceability (Farm-to-Fork) Private Standards (GlobalGAP) Global Value Chains: Defining Market Access

6. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Integrating to Global Value Chains: Case of Agro-Industries

7. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Source: UNIDO TCB

8. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Developing Country Agro-Food Exports: Achieving and Proving Compliance WTO TBT & SPS agreements compliance/Conditions to export agro-food: – Products sourced from areas free of pests & diseases – Fruits/vegetables - minimum pesticide residue standard – Meats/fish meet minimum antibiotic residue requirement – Standards of hygiene applied in manufacturing (HACCP/ISO 22000) Developing Conformity Infrastructure (testing laboratories, etc.) – the KEY Key Challenges: Developing countries lack capacity to implement agreements Conformity assessment technology and standards evolve More technical assistance is needed

9. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Quality infrastructure for WTO TBT/ SPS compliance

10. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Even a traditional product like fish sauce, now has to comply with standards STANDARDS VITAL FOR TRADE

11. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION 6/11/2016 Standards and Food Safety related Market Requirements become more stringent AFLATOXINS Found in African cereals, dried fruits and nuts - causes liver cancer Treated as carcinogenic food contaminants EU regulation based on the objective to reduce health risks by about 1.4 deaths per billion annually impact of this regulation would cut African exports of nuts, cereals, and dried fruits products by 64% or US$ 670 mn., compared with their level under international standards Source: Otsuki, Sewadeh & Wilson, “A Race to the Top? A case study of Food Safety Standards & African exports”, The World Bank, 26 Feb 2001

12. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION INTERNATIONAL STANDARDS Contribute to making the development, manufacturing and supply of products and services more efficient, safer, cleaner. Make trade between countries easier and fairer Mostly made by ISO and IEC, CAC (Codex), IPPC & IOE Annually approx. 1000 new standards issued (approx 45,000pages) Developing countries Standard TAKERS and not MAKERS Good Manufacturing Practices becoming Standards (ISO 9001, ISO14001, HACCP, SA 8000) Threat that standards can be used as a Technical Barrier to Trade Require a functioning NATIONAL STANDARDS BODY WTO Enquiry Points set up – Standards Information

13. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Quality Management System (ISO 9001) –Designed to give Quality assurance in the supply chain –Promotes continuous improvement Environment Management System (ISO 14001) –Minimum compliance to environment laws and commitment to continuous improvement –Important for global trade/Environment protection New ISO 22000 Food Safety Management Standard –Replacing old HACCP –A food safety standard –Becoming mandatory for USA (also possibly EU) Social Accountability Standard SA 8000 –Avoid child labour, exploitation –Union rights, collective bargaining etc. (controversy) –ISO to develop a new SA standard Occupational Safety Standards (OSHAS) Corporate Social Responsibility (CSR) MARKET COMPLIANCE – Standards, Metrology, Testing, Conformity Management Systems - Becoming Standards Non-compliance can lead to export consignments being detained, restricted or even banned by importing countries

14. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Traceability EU Directive EC 178/2002 – 2005: All edible products, despite of their origin, will have to be accompanied by detailed information on source, production system and processing procedures so as to make consumers, sanitary and inspection institutions able to follow back and forward the distribution stream of the product. UNIDO - Egypt 1 st large scale project As of January 1 st, 2006 a new EU regulation came into force which requires the same hygiene requirements on food imported into the EU region, for producers in non-EU countries. MARKET COMPLIANCE – Standards, Metrology, Testing, Conformity Traceability (farm-to-fork)

15. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Metrology - a requirement for: Scientific research: Accurate calibration of scientific instruments Food safety: Calibrated thermometers, balances, etc. Laboratory accreditation: Calibration status of test equipment - a requirement under ISO 17025 ISO 9001, ISO 14001 certification: Calibration status of equipment - a clause under ISO 9001, ISO 14001 MARKET COMPLIANCE – Standards, Metrology, Testing, Conformity (2) Metrology (science of measurement) A sound measurement system is fundamental in fields of science, production of goods and services, health, commerce, communications,…It creates the framework in which suppliers of products and services can demonstrate compliance with specifications within an internationally standardized system.

16. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ISO/IEC 17025 Standard –Physical facilities –Equipment –Human resources –Calibration –Test methods and test validation –Quality system –Independent accreditation –Recognition Tested Once – Accepted Everywhere MARKET COMPLIANCE – Standards, Metrology, Testing, Conformity (3) Laboratory Accreditation – Ensuring Credibility of Testing

17. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Mutual Recognition of Certificates/Conformity

18. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION “Fair Trade for All”: Priority Areas to meet Product Standards Requirements

19. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO - IAF - ILAC Cooperation DraftMoUbeing signed UNIDO - ISO Agreement December 2003 Cooperation to ensure that LDCs, developing countries and economies in transition will be able to reap the benefits of the world trading system which is made freer and fairer based on international standards. The team work will focus on awareness creation and competency building in the respective countries. This will materialize through workshops, seminars and training on standards development. UNIDO - BIPM - OIML Cooperation TBT/SPS capacity-building demands linkages to International Standards & Conformity Organisations

20. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Successful Trade Participation: UNIDO 3Cs “Products must conform to requirements of clients and markets”  CONFORMITY with standards “Rules for trade must be equitable and customs procedures harmonized”  CONNECTIVITY to markets “Countries must have marketable products for exportation”  COMPETITIVITY of productive capacities  PRODUCTIVITY (enterprise)  COST OF EXPORTING (support services) Integrating into Global Trade

21. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Supply side development (UNIDO) Industrial policy and supportive institutional structure Investment and technology transfer SME development and access to finance Cluster and export consortia development Productivity and quality Industrial Upgrading, sectoral technology support Cleaner Production, energy efficiency Standards & Conformity Assessment/Compliance (UNIDO) Development and harmonization of standards Development of testing services, PT Schemes Certification (products and enterprise systems) Metrology/Calibration chain Accreditation schemes Integration in to the MTS (WTO, UNCTAD, ITC, WB) WTO rules, negotiations Trade facilitation (customs, documentation) Infrastructure (transport, ports) Compete Conform Connect UNIDO TCB - Key Focus Areas

22. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO TCB Programmes – 2007/2008 (TA combining Supply & Conformity - on-going & planned programmes)

23. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Regional Programme: Bangladesh, Bhutan, Maldives, Nepal UNIDO TCB Programmes (TA combining Supply-side & Conformity) Market Access and Trade Facilitation Support for South Asian LDCs, through Strengthening Institutional and National Capacities Related to Standards, Metrology, Testing and Quality (SMTQ) – Phase II Bangladesh  Product certification system of BSTI complies with ISO Guide 65 and is accredited:  Textile Laboratory of BSTI accredited  Auditors trained on ISO 22000 FSMS  Management System Certification Body accredited Bhutan  WTO TBT Inquiry Point/Standards Information Centre strengthened  Legal and industrial metrology laboratory established  Food Laboratory of BAFRA strengthened and accredited  Auditors trained on ISO 22000 FSMS Maldives  WTO TBT Inquiry Point/Standards Information Centre strengthened  Legal and industrial metrology laboratory established  National food testing laboratory of MFDA strengthened and accredited  Auditors trained on ISO 22000 FSMS Nepal  Product certification system of NBSM complies with ISO Guide 65 and is accredited  Textile Laboratory of NBSM accredited  Food laboratory of the Department of Food Technology and Quality Control (DFTQC) strengthened and accredited  Auditors trained on ISO 22000 FSMS  Management System Certification Body accredited

24. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Quality Infrastructure - standard setting, laboratories infrastructure, certification, accreditation, metrology/calibration Textile competitiveness - industrial upgrading, product development, technical and marketing training Fish Inspection - product testing and inspection services, laboratory accreditation, waste treatment, staff training Export Diversification (ITC component) - access to regulatory market information, EUREPGAP, sectoral strategies, packaging Budget: € 7.5 million Donor: EU (co-funded by Norway) Supply and Conformity: Bangladesh QUALITY SUPPORT PROGRAMME UNIDO TCB Programmes (TA combining Supply-side & Conformity)

25. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION  Progress so far: Human Resource Capacity Building Familiarization workshop on ISO 17025 Training on ISO 17011 – Conformity Assessment (22 participants) ISO 17025 Lead Assessor training (25 participants) ISO 17025 Technical Assessor training (25 participants) Institutional Capacity Building Procurement of laboratory equipments Mass Comparator for Mass Measurement Laboratory  Needed for accurate metrological application like mass determination, weight calibration as for quality control DCC Resistance Bridge  Needed for precision calibration in both resistance and temperature applications Action plan for joining the APLAC-MRA prepared Integrated Programme of Technical Cooperation in Mongolia Trade Capacity Building and Conformity Assessment for Export Market Access

26. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Barrier to Trade Survey Study on SPS Compliance for Exports Standards (PSQCA)  Standards development Certification Body (Systems) Consumer affairs Product certification Metrology (NPSL) Lab upgrading, international accreditation Product Testing (MFD, PCSIR, etc): Fisheries, Food, Leather, Textile Lab upgrading, PT participation International accreditation Accreditation (PNAC) Organizational strengthening, international recognition National accreditation scheme Training of auditors Setting-up of PT schemes Quality/Hygiene (Private sector, FPCCI, etc.) Fish/food Management systems Good practices Compliance with market requirements Pilot certifications HACCP, ISO 9001, 14001, SA 8000) Pilot traceability systems Boat hygiene Icing Landing Sites Inspection Auction Hall Processors Traceability Budget: € 5.0 million Donor: EU Pakistan TRADE RELATED TECHNICAL ASSISTANCE PROGRAMME UNIDO TCB Programmes (TA combining Supply-side & Conformity)

27. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Laboratories accredited to ISO/IEC 17025 in Sri Lanka through Microbiology (2); Chemical Testing (2); Garment/Textile (1); Metrology (1); Rubber testing (1); Food Testing (1) Budget: US$ 3.1 million Donor: Norway SRI LANKA TRTA Success Quoted in the WTO/OECD Report on Trade-Related Technical Assistance and Capacity Building (TRTA/CB) International buyers are now accepting the Sri Lanka laboratory certificate (testing cost reductions between 31% and 79% depending on the test): Supply and Conformity: Supply and Conformity: INTEGRATED INDUSTRIAL DEVELOPMENT SUPPORT PROGRAMME FOR SRI LANKA UNIDO TCB Programmes (TA combining Supply-side & Conformity)

28. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Productive Capacities and Quality Promotion Food safety, productivity and quality promotion 68 pilot enterprises prepared for ISO 9001 National and regional Quality awards Training of journalists in consumerism and product quality Standards and Conformity Assessment Harmonization of standards for export products Harmonization of testing procedures, reg. database on labs Upgrading of 50 laboratories, 24 for international accreditation Regional accreditation scheme Training of 16 Lab. auditors Training of 40 ISO 9001 auditors UEMOA Phase 2: under development (€ 6.0 million) UEMOA Upgrading: funding received (€ 11.0 million) Regional Trade: Regional Trade: UNIDO/EU - UEMOA Programme Budget: € 14.0 million Donor: EU In cooperation with: Microbiology Laboratory in Côte d’Ivoire recently received COFRAC ISO/IEC 17025 accreditation for food testing (Sept. 2007) UNIDO TCB Programmes (TA combining Supply-side & Conformity)

29. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Objective: To strengthen the export capabilities of Ukraine through building up national capacities for small and medium size enterprises (SMEs) to comply with quality and food safety standards. Intended Outputs: a.Increased awareness among enterprises on Food Safety Standards and benefits of its implementation b.Between 15 and 20 auditors trained for HACCP c.Between 15 and 20 auditors trained for ISO 22000 Food Safety Management System d.Food Industry business partnership programme between Ukrainian and Polish enterprises initiated e.Facilitated international accreditation of the system certification body (UkrMetrTestStandard) of Ukraine Expected Outcomes:  A large pool of new Ukrainian specialists knowing the international approach of HACCP and ISO 22000 systems to support food companies’ implementation of these standards  Food safety newsletter for wider promotion of food safety issues in Ukraine  Understanding the international requirements about food safety among the representatives of the Ukrainian food enterprises  Ukrainian version of the HACCP of Codex Alimentarius (CAC/RCP 1-1969 Rev.4. 2003.) for easy introduction by enterprises Upgrading Food Safety Standards in Ukraine

30. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION REFERENCE PUBLICATION ON CONFORMITY ASSESSMENT (A Joint UNIDO-ISO Publication)

31. Thank You for your attention!