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The Role of Standards in Trade Liberalization

At the national level, standardization is now accepted as the key element in industrial and economic development and trade that covers nearly the entire spectrum of the economy. Standards and Conformity assessment may either facilitate trade or impede its expansion (non-tariff banner). The difficulty is to distinguish between the legitimate use of regulations for the purpose of protecting consumer health and safety, as well as the environment and those, which are put in place as non-tariff barriers.

The challenge is also to ensure that legitimate standards and technical regulations are enforced with minimal adverse effects on trade. Systematic procedures for providing standards specification, test methods, code of praactice, terminology etc. are well established on a national level in many countries, and the International Organization.

The processes and use of standardization are enshrined in the existence or operation of Trade agreements. Within the WTO: It is the hope that legitimate technical regulations would permit freer and fairer trade. Standards and Technical regulations cannot be reproduced or eliminated through reciprocal concessions, but must be made subject to, agreed upon rules and disciplines for their development i.e. harmonization.

The CARICOM Single Market and Economy (CSME) was conceived as an instrument to facilitate economic development of Market State in an increasingly open and competitive global market:

(1) The agreement on Technical Barriers to Trade is a major control mechanism.

(a) Products entering the market are produced to a set standard.

(b) Exports and imports are required to meet specification (certification received in certain cases).

(2) The agreement on Agriculture is based on agricultural production standards such as those pertaining to pesticide residues as well as sanitary/ phytosanitary measure or regulations. Standards and Technical Barriers to Trade were the focus of one of the technical working group formed to delegate work during the preparation phase of the FTAA process. The objective being to progressively eliminate non-tariff barriers along with tarriffs. In particular the FTAA should work towards the harmonization of standards this issue has now been included in the Market Acces Group for the purpose of negotiations. The aim once again is to use Standards and Technical Barrier to Trade to facilitate freer and fairer trade rather than as barriers to trade.