International standards & international trade - the experience of Pakistan

14 Oct, 2004

Standards facilitate trade and assist in breaking the barriers to international trade. It is the reason that development of Metrology, Standards, Testing and Quality (MSQT) infrastructure is necessary for industrial progress and prosperity of a country or a whole region.
Realising the importance of MSTQ infrastructure, Government of Pakistan has established Pakistan Standards and Quality Control Authority (PSQCA) by Act-VI of 1996 by merging Pakistan Standards Institution (PSI), Central Testing Laboratories (CTL) and Metal Industry Research and Development (MIRDC). The authority has started functioning since December 01, 2000 and operates through three centers namely Standards Development Centre (SDC), Quality Control Centre (QCC), and Technical Services Centre (TSC).
1. Provision of one-window services for standardisation and quality control.
2. Establishment of national standards.
3. Collaboration with the international standards organisations as ISO, IEC and OIML and other national standard bodies.
4. Enforcement of national standards under compulsory/voluntary Certification Marks Scheme.
5. Registration of inspection agencies.
6. Testing and assessment of industrial raw materials and finished products.
7. Assistance to metal working industry in product improvement, technological advancement and increased productivity. Promotion of development of metallurgical techniques and skills in the country through the transfer of technology and expertise in the metallurgical and other fields.
8. Dissemination of technical information about standardisation, quality control and metrology to create a quality conscious culture in Pakistan.
International/National Standards and implementation of quality levels play an important roles in the facilitation of international trade. With the establishment of the WTO and signing non-tariff agreement the international scenario has rapidly changed and opportunity are available to all countries to benefit from greater access to world market. The assessment of product has become very important in ensuring that the product is not only be safe but also of the desired quality.
The World Trade Organisation (WTO) Agreement on Technical Barriers to Trade commits members, including the United States, to use international standards and conformity assessment procedures as integral tools for development of free trade world-wide.
PSQCA is a member of International Organisation for Standardisation (ISO), International Electrotechnical Commission (IEC) and International Organisation for Legal Metrology (OIML).
In the year 2002, PSQCA has directly adopted all ISO and IEC Standards as Pakistan Standards. Already formulated, 47000 Pakistan Standard Specifications are being reviewed to be re-designated as ISO, IEC standards and only those standards will be retained which are specific to Pakistan products and services. It means that Pakistan Standard Specifications may reach to about 21,000 with the directly adopted ISO, IEC standards.
Most of the Pakistan Standards are harmonised now with international standards as required also by World Trade Organisation (WTO) to remove the technical barriers of trade.
The objectives of WTO, as given in the Preamble of Marrakesh Agreement, are as under:
1. Raise standards of living.
2. Ensure full employment.
3. Growth in income.
4. Expending production and trade of goods and services.
5. Seeking to preserve environment.
6. Desiring tariff reduction and other barriers to trade.
7. Desiring elimination of discriminatory treatment.
MOST FAVOURED NATIONAL PRINCIPLE: This is the basic principle of WTO and its purpose is to ensure non-discrimination amongst the trade partners. This principle is a part of all the main agreement including GATT (General Agreement on Tariff and Trade), GATS (General Agreement on Trade in Services) and TRIPS. This principle means that the tariff reduction and trade concessions granted to any country by a member of WTO and unconditionally be extended to all the other member countries of the WTO. In other words, from trade point of view, all the member countries of WTO are most favoured for each other.
NATIONAL TREATMENT: National Treatment principle implies that once the goods (and in some cases the services) cross the borders (imported) after following due procedures and payment of import duties and other charges, these goods/services will be subjected to the same treatment/polices as the treatment accorded to the goods/services produce domestically.
ELIMINATION OF QUOTAS: It is generally agreed that the quantitative restrictions on imports and exports (quotas) are trade distortive and so they should be eliminated.
TRANSPARENCY: By the provisions related to transparency, the Members ensure that the policies are known to all other Members and cannot be arbitrarily changed. For this purpose a system of making notifications to the other members through WTO Secretariat has been established in addition to some other measures, which is a mandatory part of each agreement.
1. Agriculture is the backbone of Pakistan, which needs great attention. For WTO, lack of organisation is the greatest stumbling block, and under decisive progress is achieved in this area.
2. Good infrastructure, which includes educated and skilled manpower, easy access to raw material, market for disposal of their goods, assured and cheap supply of electricity and gas are the key elements.
3. Highly quality, competitive prices, diverse products and quick responses to the changing needs, are the basic requirement of the customer.
4. Adoption of ISO Standards as Pakistan Standards has required up-gradation and strengthening of laboratory facilities to enable the manufacturers to test their products according to ISO Standards and accreditation of the laboratories for ISO:17025 would also be needed.
5. Mutual Recognition Agreement (MRA'S) could be developed to facilitate the trade within the region. The Government of Pakistan approved and provided funds (Rs 23.5 million) for Strengthening of Pakistan Standards Institution (PSI). Recently Government of Pakistan has approved about Rs 115 million for the strengthening of Testing facilities in QCC and TSC.
PSQCA will continue to play a dominant role in the economic and social development of our country by ensuring the quality, safety and reliability of the products and services competitive to the World Standards.

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