World Standards Cooperation

​Brainstorming Session on the Sustainable Development Goals
and What Each WSC Member Organization is Doing to Address Them

AS PREPARED FOR DELIVERY

 

Good afternoon and thank you for the invitation.

 

We are here to talk about the role of international standards in the 2030 Agenda. And it’s a privilege to join you today because UNCTAD shares your conviction that standards are essential instruments for global trade and economic development.

 

You know well that international standards can ensure technical compatibility across borders, thereby reducing transaction costs and facilitating trade. In turn, trade can be harnessed to drive a sustainable growth agenda.

 

And we are not the only ones who share this conviction.

 

When world leaders gathered in New York last September to adopt the Sustainable Development Goals --or SDGs--, they explicitly acknowledged international standards as one means of implementing the SDGs. The 2030 Agenda recognizes the importance of achieving a balance between fostering dynamic business sectors and protecting social and environmental well-being "in accordance with relevant international standards."

 

Standards are growing more important by the day.

 

Over the last half century, as tariffs have fallen and globalization has tied economies closer together, policymakers have paid increasing attention to technical regulations and standards that impede trade.

 

Let me use an analogy used by Richard Baldwin –a professor here at Geneva’s Graduate Institute – trade liberalization can be likened to the draining of a swamp: as the water level (or average tariff level) drops, the rocks, stumps, and other obstacles to trade become visible. While the multilateral system has been very effective at pumping water out of the swamp, it has been less successful at tackling the remaining obstacles. And this is where the World Standards Cooperation comes into the picture.

 

What is needed from all of us is more ambition. The Sustainable Development Goals demand nothing less. To make our collective aspirations a reality, we will need to foster inclusive growth while decarbonizing the global economy - all within the next 15 years. It's a tall order.

 

So what is the role of international standards?

 

The costs of inaction are high. Stringent standards for safe and environmentally-friendly goods raise production costs, and can constitute high costs for exporters that have to meet these standards. Sanitary and phytosanitary standards are a case in point. One of our studies at UNCTAD has found that the distortionary impacts of the EU’s SPS measures amounts to a loss of about $3 billion for low-income country exports – about 14% of their agricultural trade with the EU.

 

Standards and regulations become especially problematic when they diverge from international best practices. For example, some economic partnership agreements and integration agreements lead developing countries to adopt technical standards that do not conform to international standards. This can create additional costs for producers in developing countries that must comply with two sets of standards. It is estimated that this contributes to a loss in competitiveness equivalent to a 10% export tax in South-South trade for developing countries - a serious disadvantage.

 

Adhering to international standards is the most cost-effective way for producers - and for governments - to provide a boost to development. Research shows that for developing countries, the adoption of international standards increases exports to both developing and developed countries.

 

The nature of the challenge has been understood for years. But the deepening of global value chains has only underscored the need for better and more harmonized standards. One can think of international standards as a kind of common language between producers of intermediate goods on the one hand, and final goods on the other. This common language lowers trade costs and promotes economic development.

 

Not only do standards promote technical compatibility across countries – they also meet the increasing demands that consumers make for safer and more environmentally friendly products.

 

Going forward, there are three challenges that must be tackled to maximize the benefits of standards for development.

 

 

First, developing countries need technical capacity and financial support to comply with international standards.

 

Second, developing countries need to be equipped to play a more active role in developing and negotiating standards.

 

And third, developing countries need greater transparency about existing standards and regulations.

 

UNCTAD has been actively engaged in meeting each of these three challenges. We offer training and technical support to countries whose exporters face standards obstacles. And we also lead an initiative to collect and publish research about technical regulations and non-tariff measures. In the next few months, for instance, we will launch a database of NTM measures covering over 90% of world trade.

Much more remains to be done, of course, and that is why we gather here today.

 

Ladies and Gentlemen,

 

It is clear that international standards can be instruments for development. They provide a stable framework for the expansion of trade and markets. And they empower consumers to make choices that reflect social and environmental priorities.

 

I am convinced that our complementary initiatives will play an important role in harnessing international standards for sustainable development.

 

I look forward to your perspectives and to the enriching debate to follow.

 

Thank you.