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Standards & Trade NOR ANISAZILA ABDUL RAHIM  Senior General Engineer Specification and Standards Unit Consultancy and Research Section Material Engineering Directorate 8th July 2008
Trade in the world of standards For trade officials, International Standards create  "a level playing field" for all competitors on those markets. The existence of divergent national or regional standards can create technical barriers to trade.  International Standards are the technical means by which political trade agreements can be put into practice. Language Software and hardware formats Plugs and sockets Safety standards for buildings/cars
Trade is the exchange of goods, services, or both. Trade is also called commerce. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services.  Modern traders instead generally negotiate through a medium of exchange, such as money.As a result, buyingcan be separated from selling, or earning.
Benefits from standards Ensure compatibility (network externalities) Compatibility standards create a larger network of users (e.g. mobile phones) Information Asymmetries Safety standards ensure quality and safety       (e.g. safety of motor vehicles) Negative externalities 	Environmental standards allow society to curb or eliminate pollution (e.g. car emission standards)
Should harmonization of standards at the global level be the ultimate aim? Harmonization lowers trade costs But, harmonization reduces product variety Sometimes desirable: compatibility  Standards (e.g. plugs) But not always (safety, environment): Countries differ (consumer preferences,  level of development)
Should standard setting be left to the private sector ? Private standard setting is preferable because: Closer to the market More flexible Less costly But Government intervention necessary to avoid deceptive practices (credence goods) Producers favour protectionist standards
Standards and the WTO UNDERSTANDING THE WTO… Deals with the rules of international trade ,[object Object],     international trade      The Technical Barriers to Trade Agreement (TBT)tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles.
How can developing countries benefit from standards? What are the effects of developed country standards on developing countries’ exports?  Making standard setting at the  national level more  market-focused Greater participation in international  standard setting bodies Finding niches in global trade as  high quality suppliers
POSITIVE ECONOMIC EFFECTS OF STANDARDS Promote market efficiency and expansion Foster international trade Encourage competition and lower barriers      to market entry Speed diffusion of new technologies Enable interoperability among products                       NEGATIVE ECONOMIC EFFECTS OF STANDARDS ,[object Object]
    Constrain innovation and entrench      inferior technologies
Standards and Regulations: A Comparison
How do standards get incorporated  in regulations? ,[object Object]
i.e. the statute reproduces the wording of the standard
Incorporated by reference into statutory
i.e.  the statute refers to a particular standard, but does not reproduce the wording of the standard
Reproduced directly in regulations

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Standards And Trade 8 July 2008

  • 1. Standards & Trade NOR ANISAZILA ABDUL RAHIM Senior General Engineer Specification and Standards Unit Consultancy and Research Section Material Engineering Directorate 8th July 2008
  • 2. Trade in the world of standards For trade officials, International Standards create "a level playing field" for all competitors on those markets. The existence of divergent national or regional standards can create technical barriers to trade. International Standards are the technical means by which political trade agreements can be put into practice. Language Software and hardware formats Plugs and sockets Safety standards for buildings/cars
  • 3. Trade is the exchange of goods, services, or both. Trade is also called commerce. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Modern traders instead generally negotiate through a medium of exchange, such as money.As a result, buyingcan be separated from selling, or earning.
  • 4. Benefits from standards Ensure compatibility (network externalities) Compatibility standards create a larger network of users (e.g. mobile phones) Information Asymmetries Safety standards ensure quality and safety (e.g. safety of motor vehicles) Negative externalities Environmental standards allow society to curb or eliminate pollution (e.g. car emission standards)
  • 5. Should harmonization of standards at the global level be the ultimate aim? Harmonization lowers trade costs But, harmonization reduces product variety Sometimes desirable: compatibility Standards (e.g. plugs) But not always (safety, environment): Countries differ (consumer preferences, level of development)
  • 6. Should standard setting be left to the private sector ? Private standard setting is preferable because: Closer to the market More flexible Less costly But Government intervention necessary to avoid deceptive practices (credence goods) Producers favour protectionist standards
  • 7.
  • 8. How can developing countries benefit from standards? What are the effects of developed country standards on developing countries’ exports? Making standard setting at the national level more market-focused Greater participation in international standard setting bodies Finding niches in global trade as high quality suppliers
  • 9.
  • 10. Constrain innovation and entrench inferior technologies
  • 12.
  • 13. i.e. the statute reproduces the wording of the standard
  • 14. Incorporated by reference into statutory
  • 15. i.e. the statute refers to a particular standard, but does not reproduce the wording of the standard
  • 17. Incorporated by reference into regulations
  • 18.
  • 19. shall be certified by accredited laboratory for testing
  • 20. shall be certified by certification bodysubject to approval by Materials Engineering Directorate (MED).
  • 21. Construction Material – Steels In a global market, requests for steel produced to the specifications of other countries has increased. Deciding which steel to use requires careful consideration of multiple factors, but the hunt begins with a search of steel specifications.
  • 22. Identify the right Steels Standards WHEN comparing two or more steel standards, what criteria should be used to define the rules of comparison? SHOULD mechanical properties or chemical composition be the main criteria? IF mechanical properties are compared, which property should be the first criteria for comparison (yield strength, tensile strength, elongation, impact strength, hardness, etc.)? WHEN mechanical properties or chemical compositions vary with section thickness for a given steel grade, which section thickness data should be selected as the criteria for comparison? WHEN two steels have the same minimum tensile strength values, but different yield strength values, are they no longer similar? SHOULD alloy steels and stainless steels be compared on their mechanical properties when they are generally selected for use based on their alloying elements’ abilities to provide satisfactory service in their intended applications?
  • 23.
  • 24. BS 4483 Steel fabric for the reinforcement of concrete: Specification
  • 25.
  • 26.
  • 27.