Standards And Trade 8 July 2008


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Standards And Trade 8 July 2008

  1. 1. Standards & Trade<br />NOR ANISAZILA ABDUL RAHIM <br />Senior General Engineer<br />Specification and Standards Unit<br />Consultancy and Research Section<br />Material Engineering Directorate<br />8th July 2008<br />
  2. 2. Trade in the world of standards<br />For trade officials, International Standards create <br />&quot;a level playing field&quot; for all competitors on those markets. The existence of divergent national or regional standards can create technical barriers to trade. <br />International Standards are the technical means by which political trade agreements can be put into practice.<br />Language<br />Software and hardware formats<br />Plugs and sockets<br />Safety standards for buildings/cars<br />
  3. 3. Trade is the exchange of goods, services, or both. Trade is also called commerce. A mechanism that allows trade is called a market.<br />The original form of trade was barter, the direct exchange of goods and services. <br />Modern traders instead generally negotiate through a medium of exchange, such as money.As a result, buyingcan be separated from selling, or earning.<br />
  4. 4. Benefits from standards<br />Ensure compatibility (network externalities)<br />Compatibility standards create a larger network of users (e.g. mobile phones)<br />Information Asymmetries<br />Safety standards ensure quality and safety <br /> (e.g. safety of motor vehicles)<br />Negative externalities<br /> Environmental standards allow society to curb or eliminate pollution (e.g. car emission standards)<br />
  5. 5. Should harmonization of standards at the global level be the ultimate aim?<br />Harmonization lowers trade costs<br />But, harmonization reduces product variety<br />Sometimes desirable: compatibility <br />Standards (e.g. plugs)<br />But not always (safety, environment):<br />Countries differ (consumer preferences, <br />level of development)<br />
  6. 6. Should standard setting be left to the private sector ?<br />Private standard setting is preferable because:<br />Closer to the market<br />More flexible<br />Less costly<br />But<br />Government intervention necessary to avoid deceptive practices (credence goods)<br />Producers favour protectionist standards<br />
  7. 7. Standards and the WTO<br />UNDERSTANDING THE WTO…<br />Deals with the rules of international trade<br /><ul><li>thus also with the role of standards in </li></ul> international trade<br /> The Technical Barriers to Trade Agreement (TBT)tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles.<br />
  8. 8. How can developing countries benefit from standards?<br />What are the effects of developed country standards on developing countries’ exports? <br />Making standard setting at the <br />national level more <br />market-focused<br />Greater participation in international <br />standard setting bodies<br />Finding niches in global trade as <br />high quality suppliers<br />
  9. 9. POSITIVE ECONOMIC EFFECTS OF STANDARDS<br />Promote market efficiency and expansion<br />Foster international trade<br />Encourage competition and lower barriers <br /> to market entry<br />Speed diffusion of new technologies<br />Enable interoperability among products<br /> NEGATIVE ECONOMIC EFFECTS OF STANDARDS<br /><ul><li> Raise transaction costs and barriers to trade
  10. 10. Constrain innovation and entrench </li></ul> inferior technologies<br />
  11. 11. Standards and Regulations: A Comparison<br />
  12. 12. How do standards get incorporated <br />in regulations?<br /><ul><li>Incorporated directly into statutory
  13. 13. i.e. the statute reproduces the wording of the standard
  14. 14. Incorporated by reference into statutory
  15. 15. i.e. the statute refers to a particular standard, but does not reproduce the wording of the standard
  16. 16. Reproduced directly in regulations
  17. 17. Incorporated by reference into regulations
  18. 18. Used as guidelines to elaborate rules found in statutes or regulations</li></li></ul><li>MED’s roles in setting the regulations<br />MED - Construction Material and Products Approval <br /><ul><li>shall comply to the listed standard given or any equivalent standards
  19. 19. shall be certified by accredited laboratory for testing
  20. 20. shall be certified by certification body</li></ul>subject to approval by Materials Engineering Directorate (MED).<br />
  21. 21. Construction Material – Steels<br />In a global market, requests for steel produced to the specifications of other countries has increased. <br />Deciding which steel to use requires careful consideration of multiple factors, but the hunt begins with a search of steel specifications.<br />
  22. 22. Identify the right Steels Standards <br />WHEN comparing two or more steel standards, <br /> what criteria should be used to define the rules <br /> of comparison?<br />SHOULD mechanical properties or <br /> chemical composition be the main criteria?<br />IF mechanical properties are compared, which <br /> property should be the first criteria for comparison (yield strength, tensile strength, elongation, impact strength, hardness, etc.)?<br />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?<br />WHEN two steels have the same minimum tensile strength values, but different yield strength values, are they no longer similar?<br />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?<br />
  23. 23. Steels Standards used inMinistry of Work Standards Specifications <br /><ul><li>BS 4449 Steel for the reinforcement of concrete: Weld-able reinforcing steel. </li></ul> Bar, coil and decoiled product: Specification.<br /><ul><li>BS 4482 Steel wire for the reinforcement of concrete products: Specification.
  24. 24. BS 4483 Steel fabric for the reinforcement of concrete: Specification
  25. 25. BS 6744 Stainless steel bars for the reinforcement of /and use in concrete.</li></ul> Requirements and test methods<br /><ul><li>BS EN 10088-1 Stainless steels: List of stainless steels
  26. 26. BS EN 10088-2 Stainless steels: Technical delivery conditions for sheet/plate </li></ul> and strip of corrosion resisting steels for general purposes<br /><ul><li>BS EN 10088-3 Stainless steels: Technical delivery conditions for semi-finished products, bars, rods, wire, sections and bright products of corrosion resisting steels for general purposes
  27. 27. BS 5135 Specification for arc welding of carbon and carbon manganese steels</li></li></ul><li>Thank You <br />