13. Standards and technical barriers to trade: nature, key definitions. Wto agreement on standards and technical barriers: main features.

Technical standards range from those designed to ensure compliance with health and safety norms to product packaging and labelling requirements for tradable goods.

While states are understandably concerned about the quality and safety of the goods they permit into their territory, unwarranted or unfair technical barriers can also be used as a way to keep foreign competition out of domestic markets.

The Uruguay Round ushered in both the Agreement on Technical Barriers to Trade.

The intention of the agreement is to reduce the impact of standards as a trade barrier.

The WTO ensures that

• states retain the rights to set their own standards but subjects them to certain requirements regarding the basis for the standards they choose and the process used for creating and imposing standards,

• countries have a right to adopt and apply standards-related measures as long as these do not restrict international trade more than is necessary.

Technical barriers to trade are obstacles to trade that may result from standards and conformity assessment systems designed to ensure uniform specifications or attributes of a product or a service.

Technical regulations and standards set out specific characteristics of a product - such as its size, shape, design, functions and performance, or the way it is labelled or packaged - before it is put on sale.

Although the terms technical regulations and standards are often used interchangeably, the difference between the two lies in the issue of compliance. While conformity with standards is voluntary, technical regulations are, by nature, mandatory.

A standard is something that could be followed, usually at the encouragement of an industry association seeking greater uniformity in product quality or output. By contrast, a technical regulation is something that, if not followed, will bring about some sort of penalty or lack of market access.

Product Standards versus Process Standards

One strategy for limiting the range of technical barriers has been to try to minimize the use of process standards as a basis for technical regulation and focus instead on end-product standards.

Among the leading voluntary standardization bodies are:

• International Electrotechnical Commission (IEC);

• International Organization for Standardization (ISO) both based in Geneva, Switzerland.

Technical standards deal with:

• Labelling of food, drink and drugs

• Quality requirements for fresh food

• Packaging requirements for fresh food

• Packaging and labelling for dangerous chemicals and toxic substances

• Regulations for electrical appliances

• Regulations for wireless telephones, radio equipment, etc.

• Textiles and garment labelling

• Testing vehicles and accessories

• Regulations for ships and ship equipment

• Safety regulations for toys, etc.