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Trade Spat on Technology Standards Heating up

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In the past few months technical barriers, often called non-tariff or hidden barriers, have increased sharply, even more than traditional instruments of protectionsim such as anti-dumping investigations and border tariffs.

Market surveillance authorities increasingly attentive

The number of dangerous consumer products notified through the EUs rapid alert system for non-food dangerous products (RAPEX) rose by 28.88 percent to 589 in the first quarter of 2010 compared to a year ago following more effective market surveillance by Member States, the Commissions annual RAPEX report shows. 380 dangerous products notified through RAPEX come from China mainland, up 42.32%. Of which, textile and clothing were the most frequently notified products, with 103 notifications in the first quarter of 2010, up 110.20%. RAPEX is a Community rapid alert system for dangerous products. It ensures that information about dangerous products withdrawn from the EU market and/or recalled from consumers is quickly circulated between Member States and the European Commission, with the aim of preventing or restricting the selling of these products on the market. 30 countries currently participate in the system.

The number of dangerous consumer products notified through the United States��s Consumer Product Safety Commission (CPSC) rose by 3.06 percent to 101 in the first quarter of 2010 compared to a year ago. 55 dangerous products notified through CPSC come from China mainland, down 12.07%. Of which, textile and clothing were the most frequently notified products, with 14 notifications in the first quarter of 2010, up 16.67%.

The most often notified risks categories by EU and the United States were:  

Chemical: for example, a product containing dimethylfumarate (DMF), a mould-proof agent used in consumer products made from leather (mainly shoes, textiles and furniture) which is strongly sensitising on contact with the skin.

Injuries: for example toys and childcare articles, such as toy guns with darts, cots, high chairs, swings and children's playpens. The most common problems were sharp edges, insufficient stability or presence of openings where children could trap their legs, hands or head.

Choking: the overwhelming majority of s the notified cases with a choking risk concerned toys for small children (below 36 months) which contained small elements which children could put into their mouth, swallow and choke. 

Electric shock: for example, technical defects in electrical appliances which lead to a risk of electric shock were: accessible live parts, insufficient insulation of wires, improper attachment of wires, or inappropriate size of a plug.

Technology standards new technical barriers to trade

While trade barriers of the past - high tariffs and quotas imposed on imports - have been greatly reduced, less obvious impediments normally referred to as non-tariff barriers (NTBs) have in many cases replaced them. 

California is on its way to becoming the sixth US state with a fur labeling law after adopting legislation in early April that requires garments made of animal fur to say so on the label; Changes affecting the testing for harmful substances as per the Oeko-Tex Standard 100, which were approved by the Oeko-Tex Association, went into effect on 1 April;and the Ministry of Science and Technology of Vietnam has promulgated the National Technical Regulation on Safety of Toys to specify the requirements, corresponding testing methods and basic requirements of quality management for domestic production, imported and delivery toys.

Technical regulations and standards are important, but they vary from country to country. Having too many different standards makes life difficult for producers and exporters. If the standards are set arbitrarily, they could be used as an excuse for protectionism. Standards can become obstacles to trade. But they are also necessary for a range of reasons, from environmental protection, safety, national security to consumer information. And they can help trade. WTO Technical Barriers to Trade Agreement (TBT) tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles. To help ensure that this information is made available conveniently, all WTO member governments are required to establish national enquiry points and to keep each other informed through the WTO  around 900 new or changed regulations are notified each year.

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