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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO SPS-RELATED CAPACITY EVALUATION AND NEEDS ASSESSMENT TOOLS A BRIEF OVERVIEW STDF SPS Capacity Evaluation Workshop 31 st 2008 March Gerardo Patacconi Chief Productivity, Quality and Enterprises Upgrading Unit Trade Capacity-Building Branch 2

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION § Introduction § Demands and Channels of Communications § UNIDO Capacity Evaluation and Needs Assessments Tools § Context-Specific Needs Assessment § Trade Related Challenges Surveys at the Enterprise Level § Key Export Sectors Supply-Side constraints – UNIDO Competitiveness Analysis Tool § Analysis of Quality Infrastructure Constraints § Analysis of developing refusals/notifications countries product 3

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Introduction 4

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Introduction UNIDO uses a holistic approach to make SPS and TBT compliance measures effective in developing countries. The SPS related technical assistance activities involve support to: • Agro-business value chains/enterprises • Governments and trade, business and industrial associations, • Standards and infrastructure. Conformity Assessment With respect to the standards and conformity assessment infrastructure, UNIDO has contributed setting up and upgrading it in several developing countries in the last 40 years. 7

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Introduction To respond to: growing demand for greater coherence and to the Paris Declaration on Aid Effectiveness, UNIDO is increasingly cooperating with and associating other bilateral and multilateral organizations in the needs assessment and project development and implementation process such as the WTO, ITC, UNCTAD, STDF, World Bank etc. 8

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Introduction We have established strategic partnerships with international standards, measurement, accreditation and research organizations, including: • International Organization for Standardization (ISO), • International Laboratory Accreditation Cooperation (ILAC), • International Accreditation Forum (IAF), • International Bureau of Weights and Measures (BIPM) and • International Organization of Legal Metrology (OIML) • World Associations of Industrial and Technological Research Associations WAITRO…… In addition, UNIDO is a founding member of the Joint Committee on Coordination of Assistance to Developing Countries in Metrology, Accreditation and Standardization (JCDCMAS). 9

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Introduction As one of the top providers of TRTA, with emphasis on TBT and SPS matters, UNIDO implemented national and regional projects amounting to about US$ 181 million over the 2001 -2007 period. In order to respond to the Doha Development Agenda UNIDO has been refining its needs assessment and project development, implementation and monitoring tools to respond more effectively to a growing demand for technical assistance by developing countries. 10

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO 3 Cs approach These tools are based on accumulated expertise and knowledge of challenges and opportunities of developing countries in the process of integration in the MTS with regards to their: • Supply-capacity; • Ability to comply with growing market demands in terms of standards and conformity assessment; • Capacity to access national, regional and international markets 11

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO 3 Cs approach ü “Countries must have marketable products to trade” COMPETITIVITY of productive capacities ü “Products must conform to requirements of clients and markets” CONFORMITY with standards ü “Rules for trade must be equitable and customs procedures harmonized” CONNECTIVITY to markets 12

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO TCB - Key Focus Areas Compete Conform Supply side development (UNIDO) • Industrial policy and supportive institutional structure • Investment and technology transfer • SME development and access to finance • Cluster and export consortia development • Productivity and quality • Industrial Upgrading, sectoral technology support • Cleaner Production, energy efficiency Standards & Conformity Assessment/Compliance (UNIDO) • Development and harmonization of standards • Development of testing services , PT Schemes • Certification (products and enterprise systems) • Metrology/Calibration chain • Accreditation schemes Integration in to the MTS (WTO, UNCTAD, ITC, WB…) Connect • Market access and linkages with buyers/markets • WTO rules, negotiations • Trade facilitation (customs, documentation) • Infrastructure (transport, ports) 13

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Demand Channels of Communication 14

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Demand Channels of Communication With regards to the demand for advisory services and technical assistance, UNIDO projects are developed through communications received via different channels, among them: • Government requests for TBT/SPS-related TRTA to cover legal framework, institutional and human capacity and physical infrastructures; • Requests by business associations such as national/sectoral industrial associations, chambers of commerce and industry, trade groups, clusters or local institutions such as standards bodies, certifiers, inspection bodies, laboratories; • Identification of new standards or conformity assessment procedures which might have a significant impact on developing countries’ export or import; • Request for action to overcome problems when products are banned to export due non compliance; or • Assistance required in the process of bilateral, regional or multilateral trade negotiations. 15

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Demand Channels of Communication Donors are associated with the project development process from the initial phase. UNIDO allocates seed money either: • to carry out the initial needs assessment Or • to contribute to trouble-shooting actions tackling urgent problems and requests. The UNIDO methodology for needs assessment involves both desk research and field work and it is supported by the UNIDO field representation system covering over 70 countries through UNIDO national/regional offices/desks and technical networks which include: • National Cleaner Production Centres, • Technology Centres, • Investment and Partnership Promotion Offices and Units • Sub-Contracting Exchanges. 16

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE EGYPT: Traceability of agro-industrial products for the European Market • Project funded utilising a “Debt-for-Development Swap” agreement (2001) between Italy and Egypt (€ 6. 4 million) and linked to an Italian Initiative for € 6. 4 million trade facilitation called the “green corridor” • Egyptian producers assisted and traceability manual/scheme implemented producers assisted through over 100 pack-houses and linkages with Italian/European Importers established • National Database on traceability/pesticides • post-harvest Investment needs assessed • T. A. component implemented by UNIDO (~US$2. 6 million) implemented • Financial Assistance Facility (~US$4. 6 million) used for co-financing the used for co-financing acquisition of know-how and technology for implementing the Traceability System compatible with EU Directive. 18

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Scope National pesticide database for Egypt EXAMPLE EGYPT: Traceability of agro-industrial products for the European Market § Accessible for everyone § Easy to use § Providing up do date information on the approved pesticides use § Decreasing the misuse of unapproved products § Increasing transparency § Saving time and risk for food exporting companies § Serving as a guide for CPP selection by farmers § Improving compliance with Global. GAP 16/09/2006 Inas Nureldin 20

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE EPAs - Economic Partnership Agreements: QUALITY AND UPGRADING PROGRAMMES REGION Request Received Upgrading & Modernization Programme Quality Programme Draft Terms of Reference prepared CARIBBEAN X X CENTRAL AFRICA X X EAST & SOUTHERN AFRICA X X SOUTHERN AFRICA (SADC Group) X X X WEST AFRICA X X X PACIFIC X X PRIORITIES: FOOD INDUSTRY 21

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE : INTEGRATED INDUSTRIAL DEVELOPMENT SUPPORT PROGRAMME FOR SRI LANKA Budget: US$ 3. 1 million Donor: Norway Laboratories accredited to ISO/IEC 17025 in Sri Lanka through Microbiology (2); Chemical Testing (2); Garment/Textile (1); Metrology (1); Rubber testing (1); Food Testing (1) International buyers are now accepting the Sri Lanka laboratory certificate (testing cost reductions between 31% and 79% depending on the test): 22

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE UNIDO/EU - UEMOA Programme Budget: € 14. 0 million Donor: EU Productive Capacities and Quality Promotion • • Food safety, productivity and quality promotion 68 pilot enterprises prepared for ISO 9001 National and regional Quality awards Training of journalists in consumerism and product quality Standards and Conformity Assessment • Harmonization of standards for export products • Harmonization of testing procedures, reg. database on labs • Upgrading of 50 laboratories, 24 for international accreditation Regional accreditation scheme • Training of 16 Lab. auditors • Training of 40 ISO 9001 auditors UEMOA Phase 2: (€ 6. 0 million) UEMOA Upgrading: (€ 11. 0 million) In cooperation with: Microbiology Laboratory in Côte d’Ivoire recently received COFRAC ISO/IEC 17025 accreditation for food testing (Sept. 2007) EXPORT BAN LIFTED 23

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE Enhancing the Capacities of the Tanzanian Quality Infrastructure and TBT/SPS Compliance Systems for Trade Budget: US$ 2. 0 million Donor: Switzerland (SECO) focus on coffee and cashew nuts quality chains Education tool on food safety for secondaryschool students 24

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE Pakistan TRTA PROGRAMME Budget: € 5. 0 million Donor: EU Barrier to Trade Survey Study on SPS Compliance for Exports Standards (PSQCA) § Standards development • Certification Body (Systems) • Consumer affairs • Product certification Metrology (NPSL) • Lab upgrading, international accreditation Product Testing (MFD, PCSIR, etc): Fisheries, Food, Leather, Textile • • Lab upgrading, PT participation International accreditation Accreditation (PNAC) • Organizational strengthening, international recognition • National accreditation scheme • Training of auditors • Setting-up of PT schemes Quality/Hygiene (Private sector, FPCCI, etc. ) Fish/food • • • Management systems Good practices Compliance with market requirements Pilot certifications HACCP, ISO 9001, 14001, SA 8000) Pilot traceability systems Boat hygiene Icing Landing Sites Inspection Auction Hall Processors Traceability 25

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE Pakistan TRTA PROGRAMME World Bank - UNIDO Report on Pakistan's agro-based exports and Sanitary and Phytosanitary compliance 26

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE Trade Capacity Building for Ghana Budget: US$ 2. 7 million Donor: Switzerland (SECO) - Support to the Ghana Bureau of Standards (GSB) - restructuring into modern service-oriented structure - standard-setting - promotion/training of new standards - establishment of a national traceability scheme - and for the institutionalization of consumer protection - Establishment of a national traceability system for horticultural products - Develop systems certification capability of GSB - Upgrading testing and calibration laboratories - Upgrading the Plant Protection and Regulatory Services Directorate (PPRSD) as an EU Competent Authority in the field of horticulture 27

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE Mozambique: Support for Enhancement of Capacity for Food Safety and Quality Assurance System for Trade Budget: US$ 2. 2 million Donor: Switzerland Food Safety: Establish a food safety system that is compliant with international requirements with special focus on the public institutions Quality Infrastructure: Develop and implement the required technical infrastructure (standard setting, laboratories infrastructure/product certification, accreditation of laboratories, metrology/calibration of testing laboratory equipment) suitable for product compliance with market entry requirements for ü Cashew nuts ü Honey ü Edible oil seeds ü Fruits and vegetables ü Fish products 28

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE MEKONG (Cambodia, Lao PDR, Vietnam) Trade Capacity Building in the Mekong Delta Countries of Cambodia, Lao PDR and Vietnam, through Strengthening Institutional and National Capacities Related to Standards, Metrology, Testing and Quality (SMTQ) Budget: US$ 2. 5 million Donor: Norway Cambodia § Formulation and publication of Cambodian national standards, for domestic and export products § Development of ISO 9001, ISO 14001 and HACCP certification services, reinforcing the Dept. of Industrial Standards of Cambodia (ISC) § Accredited Product Certification scheme established at the Dept. of Industrial Standards of Cambodia (ISC) § TBT enquiry point, standards library and documentation centre with facilities for acquisition and dissemination of information established at the Dept. of Industrial Standards of Cambodia (ISC) Lao PDR § Formulation and publication of Lao national standards, for domestic and export products § Development of ISO 9001 and ISO 14001 certification services, reinforcing the Division of Standards and Quality § Development of HACCP certification services, reinforcing the Dept. of Food and Drugs (DFD), Ministry of Health § TBT enquiry point, standards library and documentation centre with facilities for acquisition and dissemination of information established and staff trained at the Division of Standards & Quality (DSQ) Vietnam § Product certification scheme for CE marking and other IEEE requirements § Compliance capacity for EU traceability, EUREPGAP, GVP and GTP § Upgraded Vietnam Metrology Center § National proficiency scheme launched and BOA staff trained in specialised areas 29

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION • Organizational and regulatory framework for fish industry improved, service capacity for fish inspection strengthened • Testing laboratories locally available and internationally recognized • In-plant group training carried out in 17 factories for 950 staff and critical mass of expertise provided to processing plants in GHP, HACCP, ISO 9000 • Quality control upgraded at all levels • EU ban (1999( lifted by the end of 2000 and new market in US opened 31

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 1. Context specific needs assessment 33

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 1. Context specific needs assessment Based on the request for the formulation of a project, UNIDO undertakes context -specific desk research as well as a preparatory/needs assessment missions to clearly identify the challenges at the level of: a) government policy and regulatory framework (TBT/SPS, bilateral); b) institutional capacity specifically in the quality-related institutions dealing with Standards, Metrology, Testing and Quality (SMTQ); c) sector(s)/value chains; and d) d) enterprises. e) The desk research involves the review of available diagnostic studies: § UNIDO competitiveness/technology studies (global/regional/country/macro/sectoral/value-chain/product) § DTIS (Diagnostic Trade Integration Study) § PRSPs (Poverty Reduction Strategy Papers) § Export Development Strategies, as well as any specific needs evaluations and technical assessment done previously by UNIDO or other institutions. 34

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 1. Context specific needs assessment The preparatory assistance often involves assessment of: § § § § Relevant legal and institutional framework SMTQ institutions in the country Collection of baseline data on the quality of targeted products, Quality and quantity of services provided by the relevant testing laboratories and other service providers (sustainability), Value-chain analysis of the sectors identified as strategic or requiring support; Diagnostic of group of enterprises and service providers Needs of conformity to standards (ISO 22000, Global. GAP…. . . and Buyers demand 35

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 2 -2. 2. Trade Related Challenges Surveys at the enterprise level 36

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 2 -2. Trade Related Challenges Surveys at the enterprise level UNIDO has developed a methodology for enterprise-level surveys on “Trade Related Challenges Faced by Exporters” aimed to: Qualify and quantify the problems exporters in developing countries are facing in the regional and international trade environment, by: 1. Identifying common trade barriers related to: § § Standards and conformity assessment § 2. Supply side, Integration into the multi-lateral trading system And reviewing the possibilities of overcoming these obstacles through Trade Related Technical Assistance and Capacity Building (TRTA/CB)[1] For example please refer to : http: //www. unido. org. lb/macle/downloads/macle_presentation. pdf or http: //www. un. org. pk/unido/trta-interventions. html. 37

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 2 -2. Trade Related Challenges Surveys at the enterprise level the survey aims to: • Explore the nature and extent of challenges to the trade capacity of exporters in the respective country. • Determine the factors associated with standards compliance across sub-sectors. • Assess the impact of technical standards and regulations on the value of export sales. • Identify mechanisms through which export performance could be enhanced. 38

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 2 -2. Trade Related Challenges Surveys at the enterprise level Based on the methodology developed, pilot surveys were carried out in various countries (including Armenia, Bahrain, Cambodia, Jordan, Guinea, Ghana, Kenya, Lao PDR, Lebanon, Pakistan, Sri Lanka, Vietnam, and also initiated in Bangladesh, Bhutan, India, Libya, Maldives, and Nepal) from different geographical areas, on different levels of Nepal economic development and having different economic structures. 39

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE: UNIDO BT SURVEY of 100 food exporters 2004 (new 2007) TOP 4 PROBLEMS: • Price Competition (internal and external) • tests certificates (recognition of local labs) • Trade facilitation (affecting import/export) • Tariffs LOST ORDERS 42% of respondents (food processors) lost orders in the last few years due to barriers to trade 40

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION EXAMPLE: UNIDO BT SURVEY of 100 food exporters 2004 (new 2007) STANDARDS AND TESTING • Tests and certificates from local labs: 52% • Access to standards information 29% • Compliance with standards (import) 15% ADMINISTRATIVE AND BUREAUCRATIC OBSTACLES (TRADE FACILITATION) • Irregular additional payments I/E: 46% • Custom formalities 37% • Improper administrative practices 31% 41

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 3. Key Export Sectors Supply-Side constraints – UNIDO Competitiveness Analysis Tool 42

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS Key Export Sectors Supply-Side constraints – UNIDO Competitiveness Analysis Tool Since 2004, UNIDO has been building up a competitiveness analysis programme to help countries identify: • Sectors and products with competitive potential • Supply-driven obstacles affecting their export growth. § § UNIDO’s approach in the competitiveness analysis programme is to build the institutional capacity of national counterparts through: Awareness raising, Training, Transfer of databases and methodologies, Creation and supervision of specialised inter-institutional units in key Ministries and Chambers. 43

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS Key Export Sectors Supply-Side constraints – UNIDO Competitiveness Analysis Tool § Nation-wide assessment of trade and industry competitiveness. It positions the country in the international industrial scene and analyses the factors that drive national manufacturing growth; § Value chain analysis of key strategic sectors. It identifies high value-added stages in the production process and the conditions under which a country can benefit from specialisation. It also analyses the potential markets for export; § Product analysis methodology for trade negotiations. It gives negotiators an objective tool to identify potential winning and vulnerable products in trade agreements; § Cost and transactions of doing business. It presents the framework conditions that influence investment decisions in key strategic sectors (e. g. labour and other industrial costs, infrastructure and logistics, laws and regulations, institutional arrangements, incentives in industrial zones, trade agreements, etc. ); § Industrial Observatory. It gives on-line access to all indicators of trade and industry competitiveness (both national and sectoral) to benchmark a country’s performance against main competitors, role models and global threats. 44

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS Key Export Sectors Supply-Side constraints – UNIDO Competitiveness Analysis Tool UTEPI Ecuador has produced Industrial Competitiveness Reports in 2004 and 2006; Cost and transactions of doing business in 2004 and 2005 (2008 updated on-line); and value-chain studies in Pineapple, Lime-Lemon, Cocoa[1] (i. e. http: //www. unido. org/file-storage/download? file_id=72404) , Orange, and Palm oil; UTEPI Paraguay has published the Industrial Competitiveness Report 2007, and is about to launch the cost and transaction of doing business in Paraguay 2008. Value chain studies have been completed in Leather and Soya. UNIDO has developed an exchange programme to strengthen interinstitutional cooperation and information sharing among assisted countries. [1] See for example; http: //www. unido. org/filestorage/download? file_id=72404. 45

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 4 - Analysis of Quality Infrastructure Constraints 46

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 4 - Analysis of Quality Infrastructure Constraints Specific DCs’ Conformity Assessment Problems • Poor physical facilities/infrastructure • Inefficient institutional set up (Standards and conformity assessment functions, if existent, are scattered among too many institutions) • Labs established (even with donor support) are neither sustainable, nor related to demand • Donation of equipment with poor planning, training, and lacking adequate local physical infrastructure/staff, absorption capacity 47

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 4 - Analysis of Quality Infrastructure Constraints Specific DCs’ Conformity Assessment Problems • • • Lack of funding Lack of demand Low-level of manufacturing due to focus on commodities Exposed to barriers to trade especially SPS measures Poor and uneven quality of local products National quality infrastructure lacks credibility, and tests and certificates by local laboratories are not recognized in export countries. 48

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 4 - Analysis of Quality Infrastructure Constraints Why a CA Infrastructure is Necessary for DCs • To reduce the risk that domestic markets become a dumping ground for sub-standard and unsafe products. • To ensure protection of the environment and achieve higher social responsibility. • To improve consumer safety related activities (availability of testing facilities, particularly microbiological and chemical testing laboratories and legal metrology). • To facilitate trade, access to export markets, and generate hard currency. • To increase custom revenue generation. 49

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 4 - Analysis of Quality Infrastructure Constraints Why a CA Infrastructure is Necessary for DCs • To overcome risk of rejection of products in export markets due to lack of conformity (TBS and SPS). • To prevent unscrupulous traders from taking advantage of a poor QC infrastructure, an enforced legal system for inspection and custom control is necessary. • To allow integration of producers/traders in the global economy • To help the private sector to solve quality, compliance and certification problems hampering its aspiration to gain access to export markets and avoid multiple testing. 50

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS Analysis of Quality Infrastructure Constraints In its efforts to contribute to make the Aid for Trade initiative a success for Africa, UNIDO elaborated a questionnaire to identify the gaps and assess the specific needs of African countries in the field of quality infrastructure[1]: §Quality promotion, §Metrology, §Accreditation, §Standardisation §Conformity assessment To allow better elaboration of trade capacity building projects at the national and sub-regional levels. [1] See for example: http: //www. unido. org/file-storage/download? file_id=81710. 51

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 4 - Analysis of Quality Infrastructure Constraints The UNIDO survey of the existing situation of quality infrastructures was the basis for the elaboration of an Action Plan for Africa to: § Address the weaknesses of the infrastructure § Build trade capacity in African countries § Improve the prospects of economic development on the continent. The findings of this survey and the proposed UNIDO action plan were presented and discussed during the “Standards Compliance and Conformity Assessment for the Development of Sustainable Trade in Africa” Expert Group Meeting organized jointly with the African Union (AU) and held in Tunis in February 2007. 52

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 4 - Analysis of Quality Infrastructure Constraints Building up on the initial survey, which covered 32 African Countries, UNIDO is currently updating the already received data while expanding at the same time the scope as well as the geographic coverage - Besides Africa, the current survey includes Asia, the Pacific Island States as well as the Arab region. In particular the survey aims to: § Assess the priority needs for quality infrastructure upgrading § Advocate more effective technical assistance § Develop tailored projects for countries and sub-regions 53

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 4 - Analysis of Quality Infrastructure Constraints LABNET provides access and dissemination of laboratory and activity information to its users. LABNET is under the umbrella of the UNIDO, and its primary function would be to provide information to the laboratories and the persons associated with the laboratories. The LABNET is covering the testing and calibration laboratories from all fields of science and have a wide database to cover all laboratories both accredited and non-accredited from all regions of the globe. LABNET Vision Provide access and dissemination of laboratory and activity information Share experience with respect to laboratory design, management, development, maintenance, capabilities Interaction and response in various issues related to PT, CRM, traceability, trade related issues Avenue for promotion / sourcing of laboratory and related services Facilitate information to industry / trade on testing / calibration and product specific information PARTNERS UNIDO, WAITRO, Vinta Labs, India 54

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 5 - Analysis of developing countries product refusals/notifications 55

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 5 - Analysis of developing countries product refusals/notifications Starting from the analysis of product refusals/notifications for developing countries originated by: 1 -The United States Food and Drug Administration (US-FDA), 2 -European Union Rapid Alert System for Food and Feed (EURASFF) and 3 -Japan (Ministry of Health, Labour and Welfare) UNIDO worked out an enhanced classification of Non-Tariff Measures (NTMs)/Non-Tariff Barriers (NTBs) to trade. 56

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 5 - Analysis of developing countries product refusals/notifications The classification was developed in the context of the Multi-Agency Support Team established by the Group of Eminent Persons on Non-Tariff Barriers (MAST) through the SPS/TBT Sub-Groups with the participation of several international organizations (Codex Alimentarius, FAO, ITC, OECD, UNCTAD, WTO, US-ERS, and US-ITC) led by OECD and UNIDO. UNCTAD, UNIDO and ITC in cooperation with other MAST members (IMF, FAO, OECD, WTO, WB) launched in 2007 a Pilot Project on Collection and Quantification of Non-Tariff Measures (NTMs) Database (UNCTAD-DITC Draft, 18 July 2007). 57

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS 5 - Analysis of developing countries product refusals/notifications Aimed at developing a systematic methodology of definition and collection of Non-Tariff Measures (NTMs) the project covers nine pilot countries (Brazil, Chile, India, Kenya, Mozambique, Philippines, Switzerland, Thailand Zambia). The objective is to initiate a country level data collection on NTMs that will help MAST to draw up an analytical framework to carry out a multi-agency effort in data collection process and prepare studies on the impact assessment of NTMs. 58

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CHALLENGES IN ACCESSING MARKETS - Food Safety Requirements FDA IMPORT REFUSALS for the African Countries by Sub-region UNIDO ANALYSIS of Import Refusals, Source: US Food and Drug Administration Fishery/Seafood 717 refusals January 2005 – December 2006 59

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION “Aid for Trade”: UNIDO’s Main Contribution Bringing back missing elements ü Supply Capacity Development • Agro-industry development - Capacity upgrading, productivity development (Process technology, cleaner production, quality management) • Development of advisory capacity for enterprises to meet requirements • Cluster development; Export consortia support • Business partnerships for investment, sub-contracting, trade ü Conformity Infrastructure • Establish access to and harmonization of standards & technical regulations • Establishment of legal & regulatory frameworks • Upgrading of laboratories for conformity assessment, product certification • Training of auditors for ISO 9001, ISO 14001, ISO 22000, ISO/IEC 17025…. • Pilot activities at enterprise level for on-the-job training of institutional service providers 60

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CONCLUSIONS CHALLENGES ü ü ü Developing industrial/productive capacities Access to Investment & Technology Upgrading to become competitive Linking to Value Chains – SME Cluster and Export Consortia Meeting Quality/Safety requirements within TBT/SPS regime AID FOR TRADE ü Re-iterates support for Supply Capacity & Conformity ü Ensuring inter/agency cooperation ü Involving Private sector as an Actor 61

Thank You for your attention! 62

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