Ministerial ConferenceMinisterial Conference
Aid-for-Trade Roadmap for SPECABaku Business Center, Azerbaijan, 1-2 December 2010
UNIDO Project Concept:
Trade Capacity Building of ECO/SPECA Member States in Standards, Metrology, Testing and Quality Infrastructure
Ouseph PadickakudiProgramme Manager
Trade Capacity Building Branch UNIDO 1
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T h e m a t i cP r i o r i t i e s
E n e r g y a n d e n v i r o n m e n t
T r a d e c a p a c i t y - b u i l d i n g
P o v e r t y r e d u c t i o n t h r o u g h p r o d u c t i v e a c t i v i t i e s
L o n g - t e r mG o a l
T o c o n t r i b u t e t o t h e a c h i e v e m e n t o f t h e M i l l e n n i u m D e v e l o p m e n t G o a l s ( M D G s ) , i n p a r t i c u l a r t o p o v e r t y e r a d i c a t i o n t h r o u g h s u s t a i n a b l e i n d u s t r i a l d e v e l o p m e n t .
P r o g r a m m eC o m p o n e n t s
I n d u s t r i a l P o l i c y , B u s i n e s s E n v i r o n m e n t a n d
I n s t i t u t i o n a l S u p p o r t
E n t e r p r i s e U p g r a d i n g f o r T r a d e E n h a n c e m e n t R e n e w a b l e E n e r g y
R u r a l a n d W o m e n ’ s E n t r e p r e n e u r s h i p D e v e l o p m e n t
P r o m o t i o n o f D o m e s t i c I n v e s t m e n t , F D I a n d A l l i a n c e s
S M E C l u s t e r D e v e l o p m e n t
A g r o - p r o c e s s i n g a n d V a l u e C h a i n D e v e l o p m e n t
R u r a l E n e r g y f o r P r o d u c t i v e U s e
S u s t a i n a b l e P r o d u c t i o n i nP o o r C o m m u n i t i e s
T e c h n o l o g y D i f f u s i o n
I n n o v a t i o n S y s t e m s , T e c h n o l o g y M a n a g e m e n t a n d F o r e s i g h t
M o d e r n i z a t i o n o f E x p o r t -o r i e n t e d A g r o - i n d u s t r i e s
S M E E x p o r t C o n s o r t i a
S t a n d a r d s , M e t r o l o g y , T e s t i n g a n d C o n f o r m i t y
C l i m a t e C h a n g e a n d I n d u s t r i a l E n e r g y E f f i c i e n c y
C l e a n e r a n d S u s t a i n a b l e P r o d u c t i o n
W a t e r M a n a g e m e n t
M o n t r e a l P r o t o c o l
S t o c k h o l m C o n v e n t i o n
C o m p e t i t i v e n e s s A n a l y s i s a n d T r a d e - r e l a t e d P o l i c i e s
C o r p o r a t e S o c i a l R e s p o n s i b i l i t yf o r M a r k e t I n t e g r a t i o n
UNIDO – Key Thematic PrioritiesUNIDO – Key Thematic Priorities
Trade Figures: SPECA 2009Trade Figures: SPECA 2009
Trade balance gap: oil & gas exporters and other SPECA countriesTrade balance gap: oil & gas exporters and other SPECA countries
Trade Surplus - Oil & Gas Exporters: Azerbaijan, Kazakhstan and TurkmenistanTrade Surplus - Oil & Gas Exporters: Azerbaijan, Kazakhstan and Turkmenistan Trade Surplus – UzbekistanTrade Surplus – Uzbekistan Trade Deficit – Kyrgyzstan and TajikistanTrade Deficit – Kyrgyzstan and Tajikistan
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Countries Exports(USD million)
Imports
(USD million)
Trade balance
(USD million)
Azerbaijan 21,097 6,154 14,583
Kazakhstan 43,839 28,774 15,065
Kyrgyzstan 1,726 2,987 -1,261
Tajikistan 1,038 2,770 - 1,732
Turkmenistan 6,736 4,109 2,628
Uzbekistan 10,735 9,023 1,712
SPECA total 85,172 54,177 17,707
HS*
code
Product group Share in % 2008
Share in % 2009
All products 100 100
27 Minerals, fuels, oils, distillation products, gas, coal, electricity 78,2 71,9
72 Iron and steel 4,6 4,7
28 Inorganic chemicals, precious metal compounds, isotopes 2,1 4,1
74 Copper and articles thereof 2,5 3,0
26 Ores, slag and ash 1,8 2,8
71 Pearls, precious stones, metals, coins etc. 1,3 2,7
52 Cotton 1,1 1,5
08 Edible fruit, nuts, melons 0,6 1,2
76 Aluminum and articles thereof 0,7 1,1
79 Zinc and articles thereof 0,6 0,7
10 Cereals 0,8 0,6
41 Raw hides and skins (other than fur skins) and leather 0,4 0,6
Source Regional Review Aft, Oct 2010, p. 12-13 Note: data partially based on mirror statistics; reporting may have affected the totals
Key Exports in 2008 & 2009Key Exports in 2008 & 2009
4* Harmonized Commodity Description and Coding System
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BORDER REJECTIONSDATE NOTIFIED BY REF. REASONS FOR NOTIFYING PRODUCT CATEGORY Country
12/10/2010 PL 2010.BSRprohibited substance DDT (0.07 mg/kg - ppm) in hazelnut kernels from Azerbaijan nuts, nut products and seeds AZERBAIJAN (AZ)
24/06/2009 DE 2009.0811unauthorised use of colour E 102 - tartrazine in pasta made from durum wheat semolina from Kazakhstan cereals and bakery products KAZAKHSTAN (KZ)
7/8/2009 BE 2009.BLFimproper health certificate(s) for pistachios from Tajikistan, dispatched from Turkey nuts, nut products and seeds TAJIKISTAN (TJ)
24/02/2010 BE 2010.AIJ
aflatoxins (B1 = 101; Tot. = 138 / B1 = 61; Tot. = 78 / B1 = 61; Tot. = 80 µg/kg - ppb) in pistachios from Kyrgyzstan, dispatched from Turkey nuts, nut products and seeds KYRGYZSTAN (KG)
10/11/2010 NL 2010.BYQochratoxin A (30 µg/kg - ppb) in dried raisins from Uzbekistan fruit and vegetables UZBEKISTAN (UZ)
Source: http://ec.europa.eu/food/food/rapidalertRASFF Portal 2010
Selected Export Rejections of SPECA
High dependence on natural resources export Trade flows (95%) mainly outside SPECA’s area Untapped intra-regional trade potential High level of product and market concentration:
62% of SPECA exports destined to
China, Italy, France, Russia, Germany and USA
Shifting trade paradigm necessary:
Intra-regional trade integration and harmonization policies
Export diversification
Targeted promotion of specific sectors with high export potential
Improvement of quality standards
Improvement of business conditions and trade infrastructure
Promotion of export consortia
Trade Patterns Trade Patterns
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No.7
National
Quality
Infrastructure
Testing
Standardization
Metrology
Accreditation
Certification
CODEX
National Quality Infrastructure & International LinkagesNational Quality Infrastructure & International Linkages
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M A R K E T S
P R OD U C T S
Products to Market
….by upgrading supply capacities and standards infrastructures
Connect to the Market
DevelopCompetitive
ManufacturingCapability
Prove Conformity with
Market Requirements
Compete Conform Connect
Connect to the Market
DevelopCompetitive
ManufacturingCapability
Prove Conformity with
Market Requirements
Compete Conform Connect
Integrating into Global Trade: UNIDO 3 CsIntegrating into Global Trade: UNIDO 3 Cs
UNIDO projects & initiatives on trade development in SPECA countries
Compete
Conform
Connect
SPECA Regional Network for Conducive Business Environment * Agro processing and marketing for small-scale producer groups, Kyrgyzstan* Strengthening Damu Center for Development of Industrial Enterprises, Kazakhstan Fostering competitive clusters, Uzbekistan
Trade Capacity Building of ECO Member States in Standards, Metrology, Testing and Quality Infrastructure* Market surveillance project proposal in cooperation with UNECE, Azerbaijan* Trade capacity – building for Azerbaijan to reap the benefit of accession to WTO
* Included in SPECA Project Portfolio8
UNIDO Project Concept: Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing
and Quality Infrastructure
Reasons for UNIDO Assistance:Reasons for UNIDO Assistance:
Lack of harmonization of standards to enforce regional
and international trade Lack of internationally recognized conformity
assessment systems Necessity to enhance human resources in conformity
assessment Weak quality culture Non membership of WTO (except Kyrgyzstan)
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Selected assessed needs
UNIDO SMTQ Needs Assessment in SPECA RegionComprehensive report on SPECA infrastructure needs assessed
by UNIDO in 2008 -2009
Azerbaijan National quality policy benchmarking and review
Quality management systems certification bodies
Development, application and audit of management
system of labour protection
Pressure, temperature, mass, force, physical, food and
chemical laboratories accreditation
Personnel certification body
Product certification scheme accreditation
Development of inspection organizations
10STRENGTHEN NATIONAL/REGIONAL CONFORMITY ASSESSENT SYSTEM
UNIDO Project Concept: Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality (SMTQ) Infrastructure
OutcomeOutcome
Efficient SMTQ set up to support market surveillance and contribute to :
Health and safety of people Conserving environment Strengthening the control of imported substandard goodsTrade growth with quality: Prosperity and HAPPINESS
ObjectiveObjective
To strengthen SMTQ infrastructure of SPECA member states through enhancing capacity of conformity assessment system including laboratories and building technical staff capacity on implementation of standards relevant to WTO requirements
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OutputsOutputs
- National standards formulated, harmonized and published
- Quality Management System certification bodies accredited
- Product certification scheme strengthened at national standards bodies
- Food, chemical and microbiology testing laboratories accredited
- TBT/SPS enquiry points, standards library and documentation
centre established/strengthened
- Fuel testing laboratories capacity enhanced and strengthened
- Legal and industrial metrology laboratories
strengthened/accredited
Trade Capacity Building of SPECA Member States in Standards, Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality InfrastructureMetrology, Testing and Quality Infrastructure
ActivitiesActivities
• Enhancement of managerial & technical capacities
• Overcoming Technical Barriers to Trade and SPS
constraints meeting WTO requirements
• Fostering integration of ECO members into
regional and international trading systems
• Mutual recognition agreements to strengthen trade
• Enforcement of quality management systems at
manufacturing processes
• Strengthening testing and calibration capacities
Trade Capacity Building of SPECA Member States in Standards, Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality InfrastructureMetrology, Testing and Quality Infrastructure
SPECA Project CounterpartsSPECA Project Counterparts
Kazakhstan Kazakhstan Institute of Standardisation (KazInSt) Kazakhstan Institute of Metrology (KazInMetr) National Accreditation Centre
Kyrgyzstan National Institute of Standards and metrology (NISM - Kyryzstandart) Kyrgyz Centre of Accreditation
Tajikistan Agency of Standardisation, Metrology, Certification, Trade & Inspection
Uzbekistan Uzbek agency of Standardisation, metrology and Certification (UzStandart)
Azerbaijan State Committee on Standardization, Metrology and Patents of the Republic of Azerbaijan (AZSTAND)
Turkmenistan The Major State Service "Turkmenstandartlary“ (MSST)
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Government Ownership CommitmentGovernment Ownership Commitment
Resources for availability of laboratory buildings
Hiring of professional and support staff
Conformity assessment sustainability plan
Promotion of services within country: public goods
Pursue WTO membership
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Trade Capacity Building of SPECA Member States in Standards, Trade Capacity Building of SPECA Member States in Standards, Metrology, Testing and Quality InfrastructureMetrology, Testing and Quality Infrastructure
Total: $ 4 500 500
Outputs USD
Formulation and publication of national standards S 80 000
Development of ISO 9001, ISO 14001, and ISO 22000 certification services Q 110 000
Accredited product certification scheme at national standards bodies T 150 000
Food, chemical and microbiology testing laboratories accredited T 1 850 000
TBT enquiry point, standards library and documentation centre S 320 000
Fuel testing laboratories enhanced and strengthened T 710 000
Industrial and legal Metrology Laboratories strengthened / accredited M 1 470 000
Total budget sought SMTQ $ 4 500 000
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Project budget and resources sought from donors
UNIDO SMTQ Projects: US$ 100 MnUNIDO SMTQ Projects: US$ 100 Mn (2007-2011)(2007-2011)European Union Bangladesh, Cameroon, Cote D’Ivoire, Nepal, Pakistan,
ECOWAS, UEMOA
Norway East Africa, Mekong, Sri Lanka, Bangladesh; SAARC, Zambia, Uganda, GLOBAL FORUM
Switzerland Vietnam, Tanzania, Ghana, Mozambique, Tanzania, Lebanon, Egypt
Italy Egypt, Iraq
Sweden Trade Trust Fund, AIDMO
Poland Ukraine, Moldova
Korea Mongolia, South -South Metrology Centre
India South-South Lab Testing Centre, Timor-Leste
Finland Trade Trust Fund
Spain China, Egypt
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Regional Integration and Intra-Regional Trade Growth with Regional Integration and Intra-Regional Trade Growth with Quality through SMTQ Capacity BuildingQuality through SMTQ Capacity Building
UNIDO is at your serviceUNIDO is at your servicefor SPECA national for SPECA national
happiness happiness
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Thank YouThank Youfor your attention!for your attention!