Challenges, opportunities and risks fordeveloping countries to actively be involved in

standardization and how this could impacttrade in the global marketplace

GenevaSeptember 2013

Jane Ngige

Discussion points:• Standards & Commerce• Using standards• Challenges• Opportunities

– Company– Sector– National– International

• Climate / Environment• Some thoughts

Preamble:• Standards: a language of sustainable

commerce• Link commerce and other segments of

the economy -Productivity• Equity in global trade negotiations• Main partners in standardization:

businesses, consumers, stateregulatory authorities and standardsbodies

Kenya Exports to EU22%

Kenya Exports to EAC27%

Kenya Exports COMESA(non EAC COMESA

countries)17%

Rest of the world34%

Kenya Exports by destination in 2012

Horticulture exports values 2010-2012

Growing Responsibly

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Main Issues:

Sustainability: Marginsunder pressure

• Enhance Competiveness• Focus on Product development• Quality management• Business models• Market access

Local and international Business facilitation Standards Trade protocols

EU; RUSSIA; HOLLAND; JAPAN Packaging

• Logistics• Packaging• Cool chain

Distant Markets:

•. Efficient use of resources. H2O. Fuel. Labour

Productivity:

• Nationally, Regionally and international : political; governance &economical• Industry

Branding Kenya:

Using Standards:

Business entities• Need based• Resources

Sector level organisation• Common agenda• Justification• Resources

National level• Justification• Effective and efficient Implementation• Sustainability

International level• Relevance• Sustainability

KFC Organization

checklist foraudits generated

& endorsed,

Mechanism for GuidingVerifications & Certification

proposed

First nationaltrials

Review and FinaliseStandards, QMS and

Mechanism forverification +certification

Guidelines forauditing,

verification,validation andcertification

Development of stds:

Draft CoP (s) +QMS procedures

Review &desk

Research

KeyInformants

Challenges:• Lack of appreciation / knowledge leads to

“standard takers”• Non participation: paucity credible information to

articulate, and defend interests – national /international

• Limited opportunities to influence / ratify stds• Difficulties in adoption of standards and adapting

to conditions of certain economic activities henceless effective in commerce

Tesco NURTURE

KeBS KS 1758

Earmarked for ISO GUIDE 17025 &FSI in 2013

Accredited ISO GUIDE 65 SOME PARTNERS

KAMA. E. A.

WORLD BANK

National:

• Failure to inculcate of adherence to minimumstandards compromises sustainability in theexploitation of resources

• the lack of capacity in implementinginternational standards leads to increasedcosts and difficulties in applying the standardsneeded to increase exports sources

• can cause obstacles or trade barriers

Sector:• technology transfer limited to well endowed

businesses within a sector• businesses not necessarily convinced that the

benefits of sharing R&D are greater than therisk involved in revealing proprietaryinformation

• Reliance on local standards developmentagencies for relevant information.

Company:

• Not sufficiently informed• partly aware of the strategic potential of

standards and accruing benefits• Private industry standards involve of selected

interested parties.

Making/negotiating internationalstandards

• Lack of concrete information and quality data ontopics of discussion.

• The fear of dealing with the unknown.• Challenges of dealing with cultural differences and

foreign bureaucracies.• Lack of adequate preparation – delegates &

organizers

Opportunities:

• Continuous economic growth: sustainabledevelopment (economic, environmental andsocial)

• Competitiveness: access, expand, penetrateand grow market share in global markets.

• Emerging economies should learn usestandardization as a tool to create and sustainnew trade opportunities.

….opportunities:

• reduce liability risk• Stimulate, disseminate innovation and value

addition for economic growth• effective communication• Promotion of locally-identified adaptation strategies;

benchmarking & sharing of best practices / lessonslearned, and exchange of information

Risks:• Initial costs could be prohibitive in the process of transforming

business• Migration of trained human resources to competitors• While public standards may be consistent for a period of time,

private standards are dynamic• In developing countries, business standards often lag behind

parallel national developments, leading to lack of effectiveincentives and disincentives

• Failure of governments to effectively participate in standardssetting (local regional or international) could lead todevelopment of standards that are not practical or achievable

• Where sustainability standards are seen as being in conflictwith development, they risk being de prioritized

Thoughts on what can be done to enhance capacityamong stakeholders using international climate

standards in an efficient way

• Encourage / support developing countries becoming more involvedin international standard setting & implementation

• International standards are of key interest to governments, theprivate sector, NGOs, research and other stakeholders; it is ofimportance that the process of developing market relevantstandards is stakeholder-driven

• Other actions include (1) formulation of national resourceefficiency use / productivity strategies, (2) development of systemsfor monitoring, reporting and verification, (3) development ofstandard data collection systems, (4) setting baselines and (5)establishment of programs / projects that promote sustainabilityand innovation

• Draw policies that incentivize sustainable measures

Thank youkfc@kenyaflowercouncil.org