ISO International Standard are so Badly Needed in the Trade World

For millennia, human beings have been exchanging commodities and other goods. The Silk Road is the best-known ancient network of trade routes. Fast forward to today’s rapidly moving, complex and interconnected world. We live in a time of uncertainty. New technologies are reshaping our lives and major issues such as climate change and strained resources need to be tackled urgently. Yet the flow of goods and services between countries is still one of the most important drivers of job creation and prosperity.

The benefits for those enjoying free trade are obvious. It brings greater access to higher-quality, lower-priced goods, it drives competitiveness, it fuels economic growth and job creation, and it raises the standard of living for many people around the world. However, there are winners as well as losers. Many and significant trade barriers still prevent countries, particularly the poorest, from reaping the full gains of trade. It is clear that there has never been a greater or more pressing need for international standards. Transparency, accountability, harmonization and trust are just some of the benefits — for society and business alike. Take supply chains, which extend around the world and have become increasingly complex. Transparency and accountability, for producers and consumers alike, have become significant issues. Provenance, quality, and health & safety are also coming under the spotlight like never before. International standards are critical to ensure that processes, products and services are fit for purpose, interchangeable and compatible, and create better communication across borders.

International standards should be more accessible to enterprises, especially the small and medium-sized enterprises that account for the vast majority of jobs in developing and developed countries alike. When goods and inputs are time-sensitive, international standards on moving goods from country to country can help to eliminate costly delays. International standards can help the growth in harmonization of technical regulations. It facilitate the adoption of good regulatory practices by governments and ISO standards are consistent with the commitments of countries under the World Trade Organization (WTO) to reduce technical barriers to trade.

Every country develops at its own pace, international standards help to achieve a more level playing field, giving developing countries a better chance of participating in international trade. They help the compatibility of products and services and open doors to new markets. In fact, standards enhance competitive advantages. Enterprise-level surveys conducted by the World Bank Group in developing economies found that ISO 9001 certification achieved average productivity gains between 3 % and 18 % for three Central American economies and 5% in China.

According to the WTO, World trade will continue to face “strong headwinds” this year and next, after growing more slowly than expected in 2018. The WTO stresses the need to focus on charting a positive path forward for global trade. In response to the current challenges, ISO passed a resolution at its General Assembly last year encouraging its members to spread the message that a strong multilateral trading system is indispensable for economic and social development and that international standards are key to support these goals. They are the solid foundations on which the pathway to a more inclusive and sustainable world for everyone can be built.

Source : ISO Focus