AUSTRALIAUSA Free Trade Agreement Workshop on the Implications of the FTA for Standards and Conformi

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AUSTRALIA/USA Free Trade AgreementWorkshop on
the Implications of the FTAforStandards and
Conformity

• The Implications for Conformity Assessment from a
  Testing Perspective

A J Russell Chief Executive National Association
of Testing Authorities, Australia
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Issues

• What is Conformity Assessment?
• Overview of Conformity Assessment and Trade
• Implications of the World Trade Organizations
  Agreement on Technical Barriers to Trade
• Existing Australia-US Testing Linkages
• Previous Testing Technical Barriers for
  Australia?
• Implications of Chapter 8 of the FTA
• Role of Regional Governments (States etc)
• Equivalence of Technical Regulations
• Menu of Acceptance Arrangements
• Dispute resolution
• Opportunities for Trade Facilitation under the
  Agreement

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Conformity Assessment?

• For this Free Trade Agreement Conformity
  Assessment procedures defined as
• Any procedure used, directly or indirectly, to
  determine that relevant requirements in technical
  regulations or standards are fulfilled
• With the following explanatory note
• Conformity assessment procedures include, inter
  alia, procedures for sampling, testing and
  inspection evaluation, verification and
  assurance of conformity registration,
  accreditation and approval as well as their
  combinations
  
• (Annex 1 of the WTO Agreement on Technical
  Barriers to Trade)

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Conformity Assessment?(A Different Perspective)

• Current definition from the International
  Standard ISO/IEC 170002004, Conformity
  assessment - Vocabulary and general principles
• Conformity assessment
• demonstration that specified requirements
  relating to a product, process, system, person or
  body are fulfilled
• Note 1 - the subject field of conformity
  assessment includes activities defined elsewhere
  in this International Standard, such as testing,
  inspection and certification, as well as the
  accreditation of conformity assessment bodies
• Some subtle differences, including the concept of
  a hierarchy of roles, no mention of certification
  etc. ISO notes that an accreditation body is not
  a conformity assessment body

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Accreditation and Conformity Assessment in the
Market
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Australia/US FTA and the WTOAgreement on
Technical Barriers to Trade (TBT)

• Clause 1.1.2 of the Australia/US FTA
• Parties affirm their existing rights and
  obligations with respect to each other under
  existing bilateral and multilateral agreements to
  which both Parties are party, including the WTO
  Agreement
• The WTO Agreement includes Annex 1A, which is the
  Agreement on Technical Barriers to Trade
• The Preamble to the FTA refers to building on the
  rights and obligations under the WTO Agreement

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Some WTO TBT Elements of Potential Relevance to
Conformity Assessment

• Article 6
  Recognition of
  Conformity Assessment by Central Government
  Bodies (includes ability to use processes to
  determine technical competence and limit results
  to designated bodies)
• Article 7
  Procedures for
  Assessment of Conformity by Local Government
  Bodies
• Article 8
  Procedures for
  Assessment of Conformity by Non-governmental
  Bodies

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Some Existing and Potential Australia-US Testing
Linkages

• 1. At the Accreditation Body Level
  Mutual Recognition Agreements between
  Australian and US Laboratory Accreditation Bodies
• 2. At the Certification Body Level
  Some product certification bodies
  have agency agreements regarding certification
  and associated testing of regulated products eg
  SAI Global for UL (USA) and Vice Versa

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Some Existing and Potential Australia-US Testing
Linkages

• 3. At the Government to Government Level
  Potential exists for bilateral and multilateral
  government acceptance of regulatory testing eg
  APEC TEL MRA, APEC Electrical and Electronic MRA
• 4. At the Laboratory Level
  Individual laboratories have negotiated
  acceptance with foreign regulators or testing
  counterparts (eg National Measurement Institute
  and National Institute for Standards and
  Technology)

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Mutual Recognition Agreements (MRA) (Voluntary
Sector)

• Both Australian and US Laboratory Accreditation
  bodies are signatories to the MRAs of the
  International Laboratory Accreditation
  Cooperation (ILAC) and the Asia Pacific
  Laboratory Accreditation Cooperation (APLAC)
• MRA signatories for the USA
• A2LA (Private sector - not-for-profit)
• NVLAP (US Department of Commerce)
• IAS (Private sector - not-for-profit)
• MRA signatory for Australia
• NATA

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Purpose of the ILAC and APLAC MRAs
Fundamental Purpose Laboratories accredited by
one MRA Partner have equivalent competence to
laboratories accredited by the other Partners

• Objectives of MRAs
• Reduce or eliminate need for repeat testing in
  trade
• Maintain harmonised best laboratory practice
  standards internationally
• Promote confidence domestically and
  internationally
• Resolve disputes over test results

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Mutual RecognitionThe Building Blocks of
Confidence
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Government MRAs Supported by Voluntary Sector MRAs
Economy A
Economy B
MRA for Testing
Govt A
Govt B
Political / Regulatory Level
Regulator A
Regulator B
(For product x)
Designates
Designates
ILAC MRA Signatory Economy B
ILAC MRA Signatory Economy A
ILAC MRA
Technical Level
Equivalence
Accredited Laboratories for Tech Regs of
Economy AB
Accredited Laboratories for Tech Regs of
Economy AB
Accepts
Test Reports Reg B
Test Reports Reg A
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Previous Testing Barriers for Australia

• 2003 NATA Survey of Australian Laboratories and
  Inspection Bodies on Acceptance of Australian
  Test and Inspection Data
• 16 Areas Identified - ISSUES INCLUDED
• Non-acceptance of testing of exported shellfish
  (test method issues - auditor issues)
• Gaming Equipment and IT Security (Technical
  regulations specific to a single US company)
• Compliance with Transport of Dangerous Goods
  Regulations. (Specific to propellants)

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Previous Testing Barriers for Australia

• ISSUES (continued)
• Pressure Vessels and Non-destructive Testing
  issues. (Need to meet ASME requirements rather
  than International or Australian requirements)
• Requirements for a local (USA) agent (for
  Department of Transport, FDA approvals etc)
• Non-acceptance of windscreens testing (different
  standards)
• NIST Traceability requirements
• Electrical safety compliance (no central
  regulator)

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Implications for Acceptance of Testing from
Chapter 8 of the AUSFTA
Article 8.2 Affirmation of the TBT Agreement
Parties affirm their existing rights and
obligations with respect to each other under the
TBT Agreement
Article 8.3 Regional Governments
Each Party shall provide information to
authorities of regional governments to encourage
their adherence to this Chapter, as appropriate
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Implications for Acceptance of Testing from
Chapter 8 of the AUSFTA
Article 8.5 Technical Regulations
Each Party shall give positive considerations to
accepting as equivalent technical regulations of
the other Party, even if these regulations differ
from its own, provided it is satisfied that these
regulations adequately fulfil the objectives of
its regulations

• Provision for formation of an ad hoc working
  group to consider equivalence (Article 8.9.3)

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Implications for Acceptance of Testing from
Chapter 8 of the AUSFTA
Article 8 Conformity Assessment Procedures
a broad range of mechanisms exist to
facilitate acceptance of conformity assessment
procedures
The Article provides a menu of acceptance
examples ?
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Implications for Acceptance of Testing from
Chapter 8 of the AUSFTA

• Suppliers declaration of conformity
• Voluntary arrangements between conformity
  assessment bodies
• Direct acceptance of results for specific
  technical regulations
• Use of accreditation to qualify conformity
  assessment bodies
• Designation of other Partys conformity
  assessment bodies and
• Sector specific negotiation of agreements for
  acceptance

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Non-acceptance - Dispute Resolution
Article 8.9 Chapter Coordinators

• Responsibilities include, inter alia
• facilitating cooperation between conformity
  assessment bodies, both governmental and
  non-governmental
• establishment of ad hoc technical group to
  resolve matters (such as non-acceptance of
  conformity assessment results and equivalence of
  technical regulations)

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Trade Facilitation under Chapter 8 of the AUSFTA

• Article 8.8 Trade Facilitation
• Cooperation to identify trade facilitation with
  respect to
• Standards (implications for testing)
• Technical Regulations (implications for testing)
• Conformity Assessment Procedures (implications
  for testing)

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Trade Facilitation under Chapter 8 of the AUSFTA
Possible initiatives include

• Equivalence or convergence of standards and
  technical regulations
• Alignment with International Standards
• Reliance on Suppliers Declarations of Conformity
• Use of accreditation
• Direct recognition of conformity assessment
  procedures

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Summary of Implications for Testing

• The US and Australia both have
• Well developed national measurement institutes
  (with appropriate mutual recognition)
• Mature laboratory accreditation bodies jointly
  participating in international and regional
  Mutual Recognition Agreements
• Longstanding voluntary acceptance arrangements
  between laboratories in specific sectors
• Limited recent examples of non-acceptance of test
  data and
• Opportunities to reduce or eliminate future
  non-acceptance, through the dispute-resolution
  process of Chapter 8 of the AUSFTA