Benefits of applying for ISO.
Higher productivity and quality products are some of the benefits that International Standards can bring to global trade.
The health crisis has underscored the need for global cooperation and collaboration. However, building a new consensus will not be easy but, in the context of trade, International Standards have a key role to play. Ben Shepherd, Principal of Developing Trade Consultants, and author of a research paper on the topic, explores the relationship between standards and trade. He points out that, when a large number of countries adopt an International Standard.
Exporters can benefit from stronger economies of scale by accessing a larger potential market.
Even when there is an initially negative cost-impact of an importing-market standard, over time, firms and governments tend to show substantial ability to adapt and prosper in the new environment, and the stndard can be the catalyst for higher productivity and quality.” And when importing-market standards are harmonized with International Standards, such as those from ISO or IEC, he says the negative effect on developing country exporters is substantially lessened, or even reversed.
Ben Shepherd, Principal of Developing Trade Consultants
According to the European Commission, ‘standardisation is a key factor of trade policy. It contributes to the removal of technical barriers, increases market access and international trade, and enhances international cooperation. The use of standards can help EU industry and small and medium-sized enterprises to access global markets.’ Standards also help manufacturers reduce costs, anticipate technical requirements and increase their productive and innovative efficiency.
The aviation industry, for example, has been severely hit by the pandemic with passenger numbers at an all-time low. But as the industry recovers, there will be a big push for aviation to be more sustainable. Notably, the sector of unmanned aircraft systems (UAS) looks set for a great lift-off thanks to the help of standards such as the ISO 21384 and ISO 23629 series.
Overcoming issues such as safety, security and privacy is not achievable without robust safety and quality standards upon which the industry can grow safely.
Robert Garbett, Chief Executive of Drone Major Group
International Standards have never been more relevant in helping to build a new consensus, reduce uncertainty and restore badly needed confidence to global supply chains. When it comes to trade, speed is of the essence, especially for developing countries integrating with global markets. When goods and inputs are time-sensitive, International Standards on moving goods from country to country can help to eliminate costly delays. This all chimes with the goals and priorities of the timely ISO Strategy 2030, which aims to ensure that standards – and International Standards in particular – will be key to building our economy and increasing trade.
On the flip side of uncertainty lies the opportunity for meaningful change, and organisations and businesses that are agile and ready to embrace the benefits of applying for ISO will be more successful in achieving their goals. As former ISO President Eddy Njoroge commented in a recent interview:
There has never been a more important time for market-led, consensus-based International Standards to support the global challenges facing a multilateral trading system. Economic and trade uncertainty, changing societal expectations and the urgency for sustainability and digital transformation are some of the external factors that shape our economy and they form the basis of our new ISO Strategy 2030. With appropriate standards, however, it will be possible to address these multiple challenges at a global and national level.
Former ISO President Eddy Njoroge
ISO states of its mission:
Through our members and their stakeholders, we bring people together to agree on International Standards that respond to global challenges. ISO standards support global trade, drive inclusive and equitable economic growth, advance innovation and promote health and safety to achieve a sustainable future.
ISO
Source: ISO
Published: 7th February 2022