French media: Developing countries face 'standard' trade barriers

Reference News Network reported on December 16th that according to the French newspaper "Echo" website on December 12th, the surge in standards in developed countries has caused losses to developing countries in the field of trade.

The master of standards controls the market. "In the late 19th century, German industrialist Werner von Siemens perfectly explained the power of production standards and norms in the modern world.

Standards are common rules followed by all economies, aimed at ensuring the normal operation of electrical equipment, safe and harmless drugs, or smooth interaction between digital systems, etc.

In the preface of the World Development Report released on the 11th, World Bank Chief Economist Indemet Gill explained that whether it is product labeling, security testing, cellular phone network specifications, or pollution measurement, they are "intangible infrastructure in modern economies that are crucial to prosperity, just like roads, ports, or power grids.

But Jill issued a warning about the surge in these standards. Since the beginning of this century, the number of industry and product standards has significantly increased, covering over 90% of global trade today, compared to only 15% in the late 1990s.

For example, in 1965, the International Organization for Standardization (ISO) headquartered in Geneva standardized almost all features of containers, such as size, stacking rules, locking systems, etc. As a result, in the following 15 years, the trade volume between industrialized countries surged by 1240%.

Although some standards can serve as a springboard for development, they can also become constraints that stifle economic growth. As recognized by the World Bank, these standards are primarily formulated by the most economically powerful countries and may sometimes become coercive tools in global competition. Nowadays, as trade frictions intensify again, tariffs are only the most obvious manifestation of this scourge, but not the most important manifestation.

Jill regretfully pointed out that "developing countries have not participated in standard setting. On the contrary, they must adopt these standards in order to participate in global trade," which may lead to these standards becoming true trade barriers. On average, representatives from developing countries hold less than one-third of the seats in ISO technical committees.

For example, Ethiopia has less than 100 registered auditors, while Germany has 12000. He said, "This absence is equivalent to acknowledging the weaknesses of developed economies." At the same time, China's influence is increasingly growing: in 2015, Chinese experts held more than ten leadership positions in ISO technical committees, and their contributions to international standards increased from 13 before 2000 to 182 in 2015.

Although adopting standards may bring economic benefits, the cost is still high. The compliance and certification fees for each enterprise may reach up to 425000 US dollars. Therefore, many companies in developing countries avoid markets with strict regulations and shift their exports to countries with lower requirements.

For example, Burundi exports most of its rubber to Peru, while Mexico exports rubber mainly to high-income markets such as China, the United States and the European Union, which have relatively high import requirements.

To make various standards a springboard for economic development, governments around the world should encourage export enterprises to improve the quality of their exported goods, rather than passively accepting unrealistic requirements. The World Bank recommends that countries learn from the experiences of countries such as Japan after World War II, South Korea in the 1980s, and China in recent years, and adjust various standards according to their own market conditions.

Each country should follow a path that adapts to its stage of economic development. The "Growing with Standards" program in Rwanda reflects this approach, which helps small and medium-sized enterprises gradually meet international standards. Most importantly, developing countries should actively participate in relevant international organizations.