Strengthening the Compliance of the OIC Member States
to International Standards
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Protection, not protectionism: The SPS Agreement prohibits standards that are disguised restrictions on
international trade, and the TBT Agreement prohibits standards that are more trade restrictive than
necessary to fulfil the given objective. SPS measures need to be supported by scientific evidence.
Preference for international standards: The SPS and TBT Agreements both encourage, but do not require,
WTO members to use international standards as the basis for their own standards when appropriate.
Examples of international standards include those issued by ISO and the CAC.
Transparency: Both agreements set out basic obligations of transparency and communication in the
standard setting process. The aim is to ensure that standards are readily available to other members and
to the public, their justifications are fully presented, and other members are able to initiate
consultations if a standard creates a trade difficulty for them.
Source: Shepherd (2014).
2.4 Product Standards and Export Competitiveness
A second reason why international product standards are important is that they can provide a basis for
upgrading export competitiveness in key industries. If important export markets use international
standards—particularly mandatory ones—then domestic industries will need to comply with those
standards, have their products tested, and have conformity certified before they can enter the export
market. Given the widespread use of international standards such as those of ISO, IEC, and the Codex, it
is a common requirement for developing country firms to meet international standards as a condition of
being able to export to third markets. Having different standards at home puts those firms at a
competitive disadvantage in the market, as they need to retool and redesign in order to break into the
global marketplace.
More broadly, development of a national quality infrastructure—of which international standardization
is one part—can help producers upgrade processes and products to meet the exacting requirements of
foreign purchasers. Even voluntary, private standards are important in this regard. Many GVCs require
highly standardized inputs to ensure interoperability among components and easy substitution among a
network of suppliers. As a result, joining GVCs, particularly in manufacturing sectors, requires local
suppliers to have the capacity to meet standards set by the lead firm—which typically rely on
international standards as their basis, although there are also some cases of firm-specific standards
being used.
In the agricultural sector, raw and processed foods both need to comply with product standards in the
importing country. Often, these standards are based on the Codex, i.e. they are international standards.