United StatesStandards Strategy

Updating a Standards Strategy for Manufacturers in the Global Marketplace

March 30, 2005National Assn. of Manufacturers

Agenda I.  Welcome and introductions II.  Overview on importance of the U.S. standards

system  III. How the USSS was developed IV. Key elements of the updated USSS V. What manufacturers should do in the USSS VI. Open discussion and commentsVII. Conclusions

   

Welcome and Introductions

Participation by manufacturers and their associations

Discussants: Bill Primosch—NAM Joe Bhatia—USSS Committee

Chair USSS Committee Members ANSI President Mark Hurwitz

Overview on Importance of the U.S. Standards System

Consumer acceptability of products Tools for meeting regulatory

requirements (health, environment, safety)

Facilitates interoperability of products Determines market access for

products worldwide

Why Manufacturers Should Care about the Standards

System U.S. system assures fair

participation by manufacturers & other stakeholders

Standards the key to introducing innovative technology

Standards assure consumer and market acceptability

Increasingly critical for foreign market access and exports

How USSS Was Developed Presentation by Joe Bhatia

Chairman of the NSS/USSS Drafting CommitteeandExecutive VP, Underwriters Laboratories

Key Elements of the USSS

Reaffirming principles of U.S. system Refocusing national priorities Addressing trade & market access Improving standards education and

outreach Strengthening funding, patents & IPR

How Updated USSS Differs From

Current National Standards Strategy Global in outlook—not just a “national” Focus on application of principles

worldwide Embracing all standards’ community—

also consortia and ad hoc groups Emphasis on trade & market access

concerns Greater stress on outreach & education

Structure of USSS Introduction: Global setting,

principles, strategic vision & moving forward

12 Strategic goals Tactical initiatives to advance

goals Architecture for longer-term effort

Strategic Goals Goals 1-3 and 8-9—Strengthen the U.S.

standards system Goals 4-7—Address international

concerns Goal 10—Improve standards education Goal 11—Maintain stable funding Goal 12—Meet new priorities (security)

Good Principles of Standards-Setting I

Transparency Openness Impartiality Effectiveness and relevance Consensus Performance-based

Good Principles of Standards-Setting II

Flexible Timely Balanced Coherent Due process Technical Assistance

Unique Aspects of U.S. System

Decentralized: Bottom-up Private-public partnership, led by

private sector Dispersed Sectoral approachBenefits: Market-responsive,

adoptable to new technology, meets industry needs

European and Other Models

Top-down Government driven and funded Centralized standards organizations “One-size-fits-all” approachBenefits: Meets needs for single

standard in diverse 25-member EUCosts: Inflexible, less market-

responsive

Global Trade, Market Access and Standards

Growing importance of standards for trade and market access

Standards and their application cited as market access barriers

Increasingly standards set by regulatory policies (e.g., health, safety, environment) limit market access

Current Issues of Concern European influence in international

forums and foreign governments Differing technical requirements

resulting from regulatory differences-EU

Standards and conformity assessment procedures as protectionism

Industrial policy—growing China concerns

China Industrial Policies “Third-class companies make

products; second-class companies develop technology; and first-class companies set standards” (Chinese saying)

“The technological winner is now the one who manages to control …market standards..” Sangae Kim & Jeffrey Hart

Examples of China Problems

Efforts to establish unique Chinese “WIFI” encryption standards

Government procurement requirement to use Chinese software (“Kingsoft”)

Lack of foreign participation in Chinese standards forums

Lack of transparency in Chinese system CCC mark –cost, delays, administration

USSS International Initiatives

Promote effective implementation of WTO Technical Barriers to Trade Agree.

Encourage common regulatory approaches

Work pro-actively with USG to eliminate standards-related foreign trade barriers

Strengthen international outreach and target emerging markets

Role of Manufacturers in USSS

Help raise awareness in government, business and public of US system

Engage senior management on standards issues

Establish guide on what Administration & Congress should do

Strengthen international outreach

ANSI’S Leadership Role on Standards and the USSS

Comments by Mark Hurwitz, President of ANSI

Open Discussion How relevant is the strategy to

manufacturers’ concerns? Were major issues overlooked? How can we use the USSS to raise

awareness in senior management? What can manufacturers do to

improve govt./private sector cooperation?

USSS Timetable April 15 Public forum at U.S.

Commerce Dept. HQ

April 18 Deadline for receiving public comments

May Approval by ANSI Board June Publication of USSS

USSS Contacts NAM

Bill Primosch (202) 637-3145, bprimosch@nam.org

ANSI/USSS CommitteeJoe Tretler (212) 642-4977, jtretler@ansi.org

USSS text: www.ansi.org/usss