Exporting out of recession - Business, Innovation and Skills Committee Contents


Memorandum submitted by the British Standards Institution

  

  As the UK's National Standards Body, BSI British Standards welcomes the opportunity to submit a memorandum on exporting out of recession.

  

  This Memorandum outlines the important role that British Standards play is assisting the UK economy and how the use of internationally recognised standards can help exporting businesses endure a recession.

  

  1.  There now exists a significant body of evidence to support the claims of key economic benefits derived from the application of standards. Studies conducted in a number of countries including Australia, Canada, Germany and the UK point to the macro-economic benefits of standards. In the UK this has been quantified at an annual contribution to GDP of £2.5 billion per a year.

  

  2.  The question is now being asked if the role of standards changes in a period of reduced growth or recession. The simple answer is standards can provide the extra cost saving, the new customer, the new innovation—a range of benefits that makes the difference to a business enabling it to survive, grow and ultimately trade even in the toughest economic conditions.

  

  3.  Supporting export trade—Standards can open doors when companies are looking for new customers in new markets. New customers will know in advance what to expect, both in terms of what is delivered and how, simplifying market entry. Adherence to product standards means that products will be compatible with other components anywhere else the standard is being used. Additionally, standards are well-recognized, understood and respected both nationally and internationally: being able to claim adherence to standards translates well in any language. ISO 9001 for instance has been adopted in more than 170 countries worldwide.

  

  4.  Trade & Globalization—Standards facilitate trade both on a macro and micro level. With the fall in tariff barriers, technical barriers have now become one of the main elements that inhibit trade. The WTO's Technical Barriers to Trade Agreement highlights the need to avoid unnecessary obstacles to trade, and European and international standards are a way of harmonising the requirements for products and services between countries. As the UK's representative in the leading European and International standards organizations and as one of the world's leading National Standards Bodies, BSI has a key role to play in this respect.

  

  5.  The formation of the European Single Market has been one of the greatest successes of European integration over the last 20 years and standards have played a key role in ensuring the free movement of goods and services and ultimately the growth of the European economy and a model for the global economy. Now as the world economy slows and the threat of protectionist measures rises, the need to ensure that standards are harmonised between countries and the free movement of goods and services continues becomes even more important. BSI has an important role to play as the UK's National Standards Body and in co-operating and collaborating with our counterparts around the world.

  

  6.  BSI has provided technical assistance, often in close co-operation with UKTI and FCO officials, to key countries of strategic importance to the UK such as China and Russia, as well as emerging economies in Latin America (Mexico), Eastern Europe (Kosovo) and Asia Pacific (Vietnam). We have been able to help these countries develop their standards and quality systems so that they are more aligned with UK best practice, thereby inherently benefitting British exports.

  

BSI BACKGROUND

  1.  BSI British Standards is the UK's National Standards Body, incorporated by Royal Charter and responsible independently for preparing British Standards and related publications. BSI has 107 years of experience in serving the interest of a wide range of stakeholders including government, business and consumers ensuring standards are useful, relevant and authoritative.

  

  2.  A Standard is a document defining best practice, established by consensus and approved by a recognized body (such as BSI). Each standard is kept current through a process of maintenance and reviewed whereby it is updated, revised or withdrawn as necessary.

  

  3.  Standards are developed when there is a defined market need through consultation with stakeholders and a rigorous development process. National committee members represent their communities in order to develop standards and related documents by consensus. They include representatives from government, business, consumers, testing laboratories, suppliers, academic institutions, social interests, manufactures, regulators and trade unions.

  

  4.  BSI champions UK interests at home and abroad and is an incubator of many of the world's leading standards. It is the national gateway to all the European and worldwide standards bodies promoting fair trade, technology transfer, economic prosperity and security.

  

  5.  BSI presents the UK view on standards in Europe (to CEN and CENELEC) and internationally (to ISO and IEC).

  

  BSI British Standards welcomes further questions from the committee and would be delighted to provide oral evidence, should this be sought.

  

20 April 2009

  





 
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