A 1 1 1 02 fi 32 00 fl NBS

publications

NBSIR 88-3793

A Summary of the New European

Community Approach to

Standards Development

Patrick W. Cooke

U.S. DEPARTMENT OF COMMERCE

National Bureau of Standards

Office of the Associate Director for

Industry and Standards

Office of Standards Code and Information

Gaithersburg, MD 20899

June 1988

I

QC

100

. U56

#88-3793

1988

C . 2

-1

ARTMENT OF COMMERCE

BUREAU OF STANDARDS

J

NBSIR 88-3793

•Research Infon .1 Lh-xier

National Bux-eau of Staiiviaixh

Gaithersburg, Maryland 2089

A SUMMARY OF THE NEW EUROPEAN

COMMUNITY APPROACH TO

STANDARDS DEVELOPMENT

MB-SC

ClCfOO

no. 21-3143

Patrick W. Cooke

U.S. DEPARTMENT OF COMMERCE

National Bureau of Standards

Office of the Associate Director for

Industry and Standards

Office of Standards Code and Information

Gaithersburg, MD 20899

June 1988

U.S. DEPARTMENT OF COMMERCE, C. William Verity, Secretary

NATIONAL BUREAU OF STANDARDS, Ernest Ambler, Director

A Summary of the New European Community

Approach to Standards Development

Table of Contents

Page

Abstract 1

1. Overview 1

2. New European Community (EC) Initiatives 2

3. The Single European Act 2

4 . Standards-Related Measures — The "New Approach" 3

5. U.S. Standardization Concerns 4

6. EC Schedule for Industrial Standards 5

7. Further Information 6

8. Conclusion 6

Figure 1 Diagram Depicting Interrelationships of

Entities Influencing the Development of

European Standards 7

Appendix A EC Contacts for Additional Information on

European Standardization Matters 8

Appendix B U.S. Government Contacts with Information

on Various Aspects of EC Activities

Related to Standardization 9

A SUMMARY OF THE NEW EUROPEAN COMMUNITY

APPROACH TO STANDARDS DEVELOPMENT

Abstract

This paper summarizes European Community (EC) plans

to aggressively pursue its goal of achieving an

"internal market" by 1992 and the standards-related

implications of such a program on U.S. exporters.

U.S. exporters will be affected by the

harmonization of standards, implementation of EC

directives, strengthening of European regional

standards bodies and other trade policy

considerations affecting market access. U.S.

Government and EC contacts for obtaining additional

information are provided.

1 . Overview

The European Community (EC) 1 plans to complete the

"unification" of Western Europe through 1) further

reductions of internal barriers to the freer flow of goods

among Member nations, 2) regional currency considerations,

and 3) a stronger European Parliament. The obvious aim is

to improve marketing conditions for Members, both "at

home" and abroad.

The EFTA countries2 are also involved. Cooperative

arrangements with the EC — including harmonization of

technical regulations — are underway to create a European

Economic Space in parallel with completion of the EC's

internal market.

It is not yet clear how non-members will fare in the new

single market, hence the time is ripe to look after U.S.

interests. The U.S. Government's position has been, and

is, to promote free trade - with the minimum number of

restrictions.

Harmonization of standards is the easiest action to take,

resulting in considerable progress to this point.

1 The Member States of the European Community include

Belgium, Denmark, France, Germany (F.R.), Greece, Ireland, Italy,

Luxembourg, the Netherlands, Portugal, Spain, and the United

Kingdom.

2 The Member States of the European Free Trade Association

(EFTA) include Austria, Finland, Iceland, Norway, Sweden and

Switzerland.

1
Certification procedures and acceptance of test data may

be more important issues but they have not yet developed.

Attendant issues include the ability to enter the single

market through multinational corporations or European

subsidiaries of American manufacturers and mutual

recognition of laboratory accreditation schemes.

2 . New European Community (EC) Initiatives

The Commission of the European Communities (EC) is acting swiftly

and deliberately to turn the twelve European countries into a

single, integrated market of 320 million people by 1992. The

basis for this effort is a 1985 EC White Paper entitled

"Completing the Internal Market." 3 This paper sets out a

timetable for the measures needed to ensure the free circulation

of persons, products, services and capital among the twelve

member states. The EC has already initiated a program to

eliminate the many differing European4 national standards and

technical regulations by drawing up more than 200 EC directives

aimed at harmonizing the various national requirements.

3 . The Single European Act

The program being implemented by the EC has been further

expedited by the Single European Act, which was adopted in

February 1986 and amends (for the first time) the 1957 Treaty of

Rome, which serves as the EC's founding charter. The Act spells

out the following major objectives:

o completion of the European internal market by 1992 to

create a continental trade area;

o improved regional research and technological development;

o progress toward a European economic and monetary union;

and

o improvement of the environment and working conditions in

European countries.

3 The paper is identified as COM (85) 310 final,

"Completing the Internal Market" Commission of the European

Communities, Brussels, June 14, 1985. This 93 page paper is

available from the National Center for Standards and

Certification Information (NCSCI) at the National Bureau of

Standards (301 975-4040).

4 Hereafter the term "European" is intended to be limited

to the European Community (EC) and its member countries unless

otherwise indicated.

2
In order to facilitate the EC decision-making processes, the

Single Act provides for qualified majority voting (in place of

the previous unanimity requirement) on issues related to

completion of the internal market. This revised approval

requirement strips individual EC countries of their previous veto

powers

.

4 . Standards-Related Measures—The "New Approach”

An approach initiated in 1979 resulted in a ruling that any

product legally manufactured and marketed in one Member State

must, in principle, be admitted to the markets of all the other

members. On that basis, the EC is now developing policies based

on prevention of new impediments to trade and on the mutual

recognition of test data and product certifications within the

EC.

In those cases where it is necessary to establish a European

regional standard, such shall be limited to defining essential

requirements for protection of health, safety, and the

environment. The task of establishing technical specifications

for products will be left to private, non-governmental European

standardization bodies set up by industry such as CEN, 5 CENELEC, 6

CEPT7 as well as other European sectoral standardization bodies

supported by European governments . Access to these European

regional standardization bodies on behalf of U.S. interests has

been either generally very limited, restricted to U.S. companies

operating in Europe, or non existent. In the absence of existing

standards to harmonize or to cite, the CEN-type organizations are

to develop standards based on ISO/IEC standards. Failing that,

individual Members may adopt appropriate standards establishing

health, safety, and environmental requirements.

5 European Committee for Standardization (CEN) promotes

European regional standardization in the non-electrotechnical

field. CEN is the world's largest regional standards group. It

is composed of European member bodies within the EC and EFT

A

countries.

6 European Committee for Electrotechnical Standardization

(CENELEC) promotes European standardization in the

electrotechnical field.

European Conference of Postal and Telecommunications

Administrations (CEPT) publishes recommendations to harmonize and

improve administration and operational services. CEPT has

established a special body to prepare the necessary European

standards for a unified telecommunications system. The new body

is known as the European Telecommunications Standards Institute

(ETSI) . ETSI will have headquarters in Nice, France.

3
The EC has recently made two significant changes regarding

European standardization activities:

o the existing European national standardization bodies have

been restructured into a coherent group with a clear

framework for mutual consultation and decision-making.

o work has been initiated on the expeditious development of

a body of technical European standards that will be

applied to "high technology" products and equipment sold

within member states (e.g., advanced composite materials

and telecommunications equipment)

.

Standardization priorities are being set by the EC and its member

states. In addition, the private standards organizations (CEN,

CENELEC and CEPT) will, as a function of these priorities,

generate European standards in consultation with the existing

national standardization organizations. In some cases, new CEN

Technical Committees have been established to facilitate the

process (e.g., TC127 on Fire Safety). CEN, CENELEC and CEPT will

be advised by a single technical committee consisting of both

industry officials and users. (See Fig. 1 attached.) Three

significant changes from previous standards development

procedures in the EC are:

o for the first time a single, Government-body will be

setting standardization priorities and mandating standards

to be used by all EC member countries.

o agreement on standards will be decided by a majority vote

of EC member countries rather than by unanimity.

o when an EC standard is agreed upon, conformity to it will

then have legal weight in all member countries.

5. U. S . Standardization Concerns

The EC legislation dealing with standardization is likely to have

a profound effect on U.S. exports since harmonization directives

may be framed, whether inadvertently or not, so as to exclude or

hinder the entry of U.S. products into the European market. Of

further significance will be the effect on U.S. imports from the

EC since European products are likely to be less costly due to

operational economies of scale and other economic benefits

derived from standardization. Currently, U.S. exporters are not

given the opportunity to review and comment on proposed EC

standards and directives during the development phase, i.e.,

before they are published in final proposed form, thus preventing

U.S. positions from being considered at a crucial time.

4
Although the EC claims that the GATT Standards Code does not

oblige signatories to publish proposed EC standards when they are

first notified to the EC Member countries and their industry

associations, the United States Government and industry sectors

have sought and continues to seek an opportunity to review and

comment on those early draft EC directives before they are "set

in concrete." (It should be noted that the EC has in the past,

on a case-by-case basis, been willing to consider comments from

American manufacturers at a meaningful stage of the standards

development process.)

6. EC Schedule for Industrial Standards

It has been reported that the EC intends, by the end of 1988, to

complete the submission of all of its 39 White Paper proposals on

industrial standards. They include the following "high priority"

subject areas:

gaseous emissions (motor vehicles and commercial

vehicles)

?

diesel particulates (passenger cars)

?

food law (quick frozen foods, flavorings, extraction

solvents, preservatives, infant formula, modified

starches, food additives, materials and articles in

contact with food, food labeling, etc.)?

pharmaceuticals and high technology medicines;

chemical products (restrictions on the marketing and use

of asbestos; classification, packaging and labelling of

dangerous preparations; liquid fertilizers)

?

construction and construction equipment;

tower cranes (permissible sound levels)

?

cosmetics?

consumer protection regarding pricing of foodstuffs and

non-food products?

helicopter exhaust noise; and

good laboratory practices for non-chemical tests.

The list of product categories covered by EC harmonization is

constantly increasing. Parallel activities to regulate

telecommunications in the EC are also underway. Although the

White Paper identified the areas listed above as high priority

areas, it does not preclude future standards work in other areas.

The EC is also working on directives for the mutual recognition

of test data and certification in order to avoid wasteful

duplication of effort in product approvals. This initiative will

involve the drawing up of common conditions and codes of practice

for implementation by testing laboratories and certification

bodies. It will most probably lead to agreements or reciprocal

recognition of national laboratory accreditation programs.

5
7 . Further Information

o Additional information on the EC Internal Market program,

the activities under the Single Act of 1992, and EC

policies and programs that may impact U.S. commercial

interests may be obtained by contacting the Office of

European Community Affairs in the International Trade

Administration (See Appendix B)

.

o Copies of the following documents may be obtained, when

available, from the NBS Office of Standards Code and

Information (See also Appendix B)

:

Draft EC Directives (proposed rules)

Approved (final) EC Directives

European Regional Standards

and

Standards-related documents published by CEN,

CENELEC, CEPT and ETSI.

8 . Conclusion

The EC is proceeding aggressively with plans to transform its 12

member countries into a single integrated market with harmonized

standards and regulations by 1992.

The time for U.S. interests to react to the new policies and

programs of the European Community is now . If we do nothing, it

may become very difficult or expensive to market U.S. products in

Europe in the future.

6
Figure 1

Diagram

Depicting

Interrelationships

of

Entities

Influencing

the

Development

of

European

Standards

>> 43

<U

<U 3

•H

W • 43 00 W tH

T3 TO

O

a) >-i

O

43 CO rH

Cfl T3

•H

C

t—1CO • 43 U >-• 3 CO • a a 1—1

CO cO e» •H (3 • O >-< S5 •H O 4J 2 M CO 7
Appendix A

E.C. Contacts for Additional Information on

European Standardization Matters

EC information offices in the United States are in Washington,

D.C. and New York City -

European Community Information Service

2100 M Street, N.W. , Suite 707

Washington, D.C. 20037

Tel: (202) 862-9500

European Community Information Service

305 East 47th Street

3 Dag Hammarskjold Plaza

New York, NY 10017

Tel: (212) 371-3804

In Europe, the principal point of contact is:

Commission of the European Communities

Directorate-General Information, Communication, Culture

Rue de La Loi 200

B-1049 Brussels, Belgium

CEN and CENELEC are headquartered in Brussels and have the same

address -

European Committee for Standardization (CEN)

and/or

European Committee for Electrotechnical Standardization

(CENELEC)

2 Rue Brederode

Bte. 5

B-1000 Brussels, Belgium

Tel: (Oil) (32) (2) 519-6811

CEPT (European Conference of Postal and Telecommunications

Administrations) is headquartered in Paris -

Secretariat Permanent du Comite de coordination de

1 ' harmonisation

CEPT/CCH/SP

9, rue Georges Ptiard (24 eme)

75015 Paris, France

Fax No. (Oil) (33) (1) 43 06 15 45

phone (Oil) (33) (1) 47 34 53 03

8
Appendix B

U.S. Government Contacts with Information on

Various Aspects of EC Activities Related to Standardization 1.

Office of European Community Affairs

International Trade Administration

Department of Commerce

Room H-3036

Washington, D.C. 20230

Tel: (202) 377-5276

2.

Office of Standards Code and Information

National Bureau of Standards

Administration Building, Room A629

Gaithersburg, MD 20899

Tel: (301) 975-4040

Telex TRT 197674 NBS UT

3.

Office of the U.S. Trade Representative

Technical Barriers to Trade

Room 513, Winder Building

600 17th Street, N.W.

Washington, D.C. 20006

Tel: (202) 395-3063

9
FORM NBS-1 HA (REV.l 1-84)

U.S. DEPT. OF COMM.

BIBLIOGRAPHIC DATA

SHEET (See instructions)

1. PUBLICATION OR

REPORT NO.

NBSIR 88-3793

2. Performing Organ. Report No

131

3. Publication Date

June 1988

4.

TITLE AND SUBTITLE

A Summary of the New European Approach to Standards Development 5.

AUTHOR(S)

Patrick W. Cooke

6.

PERFORMING ORGANIZATION (If joint or other than NBS. see instructions)

NATIONAL BUREAU OF STANDARDS

U.S. DEPARTMENT OF COMMERCE

GAITHERSBURG, MD 20899

7. Contract/Grant No.

8. Type of Report & Period Covered

9.

SPONSORING ORGANIZATION NAME AND COMPLETE ADDRESS (Street. City. State. ZIP)

10.

SUPPLEMENTARY NOTES

| | Document describes a computer program; SF-185, FIPS Software Summary, is attached.

11.

ABSTRACT (A 200-word or less factual summary of most significant information. If document includes a significant

bibliography or literature survey, mention it here)

This paper summarizes European Community (EC) plans to aggressively pursue its goal

of achieving an "internal market" by 1992 and the standards-related implications

of such a program on U.S. exporters. U.S. exporters will be affected by the

harmonization of standards, implementation of EC directives, strengthening of

European regional standards bodies and other trade policy considerations

affecting market access. U.S. Government and EC contacts for obtaining

12.additional information are provided.

KEY WORDS (Six to twelve entries; alphabetical order; capitalize only proper names; and separate key words by semicolons)

European Community; harmonization; international trade; regional standardization;

Single European Act; standards; U.S. exports

13. AVAILABILITY

®Unlimited

| | For Official Distribution. Do Not Release to NTIS

[~H Order From Superintendent of Documents, U.S. Government Printing Office, Washington, DC

20402.

(XXJ Order From National Technical Information Service (NTIS), Springfield, VA 22161

14. NO. OF

PRINTED PAGES

13

IS. Price

$9.95

USCOMM-DC SS-6006