Research Papers Archive – Public Sector Assurance

The Effect of Mutual Recognition Arrangements on Agricultural Exports of the Philippines: The Role of Laboratory Accreditation

Summary
This study focuses on accrediting agricultural laboratories and examines how mutual recognition arrangements (MRAs) affect trade facilitation in the Philippines. It assesses how accredited laboratory factors affect bilateral trade flows, using a modified gravity model and panel data estimations. The results show that by supporting accredited laboratory services, and highlighting their importance in upholding international standards for product safety and quality, MRA recognition encourages the export of agricultural products. Amid current global agricultural trade policies that prioritize sustainable development, the study emphasizes the importance of understanding provisions to maximize trade agreements. In summary, the study provides significant perspectives on trade behaviour patterns through the examination of significant trade-related obstacles, enhancing our understanding of complex dynamics in international trade.

Background
Global trade growth, driven by the World Trade Organization (WTO) commitments, faces challenges from non-tariff measures (NTMs), particularly in the agricultural sector. Developing countries, including the Philippines, struggle with NTMs, hindering exports and market access due to limited accredited testing laboratories.
Philippine agriculture faces challenges in international markets due to weak infrastructure and protection measures imposed by importing countries. NTMs disproportionately affect Philippine agricultural products, leading to decreased export growth. Accredited laboratories play a crucial role in trade facilitation, by ensuring product quality and meeting standard requirements. The Philippines, with limitations in accredited testing laboratories, experiences obstacles in international trade, impacting the agriculture sector’s contribution to the economy.

Hence, this study aims to provide empirical evidence on NTMs’ economic effects and contribute to a national framework for enhancing trade facilitation in the Philippine agriculture sector.

Strategy
This study employed a modified gravity model to assess the export push-effect of MRAs facilitated by ISO/IEC 17025 accreditation of laboratory quality standards covering agricultural commodities. Different estimation techniques were applied to ensure the overall robustness of the main findings. The study used log-linear and nonlinear models to test the hypothesis. The model was fully estimated with identified specifications, and the sub-models were created, determined by the best-fitting regression model. The data covered the years 2015-2019, focusing on the total agricultural products in the Philippines according to 2-HS Commodity Classifications.

Results and impact
Empirical evidence indicates a positive relationship between ISO/IEC 17025 accreditation and ILAC-MRA membership, benefiting international trade, with a minimal impact on the agricultural sector. Efforts to maintain accreditation gradually decline as the country’s infrastructure development quality influences perceptions of unrecognized benefits. However, accreditation effectively addresses the technical requirements set by the importing countries, eliminating the need for additional testing of Philippine agricultural products once market players are accredited. This serves as a policy tool to remove technical barriers to trade and facilitates local producers in accessing the global market. The study emphasizes how accreditation helps close technical gaps, establishing a high reputation for Philippine agricultural products and promoting confidence in international trade.

View the full research study here: PAB Research paper for case study

A Review of Certification and its Impact on Regulatory Intervention (July 2021)

This paper explores the interplay between regulations and standards, and the value that third-party certification provides as means to ensure that food manufactured into the market in the Netherlands are safe for consumers. It draws on data from the results of audits of industrial food businesses by the regulator against the requirements of National and EU laws, which also records if the business is certified to one of the recognised Global Food Safety Initiative (GFSI) third-party certification programmes.

The data, which covers 5 years and 15,000 inspection audits, shows that sites operating to 3rdparty management systems perform better than non-certificated sites.

World Bank Group Infographic and data

This short infographic provides data and examples to demonstrate the impact of the National Quality Infrastructure in terms of

Enhanced Competitiveness
Reduced Testing & Certification Burden
Expanded and Open Markets
Increased Innovation & Technology Diffusion
Improved Efficiency
Increased Productivity Gains
Safety, Health, Environmental Application

A more detailed description of how the QI enhances competition is available at https://www.worldbank.org/en/topic/competitiveness/brief/qi

Research finds link between standards and fatal accident prevention

A study carried out by ISO’s Technical Committees to identify whether standards play a role in preventing accidental fatalities, revealed that country-level participation in the ISO’s technical committees – the group of experts that develops standards – showed that a 1 per cent increase in technical committee participation was associated with a 0.19% decrease in accidental deaths.

Further information is available here.

European Metrology Research Programmes boost sales of 1,627 million Euro

Metrology research ensures the international measurement systems are fit for the future, as well as supporting the introduction of innovative products and services through the accurate validation of new technologies. In providing accurate and traceable measurement, that is both reliable and robust, metrology research also underpins trade. Projects have brought together world-class measurement expertise that strengthen Europe’s position at the forefront of innovation and contribute to our economic prosperity.

Case studies from EMRP and EMPIR projects have demonstrated their economic impact, in terms of actual and projected sales of innovative products influenced by the programmes, of 1,627 million Euro. Of this figure, early adopters of research results, including the instrumentation and accredited laboratory sector, estimate that 340 million Euro is directly attributable to the programme.

Further information is available on the EURAMET website.

Standards influence economic growth (2018)

According to the EU Commission, standards are associated with 5-35% of GDP growth across European economies. This report studied the impact of voluntary consensus standards on economic growth in the five Nordic countries: Sweden, Finland, Norway, Denmark and Iceland. Given the average growth in stock of standards in the Nordic countries of 6.8 percent during the period studied (1976-2014), standardization is associated with an annual increase in labour productivity of 0.7 percent per year of a total average growth of 1,8 percent. This result suggests that standardization is associated with as much as 39 percent of the labour productivity growth and 28 percent of GDP growth in the Nordic countries during the period.

Download a full copy of the report which was carried out by Menon Economics in cooperation with Oxford Research and the Social Science Research Institute of the University of Iceland.

International commerce – the value of accreditation and standardization (May 2019)

Research, commissioned by the Italian Accreditation Body (Accredia), shows the value that accreditation plays in supporting international trade. The development of common standards, supported by mutual recognition of accredited test results, inspection reports and certificates provide simplification and reductions in the cost of commerce, through transparent procedures, the avoidance of duplicate testing and the need to differentiate production.

The report also highlights that businesses with accredited certification have generated productivity gains of between 30-60% through entering global value chains.

Download the Executive Summary (in English)

Download the full report (in Italian)

Evidence for the positive impact of ISO 9001 and ISO 15189 quality systems on laboratory performance – evaluation of immunohaematology external quality assessment results in Austria (June 2018)

ISO 9001 and ISO 15189 have been established as continuative models for quality systems beyond national laws, mandatory standards and guidelines of expert associations regarding analytical and organisational performance of medical laboratories and transfusion services.

The report reviewed more than 52,000 EQA results over a 19 year period, and the absence or presence of a laboratory quality management system showed different error rates. Laboratories with ISO 9001 or ISO 15189 certification/accreditation had 0.7% incorrect results, while this rate was doubled without such quality systems (1.4%, p = 0.0002). Statistically significant error reductions were seen upon ISO 9001/ISO 15189 implementation (1.3% before vs. 0.7% after; p = 0.0468). Transfusion services had fewer errors (0.9%) compared to hospital and independent laboratories (both 1.2%).

The report therefore concludes that the Implementation and maintenance of quality systems according to ISO 9001 or ISO 15189 as well as laboratory specialisation result in better analytical performance as can be seen in immunohaematology EQA results.

A copy of the paper can be accessed here (payment required).

Authors: Christoph Buchta*, Wim Coucke, Wolfgang R. Mayr, Mathias M. Müller, Reinhard Oeser,

Christian R. Schweiger and Günther F. Körmöczi (June 2018)

Investment in ISO/IEC 17020 and its impact in Latin America (August 2018)

Sector & Segment, a research agency, tracks investments in quality standards by monitoring expenditure by companies on technical accreditations. In this report, they examined investment trends in ISO/IEC 17020 accreditation across Latin America, to evaluate policies enforcing quality and their impact on different industries and sectors.

Investments in ISO 17020 inspection accreditations have grown significantly in the past 5-6 years. Their research finds that the investment in accreditation has increased from $52 million to $69 million between 2013 and 2017. Despite challenging political and economic conditions in some economies in Latin America, companies have been pushed to invest in accreditation as a way of increasing competitiveness and complying with domestic regulations.

Sector Segment_Inspection ISO/IEC 17020 Investment Analysis

Accredited services to underpin common European cybersecurity (January 2018)

The European Union Agency for Network and Information Security (ENISA) is a centre of network and information security expertise for the EU, its member states, the private sector and EU citizens. The organisation carried out a study to identify and analyse the current landscape of ICT security certification laboratories in EU Member States, comparing them also with third countries practices. The study noted that certification plays an important role in raising the level of trust and security in ICT products and services. This is also valid for new systems that make extensive use of digital technologies and which require a high level of security. National initiatives have been emerging to set high-level cybersecurity requirements for ICT components on traditional infrastructure, including certification requirements. Important as they may be, they may nurture risks such as market fragmentation and challenges to interoperability.

The findings of this study will constitute the basis for the Agency’s proposal towards an EU wide ICT products and services certification framework to ensure greater harmonisation to strengthening the European digital economy.

A copy of the report is available on the ENISA website.