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October 26, 2010

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Technical barriers will ease under deal

A DEAL to reduce technical barriers for local firms' exports was signed between Shanghai's entry-exit quarantine watchdog and its national counterpart.

Technical barriers have become the second biggest obstacle for exports after the exchange rate, the Shanghai Entry-Exit Quarantine and Inspection Bureau said.

A bureau survey, conducted on about 100 firms annually since 2005, found about 30 to 40 percent of companies are affected by technical barriers on exports. The barriers cover food, agricultural produce, as well as mechanical electrical and chemical products.

The city's products mainly face such technical barriers in the United States, Japan and Europe.

"Every year these companies lose about US$1.5 billion due to technical barriers," said Sun Xinhua, director of the bureau's WTO affairs office.

Under the deal, the General Administration of Quality Supervision, Inspection and Quarantine will provide information on product standards and regulations in other countries, as well as information on unqualified products exported from Shanghai.

"We believe it will help us improve the quality of products," Sun said. "Manufacturers will be able to produce according to the necessary standards rather than blindly producing items."

He added that some companies, small firms in particular, know little about standards in other countries, thus their products can easily be found on the blacklist.

The deal also states that Shanghai experts will participate in WTO, TBT and SPS notification. The bureau said that Shanghai experts have commented on more than 200 foreign standards and many were adopted by the central government.

Shanghai trade experts have exchanged ideas with their Singapore and US counterparts about export standards for China's hairy crabs and furniture.




 

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