Industry calls for swift cut in testing red tape

Date: 16/04/1998

By Peter Chapman

EUROPEAN business is calling for a speedy implementation of an EU-US deal to cut the red tape faced by exporters on both sides of the Atlantic.

Union trade officials say a Mutual Recognition Agreement (MRA) allowing exporters in the EU and the US to test products at home for conformance with standards in their destination market is set to be signed at next month's summit.

This would mean the MRA - which covers testing procedures for medical devices, pharmaceuticals, leisure craft and certain electrical goods including telecoms equipment - would theoretically enter into force two months later.

But Hans Glatz, current chairman of the European arm of the industry-led Transatlantic Business Dialogue, said testing bodies and governments on both sides needed to boost their efforts to ensure the agreement got off to a flying start.

"There is a big question mark over whether the institutions in EU member states will be able to apply US regulations. We should not be surprised if things do not run entirely smoothly," he said, adding that it was also not clear whether some of the regulatory agencies in the US, such as the Food and Drug Administration (FDA), would be ready.

"For them it is very new. Therefore, we might have to expect a certain reluctance to apply it as quickly as possible. The FDA said recently that they needed 50 more staff to make the system work. They do not have those 50 people so they will have to work with what they have," he said. Glatz added, however, that the US department of commerce had signalled its willingness to ensure that the MRA was respected.

He is also urging companies on both sides of the Atlantic to take advantage of the MRA which, he argues, will save them a fortune by doing away with the need to have their products tested in their target market.

"There is an additional question mark over whether companies will use the MRA. It is new for them too. While the present procedure is very complicated, at least it is known to them. The new system will be so much easier, but it is often the case that people are proud of doing something complicated," he said.

Experts foresee a confidence-building period of two to three years to test the system and iron out glitches in some sectors. But Glatz insists the agreement should be applied in full from day one.

The Union has similar accords with Australia, New Zealand, Canada and Israel waiting for formal signature following agreement in principal between trade officials during 1996 and 1997. Those with Australia and New Zealand could be signed when Trade Commissioner Sir Leon Brittan visits the two countries in June, but officials say the remaining two will have to wait until after the summer break.

Feature on the proposed Mutual Recognition Agreement (MRA) between the US and the EU.