Fri, 01/07/2005 - 02:00 | by admin
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Addressing an AmCham breakfast on June 14, Hal Stratton discussed product safety standards in the U.S. and offered advice on how they affect Chilean exporters.
During a recent visit to Santiago to sign a memorandum of understanding with Chile's National Consumer Service (SERNAC), Hal Stratton also addressed an AmCham breakfast. Appointed in 2002 by President George W. Bush, Stratton heads the U.S. agency that is responsible for the safety - rather than quality - of consumer products. With an annual budget of US$62 million, it is responsible for overseeing some 15,000 products.
The memorandum of understanding with SERNAC is only the second such agreement that the U.S. Consumer Product Safety Commission (CPSC) has signed with a Latin American country, after Costa Rica. Opening the door to closer collaboration between the two consumer organizations, it was possible largely thanks to SERNAC director José Roa, revealed Stratton. "Roa is trying to make a better agency; he believes in a free market model, making the agency work within a free market, and protecting consumers," he noted.
The importance of consumer protection agencies working within a free market model was the main message of Stratton's speech. The United States' economic strength is due to the country's free market system, which in turn depends on political and economic freedoms backed up by a democratically elected government, he argued. "We believe we have the best economic system in the world," he added.
"It's interesting to note that it is rich and democratic countries that provide the most protection for consumers, the environment and citizens generally," said the Oklahoma born-and-bred CPSC chief. Poor economies, focused on alleviating hunger, housing and health, do not have the resources to protect consumer rights, he pointed out.
Strong democratic government and institutions - such as the CPSC - are required to protect the free market system, he continued. For example, laws are needed to protect contractual rights, property rights, intellectual property and free trade, to name but a few. The political and legal system must be capable of introducing, enforcing and supervising these laws, and arbitrating conflicts, stressed Stratton.
"The trick is to manage and direct the CPSC without hurting the free market system," according to Stratton. This is a serious issue as some government regulatory agencies are using standards instead of tariffs as trade barriers, the CPSC chairperson reported, without giving names. The CPSC has a categorical policy against passing regulations that are trade barriers, he insisted.
Nonetheless, China has accused the United States of this practice due to the introduction of a new standard for lighters that seeks to harmonize U.S. regulations with stronger European, Canadian and Mexican laws, admitted Stratton during questions. China, a large producer of lighters, sees the new standard as a trade barrier and not a safety measure, he said.
But Chilean exporters to the United States should not regard the CPSC as a threat, according to Stratton. The agency is less apt to ban products than other countries, he claimed. For example, unlike Europe and Canada, the United States has not banned the use of phthalates - a petroleum-based alcohol - to make plastic toys soft. CPSC studies found that phthalates did not pose a health hazard, he said.
What's more, while neighboring Canada banned baby walkers on safety grounds, the CPSC worked with the industry to modify them and make them safer. "There has since been an 83% reduction in injuries from baby walkers," reported Stratton.
Chilean businesspeople interested in exporting to the United States should feel free to telephone or drop the CPSC an email to inquire about safety standards, invited the agency chief. However, they should be aware not only of mandatory but also voluntary standards widely adopted by industry. For every mandatory standard, seven to nine voluntary safety standards exist, according to Stratton.
"If everyone else is meeting a standard, even voluntarily, then if your product goes wrong, you will end up facing a whole load of court cases," he warned.
Exporting to the U.S.
By By Emily RussellPrintSend to friend
Addressing an AmCham breakfast on June 14, Hal Stratton discussed product safety standards in the U.S. and offered advice on how they affect Chilean exporters.
During a recent visit to Santiago to sign a memorandum of understanding with Chile's National Consumer Service (SERNAC), Hal Stratton also addressed an AmCham breakfast. Appointed in 2002 by President George W. Bush, Stratton heads the U.S. agency that is responsible for the safety - rather than quality - of consumer products. With an annual budget of US$62 million, it is responsible for overseeing some 15,000 products.
The memorandum of understanding with SERNAC is only the second such agreement that the U.S. Consumer Product Safety Commission (CPSC) has signed with a Latin American country, after Costa Rica. Opening the door to closer collaboration between the two consumer organizations, it was possible largely thanks to SERNAC director José Roa, revealed Stratton. "Roa is trying to make a better agency; he believes in a free market model, making the agency work within a free market, and protecting consumers," he noted.
The importance of consumer protection agencies working within a free market model was the main message of Stratton's speech. The United States' economic strength is due to the country's free market system, which in turn depends on political and economic freedoms backed up by a democratically elected government, he argued. "We believe we have the best economic system in the world," he added.
"It's interesting to note that it is rich and democratic countries that provide the most protection for consumers, the environment and citizens generally," said the Oklahoma born-and-bred CPSC chief. Poor economies, focused on alleviating hunger, housing and health, do not have the resources to protect consumer rights, he pointed out.
Strong democratic government and institutions - such as the CPSC - are required to protect the free market system, he continued. For example, laws are needed to protect contractual rights, property rights, intellectual property and free trade, to name but a few. The political and legal system must be capable of introducing, enforcing and supervising these laws, and arbitrating conflicts, stressed Stratton.
"The trick is to manage and direct the CPSC without hurting the free market system," according to Stratton. This is a serious issue as some government regulatory agencies are using standards instead of tariffs as trade barriers, the CPSC chairperson reported, without giving names. The CPSC has a categorical policy against passing regulations that are trade barriers, he insisted.
Nonetheless, China has accused the United States of this practice due to the introduction of a new standard for lighters that seeks to harmonize U.S. regulations with stronger European, Canadian and Mexican laws, admitted Stratton during questions. China, a large producer of lighters, sees the new standard as a trade barrier and not a safety measure, he said.
But Chilean exporters to the United States should not regard the CPSC as a threat, according to Stratton. The agency is less apt to ban products than other countries, he claimed. For example, unlike Europe and Canada, the United States has not banned the use of phthalates - a petroleum-based alcohol - to make plastic toys soft. CPSC studies found that phthalates did not pose a health hazard, he said.
What's more, while neighboring Canada banned baby walkers on safety grounds, the CPSC worked with the industry to modify them and make them safer. "There has since been an 83% reduction in injuries from baby walkers," reported Stratton.
Chilean businesspeople interested in exporting to the United States should feel free to telephone or drop the CPSC an email to inquire about safety standards, invited the agency chief. However, they should be aware not only of mandatory but also voluntary standards widely adopted by industry. For every mandatory standard, seven to nine voluntary safety standards exist, according to Stratton.
"If everyone else is meeting a standard, even voluntarily, then if your product goes wrong, you will end up facing a whole load of court cases," he warned. 
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