WASHINGTON D.C. — This time of year, as Santa is making a list and checking it twice, we have a holiday wish of our own. Some people wish for a pony, or a new car, or a trip to some exotic locale. For policy wonks like us at the Canadian-American Business Council, the wish list tends to be a lot more nerdy.

All we want for Christmas is … wait for it … cross-border standards alignment.

What in the world are we talking about? Standards are the guidelines used throughout the economy to create, manufacture, buy and sell everything from electrical outlets and shower valves to water heaters and zippers. Most standards are not aligned across borders, within countries, or even throughout provinces and states themselves — a situation that’s costing the Canadian and U.S. economies millions of dollars per year. The U.S. Department of Commerce estimates that standards and conformity assessment affect more than 80 per cent of global commodity trade.

Today, only about 10 per cent of standards are harmonized between the U.S. and Canada. This kind of disjointed standardization affects every sector of industry and hinders bilateral trade having a direct impact on sectors’ bottom line. For example, 77 per cent of certification costs for manufacturers of water heaters come from inspection of their products, as they must use 19 different testing bodies to comply with just the requirements of the North American markets in which they sell their products.

We in North America are falling behind Europe and China in standards-setting, leaving us at a competitive disadvantage globally. We in North America are falling behind Europe and China in standards-setting, leaving us at a competitive disadvantage globally.

Additionally, the total cost of product testing and certification for the North American plumbing and heating industry is $3.2-$4.5 billion per year. At least 10 per cent of this cost is the result of duplicated requirements.

We in North America are falling behind Europe and China in standards-setting, leaving us at a competitive disadvantage globally. In Europe, for example, if there is a need for a new standard, jurisdictions make the request through the European Commission. When a new standard is created, all 28 members must adopt that same standard and competing or redundant standards must be removed from the regulations of all member states. In Europe, one standard equals one test — and access to a common market of more than 600 million consumers.

With an eye toward strengthening our bilateral relationship through increased access to markets and noting past successes, the CABC recommends three actions that could significantly help in promoting voluntary standards alignment:

Decide it is in our mutual national interest to take on voluntary standards alignment;

Create a “North American Standards Strategy” confirming commitment to internationally accepted principles of standardization endorsed by the WTO, and;

Formally request that Canadians be appointed to U.S. Technical Advisory Groups and vice versa, to promote bilateral dialogue on harmonization.

Before we finalize trans-Atlantic and trans-Pacific trading arrangements, let’s see if we can improve the Canada/U.S. commercial flow. With effective models in place and past successes to build on, standards harmonization would be a wonderful stocking stuffer this holiday season.

Maryscott (Scotty) Greenwood is a senior advisor with the Canadian American Business Council and has been involved in Canada/U.S. relations since her time in the Clinton Administration posted to the U.S. Embassy in Ottawa.