Regulatory Cooperation: Moving Forward Together · Canada-U.S. Regulatory Cooperation Council (RCC)...

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Regulatory Cooperation: Moving Forward Together


Canada – U.S. Regulatory Cooperation Council


Ottawa, Ontario

June 14, 2017

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Treasury Board of Canada Secretariat’s (TBS) and Office of Information and Regulatory Affairs’ (OIRA) Roles in Regulatory Cooperation

Regulatory Cooperation Council Origins

Regulatory Cooperation Council Successes

Moving Forward

Outline


TBS’s and OIRA’s Roles

in Regulatory Cooperation

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TBS Role: Regulatory Oversight

President of the Treasury Board

• Responsible for the regulatory policy and oversight function

Regulatory Affairs Sector

• Develop and oversee policies to promote good regulatory practices

• Review proposed regulations to ensure they adhere to the requirements of Government policy

• Advance regulatory cooperation across jurisdictions

Regulatory Cooperation Directorate

• Centre of regulatory cooperation expertise and thought-leadership

• Engagement with regulators and stakeholders to support and advance regulatory cooperation initiatives


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TBS Regulatory Cooperation Responsibilities

Develop policy expertise and thought leadership on

regulatory cooperation

Support Canada’s international and domestic trade priorities and further

regulatory cooperation efforts

Provide central oversight and facilitate departmental

regulatory cooperation annual planning

Support and coordinate the Canada-United States

Regulatory Cooperation Council


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OIRA Role: Regulatory Oversight

Part of White House Office of Management & Budget

• Responsible for the regulatory policy and oversight functionLed by senate-confirmed Administrator

Neomi Rao has been nominated by President Trump to be next Administrator of OIRA

• U.S. government’s central authority for the review of Executive Branch regulations, approval of Government information collections, establishment of Government statistical practices, and coordination of federal privacy policy

• Implements regulatory planning and review process set out in Executive Order 12866 – Regulatory Planning and Review



Origins

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Origins of the Canada-U.S. RCC

Canada-U.S. Regulatory Cooperation Council (RCC) announced in February 2011

To enhance economic competitiveness while maintaining high levels of protection for health, safety and the environment

Capitalize on longstanding opportunity to find efficiencies and cost savings by aligning regulatory systems, where appropriate

RCC initiated 2011 Objective Action

Very large annual trade relationship – world’s largest when the RCC beganHighly integrated manufacturing and supply chains

Similar consumer preferences and risk toleranceEffective, but independent, regulatory systems target similar outcomes


Key Components of the RCC

What

• Practical approach to regulator-to-regulator cooperation to create compatible regulations and eliminate duplication while maintaining high standards for safety, health and environment

Who

• 16 Canadian and U.S. agencies with health, safety and environmental protection mandates that interact with production, manufacturing and bringing goods to market

What sectors

• Pharmaceuticals, medical devices, food, environmental standards, chemicals, cosmetics, transportation safety, dangerous goods, agriculture, energy efficiency, and aquaculture

How

• Collaboration on standards, inspections, certification, testing, product approvals, and monitoring of products on the market

• 23 work plans published with work underway

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Successes

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Examples of RCC Success Stories

Example Outcomes Benefits

Hazardous chemicallabelling

• Harmonized labelling system

• No need to re-test,re-classify or re-label products

• $30-55M in 2015 to the North Americanpaint and coating industry

• Supports worker safety

Chemicals management compliance promotion

• Joint educational primer and fact sheet for foreign suppliers to be published this summer

• Responds to stakeholder need

• Better understanding among chemicalindustry of regulatory reporting requirements for substances subject to Significant New Activities and Significant New Uses

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Examples of RCC Success Stories (Continued)

Example Outcomes Benefits

Energy efficiency standards for consumer and commercial products

• Harmonized standards

• No need to re-test appliances in both markets

• Access to better, more efficient appliances

• $1.8B in energy costsavings by 2030 to Canadian consumers

• $1.5M per year to manufacturers, many of whom are U.S. businesses

Rail tank car standards • Consistent safety standards for interconnected rail networks

• Improved safety in both countries

• More efficient North American rail operations

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Moving Forward


Components of RCC Work Plan Process

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Stakeholder Submissions

Regulator Review of Submissions

Regulator/ Stakeholder Event

Work Plan Development and Implementation

Technical/Expert Working Groups


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Current Environment and Drivers

Feb. 2017 Joint PM-President Trump Statement: strong expression of support for continued Canada-U.S. regulatory cooperation

Budget 2017 provides $6M over 3 years to continue supporting business growth by advancing regulatory alignment with Canada’s trade partners.

Subject of intensified international dialogue and increasingly recognized as a good regulatory practice

Reducing regulatory differences continues to be strongly supported by stakeholders: regulatory differences with trading partners are “Canada’s next top trade barrier”

(Canadian Chamber of Commerce)

Compliments U.S.regulatory reform agenda as both seek to reduce regulatory burden


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Importance of Stakeholders

Leadership

Stakeholders including industry, consumers

and NGOs, have a key role in identifying

opportunities

Collaboration

Bi-national groups of stakeholders working together on mutually

beneficial opportunities

Communication

Strong support is being communicated from multi-sector business

associations

Support

Steady growth in support has built

strength and momentum


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Next Steps

Ongoing engagement between Canadian and U.S. officials

Continue work on existing work plans

Work toward the next RCC regulator/ stakeholder event

Next iteration of work plans


Canada’s Regulatory Cooperation with Domestic and European Union Partners


Ottawa, Ontario

June 14, 2017

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Expanding Regulatory Cooperation with New Partners

CETAStandalone chapter on regulatory cooperation (Chapter 21)

CFTAStandalone chapter on regulatory notification,

reconciliation and cooperation (Chapter 4)


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Trade with the EU, provinces and territories

EU

Annual bilateral trade value: $90.1 billion in

in goods and $39.9 billion in services

Canada’s second largest bilateral trading partner

Provinces and territories

Interprovincial trade worth $400 billion

annually


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CETA Chapter 21 on Regulatory Cooperation

Calls for creation of Regulatory Cooperation Forum

The Regulatory Cooperation Forum (RCF) will encourage cooperation and information sharing with a view to minimizing differences in regulatory

approaches.

Outlines (non-binding) objectives and principlesThe RCF is a voluntary mechanism. Either Party may decline to cooperate or

withdraw from cooperation at their discretion.

Outlines types of regulatory cooperation activities

The RCF will meet annually and help to identify potential areas for cooperation, and facilitate discussions between regulatory authorities in

Canada and the EU.


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Canadian Free Trade Agreement - CFTA

April 2017: The Governments of Canada and of all provinces and territories announce the new CFTA, which enters into force July 1, 2017.

The CFTA is designed to improve the flow of goods, services and investments across provincial and territorial borders.

Canadian governments will work together to align regulatory requirements and reduce the patchwork of rules between jurisdictions.


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Advancing Regulatory Cooperation Internationally

OECD

APEC

Advance policy research on

regulatory cooperation

Promote good regulatory practices with strategic partners


Regulatory Cooperation –Stakeholder Submissions


Ottawa, Ontario

June 14, 2017

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Outline

RCC work plans

Key elements of submissions

Next steps


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RCC Work Plans

• Work plans describe specific areas for regulatory cooperation

• Developed bilaterally between regulators

• Informed by stakeholders

• Provide transparency on department to department commitments

• Many factors are considered including:

• Potential to enhance regulatory efficiency while preserving regulatory objectives

• Tangible benefits and impacts on regulated parties and consumers

• Support from impacted stakeholders

• Stakeholder submissions play a critical role in the development of RCC work plans


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Issue

Context

Critical Elements of Submissions

Objectives

Bi-national support

Priorities Impacts


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Issue

Submissions – Defining the Issue

1. Succinctly articulate area of concern or emerging area for alignment

2. Describe current or potential mis-alignment, including costs

3. Briefly explain potential benefits of resolving the concern

4. Explain how issue is a regulatory matter e.g. regulatory requirement, related to regulatory development or implementation

Issue

Key Objectives:• Clearly identify the concern and the broad benefits of resolution


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Context

Submissions – Setting the Context

1. Set out both Canadian and U.S. market context and competitive conditions

2. If relevant, summary of emerging market trends and evolution of sector

3. Describe considerations around the timeliness of resolution

Setting the Context

Key Objectives:• Provide information that supports understanding the impacts of

mis-alignment in the current or emerging market conditions


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Objectives

Submissions – Defining Objectives

1. Identify objectives 2. Where appropriate, delineate short, medium

and longer term goals 3. Provide potential solutions

Defining Objectives

Key Objectives:• Outline objectives, timeframes and potential solutions


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Priorities

Submissions – Identifying Priorities

1. Prioritize where more than one initiative is proposed or objectives are defined on different timescales

2. In future, consider in the context of other regulatory cooperation proposals

Key Objectives:• Communicate priorities within a proposal and between

regulatory cooperation fora

Identifying Priorities


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Impacts

Submissions – Describing Impacts

1. Articulate impacts on consumers, industry and others• Increased product choice, timelier market

access, decreased consumer/industry costs, time savings, increased product quality, more efficient and effective use of resources ($, people)

2. Where possible, quantify 3. Provide underlying analysis and evidence,

where possible

Describing Impacts

Key Objectives:• Support understanding the specific impacts of action


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Bi-national Support

Submissions – Outlining Support

1. Where possible, demonstrate bi-national and broad support• Consider joint submissions or multiple

submissions proposing the same objectives by organizations on both sides of the border and over multiple associations and interest groups

Bi-national Support

Key Objectives:• Demonstrate degree of bi-national and stakeholder support


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Points for Discussion

Are there any elements that we have missed?

Would a guidance document or template be helpful?


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Submissions – Next Steps

Build on the momentum of successes achieved to date

Upcoming formal call for submissions to support next round of work plan development


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Thank you

[email protected]

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Regulatory Cooperation: Moving Forward Together · Canada-U.S. Regulatory Cooperation Council (RCC)...

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