UNCLASSIFIED / NON CLASSIFIÉ. Regulatory Cooperation: Moving Forward Together

Size: px
Start display at page:

Download "UNCLASSIFIED / NON CLASSIFIÉ. Regulatory Cooperation: Moving Forward Together"

Transcription

1 Regulatory Cooperation: Moving Forward Together 1

2 Canada U.S. Regulatory Cooperation Council Regulatory Cooperation: Moving Forward Together Ottawa, Ontario June 14,

3 Outline 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 3

4 TBS s and OIRA s Roles in Regulatory Cooperation 4

5 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 5

6 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 6

7 OIRA Role: Regulatory Oversight Part of White House Office of Management & Budget Responsible for the regulatory policy and oversight function Led 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 Regulatory Planning and Review 7

8 Regulatory Cooperation Council Origins 8

9 Origins of the Canada-U.S. RCC RCC initiated 2011 Objective Action 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 Very large annual trade relationship world s largest when the RCC began Highly integrated manufacturing and supply chains Similar consumer preferences and risk tolerance Effective, but independent, regulatory systems target similar outcomes 9

10 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 10

11 Regulatory Cooperation Council Successes 11

12 Examples of RCC Success Stories Example Outcomes Benefits Hazardous chemical labelling Chemicals management compliance promotion Harmonized labelling system No need to re-test, re-classify or re-label products Joint educational primer and fact sheet for foreign suppliers to be published this summer Responds to stakeholder need $30-55M in 2015 to the North American paint and coating industry Supports worker safety Better understanding among chemical industry of regulatory reporting requirements for substances subject to Significant New Activities and Significant New Uses 12

13 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 Rail tank car standards Consistent safety standards for interconnected rail networks Access to better, more efficient appliances $1.8B in energy cost savings by 2030 to Canadian consumers $1.5M per year to manufacturers, many of whom are U.S. businesses Improved safety in both countries More efficient North American rail operations 13

14 Moving Forward 14

15 Components of RCC Work Plan Process Stakeholder Submissions Technical/Expert Working Groups Regulator Review of Submissions Work Plan Development and Implementation Regulator/ Stakeholder Event 15

16 Current Environment and Drivers Feb Joint PM-President Trump Statement: strong expression of support for continued Canada-U.S. regulatory cooperation Compliments U.S. regulatory reform agenda as both seek to reduce regulatory burden 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) 16

17 Importance of Stakeholders Support Communication Collaboration Leadership Steady growth in support has built strength and momentum Strong support is being communicated from multi-sector business associations Bi-national groups of stakeholders working together on mutually beneficial opportunities Stakeholders including industry, consumers and NGOs, have a key role in identifying opportunities 17

18 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 18

19 Canada s Regulatory Cooperation with Domestic and European Union Partners Regulatory Cooperation: Moving Forward Together Ottawa, Ontario June 14,

20 Expanding Regulatory Cooperation with New Partners CETA Standalone chapter on regulatory cooperation (Chapter 21) Standalone chapter on regulatory notification, reconciliation and cooperation (Chapter 4) CFTA 20

21 Trade with the EU, provinces and territories EU Provinces and territories Annual bilateral trade value: $90.1 billion in in goods and $39.9 billion in services Interprovincial trade worth $400 billion annually Canada s second largest bilateral trading partner 21

22 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 principles The 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. 22

23 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, 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. 23

24 Advancing Regulatory Cooperation Internationally Advance policy research on regulatory cooperation OECD APEC Promote good regulatory practices with strategic partners 24

25 Regulatory Cooperation Stakeholder Submissions Regulatory Cooperation: Moving Forward Together Ottawa, Ontario June 14,

26 Outline RCC work plans Key elements of submissions Next steps 26

27 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 27

28 Critical Elements of Submissions Issue Context Objectives Priorities Impacts Bi-national support 28

29 Submissions Defining the Issue Issue 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 Key Objectives: Clearly identify the concern and the broad benefits of resolution 29

30 Submissions Setting the Context Setting the Context 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 Key Objectives: Provide information that supports understanding the impacts of mis-alignment in the current or emerging market conditions 30

31 Submissions Defining Objectives Defining Objectives Objectives 1. Identify objectives 2. Where appropriate, delineate short, medium and longer term goals 3. Provide potential solutions Key Objectives: Outline objectives, timeframes and potential solutions 31

32 Submissions Identifying Priorities Identifying Priorities 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 32

33 Submissions Describing Impacts Describing Impacts 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 Key Objectives: Support understanding the specific impacts of action 33

34 Submissions Outlining Support Bi-national Support Bi-national 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 Key Objectives: Demonstrate degree of bi-national and stakeholder support 34

35 Points for Discussion Are there any elements that we have missed? Would a guidance document or template be helpful? 35

36 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 36

37 Thank you 37