Application of GRPs to Import Licensing

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1 2016/CTI/WKSP/007 Session 3 Application of GRPs to Import Licensing Submitted by: EC Workshop on Import Licenses Singapore 1 June 2016

2 Application of GRPs to Import Licensing Rory McLeod, Chair, APEC Economic Committee To APEC Import Licensing Workshop Singapore, 1 June 2016 Economic Rationale for Import Licensing Regimes National Security Foreign Policy Protection of Health, Safety and the Environment Strategic Industry Policy Development 1

3 What are Good Regulatory Practices? Defining principles for high quality regulatory outcomes Ensuring that policies and institutions are in place to deliver these outcomes Why are Good Regulatory Practices important to the trade agenda? As tariffs and at-the-border barriers have declined, attention has turned towards behind-the-border barriers or structural policy impediments that can hinder economic growth Structural reform involves improving domestic institutions and regulations to enable efficient and well-functioning markets Building high-quality regulatory environments in APEC economies is a key component of APEC s work to promote free and open trade and investment APEC s work on structural reform has identified Good Regulatory Practice as a tool that economies can use to help implement successful structural reform programs GRPs and the resulting benefits are essential pillars to support robust macroeconomic performance, investment and trade 2

4 New Zealand GRP Principles Regulations should be: Growth supporting economic objectives are given appropriate weight relative to other specified objectives; Proportional the burden of rules and their enforcement should be proportionate the benefits that are expected to result Flexible and durable the regulatory system has the capacity to evolve to respond to changing circumstances Certain and predictable regulated entities have certainty as their legal obligations and the regime is predictable over time Transparent and accountable regulators must be able to justify their decisions and be subject to public scrutiny Administered by capable regulators to be effective, regulatory regimes must be staffed by capable regulators GRP Policies and Institutions Putting in place a central oversight body; Adopting regulatory impact analysis (RIA) Finding means to make regulatory information available (e.g. through on-line tools) Ensuring good consultation processes Conducting regulatory reviews 3

5 Application of GRPs across APEC Economies The 2014 AEPR found that the application of GRPs is generally widespread in APEC. The adoption and use of GRPs has also accelerated. 15 out of 20 economies that submitted reports published a set of good regulatory principles applicable across Government. Almost half of the APEC economies have established a central oversight body to guide whole-of-government policy for regulatory reform and coordinate rulemaking activity. These central bodies usually oversee and support agencies to carry out RIA and public consultation mechanisms. 16 out of the 21 APEC economies applied RIA in 2014, compared to 14 economies in Application of GRPs across APEC Economies (Contd) Adoption and use of GRPs across APEC economies has accelerated: Of the 21 APEC economies, ten have established single online locations for regulatory information to provide information including proposals of new or modified regulations, regulatory review data, RIA, public comment and responses, and registered regulations. Fourteen economies have adopted processes, mechanism or bodies to publish forward-looking regulatory agendas, with most being on an annual basis. Ten APEC economies reported implementing systematic review of cost and effectiveness of regulations. Fifteen economies reported implementing reviews of existing regulations. Many economies conduct reviews by putting priority on reducing unnecessary burdens and costs, while preserving the health, safety and welfare of citizens. 4

6 GRP: TPP Requirements Establish processes or mechanisms to facilitate effective interagency coordination and reviews of covered measures; Encourage relevant regulatory agencies to conduct regulatory impact assessments; Ensure that any reform of covered regulatory measures define the problem to be addressed, include options to do so, explain the grounds for selecting the preferred alternative and rely on the best available evidence; Ensure that covered regulatory measures are available to the public and described in a transparent fashion and where applicable, available online; Review covered regulatory measures, at intervals the Party deems appropriate; To the extent appropriate and in accordance with its law, take account of regulatory measures in other Parties and international agencies. Adoption of GRP: Implications for Import Licensing Policies Adoption of GRP for import licensing policies should ensure: Import licensing is the best option to achieve defined policy objectives; Unintended costs of import licensing regimes are minimised; The public understand and accept the policy rationale for such regimes; Regimes are efficiently administered and scope for arbitrary decisions/corruption is minimised; Policies are reviewed periodically to ensure that regimes are still relevant and have not outlived their usefulness. 5