APEC-OECD CO-OPERATIVE INITIATIVE ON REGULATORY REFORM 21-22 February 2001 Experience and best practices in achieving regulatory efficiency and open markets Session 1, Panel 4

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APEC-OECD CO-OPERATIVE INITIATIVE ON
REGULATORY REFORM21-22 February
2001Experience and best practices in achieving
regulatory efficiency and open markets Session
1, Panel 4

• Presentation by Anthony Kleitz
• Trade Directorate, OECD, Paris

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I. INTRODUCTION A. INTERRELATIONS BETWEEN
TRADE AND DOMESTIC REGULATION

• Past progress in tariff liberalisation makes
  regulatory trade barriers increasingly obvious
• To draw full benefit from trade liberalisation,
  regulatory reform becomes necessary.
• Obligations in the multilateral trading system
  may entail commitments to regulatory reform.
• To be successful, regulatory reform must take
  account of the trade and investment impact of
  regulations.

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B. OBJECTIVES OF THIS PRESENTATION

• Consider a conceptual framework developed for
  assessing trade friendliness of domestic
  regulations
• Examine best practices with respect to
  transparency.

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II. SIX PRINCIPLES OF EFFICIENT REGULATION

• Have been identified by the OECD Trade Committee
  to assess the implications of regulatory practice
  for market openness.
• Already underpin the WTO, especially the TBT/SPS
  Agreements and the GATS.
• Are interrelated.

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A. The six Principles of efficient regulation

• Transparency
• Non-discrimination
• Avoidance of unnecessary trade restrictiveness
• Use of international standards
• Recognition of equivalent foreign measures and
• Use of competition principles.

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B. Political and institutional environment of
Government-sponsored reform

• Dialogue with range of stakeholders
• trade liberalisation vs. social objectives
• Dialogue between developed and developing
  countries
• Domestic good governance vs. multilateral
  rule-making
• Role of the new economy.

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III. TRANSPARENCYA. BENEFITS OF
TRANSPARENCY FOR MARKET ACCESS AND DOMESTIC
EFFICIENCY

• Makes public aware of costs and benefits to
  national welfare
• Provides business with predictable conditions
• Reduces discretionary or arbitrary
  implementation
• Facilitates assessment of undue trade
  restrictiveness
• HOWEVER there may be domestic sensitivity in
  giving foreigners a voice.

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B. SOME BEST PRACTICES FOR REGULATORY
TRANSPARENCY

• 1. Prior consultation
• What it involves
• Public announcement of consultation procedures,
  of a proposed regulation and of comments
  received
• Non-discrimination between domestic and foreign
  parties
• Non-discretion among the parties to be consulted.
• Benefits
• Ensures equality of treatment for stakeholders
• Allows a fuller assessment of stakeholders
  views
• Provides stakeholders with a better perspective
  on future regulations.

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B. SOME BEST PRACTICES FOR REGULATORY
TRANSPARENCY2. Regulatory Impact Analysis
(RIA)

• Consideration of the purpose of a regulation, its
  impact and possible alternatives
• Rationale is to ensure adoption of regulations
  that are efficient
• Trend toward increasing public involvement and
  more transparent RIA procedures
• RIAs may be a heavy administrative burden for
  some countries a lighter alternative could be to
  publish the rationale for a regulation.

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B. SOME BEST PRACTICES FOR REGULATORY
TRANSPARENCY

• 3. Enquiry points and comprehensive codes of
  regulations
• Enquiry point requirements already exist under
  SPS Agreement and GATS
• Websites are effective for providing information
  and permitting enquiries
• Importance of ensuring availability of
  information about sub-federal regulations.

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B. SOME BEST PRACTICES FOR REGULATORY
TRANSPARENCY

• 4. Clear administrative procedures
• Publication of objective criteria for judging
  requests
• Standard time periods for decisions
• Explanations when requests are denied
• Independent regulatory bodies etc.

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IV. CONCLUDING REMARKS

• Based on the GATT/WTO system, the "principles of
  efficient regulation" seem broadly relevant for
  all countries.
• Our understanding of them is evolving,
  recognising that situations differ among
  countries and sectors.
• "Best practices" identified are worth
  consideration, at both the national and
  multilateral levels.
• APEC-OECD Co-operative Initiative can be
  important in advancing understanding.