Mexicos Federal Regulatory Improvement Programme: Experience and Future Priorities

1
Mexicos Federal Regulatory Improvement
Programme Experience and Future Priorities
Carlos Arce Macias Head, Federal Regulatory
Improvement Commission Mexico (52)
57.29.92.30 carce_at_economia.gob.mx

• Singapore, February 2001

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The need for regulatory improvement

• Began in 1989 as a natural complement to the
  process of trade liberalisation (1986)
• Financial crisis of 1994-1995 gave added impetus
  to the reform process
• General need to improve economic performance and
  job creation in an environment of fiscal
  austerity.

3
Reform of the Federal Administrative Procedures
Law (2000)

• Unanimously approved by Congress
• Strengthened and consolidated regulatory
  improvement programme
• Created Federal Regulatory Improvement Commission
  (COFEMER), with technical and functional
  independence, and greater review powers
• Created Regulatory Improvement Council (business,
  academic, labor, rural and government
  representatives)

4
Review, elimination and simplification of
formalities

• Federal Registry of Formalities and Services
  contains information on requirements, processing
  times, office locations and forms for nearly all
  business formalities.
• Citizen formalities must be included by May 2003.
• Number of formalities reduced by 45 from 1996 to
  2000, and 95of remaining simplified.
• Formalities not registered by May 2003 will no
  longer be applicable.
• Register of Accredited Persons must be created.
  Allows faster processing of formalities.
  Complement to e-government.

5
Review of draft regulations

• Since 1996, more than 800 draft legislative and
  administrative proposals reviewed in detail with
  the help of the Regulatory Improvement Council
  and ad hoc private sector working groups.
• All regulatory proposals are public, and must be
  sent to COFEMER at least 30 working days before
  adoption.
• Transparency and analysis-based review process
  (regulatory impact statements, public
  consultation, net benefit to society).

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COFEMER reform proposals

• COFEMER can diagnose the quality of existing
  regulation in specific regulatory areas and
  propose reforms to the head executive.
• Reforms carried out include natural gas law
  and implementing rules (1995), civil and
  mercantile judicial procedures (1996), standards
  Law (1996), mining law (1996), competition law
  implementing rules (1998), and Federal
  Administrative Procedures Law (2000).
• New diagnoses have been prepared for water
  distribution and conservation, medical devices,
  fertilizers and pesticides, electricity reform,
  and freedom of information.

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Regulatory reform across levels of government

• Since 1995, the need for better co-ordination and
  congruence between the federal, state and local
  governments was explicitly recognised.
• COFEMER provides technical advice to states and
  municipalities.
• Most state governments have created their own
  regulatory improvement programmes, and 23 have
  signed agreements with their main municipalities.
• National state regulatory reform meetings every 6
  months.
• The private sector publishes an annual state
  regulatory rankings.

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Benefits of reform

• Market openness and deregulation of entry, exit
• and pricing in tradable goods has
• Increased competition and innovation
• Improved quality of services
• Lowered prices
• Increased resilience to economic shocks
• Regulatory reform also
• Directs public resources to their most productive
  uses
• Improves policy co-ordination
• Creates transparency and supports democratic
  values
• Strengthens rule of law

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Future priorities

• Consolidation of the programme (implementing
  rules for review criteria and impact
  assessments).
• Training and capacity building.
• Co-operation with states and particularly
  municipalities.
• Public consultation and higher public profile for
  COFEMER.
• Reform of electricity sector and freedom of
  information act.

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APEC-OECD 2002

• Mexico presidency of APEC.
• Importance of continued Asia-Pacific cooperation
  in regulatory reform.
• Plans for regulatory reform workshop in Merida,
  Yucatan in spring 2002.