REDUCING TRADE BARRIERS THROUGH GOOD REGULATORY PRACTICE FOR STANDARDS AND TECHNICAL REQUIREMENTS

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REDUCING TRADE BARRIERS THROUGH GOOD REGULATORY
PRACTICE FOR STANDARDS AND TECHNICAL REQUIREMENTS

• by Anthony Kleitz
• Acting Deputy Director
• Trade Directorate, OECD

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Introduction

• When standards hinder trade
• Supply-side solutions TA/CB may help exporters
  meet standards and participate in future
  standard-setting
• Demand-side solutions GRP by governments
  strengthens confidence and predictability.
• Regulation responds primarily to domestic
  concerns
• For GRP, one size does not fit all
• This presentation will focus on
• I. Four widely accepted principles of GRP for
  TBTs
• II. Two additional priority areas for
  strengthening GRP.

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Four accepted principles of GRP I.A. Priority
to objectives rather than methods

• -- Use of voluntary rather than mandatory
  measures
• Simpler to define and implement
• Encourages innovation, efficiency, flexibility in
  production and sourcing
• Is business- and trade-friendly in a globalised
  economy
• Exception to trend High health or safety risks
  call for mandatory government measures
• yet lower risks may encourage voluntary private
  sector standards.
• -- Performance-based standards preferred over
  product or production requirements.

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I.B. Transparency in the development and
application of standards CA

• -- Public availability of information regular
  publication, enquiry points internet.
• -- Rule-making procedures clear definitions,
  consistent application, predictability.
• -- Public consultations
• Openness to all stakeholders (industry,
  consumers, regulators), fending off regulatory
  capture
• Accountability in handling comments, enhancing
  credibility and compliance).
• Q How to ensure that transparency really works?

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I.C. Effective impact assessments

• Consider whether regulation is needed
• Identify alternative solutions
• Analyse costs and benefits of regulations in
  terms of economic performance and
  cost-effectiveness
• Make effective use of risk assessment and risk
  management
• Assess effects on trade, investment,
  international competition
• Assess enforcement mechanisms
• Monitor quality of the evaluation process.

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• I.D. National and international co-operation
  among regulatory authorities
• Principles of GRP must be adaptable to different
  national contexts
• Problems from regulatory differences can be
  reduced through co-operation among regulatory
  authorities, enhancing policy coherence and
  regulatory efficiency
• Sharing of experiences and efforts to better
  align approaches nationally and internationally
  can simplify and clarify procedures for traders
  and enhance their efficiency and competitiveness.

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• I.D. National and international co-operation
  among regulatory authorities (cont.)
• Variety of bodies setting and implementing
  regulations
• governmental (ministries, semi-independent
  independent agencies shared responsibilities
  between different levels)
• private (generally open to all interested
  stakeholders)
• multilateral, plurilateral, regional
• Current WTO process Discussions in TBT
  Committee, DDA
• Substance proposals on GRP for minimum
  consultation standards, common regulatory
  objectives, sectors.
• Q Should current international disciplines on
  standards and CA be strengthened by co-ordinating
  approaches to good regulatory design and
  behaviour?

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II. Additional priority areas for strengthening
GRP

• II.A. Demonstrating compliance with national
  regulations
• Techniques for accepting foreign measures as
  functionally equivalent to domestic measures that
  have the same regulatory objectives (as provided
  for in WTO/ TBT SPS Agreements)
• Unilateral acceptance clear definition of
  criteria for acceptance
• MRAs (government-to-government,
  government-to-private, private-to-private)
• Development of domestic capacity in CA
  (facilities, training accreditation).

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II.A. Demonstrating compliance with national
regulations (cont.)

• Suppliers declaration of conformity
• A recurrent item of discussion in WTO/TBT
• Relies on firms integrity, mutual trust between
  regulators and firms, and effective systems of
  product liability and market surveillance in the
  supplying country.
• Practical evidence suggests that it is not easy
  to replace third-party CA by SDoC and that
  progress has been slow.

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II. Additional priority areas for strengthening
GRP (cont.)

• II.B. Necessity
• In WTO, a key issue for standards and CA is to
  ensure they are not more trade restrictive than
  necessary
• This is specified in the TBT and SPS Agreements,
  but the exact nature of this obligation is vague.
• Q Does this vagueness pose a problem and, if so,
  what can be done about it?

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BIBLIOGRAPHY / ADDITIONAL READING

• APEC-OECD Integrated Checklist on Regulatory
  Reform (OECD 2005).
• Integrating Market Openness into the Regulatory
  Process Emerging Patterns in OECD Countries
  TD/TC/WP(2002)25/FINAL (OECD 2003).
• OECD Guiding Principles for Regulatory Quality
  and Performance (OECD 2005).
• Regulatory Reform and Market Openness
  Understanding the Links to Enhance Economic
  Performance TD/TC/WP(2004010/FINAL (OECD 2004).
• Standards and Conformity Assessment in Trade
  Minimising Barriers and Maximising Benefits
  (Compilation of submissions at OECD-InWent
  workshop and policy dialogue, Berlin, 21-22
  November 2005) http//www.oecd.org/dataoecd/19/27/
  36223999.pdf
• Thank you!
• For further information please contact
  anthony.kleitz_at_oecd.org