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Policies to improve Regulatory Quality the
Mexican case Federal Regulatory Improvement
Commission (COFEMER), MEXICO Good Governance for
Development in Arab Countries Initiative Working
Group IV Tunis, Tunisia. February, 2007
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What is COFEMER?

• COFEMER is Mexicos Federal Regulatory
  Improvement Commission.
• COFEMER was created in year 2000, through a
  reform to the Federal Administrative Procedures
  Law.
• COFEMER is an autonomous agency of the Ministry
  of the Economy.
• COFEMER is supported by the Federal Regulatory
  Improvement Council which is comprised by five
  ministries, a number of government agencies, as
  well as representatives of the private and social
  sectors, and scholars.
• COFEMERs personnel 60 professionals, mainly
  experienced on fields such as Economics and Law.

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COFEMER's Mission
Ensuring transparency in the regulatory process
Promoting that regulations benefits exceed its
costs
Federal Regulatory Improvement Commission
Achieving, through good regulation, the greatest
benefit for society and not just for certain
groups
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COFEMERs main tools for Regulatory Improvement
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RIA and the Presidential Order for Regulatory
Quality

• RIA is an ex-ante analysis which facilitates
  knowing what effects, in terms of expected costs
  and benefits, a regulation will create when
  implemented. It also helps to analyze regulatory
  alternatives to the original project of the
  regulator.
• In principle, all federal ministries and agencies
  are obliged to send their draft regulatory
  instruments and their respective RIA to COFEMER,
  in order to obtain the latters opinion.
• No regulatory instrument might be published in
  the official Gazette, and therefore enter into
  force, without obtaining firstly COFEMERs
  opinion.

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RIA and the Presidential Order for Regulatory
Quality

• In addition to the RIA process mentioned before,
  a new instrument to reinforce Regulatory Quality
  was issued by President Felipe Calderón on
  February 2, 2007 the Presidential Order for
  Regulatory Quality.
• The Presidential Order establishes a procedure
  that federal ministries and agencies must fulfill
  before COFEMER, previous to submitting the RIA.
• The Presidential Order's goal is to oversee i)
  that the draft regulation has a positive effect
  on citizens and productive activities and ii)
  that no regulation is enacted if it hinders
  investment, job creation and, in general, the
  competitiveness of the Economy.

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RIA and the Presidential Order for Regulatory
Quality

• Federal agencies may issue new regulation, only
  when the latter complies, subject to COFEMERs
  decision, at least with one of the following
  criteria
• The draft regulation derives from an emergency
  situation.
• The federal ministry or agency is complying with
  either an obligation established in law or in
  regulations issued by the President.
• The draft regulation is complying with an
  international obligation.
• The regulation has to be up-dated periodically
  due to its nature.
• The benefits of the proposed regulation are
  superior to its compliance costs.

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Rapid Business Start-up System (SARE)

• SARE is a permanent program, created in year 2002
  by the Federal Government, that promotes, in a
  joint manner with state and municipal
  authorities, the establishment and start-up of
  new businesses in 72 hours (comparable to the
  best practices in this subject in OECD
  countries).
• SARE is a one stop shop in which all relevant
  federal, state and municipal procedures (7-9,
  depending of the city in which the business
  intends to open) can be fulfilled.
• As of January, 2007 there are 110 SARE offices
  working throughout the country (in those
  municipalities 46 of the total gross production
  is located). For year 2007, approximately 20
  additional SARE offices will be opened.

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Federal Register of Government Formalities and
Services (RFTS)

• The RFTS was created on year 2000 and is run by
  COFEMER. It took a three year period for the
  Registry to be totally integrated.
• The objective of the Registry is to bring
  certainty and transparency to all individuals
  and businesses with regard to federal formalities
  and services.
• The RFTS is a public online catalog available at
  www.cofemer.gob.mx, with information regarding
  the specific steps, authorities involved, terms
  for responding, legal grounds, applicable
  formats, etc., of most federal folmalities and
  services
• Federal ministries and agencies are obliged by
  law to inform COFEMER of the creation of a new
  formality or service or the modification of an
  existing one, in order to reflect the relevant
  situation in the RFTS, keeping the latter updated.

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Public- Private Dialogue within the Federal
Regulatory Improvement Council

• The Public-Private dialogue has built a new
  vision of regulatory improvement, achieving
• Improvement of 63 high impact formalities in
  specific sectors of the Economy.
• Establishment of a Regulatory Moratorium from
  2004 to 2006, which reduced the issuing of
  regulation with compliance costs in around 23.
• Development of a Systemic Approach to define 36
  regulatory improvement priorities to promote
  competitiveness by analyzing complete
  regulatory systems, in order to propose and
  implement solutions to the detected situations.

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Public- Private Dialogue within the Federal
Regulatory Improvement Council

• Due to the positive results obtained with the
  Public-Private dialogue, federal authorities and
  the private sector agreed to formalize their work
  relationship. As of August, 2006 the Council's
  Rules were modified to create two new levels of
  work with public-private participation the
  Executive Committee and the Working Groups.
• The objective of creating such new levels is to
  have an agile structure to promote discussion,
  definition and implementation of regulatory
  changes to foster competitiveness.

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PPD in Mexico Future Tasks
COUNCIL
ECONOMY
COMPETITION
CONSUMER PROTECTION
FINANCE
Regulatory Improvement Council (High level
political decisions). Minister level and its
equivalent in the private sector
LABOR
COFEMER
COMPTROLLER GENERAL
ACADEMY
PRIVATE SECTOR
Executive Committee (High level technical
decisions). Underminister level and its
equivalent in the private sector.
Executive Committee
Foreign Trade and Customs
Working Groups
Working Groups (Technical Work) Director General
level and its equivalent in the private sector.
Business Start-Up
Energy
Social Security
Health
Labor
Technical Standards
Financial
Migration
Telecommunications
Transportation
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