Regulatory Cooperation Regulatory Cooperation in North Americain North America

Challenges and the Way Challenges and the Way ForwardForward

Mohan Denetto

Privy Council Office

Canada

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OverviewOverview

Regulatory Cooperation in North Regulatory Cooperation in North AmericaAmerica• ContextContext• ObjectivesObjectives• ChallengesChallenges• The Way ForwardThe Way Forward• ConclusionsConclusions

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ContextContext Agreements/InitiativesAgreements/Initiatives

• Canada-US Free Trade AgreementCanada-US Free Trade Agreement• North American Free Trade AgreementNorth American Free Trade Agreement• Agreement on Internal TradeAgreement on Internal Trade• Security and Prosperity Partnership of North AmericaSecurity and Prosperity Partnership of North America• Sectoral Sectoral ad hocad hoc initiatives initiatives

Stakeholder concerns – opposing points of viewStakeholder concerns – opposing points of view• Small differences in regulatory compatibility can Small differences in regulatory compatibility can

disproportionately increase compliance burden and can disproportionately increase compliance burden and can lead to lower productivity, and decreased lead to lower productivity, and decreased competitivenesscompetitiveness

• There is concern that cooperation can lead to lower There is concern that cooperation can lead to lower levels of protection and loss of sovereigntylevels of protection and loss of sovereignty

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Trilateral Regulatory Cooperation Trilateral Regulatory Cooperation Objectives Objectives

Reduce current regulatory Reduce current regulatory duplication, overlap, and small duplication, overlap, and small differences, while maintaining high differences, while maintaining high levels of protectionlevels of protection

Anticipate future incompatibility and Anticipate future incompatibility and avoid themavoid them• Cooperation amongst regulatorsCooperation amongst regulators• Better information sharingBetter information sharing

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ChallengesChallenges

Arriving at mutual prioritiesArriving at mutual priorities Increasing transparency throughout the Increasing transparency throughout the

regulatory processregulatory process Differing regulatory capacity and interests Differing regulatory capacity and interests

of Partiesof Parties Harmonization between national and sub-Harmonization between national and sub-

national jurisdictionsnational jurisdictions Engaging in a systematic policy dialogue Engaging in a systematic policy dialogue

in the absence of supra-national in the absence of supra-national institutionsinstitutions

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ConclusionsConclusions Regulatory Cooperation in North America is well Regulatory Cooperation in North America is well

developed in some areas, and beginning in developed in some areas, and beginning in others.others.

Cooperation is often a reaction to the pull of Cooperation is often a reaction to the pull of market forces, and a can results in a vertical market forces, and a can results in a vertical problem solving approach.problem solving approach.

It is characterized by a complex web of It is characterized by a complex web of institutions, relationships, and agreements, many institutions, relationships, and agreements, many of which are effective. However there are no clear of which are effective. However there are no clear priorities, and ad hoc sporadic coordination.priorities, and ad hoc sporadic coordination.

A formal agreement will allow some prioritization A formal agreement will allow some prioritization in the regulatory cooperation agenda, increased in the regulatory cooperation agenda, increased inter-governmental transparency, and focus effort inter-governmental transparency, and focus effort in areas where progress can be made in the in areas where progress can be made in the short, medium and long term.short, medium and long term.

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For more informationFor more information

Mohan DenettoMohan Denetto

Privy Council OfficePrivy Council Office

Regulatory Affairs DivisionRegulatory Affairs Division

Ottawa, CanadaOttawa, Canada

(613) 996-1612(613) 996-1612

www.regulation.gc.cawww.regulation.gc.ca