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Presentation by Anthony Kleitz Trade Directorate, OECD, Paris

APEC-OECD CO-OPERATIVE INITIATIVE ON REGULATORY REFORM 2 1-22 February 2001 Experience 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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Presentation by Anthony Kleitz Trade Directorate, OECD, Paris

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  1. APEC-OECD CO-OPERATIVE INITIATIVE ON REGULATORY REFORM21-22 February 2001Experience and best practices in achieving regulatory efficiency and open marketsSession 1, Panel 4 Presentation by Anthony Kleitz Trade Directorate, OECD, Paris

  2. I. INTRODUCTION A. INTERRELATIONS BETWEEN TRADE AND DOMESTIC REGULATION • Past progress in tariff liberalisation makes regulatorytrade 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.

  3. B. OBJECTIVES OF THIS PRESENTATION • Consider a conceptual framework developed for assessing trade friendliness of domestic regulations; • Examine “best practices” with respect to transparency.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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.

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