The Committee on Technical Barriers to Trade

Good Regulatory Practice

Presentation by Mr. Margers Krams

Chairman of the TBT Committee

Outline of presentation

• TBT Agreement

• TBT Committee– Horizontal issues – Triennial Reviews

• GRP as an element of the 4th TR– Scope – Future work

Three key principles of the Agreement:

Non-discrimination (Article 2.1)Unecessary obstacles to trade (Article 2.2)Use of international standards (Article 2.4)

TBT Committee

To discuss “matters relating to the operation of this Agreement or the furtherance of its objectives”

(Article 13.1)

Specific Trade Concerns

Horizontal Issues – Triennial Reviews (Art.15.4)

2007

June 2006

Fourth: To be adopted in November

2006

1995

1998 2001 2004

1st Triennial Review ThirdSecond

TBT Triennial Reviews:

- Every three years - Review the operation and implementation - Recommend adjustment of the rights and obligations - Submit proposals for amendments

Fourth

GRP in previous Triennial Reviews

• 1st – reference in context of preparation of TR and invitation for Members to submit their approaches to technical regulations

• 2nd – reiteration and reference to international standards

• 3rd – a separate element, reference to:– need to develop internal policies and domestic cooperation,– regulatory impact assessment, – equivalence.

Good Regulatory Practice

Transparency procedures

Conformity Assessment Procedures

Technical Assistance

Special and Differential Treatment

Five “elements” in preparation of 4th Triennial Review

Secretariat background: Job(05)/107 and Job(06)/24 (Section I)

Selected issues: (i) choice of policy instruments; (ii) efficient and effective regulation; (iii) regulatory cooperation (between different countries) ...

Proposals from: Brazil, Canada, Chile, Chinese Taipei, Colombia, Costa Rica, EC, Mexico, US

Looking ahead: Workshop, list of “elements” ...

Good Regulatory Practice

First draft by Chair: Job(06)/142

1. Choice of Policy instruments

• Need for regulators to identify problems, including magnitude and objective and then to consider options,

• By considering options:– preference to be given to minimization of mandatory measures, – to question the need to regulate, – voluntary measures based on international standards,

• Usefulness of Regulatory impact assessment

• Performance-based regulations wherever possible

2. Efficient and Effective Regulation

Emphasis on benefits of simplifying and improving regulatory environment,

• Regulations based on sound science, technical feasibility and economics,

• Potential usefulness of Regulatory impact assessment and merit to discuss it,

• Efficiency can be achieved when regulators:– consider experiences in other countries, – revise existing regulations, – ensure national coordination, – increase transparency and accountability.

3.Regulatory Cooperation between Different Members

• Relevance of equivalence to GRP and conformity assessment,

• Achieving the same regulatory outcome by accepting TR of other members as equivalent

• Regulatory cooperation between regulators from different members could lead to:– better understanding of different regulatory systems, – contribution to avoidance of unnecessary regulatory differences

and increased market access

Future work

Proposed that TBT Committee agrees to hold an exchange of experiences on:

• how the use Regulatory impact assessment to facilitate consideration on:– necessity of regulatory action, – the most effective and efficient intervention to achieve policy objective,

• how the use of performance based regulation contributes to avoid obstacles to trade,

• how the process to achieve equivalency is implemented in practice.

Thank you!