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Regulatory Cooperation: Moving Forward Together

Canada – U.S. Regulatory Cooperation Council Regulatory Cooperation: Moving Forward Together Ottawa, Ontario June 14, 2017

Outline Treasury Board of Canada Secretariat’s (TBS) and Office of Information and Regulatory Affairs’ (OIRA) Roles in Regulatory Cooperation Regulatory Cooperation Council Origins Regulatory Cooperation Council Successes Moving Forward

TBS’s and OIRA’s Roles in Regulatory Cooperation

TBS Role: Regulatory Oversight President of the Treasury Board Responsible for the regulatory policy and oversight function Regulatory Affairs Sector Develop and oversee policies to promote good regulatory practices Review proposed regulations to ensure they adhere to the requirements of Government policy Advance regulatory cooperation across jurisdictions Regulatory Cooperation Directorate Centre of regulatory cooperation expertise and thought-leadership Engagement with regulators and stakeholders to support and advance regulatory cooperation initiatives

TBS Regulatory Cooperation Responsibilities Develop policy expertise and thought leadership on regulatory cooperation Support Canada’s international and domestic trade priorities and further regulatory cooperation efforts Provide central oversight and facilitate departmental regulatory cooperation annual planning Support and coordinate the Canada-United States Regulatory Cooperation Council

OIRA Role: Regulatory Oversight Part of White House Office of Management & Budget Responsible for the regulatory policy and oversight function Led by senate-confirmed Administrator Neomi Rao has been nominated by President Trump to be next Administrator of OIRA U.S. government’s central authority for the review of Executive Branch regulations, approval of Government information collections, establishment of Government statistical practices, and coordination of federal privacy policy Implements regulatory planning and review process set out in Executive Order 12866 – Regulatory Planning and Review

Regulatory Cooperation Council Origins

Origins of the Canada-U.S. RCC Canada-U.S. Regulatory Cooperation Council (RCC) announced in February 2011 To enhance economic competitiveness while maintaining high levels of protection for health, safety and the environment Capitalize on longstanding opportunity to find efficiencies and cost savings by aligning regulatory systems, where appropriate RCC initiated 2011 Objective Action Very large annual trade relationship – world’s largest when the RCC began Highly integrated manufacturing and supply chains Similar consumer preferences and risk tolerance Effective, but independent, regulatory systems target similar outcomes

Key Components of the RCC What Practical approach to regulator-to-regulator cooperation to create compatible regulations and eliminate duplication while maintaining high standards for safety, health and environment Who 16 Canadian and U.S. agencies with health, safety and environmental protection mandates that interact with production, manufacturing and bringing goods to market What sectors Pharmaceuticals, medical devices, food, environmental standards, chemicals, cosmetics, transportation safety, dangerous goods, agriculture, energy efficiency, and aquaculture How Collaboration on standards, inspections, certification, testing, product approvals, and monitoring of products on the market 23 work plans published with work underway

Regulatory Cooperation Council Successes

Examples of RCC Success Stories Outcomes Benefits Hazardous chemical labelling Harmonized labelling system No need to re-test, re-classify or re-label products $30-55M in 2015 to the North American paint and coating industry Supports worker safety Chemicals management compliance promotion Joint educational primer and fact sheet for foreign suppliers to be published this summer Responds to stakeholder need Better understanding among chemical industry of regulatory reporting requirements for substances subject to Significant New Activities and Significant New Uses

Examples of RCC Success Stories (Continued) Outcomes Benefits Energy efficiency standards for consumer and commercial products Harmonized standards No need to re-test appliances in both markets Access to better, more efficient appliances $1.8B in energy cost savings by 2030 to Canadian consumers $1.5M per year to manufacturers, many of whom are U.S. businesses Rail tank car standards Consistent safety standards for interconnected rail networks Improved safety in both countries More efficient North American rail operations

Moving Forward

Components of RCC Work Plan Process Stakeholder Submissions Regulator Review of Submissions Regulator/ Stakeholder Event Work Plan Development and Implementation Technical/Expert Working Groups

Current Environment and Drivers Feb. 2017 Joint PM-President Trump Statement: strong expression of support for continued Canada-U.S. regulatory cooperation Compliments U.S. regulatory reform agenda as both seek to reduce regulatory burden Budget 2017 provides $6M over 3 years to continue supporting business growth by advancing regulatory alignment with Canada’s trade partners. Subject of intensified international dialogue and increasingly recognized as a good regulatory practice Reducing regulatory differences continues to be strongly supported by stakeholders: regulatory differences with trading partners are “Canada’s next top trade barrier” (Canadian Chamber of Commerce)

Steady growth in support has built strength and momentum Importance of Stakeholders Support Steady growth in support has built strength and momentum Communication Strong support is being communicated from multi-sector business associations Collaboration Bi-national groups of stakeholders working together on mutually beneficial opportunities Leadership Stakeholders including industry, consumers and NGOs, have a key role in identifying opportunities

Next Steps Ongoing engagement between Canadian and U.S. officials Continue work on existing work plans Work toward the next RCC regulator/ stakeholder event Next iteration of work plans

Canada’s Regulatory Cooperation with Domestic and European Union Partners Regulatory Cooperation: Moving Forward Together Ottawa, Ontario June 14, 2017

Expanding Regulatory Cooperation with New Partners CETA Standalone chapter on regulatory cooperation (Chapter 21) CFTA Standalone chapter on regulatory notification, reconciliation and cooperation (Chapter 4)

Trade with the EU, provinces and territories Annual bilateral trade value: $90.1 billion in in goods and $39.9 billion in services Canada’s second largest bilateral trading partner Provinces and territories Interprovincial trade worth $400 billion annually

CETA Chapter 21 on Regulatory Cooperation Calls for creation of Regulatory Cooperation Forum The Regulatory Cooperation Forum (RCF) will encourage cooperation and information sharing with a view to minimizing differences in regulatory approaches. Outlines (non-binding) objectives and principles The RCF is a voluntary mechanism. Either Party may decline to cooperate or withdraw from cooperation at their discretion. Outlines types of regulatory cooperation activities The RCF will meet annually and help to identify potential areas for cooperation, and facilitate discussions between regulatory authorities in Canada and the EU.

Canadian Free Trade Agreement - CFTA April 2017: The Governments of Canada and of all provinces and territories announce the new CFTA, which enters into force July 1, 2017. The CFTA is designed to improve the flow of goods, services and investments across provincial and territorial borders. Canadian governments will work together to align regulatory requirements and reduce the patchwork of rules between jurisdictions.

Advancing Regulatory Cooperation Internationally Advance policy research on regulatory cooperation Promote good regulatory practices with strategic partners

Regulatory Cooperation – Stakeholder Submissions Regulatory Cooperation: Moving Forward Together Ottawa, Ontario June 14, 2017

Outline RCC work plans Key elements of submissions Next steps

RCC Work Plans Work plans describe specific areas for regulatory cooperation Developed bilaterally between regulators Informed by stakeholders Provide transparency on department to department commitments Many factors are considered including: Potential to enhance regulatory efficiency while preserving regulatory objectives Tangible benefits and impacts on regulated parties and consumers Support from impacted stakeholders Stakeholder submissions play a critical role in the development of RCC work plans

Issue Critical Elements of Submissions Context Objectives Priorities Impacts Bi-national support

Submissions – Defining the Issue Succinctly articulate area of concern or emerging area for alignment Describe current or potential mis-alignment, including costs Briefly explain potential benefits of resolving the concern Explain how issue is a regulatory matter e.g. regulatory requirement, related to regulatory development or implementation Issue Key Objectives: Clearly identify the concern and the broad benefits of resolution

Submissions – Setting the Context Set out both Canadian and U.S. market context and competitive conditions If relevant, summary of emerging market trends and evolution of sector Describe considerations around the timeliness of resolution Context Key Objectives: Provide information that supports understanding the impacts of mis-alignment in the current or emerging market conditions

Submissions – Defining Objectives Identify objectives Where appropriate, delineate short, medium and longer term goals Provide potential solutions Objectives Key Objectives: Outline objectives, timeframes and potential solutions

Identifying Priorities Submissions – Identifying Priorities Identifying Priorities Prioritize where more than one initiative is proposed or objectives are defined on different timescales In future, consider in the context of other regulatory cooperation proposals Priorities Key Objectives: Communicate priorities within a proposal and between regulatory cooperation fora

Submissions – Describing Impacts Articulate impacts on consumers, industry and others Increased product choice, timelier market access, decreased consumer/industry costs, time savings, increased product quality, more efficient and effective use of resources ($, people) Where possible, quantify Provide underlying analysis and evidence, where possible Impacts Key Objectives: Support understanding the specific impacts of action

Submissions – Outlining Support Bi-national Support Where possible, demonstrate bi-national and broad support Consider joint submissions or multiple submissions proposing the same objectives by organizations on both sides of the border and over multiple associations and interest groups Bi-national Support Key Objectives: Demonstrate degree of bi-national and stakeholder support

Points for Discussion Are there any elements that we have missed? Would a guidance document or template be helpful?

Submissions – Next Steps Build on the momentum of successes achieved to date Upcoming formal call for submissions to support next round of work plan development

Thank you rcc-ccr@tbs-sct.gc.ca