New Zealand and Australia Trans-Tasman experience of regulatory cooperation

Outline Australia and New Zealand relationship Specific experiences in regulatory cooperation – Trans Tasman Mutual Recognition Arrangement – Joint Food Standards Code – Proposed Joint Therapeutic Products Agency Lessons learned from the Australia-New Zealand experience

Trans-Tasman Context Unique nexus of strong historical, cultural, economic and political ties Nearly 30 years of deepening economic integration which is delivering benefits to businesses, consumers and investors The Single Economic Market initiatives today span a wide range of areas Political commitment and engagement supports policy and regulatory connections, including: -Ministerial level -Senior officials level -Regulator level -Joint institutions

Trans-Tasman Mutual Recognition Arrangement (TTMRA) An equivalence arrangement: any good that can legally be sold in one country can be sold in the other, regardless of differing technical regulations Broad coverage, with only a few exclusions and exemptions Enables greater mobility of goods Reduces the costs of trade Confidence in each others regulatory outcomes A central driver for regulatory policy co-operation An important role in driving Trans-Tasman integration

More on the TTMRA Examples Joint programme on minimum energy performance standards and labeling Involvement in reviews of electrical and gas safety regimes Joint standards development Sharing of compliance information from market surveillance Strengths Benefits for business, consumers and regulators Covers all goods for maximum value Low cost to administer (dont have to negotiate each addition, only exemptions) Drives regulatory cooperation Challenges Building and maintaining regulators awareness of TTMRA implications Building engagement, trust and confidence between regulators Identifying other ways to progress in sectors where differences are significant

Australia and NZ Food Standards Single Food Standards Code developed by a single agency: Food Standards Australia New Zealand (FSANZ) Established by the Food Treaty Code implemented by each countrys regulator Harmonised food standards of identity and labelling Underpins broader regulatory cooperation – e.g. coordinated food recall systems Strengths Based on sound science; shared expertise base Clear focus on protecting public health & safety Transparent and engaged with stakeholders Challenges Timeframes to make amendments can be lengthy

Proposed Australia New Zealand Therapeutic Products Agency Creating a single regulatory scheme and a trans-Tasman regulator for therapeutic goods 3 phase approach over 5 years, commencing in July 2011 Anticipated benefits Share resources, expertise and information Enhance systems in each country Reduce red tape and compliance costs Improve confidence in outcomes Challenges First attempt of establishing a trans-Tasman regulator Sensitivities with harmonising this sector Complex endeavour

Lessons Learned One size does not fit all: choose from the spectrum of options, from information exchange through to equivalence Strong political drive and goodwill are essential Important for regulators to also have a trade-focused mandate Strong institutional arrangements to foster regular communication, good working relationships and frank information sharing are important Systems in place to strengthen governance arrangements Robust decision making processes to overcome temptation to opt-out Effective mechanisms for review of cooperative arrangements to drive progress Strong stakeholder outreach programs to reduce uncertainty

For further information please contact Australia Department of Foreign Affairs and Trade Gareth Meyer New Zealand Ministry of Economic Development Sirma Karapeeva Laurie Knight