International Workshop on Public-Private Dialogue CASE STUDY 4 – MEXICO Is it possible to institutionalize a public-private dialogue mechanism to reform economic regulation and policy in Mexico by the end of the current administration? Federal Commission for Regulatory Improvement COFEMER February 1, 2006 OECD, Paris

► There is no institutional framework for PPD to broadly discuss competitiveness issues. Some past and existing fora includes: ► Pacto de Desarrollo Económico (80’s). ► Competitiveness committee in the Senate and Deputies House. ► National Agreement for Unit, Rule of Law, Development, Investment and Employment. ► Private/Public dialogue to improve 63 high impact formalities in specific sectors ( ). ► Federal Competition Commission and PROFECO’s dialogue. ► The “Systemic approach” developed by COFEMER to define regulatory priorities ( ). Context of PPD in Mexico

The systemic approach objectives ► The “systemic approach” to regulation created a coordination mechanism between the public, academic and private sectors. ► This approach had the aim of establishing a set of regulatory priorities that could be carry out before November 2006, without the need to amend laws or enact new legislation. ► The systemic approach aims to incorporate a holistic analysis of a regulatory system in particular economic sectors.

Systemic Approach Businesses Opinion Think tanks Opinion President’s Office Defines priorities in sector policies Topics incorporated into the next regulatory programmes (PMRs) COFEMER’s Guideline for PMRs elaboration Federal Ministries Identification PMRs issue COFEMER Coordination Process to define priorities Including OECD recommendations

Specific actions in specific sectors Foreign trade Transport and Telecommunications States and Municipalities Labor and social security Energy Health Finance Technical standards Migration Together, the Mexican public and private sector defined 36 specific actions related to regulatory improvement that could influence to the competitiveness in a positive way.

Process, milestones and monitoring ► Private sector’s opinions and commentaries were promoted and received through internet. ► Every month the government has reported advances directly to COFEMER’s web page and any citizen can send comments.

Monitoring through internet

Process, milestones and monitoring ► This system was supplemented with the creation of several private-public sector working groups in which the initial proposals have been refined in issues such as: ► International trade and customs; ► Energy; ► Labor; ► Transportation; and, ► Mandatory standards. ► The implementing results of the 36 specific actions will be announced in the next Regulatory Improvement Council (March, 2006).

Main results up to January 2006 ► Regulation that allows the implementation of self- evaluation system of labor obligations compliance through the use of ICT (Declare). ► Cofemer carried out a joint study with the "Doing Business" team of the World Bank in order to analyze regulatory matters in 12 cities of Mexico. ► Regulation for the expedition of visas procedure in Consulates of Mexico. ► Implementation of the Rapid Business Start-up System (SARE) in 86 municipalities of Mexico. ► Concrete results in the entrance and exit of goods in Nuevo Laredo, derived from requests of private sector.

Challenges ► Time and number of actions to be implemented (They multiply as we continue the process). ► The Fox administration ends in November ► Need to institutionalize these dialogue and the technical work through the Regulatory Improvement Council (RIC). – Working groups could report to the RIC (PROFECO, CFC and COFEMER could be more involved as a members of RIC). – RIC could also produce a “white paper” documenting the process for further reference to the next administration. – New topics could be incorporated, tuning RIC into a forum for discussion of economic policy and regulation.