1. RAIL SAFETY  N A F T A  Canada-US Bilateral  Harmonization  Path Forward

2. NAFTA NAFTA came into force in January 1994NAFTA came into force in January 1994 Land Transportation Standards Subcommittee (LTSS) established to Consider compatibility of rail safety regulations relevant to cross-border operationsLand Transportation Standards Subcommittee (LTSS) established to Consider compatibility of rail safety regulations relevant to cross-border operations

3. CANADA Federally Regulated Railways - 31 Provincially Regulated Railways - 50 RAC Member Railways - 60 Canada = 10 Provinces & 3 Territories Transport Canada = HQ + 5 Regions Several Provinces using Federal regime

4. USA Federally Regulated Railways - 31 Provincially Regulated Railways - 50 RAC Member Railways - 60 Canada = 10 Provinces & 3 Territories Transport Canada = HQ + 5 Regions Several Provinces using Federal regime

5. INTERNATIONAL REGULATORY OPTIONS BILATERAL-MULTILATERAL HARMONIZATION –When possible & practicable RECIPROCITY –Minimize differences EXEMPTIONS/WAIVERS

6. LTSS ( historical example) LTSS ( historical example) LTSS identified 3 Operational Issues Crew Qualification StandardsCrew Qualification Standards Hours of Service RulesHours of Service Rules Occupational Safety & Health RegulationsOccupational Safety & Health Regulations

7. Closer FRA-TC working relationship was established 1995Closer FRA-TC working relationship was established 1995 (both management & day-to-day operations) (both management & day-to-day operations) Process jointly developed to review compatibility of respective regulatory regimesProcess jointly developed to review compatibility of respective regulatory regimes FRA-TC Response

8. Joint FRA-TC Technical Review Working Group (TRWG) set upJoint FRA-TC Technical Review Working Group (TRWG) set up Involved U.S./Cdn HQ & RegionsInvolved U.S./Cdn HQ & Regions Joint FRA-TC Cross-border field inspections conductedJoint FRA-TC Cross-border field inspections conducted (Mexico invited as observer) (Mexico invited as observer) TRWG

9. Canada-U.S. CROSS - BORDER ISSUES TC / FRA jointly reviewed following - Operating rules & practicesOperating rules & practices Control of Alcohol & drugsControl of Alcohol & drugs Railway communicationsRailway communications Rear End marking devicesRear End marking devices Accident/Incident ReportingAccident/Incident Reporting Hours of ServiceHours of Service Occupational Safety & HealthOccupational Safety & Health Locomotive Engineer qualificationsLocomotive Engineer qualifications

10. TRWG FINDINGS …neither the current regulations nor existing railway operating practices appear to impede the flow of goods and traffic under NAFTA. Joint FRA-TC Report, 1997

11. FRA-TC Initiatives Proposed ACTION PLAN included- Annual Senior Management MeetingsAnnual Senior Management Meetings Increased Consultation ( Regs & Policy)Increased Consultation ( Regs & Policy) Data Sharing (eg. acc/incidents-safety issues/concerns)Data Sharing (eg. acc/incidents-safety issues/concerns) Joint InspectionsJoint Inspections

12. Path Forward TC / FRA committed to continued cooperation under the Regulatory Cooperation Council (RCC) framework put forward Prime Minister Harper and President Obama TC / FRA committed to develop a Memorandum of Understanding to formalize bi-national cooperation

13. RCC TC / FRA committed to develop a Memorandum of Understanding to formalize bi-national cooperation. The RCC will cover a commitment to facilitate all cross-border operations, including passenger.

14. Commitment If cross-border passenger rail service is extended or expanded, FRA and TC will use existing bi- national frameworks to evaluate the need to harmonize safety regulations to facilitate service.

15. “Working Together” Better Understand Respective Regulatory Needs Earlier Consultation & Co-operation Learn From Each Other’s Best Practices Smart Regulations Instrument of Choice Progressive Regulator Facilitate SAFE Cross-border Trade Facilitate SAFE Cross-border Trade

16. Thank You Merci