Good regulatory practices chapter summary
Regulation is an important tool to deliver better economic and social outcomes, including the protection of health, safety, and the environment. At the same time, regulations should be developed in such a way as to support economic growth. To achieve good regulatory outcomes, governments should follow good regulatory practices, which foster openness, transparency, and evidence-based decision-making. Countries that adhere to good regulatory practices can have confidence in one another’s regulatory systems, which can in turn facilitate trade. Trust in a trading partner’s regulatory systems also helps foster regulatory cooperation, so that regulators across borders can choose to work together to align their regulatory frameworks, resulting in a reduction in unnecessary barriers to trade.
The Canada-United States-Mexico Agreement (CUSMA) preserves Canada’s ability to adopt and apply its own laws and regulations that regulate economic activity in the public interest. CUSMA includes a new chapter on good regulatory practices to further the goal of working together to ensure transparent, predictable and aligned regulatory systems that foster stronger trade relations and protect citizens. The new chapter also recognizes voluntary regulatory cooperation as an important good regulatory practice to facilitate trade and investment among CUSMA partners.
Technical summary of negotiated outcomes: Good regulatory practices chapter
- Includes commitments for parties to:
- Publish regulatory forward agendas so that stakeholders know where governments intend to regulate ahead of time;
- Publish draft text of a proposed regulation and give stakeholders sufficient time to provide comments on that draft;
- Explain the scientific and technical basis of any proposed regulation to support evidence-based decision making;
- Write regulations using plain language so they are clear, concise, and easy for the public to understand;
- Perform regulatory impact assessments to examine the costs and benefits of a proposed regulation and the rationale for choosing a specific approach; and
- Conduct reviews of their regulatory frameworks in order to ensure that they continue to deliver results for citizens without over-burdening businesses.
- Recognizes the important role of central regulatory coordinating bodies in ensuring high quality regulation and in improving regulatory systems through important reform initiatives, such as taking into account impacts of regulation on small businesses.
- Encourages regulators to pursue regulatory cooperation through the existing Canada-U.S. Regulatory Cooperation Council, as well as through CUSMA, to reduce unnecessary burdens to business in North America. This chapter creates a trilateral committee to share expertise and information about approaches to regulatory cooperation.
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