APEC DEREGULATION REPORT 2000

Chapter 10 : Deregulation/ Regulatory Review

Objective

APEC Economies will facilitate free and open trade and investment in the Asia-Pacific Region by, inter alia:

(a) Improving the transparency of regulatory regimes; and

(b) Eliminating those distortions arising from domestic regulations that restrict trade or investment and are not necessary to achieve a legitimate objective.

Guidelines

Each APEC economy will:

(a) explore economy-wide processes for the transparent identification and review of those domestic regulations that may cause distortions that restrict trade or investment, ensuring that reviews consider whether identified distortions are necessary to achieve a legitimate objective; and

(b) consider the adoption of regulatory reform programs that seek to reduce the costs of regulation of particular industries or sectors whilst maintaining the achievement of legitimate objectives.

Collective Actions

APEC Economies have agreed to take collective actions to help achieve these goals. These actions are contained in Collective Action Plans (CAPs) which are updated annually. The current CAP relating to deregulation/regulatory review can be found in the Deregulation Collective Action Plan.

APEC Principles to Enhance Competition and Regulatory Reform

The APEC Leader’s Declaration of September 1999 endorsed the following Principles: Non Discrimination

(a) Application of competition and regulatory principles in a manner that does not discriminate between

or among economic entities in like circumstances, whether these entities are foreign or domestic.

Comprehensiveness

(b) Broad application of competition and regulatory principles to economic activity including goods and services, and private and public business activities.

(c) The recognition of the competition dimension of policy development and reform which affects the efficient functioning of markets.

(d) The protection of the competitive process and the creation and maintenance of an environment for free and fair competition.

(e) The recognition that competitive markets require a good overall legal framework, clear property rights, and non discriminatory, efficient and effective enforcement.

Transparency

(f) Transparency in policies and rules, and their implementation.

(g) Clear responsibility within domestic administrations for the implementation of the competition and efficiency dimension in the development of policies and rules, and their administration.

Canada has a long-standing commitment to freer trade as the engine of economic growth. An original member of the GATT and the WTO, Canada has established one of the most liberal and transparent regulatory regimes in the world.

Canada views regulatory management and reform as an ongoing process of improvement. Canada’s Regulatory Policy, a seven-point directive to all federal regulation-making authorities concerning subordinate regulation-making powers, drives the country’s regulatory process. The

Regulatory Policy’s objective is to ensure that use of the government's regulatory powers results in

The Regulatory Policy requires that regulatory authorities make an assessment of an issue before deciding to regulate and describe the principles that govern the development of regulations. In particular, the Regulatory Policy directs, inter alia, that authorities ensure regulations are in accordance with Canada’s obligations in international agreements, specifically the WTO Agreement

on Technical Barriers to Trade Agreement (TBT) and the Agreement on the Application of Sanitary

and Phytosanitary Measures (SPS). The Regulatory Policy also requires that regulatory departments and agencies have systems in place to manage regulatory resources effectively, in accordance with Regulatory Process Management Standards, and that they have the resources to properly

The Canadian government continues to look for ways to move away from the “command and

control” model of rules and regulations towards a performance model where governments are held accountable for meeting performance targets and government intervention only occurs where absolutely necessary. Canada is continuously examining the scope for both the international harmonization of regulations and the reduction of barriers to trade.

Details of Canada’s regulatory system, including the 1999 Regulatory Policy, can be found at:

*Canada's Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements Planned*
*General Policy* *Position*	In 1999, responsibility for the Regulatory Policy was transferred to the Special Committee of Council (SCC), a Cabinet Committee responsible for managing legislative issues and planning. This consolidation of regulatory responsibility within the SCC was intended to enhance regulatory accountability and provide a more consistent treatment and consideration of proposed regulatory initiatives. In addition, a new Secretariat was established within the Privy Council Office to consolidate support for SCC’s regulatory responsibilities. For further information, please visit: http://www.pco-bcp.gc.ca/raoics- srdc/who_e.htm In 1999, Canada updated the 1995 Regulatory Policy. The adjustments made, however, did not impose new requirements on departments or ministers, but rather clarified existing	Canada views regulatory management and reform as an ongoing process of improvement. Canada’s Regulatory Policy, a seven-point directive to all federal regulation-making authorities concerning subordinate regulation-making powers, drives the country’s regulatory process. The Regulatory Policy’s objective is to ensure that use of the government's regulatory powers results in the greatest net benefit to Canadians. For further information, please visit: http://www.pco-bcp.gc.ca/raoics-srdc/reg- pol/reg-pol_e.htm The Canadian government continues to look for ways to move away from the “command and control” model of rules and regulations towards a performance model where governments are held accountable for meeting performance targets and government intervention only occurs where absolutely necessary. Canada is continuously examining the scope for both the international harmonization of regulations, and the reduction of barriers to trade. For further information, please contact: victor.bradley@dfait-maeci.gc.ca; or	A Deputy Minister level Challenge Team was established to examine ongoing improvements in regulatory governance. For further information, please visit: http://www.pco-bcp.gc.ca/raoics- srdc/publications/Law- making/governance_e.htm or contact: plemyre@pco-bcp.gc.ca

*Canada's Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements Planned*
	requirements. For further information, please visit: http://www.pco-bcp.gc.ca/raoics- srdc/regpol_e.htm	plemyre@pco-bcp.gc.ca
*Identification and Review of Proposed Regulations*	In 1999, responsibility for the Regulatory Policy was transferred to the Special Committee of Council (SCC), a Cabinet Committee responsible for managing legislative issues and planning. This consolidation of regulatory responsibility within the SCC was intended to enhance regulatory accountability, and provide a more consistent treatment and consideration of proposed regulatory initiatives. In addition, a new Secretariat was established within the Privy Council Office to consolidate support for SCC’s regulatory responsibilities. For further information, please visit:	Barriers to Trade When developing or changing technical regulations, regulatory authorities must take into account Canada’s obligations as laid out in the WTO Agreement on Technical Barriers to Trade (TBT) and the Agreement on Sanitary and Phytosanitary Measures (SPS), the NAFTA Articles on Technical Barriers to Trade (Chapter 9), Sanitary and Phytosanitary Measures (Section B of Chapter Seven), and other multilateral, regional, and bilateral Agreements referring to regulations and standards. For further information, please contact: victor.bradley@dfait-maeci.gc.ca Barriers to Trade When developing or changing technical regulations, regulatory authorities must take into account Canada’s obligations as laid out in the WTO Agreement on Technical Barriers to Trade (TBT) and the Agreement	Canada has volunteered to participate in an OECD review of Member countries' regulatory regimes, including regulatory processes, competition policy, market openness, and the telecommunications sector. http://www.pco-bcp.gc.ca/raoics- srdc/publications/Law- making/ch04_e.htm

*Canada's Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements Planned*
	http://www.pco-bcp.gc.ca/raoics- srdc/who_e.htm In 1999, Canada updated and revised its 1995 Regulatory Policy. The adjustments made, however, did not impose new requirements on departments or ministers, but rather clarified existing requirements. For further information, please visit: http://www.pco-bcp.gc.ca/raoics- srdc/regpol_e.htm	on Sanitary and Phytosanitary Measures (SPS), the NAFTA Articles on Technical Barriers to Trade (Chapter 9), Sanitary and Phytosanitary Measures (Section B of Chapter Seven), and other multilateral, regional, and bilateral Agreements referring to regulations and standards. For further information, please contact: victor.bradley@dfait-maeci.gc.ca
*Identification and Review of Existing Regulations*	The Government of Canada uses a number of strategies to identify and review existing regulations, including: Parliamentary Committee studies, reviews, audits, government-stakeholder or intergovernmental working groups, advisory councils, public meetings, independent reports, and formal or informal consultation.	Regulatory Review of Existing Regulation In consultation with the private sector, the Government of Canada undertook a comprehensive review of existing federal regulations with the objective of evaluating and streamlining regulations and determining if they were still appropriate. This effort resulted in 835 regulations (out of about 2,800 regulations then listed in the Consolidated Index of Statutory Instruments) being identified for revisions or elimination over the period 1993 to 1998. At present, it is the Government of Canada’s	Canada has volunteered to participate in an OECD review of Member countries' regulatory regime, including regulatory processes, competition policy, market openness, and the telecommunications sector. http://www.pco-bcp.gc.ca/raoics- srdc/publications/Law- making/ch04_e.htm

*Canada's Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements Planned*
		policy that the discipline of evaluation be imbedded into the life cycle management of all policies, programs and initiatives, and that evaluation work be planned and carried out based on an assessment of risks and departmental and government-wide priorities. A set of standards form part of the Canada’s evaluation policy. These standards provide clear expectations for the conduct of quality evaluation in all areas, including those related to regulation . Barriers to Trade When developing or changing technical regulations, regulatory authorities must take into account Canada’s obligations as laid out in the WTO Agreement on Technical Barriers to Trade (TBT) and the Agreement on Sanitary and Phytosanitary Measures (SPS), the NAFTA Articles on Technical Barriers to Trade (Chapter 9), Sanitary and Phytosanitary Measures (Section B of Chapter Seven), and other multilateral, regional, and bilateral Agreements referring to regulations and standards. For further information, please contact: victor.bradley@dfait-maeci.gc.ca Policy Approach for transparent review of regulations The Regulatory Policy requires that Canadians are consulted, and that they

*Canada's Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements Planned*
		have an opportunity to participate in developing or modifying regulations and regulatory programs. The Government of Canada is committed to working with industry, abour, interest groups, professional organizations, other governments and interested individuals. Since 1986, the Government of Canada has required that a Regulatory Impact Analysis Statement (RIAS) accompany each proposed regulation. RIASs include a description of what the Government is proposing to do, who has been consulted, what has been said, and what has resulted. RIASs are used both as information documents for Ministers who examine the regulations, as well as public consultation documents. Draft regulations are published, together with the RIAS, in the Canada Gazette, Part I to provide an additional opportunity for public comment on upcoming regulations. The Canada Gazette can be found at: http://publiservice.gc.ca/services/gazette/ga zette_e.html The Regulatory Policy, the Federal Regulatory Process Guide, Writer’s Guide to Regulatory Impact Analysis Statements and other publications related to the Canadian regulatory process can be found at:

*Canada's Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements Planned*
		http://www.pco-bcp.gc.ca/raoics- srdc/publications_e.htm For further information, please contact: plemyre@pco-bcp.gc.ca
*Reform of Industry/Sector Specific Regulation*	A number of specific reforms were undertaken since the last IAP, notably: A comprehensive review of Canada’s Energy Sector by the International Energy Agency (IAE) in 2000. Details of the review can be found at: http://www.iea.org/pubs/reviews/f iles/Canada/index.htm#sum	Regulatory Reform Through the Regulatory Policy, Canadian government departments and agencies must comply with the provisions of international agreements, inter alia, the WTO- TBT and SPS Agreements. For further information, please contact: victor.bradley@dfait-maeci.gc.ca or plemyre@pco-bcp.gc.ca	Canada has volunteered to participate in an OECD review of Member countries' regulatory regimes, including regulatory processes, competition policy, market openness, and the telecommunications sector. For further information, please contact: http://www.pco-bcp.gc.ca/raoics- srdc/publications/Law- making/ch04_e.htm

*Improvements in Canada's Approach to Deregulation/Regulatory Review since 1996*
*Section*	*Position at Base Year (1996)*	*Cumulative Improvements Implemented to Date*
*General Policy* *Position*	The Government of Canada revised and updated its Regulatory Policy, which had been in effect since 1986. One of the most substantive changes to the Regulatory Policy was the incorporation of the Regulatory Process Management Standards, which are intended to provide a framework to ensure a high quality of departmental regulatory processes and to deliver better regulations. Regulatory authorities are expected to adopt and report on their compliance with these standards (1995). The Government of Canada revised and updated its Regulatory Policy (1995). A Deputy Minister level “Challenge Team” was established to examine ongoing improvements in regulatory governance. (1996) Canada has continuously examined the scope for international harmonization of regulations in accordance with its obligations in international agreements, specifically the WTO Agreement on Technical Barriers to Trade (TBT) and the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS).	Responsibility for the Regulatory Policy was transferred to the Special Committee of Council (SCC) to enhance regulatory accountability, and provide a more consistent treatment and consideration of proposed regulatory initiatives. In addition, a new Secretariat was established within the Privy Council Office to consolidate support for SCC’s regulatory responsibilities (1999). For further information, please contact: plemyre@pco-bcp.gc.ca Canada updated and revised the 1995 Regulatory Policy to clarify existing requirements (1999). For further information, please contact: victor.bradley@dfait-maeci.gc.ca or plemyre@pco- bcp.gc.ca
*Identification and Review of* *Proposed Regulations*	Barriers to Trade The Regulatory Policy requires regulators to comply with Canada’s international obligations related to barriers to trade. As such, Canada complied with its obligations in the WTO Agreement on Technical Barriers to Trade Agreement (TBT) and the	A Deputy Minister level “Challenge Team” was established to examine ongoing improvements in regulatory governance. (late 1996) For further information, please contact: plemyre@pco-bcp.gc.ca

*Improvements in Canada's Approach to Deregulation/Regulatory Review since 1996*
*Section*	*Position at Base Year (1996)*	*Cumulative Improvements Implemented to Date*
	Agreement on the Application of Sanitary and Phytosanitary Measures (SPS), and notified the WTO Secretariat in 1996 under Article 15.2 of the TBT Agreement that Canada’s implementation of these Agreements required little change. For further information, please contact: victor.bradley@dfait-maeci.gc.ca Processes for transparent review of regulations The Regulatory Policy requires that Canadians are consulted, and that they have an opportunity to participate in developing or modifying regulations and regulatory programs. The Government of Canada is committed to working with industry, labour, interest groups, professional organizations, other governments, and interested individuals. Since 1986, the Government of Canada has required that a Regulatory Impact Analysis Statement (RIAS) accompany each proposed regulation. RIASs include a description of what the Government is proposing to do, who has been consulted, what has been said, and what has resulted. RIASs are used both as information documents for Ministers who examine the regulations, as well as public consultation documents. Draft regulations are published, together with the RIAS, in the Canada Gazette, Part I to provide an additional opportunity for public comment on upcoming regulations. The Canada Gazette can be found at: http://publiservice.gc.ca/services/gazette/gazette_e.html For further information, please contact:	Responsibility for the Regulatory Policy was transferred to the Special Committee of Council (SCC) to enhance regulatory accountability, and provide a more consistent treatment and consideration of proposed regulatory initiatives. In addition, a new Secretariat was established within the Privy Council Office to consolidate support for SCC’s regulatory responsibilities (1999). For further information, please contact: plemyre@pco-bcp.gc.ca Canada updated and revised the 1995 Regulatory Policy to clarify existing requirements (1999). For further information, please contact: victor.bradley@dfait-maeci.gc.ca or plemyre@pco- bcp.gc.ca

*Improvements in Canada's Approach to Deregulation/Regulatory Review since 1996*
*Section*	*Position at Base Year (1996)*	*Cumulative Improvements Implemented to Date*
	plemyre@pco-bcp.gc.ca Publications related to Canada’s regulatory process can be found at: http://www.pco-bcp.gc.ca/raoics-srdc/publications_e.htm
*Identification and Review of* *Existing Regulations*	Regulatory Review of Existing Regulation In consultation with the private sector, the Government of Canada undertook a comprehensive review of existing federal regulations with the objective of evaluating and streamlining regulations and determining if they were still appropriate. This effort resulted in 835 regulations (out of about 2,800 regulations then listed in the Consolidated Index of Statutory Instruments) being identified for revisions or elimination over the period 1993 to 1998. For further information, please visit: http://www.pco-bcp.gc.ca/raoics-srdc/histo2_e.htm It is the Government of Canada’s policy that the discipline of evaluation be imbedded into the life cycle management of all policies, programs and initiatives, and that evaluation work be planned and carried out based on an assessment of risks and departmental and government-wide priorities. A set of standards form part of the Canada’s evaluation policy. These standards provide clear expectations for the conduct of quality evaluation in all areas, including those related to regulation. A set of standards form part of Canada’s evaluation policy. These standards provide clear expectations for the conduct	A Deputy Minister level “Challenge Team” was established to examine ongoing improvements in regulatory governance. (late 1996) For further information, please contact: plemyre@pco-bcp.gc.ca Responsibility for the Regulatory Policy was transferred to the Special Committee of Council (SCC) to enhance regulatory accountability, and provide a more consistent treatment and consideration of proposed regulatory initiatives. In addition, a new Secretariat was established within the Privy Council Office to consolidate support for SCC’s regulatory responsibilities (1999). For further information, please contact: plemyre@pco-bcp.gc.ca Canada updated and revised the 1995 Regulatory Policy to clarify existing requirements (1999). For further information, please contact: victor.bradley@dfait-maeci.gc.ca or plemyre@pco- bcp.gc.ca

*Improvements in Canada's Approach to Deregulation/Regulatory Review since 1996*
*Section*	*Position at Base Year (1996)*	*Cumulative Improvements Implemented to Date*
	of quality evaluation in all areas, including those related to regulation. For further information, please visit: http://publiservice.tbs- sct.gc.ca/Pubs_pol/dcgpubs/TBM_161/siglist_e.html or contact: plemyre@pco-bcp.gc.ca Barriers to Trade When developing or changing technical regulations, regulatory authorities were, and continue to be required to, take into account Canada’s obligations as laid out in the WTO Agreement on Technical Barriers to Trade (TBT) and the Agreement on Sanitary and Phytosanitary Measures (SPS), the NAFTA Articles on Technical Barriers to Trade (Chapter 9), Sanitary and Phytosanitary Measures (Section B of Chapter Seven), and other multilateral, regional, and bilateral Agreements referring to regulations and standards. For further information, please contact: victor.bradley@dfait-maeci.gc.ca Processes for transparent review of regulations The Regulatory Policy requires that Canadians are consulted and that they have an opportunity to participate in developing or modifying regulations and regulatory programs. The Government of Canada is committed to working with industry, labour, interest groups, professional organizations, other governments, and interested individuals.

*Improvements in Canada's Approach to Deregulation/Regulatory Review since 1996*
*Section*	*Position at Base Year (1996)*	*Cumulative Improvements Implemented to Date*
	Since 1986, the Government of Canada has required that a Regulatory Impact Analysis Statement (RIAS) accompany each proposed regulation. RIASs include a description of what the Government is proposing to do, who has been consulted, what has been said, and what has resulted. RIASs are used both as information documents for Ministers who examine the regulations, as well as public consultation documents. Draft regulations are published, together with the RIAS, in the Canada Gazette, Part I to provide an additional opportunity for public comment on upcoming regulations. The Canada Gazette can be found at: http://publiservice.gc.ca/services/gazette/gazette_e.html
*Reform of Industry/Sector* *Specific Regulation*	Barriers to Trade When developing or changing technical regulations, regulatory authorities must take into account Canada’s obligations as laid out in the WTO Agreement on Technical Barriers to Trade (TBT) and the Agreement on Sanitary and Phytosanitary Measures (SPS), the NAFTA Articles on Technical Barriers to Trade (Chapter 9), Sanitary and Phytosanitary Measures (Section B of Chapter Seven), and other multilateral, regional, and bilateral Agreements referring to regulations and standards. For further information, please contact: victor.bradley@dfait-maeci.gc.ca As part of its Jobs and Growth Strategy, Canada	Over the last five years, Canada: revised its food inspection and quarantine services to create a single regulatory agency called the Canadian Food Inspection Agency (1997); and underwent a comprehensive review of Canada’s Energy Sector by the International Energy Agency (1999).

APEC Agreements and Declarations

APEC DEREGULATION REPORT 2000 - CANADA