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Transparency mechanisms in domestic regulation

Explore the importance of transparency mechanisms in domestic regulation for efficient policy design and trade facilitation. Examines examples from the UK and US.

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Transparency mechanisms in domestic regulation

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  1. Transparency mechanisms in domestic regulation WTO Working Party on Domestic Regulation Workshop on Regulatory Practices Geneva, 11 April 2011

  2. Transparency : a tool for efficient policy design • WTO transparency commitments replicated and expanded in Regional Trade Agreements • wider and more sophisticated provisions in recent RTAs • Extensive domestic transparency mechanisms among OECD countries • to enhance domestic regulatory quality • to avoid unnecessary obstacles to trade

  3. The UK review of the Insurance Premium Tax provisions • Review specifically undertaken to address potential non-tariff barriers to trade • EU regulatory changes made compliance requirements for overseas insurers redundant • Regulation revisited with the help of concerned stakeholders in 2007 • to identify possible policy options • to help understand the circumstances prevailing in the regulated sector • to assess current and future compliance costs

  4. Criteria for effective stakeholder input • Organise consultations • at a stage when there is scope to influence the policy outcome • lasting at least 12 weeks • offering clarity about • the consultation process, • what is being proposed, • the scope to influence and • the expected costs and benefits of the proposals • accessible and clearly targeted • Keep the burden of consultation to a minimum • Analyse the responses and provide feedback

  5. Outcomes of the consultation • Identified requirements generating the greatest difficulties to overseas insurers • Calculated business benefits from their removal in the range of GBR 1.4 to GBR 3.5 million • Anticipated favourable fiscal effects through better enforcement on currently non-compliant foreign insurers • Identified drawbacks of alternative options Amended regulation announced in 2008 Budget

  6. The US review of the DOT Drug and Alcohol Testing rules • Review aimed at • streamlining existing text and amendments, • reflecting changes in technology • respecting “Plain Language” policies • APA safeguards in the rulemaking process • Administration expected to listen to comments and concerns of people likely to be affected

  7. Notice of Proposed Rulemaking • Publication of a notice accessible to all • Wide-ranging, open-ended participation • Focussed through structured and detailed supporting material • Thematic alert mechanisms • Publication of commentators’ inputs and a point-by-point response • Explanation of the administration’s policy choices

  8. Proposals to address potential obstacles for service providers across the US border • Training and qualification requirements • Recognition of licences issued in NAFTA partners • Divergences in labour and workplace regulation • Tailored application of human rights laws • Provision of a large transitional period to allow adaptation

  9. Common features in reviewed country cases • Advance notice, time and flexibility to adjust • Timeliness of consultation, possibility to influence the rulemaking process • Accessibility of information, plain language • Structured and comprehensive information • Interactivity of consultation • Responsiveness of the administration

  10. Further information Transparency mechanisms and non-tariff measures OECD Trade Policy Working Paper No.111 Trade in Services web page : www.oecd.org/trade/services

  11. OECD Trade and Agriculture www.oecd.org/trade Contact tad.contact@oecd.org

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