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New Zealand and Australia. Trans-Tasman experience of regulatory cooperation. Outline. Australia and New Zealand relationship Specific experiences in regulatory cooperation Trans Tasman Mutual Recognition Arrangement Joint Food Standards Code Proposed Joint Therapeutic Products Agency
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New Zealand and Australia Trans-Tasman experience of regulatory cooperation
Outline • Australia and New Zealand relationship • Specific experiences in regulatory cooperation • Trans Tasman Mutual Recognition Arrangement • Joint Food Standards Code • Proposed Joint Therapeutic Products Agency • Lessons learned from the Australia-New Zealand experience
Trans-Tasman Context • Unique nexus of strong historical, cultural, economic and political ties • Nearly 30 years of deepening economic integration which is delivering benefits to businesses, consumers and investors • The Single Economic Market initiatives today span a wide range of areas • Political commitment and engagement supports policy and regulatory connections, including: • Ministerial level • Senior officials’ level • Regulator level • Joint institutions
Trans-Tasman Mutual Recognition Arrangement (TTMRA) • An equivalence arrangement: any good that can legally be sold in one country can be sold in the other, regardless of differing technical regulations • Broad coverage, with only a few exclusions and exemptions • Enables greater mobility of goods • Reduces the costs of trade • Confidence in each other’s regulatory outcomes • A central driver for regulatory policy co-operation • An important role in driving Trans-Tasman integration
More on the TTMRA Examples • Joint programme on minimum energy performance standards and labeling • Involvement in reviews of electrical and gas safety regimes • Joint standards development • Sharing of compliance information from market surveillance Strengths • Benefits for business, consumers and regulators • Covers all goods for maximum value • Low cost to administer (don’t have to negotiate each addition, only exemptions) • Drives regulatory cooperation Challenges • Building and maintaining regulators’ awareness of TTMRA implications • Building engagement, trust and confidence between regulators • Identifying other ways to progress in sectors where differences are significant
Australia and NZ Food Standards • Single Food Standards Code developed by a single agency: Food Standards Australia New Zealand (FSANZ) • Established by the Food Treaty • Code implemented by each country’s regulator • Harmonised food standards of identity and labelling • Underpins broader regulatory cooperation – e.g. coordinated food recall systems Strengths • Based on sound science; shared expertise base • Clear focus on protecting public health & safety • Transparent and engaged with stakeholders Challenges • Timeframes to make amendments can be lengthy
Proposed Australia New Zealand Therapeutic Products Agency • Creating a single regulatory scheme and a trans-Tasman regulator for therapeutic goods • 3 phase approach over 5 years, commencing in July 2011 Anticipated benefits • Share resources, expertise and information • Enhance systems in each country • Reduce red tape and compliance costs • Improve confidence in outcomes Challenges • First attempt of establishing a trans-Tasman regulator • Sensitivities with harmonising this sector • Complex endeavour
Lessons Learned • One size does not fit all: choose from the spectrum of options, from information exchange through to equivalence • Strong political drive and goodwill are essential • Important for regulators to also have a trade-focused mandate • Strong institutional arrangements to foster regular communication, good working relationships and frank information sharing are important • Systems in place to strengthen governance arrangements • Robust decision making processes to overcome temptation to opt-out • Effective mechanisms for review of cooperative arrangements to drive progress • Strong stakeholder outreach programs to reduce uncertainty
For further information please contact Australia Department of Foreign Affairs and Trade Gareth Meyer gareth.meyer@dfat.gov.au New Zealand Ministry of Economic Development Sirma Karapeeva sirma.karapeeva@med.govt.nz Laurie Knight laurie.knight@med.govt.nz