Committee on Technical Barriers to Trade - Thematic session on enhancing and consolidating good regulatory practices - Tenth Triennial Review - Proposal from Brazil

THEMATIC SESSION ON ENHANCING AND CONSOLIDATING
GOOD REGULATORY PRACTICES

TENTH TRIENNIAL REVIEW

Proposal from Brazil

The following submission, dated 28 May 2024, is being circulated at the request of the delegation of Brazil.

 

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1  BACKGROUND

1.1.  Effective regulatory governance, incorporating principles of Good Regulatory Practices (GRP), constitutes a pivotal framework for governments to optimize regulatory outcomes. GRP methodologies, such as Regulatory Impact Assessments (RIA), stakeholder engagement mechanisms, and ex-post evaluations, serve as indispensable instruments in the regulatory toolkit. These mechanisms facilitate informed decision-making processes, fostering coherence and efficiency in regulatory frameworks.[1]

1.2.  The use of tools such as RIA with the objective of evaluating effects on trade caused by regulatory measures is relevant to support the decision regarding the development and implementation of these measures with legitimate purposes, and for the adequate fulfilment of the TBT Agreement, such as, in Articles 2.2, 2.9 and 5.6.

1.3.  Article 2.2 of the TBT Agreement recognizes that Members shall take into consideration that technical regulations shall not be more trade-restrictive than necessary.

1.4.  Additionally, the TBT Agreement, in Article 2.9, requires that Members publish a notice and notify other Members if the technical regulation may have a significant effect on trade of other Members when a relevant international standard does not exist. Moreover, in Article 5.6 the TBT Agreement establishes Members' obligation to notify and allow for comments when they propose to introduce a conformity assessment procedure that may have a significant effect on trade of other Members.

2  PROPOSAL

2.1.  Considering the importance of Good Regulatory Practices (GPR), and the role of RIAs in measuring the impact and additional costs of regulatory measures on international trade, Brazil advocates organizing a thematic session with the aim of deepening the exchange of experiences on how Members take trade impacts into account in their regulatory practices and processes.

2.2.  Brazil proposes holding a thematic session to encourage Members into the use of available tools and the implementation of best practices to achieve their commitments by minimizing the incidence of costs on trade and the emergence of trade barriers related with the adoption of regulatory measures.

2.3.  Topics and areas of focus could include:

a._         Examination of the institutional framework essential for establishing and maintaining robust regulatory practices, ensuring their effectiveness and reliability.

b._         Exchange of insights on the practical aspects and challenges associated with conducting comprehensive Regulatory Impact Assessments and its effective contribution to reducing costs and barriers to trade.

c._         Understand how Members identify and address trade effects during the Regulatory Impact Assessment, considering that the regulatory process could primarily emphasize domestic concerns in contrast with the impact on international trade.

d._         Examine the tools and methodologies used by Members to quantify and qualify effects on trade caused by technical regulations and the procedures for conformity assessment.

e._         Discuss the extent to which the identified effects on trade are considered between different regulatory alternatives, including the definition of related conformity assessment procedures.

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[1] Basedow, R., & Kauffmann, C. (2016). International trade and good regulatory practices: Assessing the trade impacts of regulation.