Regulatory policy
International Regulatory Co-operation and Trade
Understanding the Trade Costs of Regulatory Divergence and the Remedies
Regulatory differences across jurisdictions can be costly for traders. While these
costs may reflect variations in domestic conditions and preferences, they may also
be the result of rule-making processes working in isolation and of a lack of consideration
for the international environment. Thus, some of the trade costs of regulatory divergence
may be avoided without compromising the quality of regulatory protection. Building
on lessons learnt from OECD analytical work and the experiences of OECD countries
in regulatory policy and trade, this report proposes a definition of trade costs of
regulatory divergence and analyses various approaches to addressing them, including
unilateral, bilateral and multilateral approaches. It focuses on the contribution
of good regulatory practices, the adoption of international standards, and the use
of cross-border recognition frameworks and trade agreements. Based on this, the report
provides indications for policy makers on how to reduce trade costs through international
regulatory co-operation.
Published on May 24, 2017
TABLE OF CONTENTS
| Foreword | |
| Acronyms and abbreviations | |
| Executive summary | |
| Identifying and evaluating the trade costs of regulatory heterogeneity | |
| The merits and challenges of various IRC approaches to address trade costs | |
| Conclusion: Considerations to reduce trade costs through IRC |
Powered by OECD iLibrary