ITA Extends Comments for Regs in North America that Impede Exports

While the comment period is extended to April 18, 2011 (from April 4) due to requests from the trade, the ITA notes that it will not consider any further extensions.

(President Obama announced the National Export Initiative in his 2010 State of the Union address, and set the goal of doubling U.S. exports in the next five years. Part of this effort involves removing unnecessary divergences in regulations with Canada and Mexico, the largest U.S. export markets.)

ITA Says Extra Costs from Different Product Regulations Impede Trade

ITA has stated that in the U.S.’ relationships with Mexico and Canada, and within North America as a whole, the main impediments to greater trade and investment are not tariffs or quotas, but rather differences in product regulations that increase costs for producers and consumers in the U.S., Canada, and Mexico.

(Trade may be impeded, for example, because countries apply different standards or technical requirements to address common environmental, health, safety, or other concerns with respect to certain products or product categories. In some instances, such divergences can lead to delays, additional costs, and burdens.

These divergences can also increase regulatory burdens for governments and costs for consumers. In other cases, regulatory measures, despite the burdens they impose, may be necessary in order to achieve legitimate objectives such as the protection of the environment, health, or safety.)

U.S. Already Working with Canada and Mexico to Reduce Differences

The U.S. is currently working with both Mexico and Canada to reduce unnecessary regulatory differences and to explore further regulatory cooperation activities aimed at reducing or eliminating such differences where they hinder trade and reduce competitiveness. The U.S. has established a High-Level Regulatory Cooperation Council with Mexico and a Regulatory Cooperation Council with Canada. While these councils are bilateral, regulatory divergences exist that have consequences for firms in all three countries.

All Three Countries Are Asking for Input from Stakeholders

With its notice seeking input, the ITA requested stakeholders to assist in identifying opportunities for cooperation between or among the U.S., Canada, and Mexico to reduce or eliminate regulatory divergences that disrupt trade in goods in the region, as well as any existing or emerging sectors that may benefit from regulatory coordination between these countries.

Canada has already solicited similar input from its stakeholders, and Mexico has committed to do the same.

ITA Seeks Comments on Info Sharing, MOUs, Agreements to Align Reg Measures

ITA is inviting public comment on the following possible types of cooperative regulatory activities between or among the U.S., Mexico, and Canada:

• information-sharing agreements;
• technical assistance;
• memoranda of understanding;
• mutual recognition agreements;
• collaboration between regulators before initiating rulemaking proceedings;
• agreements to align particular regulatory measures;
• equivalency arrangements; and
• accreditation of testing laboratories or other conformity assessment bodies.

ITA acknowledges that these types of cooperative agreements and activities are not appropriate in all cases, so interested parties are asked to provide a rationale for the proposed use of a particular cooperative approach or specific activity. ITA is also seeking recommendations for existing or emerging industry or product sectors that may benefit from regulatory coordination across North America.

(See ITT's Online Archives or 03/03/11 news, 11030307, for BP summary of the ITA's original request for comments.)