ITA Seeks Comments on Regulations that Impede U.S.-EU Trade

Comments are due June 2, 2011.

ITA Says Regulatory Differences Greatest Impediment to U.S.-EU Trade

ITA explains that the main impediments to greater trade and investment with the EU are not tariffs or quotas, but differences in regulatory measures.

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 may be arbitrary and can lead to delays, additional costs, and burdens on U.S. suppliers, particularly SMEs, and, in some cases, can make it difficult for U.S. suppliers to penetrate foreign markets. These divergences can also increase regulatory burdens for governments and costs for consumers.

Seeking Comments on Preferred Activities: Mutual Recognition, Equivalency, Etc.

ITA invites public comment on the following possible types of cooperative regulatory activities between the U.S. and EU:

• mutual recognition agreements - under which regulators in each country agree to allow products from the other country to be placed on the market based on tests or certifications carried out in that country;
• equivalency agreements - under which a regulator in one country agrees to recognize another country’s standards as equivalent to its own, allowing products to be placed on its market that meet the other country’s standards;
• information sharing agreements - when regulators in different countries are allowed legally to share full data, studies, and other information on specific regulatory issues, which may increase the likelihood of reaching similar conclusions;
• rulemaking collaboration - collaboration between regulators before initiating rulemaking proceedings;
• aligning specific measures - agreements to align particular regulatory measures;
• lab accreditation - accreditation of testing laboratories or other conformity assessment bodies;
• MOUs - memoranda of understanding; etc.

Also Wants Info on Industries/Products that May Benefit from More Cooperation

ITA is also seeking recommendations for existing or emerging industry or product sectors that may benefit from regulatory cooperation between the U.S. and the EU. (See notice for specific information that ITA suggests the public include such as a description of how the regulatory measures are affecting trade, estimates of the potential benefits that would result from closer regulatory alignment, etc.)

ITA Seeking Info to Support NEI Goals and Dec 2010 EU-U.S. Initiatives

ITA is requesting this information from stakeholders to support the NEI goal of doubling U.S. exports in the next five years. To help achieve this goal, the U.S. Government is working to remove unnecessary divergences in regulations and in standards used in regulation between the U.S. and the EU. In addition, at the conclusion of its December 2010 meeting, the Transatlantic Economic Council, comprised of Cabinet-level officials from the U.S. and the EU, endorsed several initiatives aimed at further promoting U.S.-EU regulatory cooperation.

U.S. Also Working with Canada & Mexico to Reduce Regulatory Barriers

ITA has initiated a similar initiative on regulations that impede trade within North America among the U.S., Mexico, and Canada. (See ITT’s Online Archives or 04/01/11 news, 11040121, for BP summary.)

(Note that as part of a separate initiative, U.S. federal agencies have been reviewing their existing regulations to determine whether they should be modified, streamlined, expanded, or repealed pursuant to Executive Order 13563 on "Improving Regulation and Regulatory Review.” See ITT’s Online Archives or 04/27/11, 04/20/11, 04/13/11, 03/30/11, 03/15/11, 03/14/11, 03/09/11 news, 11042724, 11042018, 11041314, 11033018, 11031523, 11031412, 11031130, for BP summaries of the following agencies initiating their regulatory reviews: FDA, USDA, HHS, Treasury, State, DHS, and EPA.)

ITA contact - TransatlanticRegulatoryCooperation@trade.gov

(FR Pub 05/03/11)