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The Society for Standards Professionals
The Role of Standardization in the Canadian Free Trade Agreement (CFTA)
Stephen Head, Manager, Strategic Policy and Sector Engagement
Standards Council of Canada
©2017 SES - The Society for Standards Professionals
The Standards Council of Canada (SCC)
• Federal Crown Corporation established in 1970:
– Reports to Parliament through the Minister of Innovation, Science and Economic Development (ISED)
– Canada’s national standards & accreditation body
• Mandate to:
– Coordinate standardization activities in Canada
– Accredit Standards Development Organizations & Conformity Assessment Bodies
– Approve National Standards of Canada
– Advise federal and provincial governments
– Support strategic priorities of industry and governments
– Represent Canada in international and regional forums©2017 SES - The Society for Standards Professionals
Canadian Regulatory & Standardization System
• Under the Canadian constitution there is a division of powers between the federal and provincial and territorial governments.
• Federal government has jurisdiction over certain areas such as defense and communications.
• Provinces and territories have jurisdictional authority over others, such as education, health, and electrical safety.
• Thousands of standards referenced in federal & provincial/territorial regulations.
• Canada’s federal structure means standards-development has traditionally been “bottom-up,” not “top-down.”
©2017 SES - The Society for Standards Professionals
Agreement on Internal Trade (AIT)
• The AIT came into force in 1995 and focused on reducing trade barriers within eleven sectors, including labour mobility, agricultural and food products, natural resources processing, and transportation.
• The AIT was envisioned as an evolutionary process that would require ongoing negotiation and adjustment in order to further liberalize trade.
• The AIT did not keep pace with provisions made in international agreements and the increasingly competitive global environment.
• In 2014, Canadian First Ministers began negotiations on the renewal of the AIT.
©2017 SES - The Society for Standards Professionals
Canadian Free Trade Agreement (CFTA)
• CFTA advances Canada’s internal trade framework: aims to enhance the flow of goods, services, investment, and labour mobility while also eliminating technical barriers to trade and expanding procurement coverage.
• The CFTA includes comprehensive free trade rules that apply automatically to almost all areas of economic activity. Exceptions are clearly identified in the Agreement.
• The CFTA will take effect on July 1, 2017.
©2017 SES - The Society for Standards Professionals
SCC and the CFTA
• During CFTA negotiations, the Provincial-Territorial Advisory Committee (PTAC), a statutory committee of SCC, provided ongoing input to the central negotiating table.
• PTAC recommended strong standards-related obligations to further the goal of up-to-date and aligned standards across Canada.
• The final text of the Agreement reflects PTAC’s recommended obligations, including requirements to:
– use international standards in regulations;
– mutually recognize conformity assessment procedures;
– use Canada’s national standardization network to develop new standards.
©2017 SES - The Society for Standards Professionals
Technical Barriers to Trade (TBT) Obligations
• Technical regulations should not create unnecessary obstacles to trade; should not be more trade restrictive than necessary; and, must be based on relevant standards, as appropriate.
• If standards do not exist or are ineffective/inappropriate, Parties should cooperate to develop national standards.
• On request, Parties must accept the results of another Party’s conformity assessment procedures, provided that those procedures offer an assurance of conformity with applicable technical regulations/standards.
• Each Party must use relevant national/international guides and recommendations as a basis for its conformity assessment procedures. ©2017 SES - The Society for Standards Professionals
Regulatory Reconciliation and Cooperation Table (RCT)
• A key component of the CFTA is a RCT composed of representatives from each Canadian jurisdiction, appointed by First Ministers.
• Objective: Reconcile existing regulations, prevent future divergences from occurring, and develop common regulatory approaches, particularly for emerging sectors.
• Several potential areas for reconciliation have been identified: gasoline blending requirements, trucking (hours of service), construction, organic food, fire-protection ratings for doors, etc.
©2017 SES - The Society for Standards Professionals
Benefits of Standards as a Regulatory Tool
• Prevents duplication and supports a regulatory system that fosters innovation
• Standards correspond to the needs of industry and reflect the latest scientific trends and technology
• Regional and international standards support global supply chains and reduce barriers to trade
• Reduces regulatory compliance costs
• Supports market access for Canadian products and services by certifying compatibility through conformity assessment
©2012 SES - The Society for Standards Professionals
Incorporation by Reference (IBR)
• Bill S-2, Incorporation by Reference in Regulations Act, provides legal certainty that IBR can be used in Canadian federal regulations.
• IBR is a drafting technique used to include a document, such as a standard, within a legislative text as if it were reproduced word for word.
• Documents incorporated by reference have the same binding effect as the regulation in which it is incorporated.
• Over 5,000 standards are incorporated by reference in federal, provincial, and territorial (F/P/T) regulations.
©2017 SES - The Society for Standards Professionals
Monitoring of Standards in Regulations (MSR) Initiative
• SCC spearheaded the MSR Initiative in order to facilitate the identification of outdated and withdrawn standards incorporated by reference in F/P/T regulations.
• SCC uses a database to identify and track these references to standards and has completed reports of standards referenced in regulation for federal departments, provinces, and territories.
• PTAC has agreed that the MSR reports should also be used to facilitate alignment of referenced standards between jurisdictions, where appropriate.
©2017 SES - The Society for Standards Professionals
Federal Regulations: Percentage of Standards Referenced
©2017 SES - The Society for Standards Professionals
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Domestic
Regional
(incl. US)
International
(ISO and IEC)
PTAC Working Group on Standards Alignment
• PTAC has created a working group on standards alignment to guide PTAC’s input into the RCT.
• PTAC focus on cooperation across jurisdictions to support standards-related obligations contained in the CFTA.
• The working group aims to analyze:
– The process required to attain standards alignment to facilitate regulatory reconciliation;
– The key areas for PTAC engagement in the RCT;
– The completed MSR reports from jurisdictions with completed reports that have been authorized to share their reports.
©2017 SES - The Society for Standards Professionals
Looking to 2020: Next Steps
• Aligned and up-to-date standards across Canada resulting in significant reduction in the costs associated with internal trade barriers
• Opportunities for standards alignment to be identified by the PTAC working group on standards alignment
– PTAC working group will engage with the CFTA’s RCT
• Continued implementation of institutional mechanisms to ensure coordination between F/P/T governments to modernize standardization governance
©2017 SES - The Society for Standards Professionals
©2017 SES - The Society for Standards Professionals
Thank You
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