Review of International Regulatory Co-operation of the United Kingdom

International regulatory co-operation (IRC) represents an important opportunity for countries, and in particular domestic regulators, to consider the impacts of their regulations beyond their borders, expand the evidence for decision-making, learn from the experience of their peers, and develop concerted approaches to challenges that transcend borders. This report provides the first OECD assessment of a country's IRC framework and practices. Mexico's active efforts to embrace globalisation are reflected in many aspects of its domestic policies, practices and institutions. On one hand, it has undertaken unilateral efforts to embed international considerations in its domestic rule-making through regulatory improvement disciplines and with the consideration of international standards in the drafting of technical regulations. On the other hand, the Mexican government and individual regulators also engage extensively in co-operative efforts on regulatory matters, at the bilateral, regional and multilateral level. Based on the overview of Mexico's practices and comparison with other OECD countries, the review recommends three areas for improvement: designing a horizontal government-wide strategy for IRC, enhancing information about the tools and benefits of IRC, and offering the necessary tools to support systematic implementation of IRC. Foreword Acknowledgements Abbreviations and acronyms Executive summary Key terms used in the report References Notes 1 Context of IRC policies and practices Regulatory production in the United Kingdom and broad regulatory policy context What regulatory instruments and standards exist in the United Kingdom? Key features of the UK better regulation framework United Kingdom and the European Union to date Institutional context The main institutions overseeing and conducting IRC Existing policy and guidance embedding considerations of IRC References Notes 2 Embedding the international environment in the rule-making machinery Scope of better regulation in the United Kingdom: domestic focus, with European considerations Better Regulation Framework Regulators’ Code International considerations within regulatory impact assessments (RIA) International considerations as part of rationale and policy options for proposed regulations Trial trade and investment questions in impact assessment procedures Consideration of international instruments Stakeholder engagement General framework for stakeholder engagement Notifications of domestic regulatory drafts Notifications of measures to the European Commission Notification of measures to the WTO Post-implementation reviews Regulatory delivery Conformity assessment, accreditation What is conformity assessment and accreditation and what are they used for? EU legal and institutional framework for conformity assessment procedures (CAPs) UK Framework on conformity assessment procedures and accreditation Enforcement References Notes 3 Regulatory co-operation practices and tools The traditional UK international co-operation instruments: treaties and Memoranda of Understanding Exchange of information and technical assistance The building of new co-operation capacities: trade and mutual recognition agreements UK participation in regional fora UK participation in multilateral fora References Notes 4 Sectoral case studies Financial services Main rationale for international regulatory co-operation in the sector UK bodies involved Bilateral co-operation initiatives Engagement in regional or international bodies / initiatives Outstanding challenges Nuclear energy Main rationale for international regulatory co-operation in the sector UK bodies involved Bilateral co-operation initiatives Engagement in regional or international bodies / initiatives Outstanding challenges Medical and healthcare products Main rationale for international regulatory co-operation in the sector UK bodies involved Bilateral co-operation initiatives Engagement in regional or international bodies / initiatives Outstanding challenges Product safety Main rationale for international regulatory co-operation in the sector UK bodies involved Product safety under the EU IRC beyond the EU Outstanding challenges References Notes 5 Assessment and recommendations General overview of international regulatory co-operation (IRC) in the United Kingdom The legacy The pressure points Key priority areas of focus for the United Kingdom on IRC Building a holistic IRC vision, a strategy and political leadership for IRC in the United Kingdom, with clearly defined roles and responsibilities for key players, to develop quality regulation in a globalised context Assessment Recommendations Embed IRC more systematically in regulatory management tools and throughout the rulemaking cycle Assessment Recommendations Increase awareness and understanding about IRC across departments and regulators, including on the variety of existing IRC practices, and engage stakeholders to inform the development of IRC initiatives Assessment Recommendations Reference Notes Annex A. What is international regulatory co-operation (IRC)? References Note Annex B. Sectoral coverage of mutual recognition agreements of EU Blank Page International regulatory co-operation (IRC) provides an opportunity for countries to consider the impacts of their regulations beyond their borders, to expand the evidence for decision-making, to learn from the experience of their peers and to develop concerted approaches to challenges that transcend borders. This review documents the context of IRC policies and practices in the United Kingdom. It covers both the UK's unilateral efforts to embed international considerations in domestic rulemaking and its bilateral, regional and multilateral co-operative efforts on regulatory matters. In addition, the review provides a snapshot of IRC in practice in the United Kingdom with four case studies on financial services, nuclear energy, medical and healthcare products and product safety. At a time when IRC is an increasingly essential, yet largely untapped, tool for addressing transboundary policy challenges, this review offers valuable lessons to countries within the OECD and beyond