What Is Regulatory Cooperation?
Regulatory cooperation is any interaction between regulators from different countries, resulting in some form of cooperation to gain efficiency while achieving a desired regulatory outcome. Some examples:
Harmonization—When one country changes its regulation to follow that of another, the result is harmonized regulatory requirements, with compliance often remaining at the purview of each jurisdiction.
Regulatory Convergence—When different countries decide to modify their existing or proposed regulatory frameworks to be in closer alignment.
Mutual Recognition/Substitute Compliance—With a focus on compliance, regulators are required to identify common regulatory objectives, followed by assurance that respective regulatory frameworks achieve similar outcomes, resulting in regulatory compliance within one framework.
What Is Regulatory Coherence?
Regulatory coherence refers to the internal coordination and review process under which the whole-of-government works to ensure that rules and regulations are crafted in an open, transparent, and participatory manner and outcomes are risk based and grounded in the best available data.
Through regulatory coherence, government agencies are better coordinated and work together to achieve identified policy objectives, thereby avoiding overlapping and inconsistent rules.
The Council recommends that Brazil implement a whole-of-government regulatory coherence policy, securing all-encompassing legislation that provides regulatory harmonization and transparency in federal government rulemaking.
The Council encourages the use of good regulatory practices in the process of planning, issuing, implementing, and reviewing regulatory measures as a top priority for U.S. companies doing business in Brazil.
The Council closely monitors legislative proposals in the Brazilian Congress regarding management, organization, decision making, and social control of regulatory agencies, as well as requirements for regulatory impact assessments prior to rulemaking.
The Council continues to urge Brazil’s government to provide increased legal certainty to safeguard and promote private investment and pass legislation that advances harmonization and transparency in rulemaking, including provisions on the following:
- Regulatory impact analysis.
- Notice of rulemaking.
- Meaningful public consultations.
- Reasonable period of time for rule implementation.
The Council is the platform for companies to provide input to government authorities on bilateral regulatory cooperation. The U.S.-Brazil Commercial Dialogue is the main forum used by the Council to work on regulatory cooperation with U.S. companies, Brazilian companies, and both governments.
The Council engages year-round with the U.S. Department of Commerce, CNI, and U.S. companies to identify regulatory issues that can be incorporated into the agenda of the Commercial Dialogue. Regulatory cooperation, including coherence, convergence, harmonization, and mutual recognition, is a priority of the Council and U.S. companies.
- The Council leverages the expertise of the Center for Global Regulatory Cooperation (GRC) at the U.S. Chamber to provide resourceful publications to both the U.S. and Brazilian governments on regulatory cooperation. Together with GRC, the Council is releasing a guide on regulatory best practices and two publications on data privacy—one on data privacy authorities and another on consent.
- On mutual recognition of bilateral frameworks, the Council urges Brazil and the United States to sign an agreement where both countries would recognize their respective customs-authorized economic operators’ programs. See http://www.brazilcouncil.org/wpcontent/uploads/2017/03/Trade-Policy-Agenda-ENG-3.compressed.pdf.
- The Council urges the Brazilian government to implement a system of advanced customs rulings, which is one of the commitments under the Trade Facilitation Agreement. Advanced customs rulings are a tool of great value to importers and exporters as they interpret and guide the application of customs laws and regulations to a specific, prospective transaction.