Annex 404: Regulatory Reconciliation and Cooperation

Annex 404: Regulatory Reconciliation and Cooperation

General

1. With respect to regulatory reconciliation, each Party recognizes:
   1. the importance of engagement with stakeholders to assist in identifying key priorities for its jurisdiction; and
   2. any amendment to a regulatory measure that is legislation will require the approval of Parliament of Canada or of a legislature, as applicable.
2. Each Party shall designate a representative, appointed by its First Minister, who has the appropriate authority to serve on the RCT.
3. The RCT shall lead the work:
   1. to reconcile the regulatory measures identified pursuant to Article 403.1; and
   2. to cooperate in the development of future regulatory measures pursuant to Article 408.
4. The RCT may establish any administrative practices it considers necessary to fulfil its mandate.
5. Each Party that participates in a reconciliation process shall ensure that its reconciled measures are consistent with this Agreement.
6. In undertaking reconciliation, Parties should consider any relevant international obligations.
7. The RCT shall prepare an annual report on its work that will be published on this Agreement’s website.

Work plans

8. Based on the regulatory measures identified pursuant to Article 403.1, the RCT shall submit an annual work plan to the Committee that contains:
   1. the reconciliation agreements to be concluded over the next one to two years;
   2. the regulatory measures to be addressed through the reconciliation agreements;
   3. the desired outcome for each reconciliation agreement; and
   4. any identified regulatory measures that will be postponed for a future work plan.
9. The RCT may, by consensus, remove previously identified regulatory measures from a work plan.

Action Plans and Reconciliation Agreements

10. For each item in a work plan, the RCT shall establish a working group comprised of representatives of each Party, except representatives of Parties that have taken an exception pursuant to Article 405 and those that do not have a regulatory measure to be reconciled pursuant to Article 406.1, except as provided in Article 406.2.
11. If an item on a work plan contains regulatory measures that fall within the scope of Article 701.1b. (Scope and Coverage), the working group established under paragraph 10 may also include labour mobility coordinators designated by a Party.
12. The working group shall develop an action plan to achieve a reconciliation agreement. Each action plan shall include:
    1. timelines for negotiating the reconciliation agreement;
    2. deadlines within the reconciliation process for a Party to identify a regulatory measure as an exception pursuant to Article 405; and
    3. any considerations to be brought to the attention of the RCT.
13. In accordance with an action plan and with support from the RCT, the working group shall develop a reconciliation agreement as referred to in Article 403.
14. A reconciliation agreement shall include:
    1. the regulatory measures being reconciled;
    2. the obligations to achieve reconciliation through means such as:
       1. harmonization;
       2. mutual recognition;
       3. equivalency; or
       4. such other method as the Parties may agree;
    3. the extent to which the reconciliation agreement addresses the barrier identified by a Party pursuant to Article 403.1;
    4. a timeline for implementation; and
    5. a process to address changes in circumstances.
15. A reconciliation agreement may include a dispute resolution process such as mediation, as provided for in Article 1000.2 (Cooperation), to assist in the avoidance of any dispute that may arise under the reconciliation agreement.
16. The RCT representatives, excluding those representatives of Parties that have taken an exception pursuant to Article 405 and those that do not have a regulatory measure to be reconciled pursuant to Article 406.1, must collectively endorse the reconciliation agreement before it is sent to their Parties for signature.

Joint Development of Future Regulatory Measures

17. In the cooperative commitments under Article 408, the RCT may:
    1. provide a forum for the Parties to discuss future regulatory measures;
    2. consider proposed regulatory measures identified by a Party as suitable for joint development; and
    3. assist the Parties in the joint development of future regulatory measures.