Chapter Four – Regulatory Notification, Reconciliation, and Cooperation

Article 400: Enhancement of Regulatory Measures

Parties recognize the importance of continuing to work toward the enhancement of existing regulatory measures such as consumer and worker protection, health and safety, environmental protection, and the effectiveness of related measures.

Article 401: Application

Parts A and B do not apply to regional, local, district, or other forms of municipal government.

PART A: Notification

Article 402: Regulatory Notification

1. Subject to paragraphs 2 and 3, and Article 203.3 (Transparency), if a Party proposes to adopt or modify a regulation that may have a significant effect on trade or investment within Canada, the Party shall:
   1. publish online a description of the proposed regulation at an early appropriate stage in order for Parties and interested persons to become acquainted with it;
   2. allow reasonable time for Parties and interested persons to provide written comments in response to the description published pursuant to paragraph (a) and take such comments into account;
   3. endeavour to allow at least 30 days for comments provided pursuant to paragraph (b), taking into account international obligations; and
   4. to the extent practicable, provide a copy of the proposed regulation to a Party on request.
2. A Party may omit any of the steps set out in paragraph 1, provided that the proposed regulation relates to:
   1. taxation; or
   2. forms of revenue generation, except for a regulation relating to administrative processes and formalities attached to the collection of revenues by government.
3. If an urgent problem of safety, health, environmental protection, or national security arises or threatens to arise for a Party, that Party may omit any of the steps set out in
   paragraph 1 as it considers necessary provided that, upon adoption of the regulation, the Party:
   1. immediately provides to the Parties a description of the regulation, including a brief description of the urgent problem;
   2. provides a copy of the regulation to a requesting Party; and
   3. allows the Parties to make comments in writing and, on request, discusses the comments.

PART B: Reconciliation

Article 403: Reconciliation of Regulatory Measures

1. Parties shall enter into negotiations to reconcile regulatory measures, identified by a Party, that act as a barrier to trade, investment, or labour mobility within Canada. Reconciled measures are to be identified under reconciliation agreements as provided for in Annex 404.
2. Subject to Article 405 and Article 406.1, Parties shall achieve reconciliation in accordance with each reconciliation agreement.
3. If a Party has reconciled a regulatory measure pursuant to a reconciliation agreement, that Party shall not amend that regulatory measure in a manner that circumvents the reconciliation agreement.
4. Reconciliation agreements and associated exceptions shall be published on this Agreement’s website.

Article 404: Regulatory Reconciliation and Cooperation Table

The Parties shall establish a Regulatory Reconciliation and Cooperation Table (“RCT”), mandated to oversee the regulatory reconciliation and cooperation processes in accordance with Annex 404.

Article 405: Exceptions to Regulatory Reconciliation

If a Party does not enter into a reconciliation agreement, it shall identify its relevant regulatory measures as an exception to Article 403.2, in a form and manner established by the RCT.

Article 406: No Regulatory Measure to Reconcile

1. If a Party does not have a regulatory measure to be reconciled in an area subject to reconciliation, it shall not be subject to Article 403.
2. If a Party that does not have a regulatory measure to be reconciled participates in a negotiation of a reconciliation agreement, its role is limited to observer.
3. If a Party that does not have a regulatory measure to be reconciled adopts a comparable regulatory measure in the future, it is encouraged to enter into any negotiation of, or become a party to, a reconciliation agreement, or shall identify its regulatory measure as an exception pursuant to Article 405.

Article 407: Review

Within five years after the effective date, the Parties shall review the operation and effectiveness of this Part.

PART C: Regulatory Cooperation

Article 408: Joint Development of Future Regulatory Measures

1. A Party may identify and propose to the RCT that the Parties cooperate in the development of future regulatory measures to:
   1. avoid regulatory divergences that may impair trade, investment, or labour mobility within Canada;
   2. facilitate innovation, competition, or growth in emerging industries, technologies, or sectors; or
   3. ensure that, if feasible, common processes exist among Parties for implementing future regulatory measures in order to help streamline approval processes and minimize the administrative burden for enterprises working in multiple Provinces.
2. A Party is not required to participate in the development of the future regulatory measure or adopt the future regulatory measure at the end of a joint development process.