‘Safe For Me, But Not For You: In the pursuit of regulatory convergence and exploration of mutual recognition’
This panel session featured a retailer, a nonprofit consumer advocate and a certification organization.
The panel considered how manufacturers manage an overwhelming number of different regulations and standards when selling products internationally. The consequence: Difficult choices have to be made as manufacturers may have to limit where they sell their products to mitigate the cost of compliance in multiple jurisdictions.
The panel took a deep dive into the advantages and disadvantages of regulatory harmonisation and cross-border recognition and how they can be used to manage international trade and regulation. A number of core issues were addressed:
Why is global harmonisation or mutual recognition so difficult to achieve?
- There are divergent legal and regulatory frameworks shaped by complex factors, such as history, politics and different appetites for enforcement and bolstering trade.
- There are often resource constraints in relation to pushing standards forward.
- The availability of data can differ dramatically between different jurisdictions.
- Countries will naturally have divergent priorities, and the way communities think about safety and the issues central to their work will differ. Stakeholders need to identify the similarities instead of the differences, to help drive harmonisation forward.
What are the potential downsides for consumers with global harmonisation or mutual recognition?
- There is a risk that consumer protections are in fact reduced in order to achieve alignment with another jurisdiction, leading to harmonisation acting as a floor as opposed to a ceiling.
- Without consistent enforcement, safety loopholes can be created, which is more likely to lead to noncompliant products.
- Trying to achieve alignment can mean there is a slower response to emerging risk. Keeping pace with changes is already challenging, and it will be important to ensure harmonisation efforts are agile enough to meet emerging risks.
- Consistency is key for consumers, and when the consumer voice is not part of the conversation, there can be downsides.
What are the advantages for manufacturers with harmonisation or mutual recognition?
- Harmonisation leads to greater time and cost effectiveness.
- A higher volume of compliance requirements can increase the risk that an obligation will be missed. Harmonisation reduces this risk.
- Manufacturers prioritising safety will ultimately show they are taking a proactive approach to regulatory compliance and ensuring safety in their products.
So, what are the key takeaways?
- Regulatory harmonisation and mutual recognition can benefit international trade and consumer safety.
- A patchwork of standards introduces risks and can create challenges for compliance.
- Collaboration is key, and all stakeholders should be at the table. The right voices will drive positive change forward.
- There is no magical solution – this must continue to be a collaborative and constructive process, and it will take time. This is a challenging problem, but with challenge comes opportunity.
The Cooley products team will be posting highlights from other plenary panel sessions on our blog throughout the event.
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