International Regulatory Cooperation (IRC) is an increasingly widespread practice through which states seek to reduce non-tariff barriers to trade. In Canada, IRC activities have grown significantly in recent years, with the signing of new trade treaties and agreements. Regulatory cooperation is also being promoted in the Canadian Free Trade Agreement, the new inter-provincial free trade treaty born, in part, of concerns over regulatory divergences between Canadian provinces and territories.
Consumer protection is an essential element of CRI. Governments must see it as a way of ensuring consumer confidence in the market, rather than as an obstacle to trade. CRI can therefore play a role in the upward harmonization of consumer protection between states.
To achieve this, Canada must ensure a transparent process that enables the effective participation of all stakeholders. In this respect, Canada has a solid legal foundation. In addition, an analysis of the legislative provisions of treaties and agreements reveals opportunities for strengthening consumer protection. However, the results of recent consultations have illustrated the limits of consumer associations' ability to participate in the CRI process. Indeed, due to a lack of resources, they have neither the expertise nor the ability to mobilize to identify regulatory priorities or formulate recommendations satisfactorily.
Analysis of foreign jurisdictions shows that the issue of regulatory harmonization of consumer protection and the participation of consumer associations is not unique to Canada. Over the years, the European Union, Switzerland and Australia have all made it a priority to harmonize consumer protection levels between jurisdictions. What's more, the analysis shows that European states have no hesitation in recognizing the relevance of a strong, united voice representing consumers, made possible by multi-year funding.
Option consommateurs therefore recommends that the Government of Canada increase funding for Canadian consumer associations to enable them to participate more effectively in CRI activities. This would ensure a balanced participation of stakeholders in the CRI and reaffirm the role that consumer associations can play.
Option consommateurs also recommends that the Consumer Measures Committee consider new initiatives to enable upward harmonization of provincial consumer protection legislation. These initiatives should be accompanied by a comprehensive inventory of regulatory divergences between provinces, the creation of a working group to identify priorities, and the establishment of a committee to ensure that harmonization agreements are put in place.
