1 June 2019
Consumer protection in international regulatory cooperation activities in Canada
International regulatory cooperation (IRC) is an increasingly widespread practice by 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 agreements and treaties with its trading partners. Regulatory cooperation also plays a role in the Canadian Free Trade Agreement, the new interprovincial trade agreement, which arose in part as a result of concerns over existing regulatory differences between Canadian provinces and territories.
Consumer protection is a vital consideration within IRC. Governments need to consider this not as a trade barrier, but as a means of ensuring consumer confidence in the market. IRC can play a role in the upward harmonization of consumer protection among States.
For these reasons, Canada must ensure a transparent process that permits all stakeholders to participate effectively. To this end, it has assured itself of a solid legal base. Furthermore, analysis of the legislative provisions of treaties suggests that there are opportunities for bolstering consumer protection. However, the results of recent consultations have revealed that the ability of consumer associations to participate in the IRC process is limited. Due to a lack of resources, they have neither the expertise nor the opportunity to effectively identify regulatory priorities or make recommendations.
Our study of foreign jurisdictions shows that the issue of regulatory harmonization of consumer protection and the involvement of consumer associations is not unique to Canada. Over the years, the European Union, Switzerland and Australia have concluded that harmonizing the levels of protection offered to consumers between jurisdictions should be considered a priority. Moreover, the analysis shows that the European States have been quick to recognize the relevance of a strong and united voice representing consumers made possible through multi-year funding.
Option consommateurs recommends that the Government of Canada provide additional funding to Canadian consumer associations to allow them to participate the IRC process. This would ensure a more balanced participation of stakeholders in IRC and recognize the role that consumer associations could play within it.
Option consommateurs recommends that the Consumer Measures Committee considers new regulatory cooperation initiatives to improve the upward harmonization of provincial consumer protection legislation. These activities should be accompanied by the compilation of a complete inventory of the regulatory differences that exist between provinces and territories, the creation of a working group tasked with identifying priorities and the establishment of a committee to ensure that harmonization agreements are implemented.