Regulation

High regulatory standards and consistent and efficient enforcement can add to a country's competitive advantage. The CCCE's most significant regulatory concern lies not in the area of standards, but in regulatory processes that tend to be too costly, too complex, too lengthy and subject to too much arbitrary political decision-making. Whether with respect to bank mergers or environmental reviews, Canada's regulatory processes must become simpler, faster, more transparent and more predictable.

• The CCCE fully supports the Smart Regulation plan put forward by the federal government in March 2005. Smart Regulation is not about regulating less. It is about making government work better to serve the interests of Canadians by aiming for regulatory policies that are more flexible, that focus on the desired outcomes rather than prescribing methods, and that achieve the most efficient approach to protection of the public interest.
• Effective regulatory review cannot be limited to the federal level. Federal and provincial governments must seek a higher degree of regulatory harmonization and "one stop" approval systems in areas of shared jurisdiction.
• The most urgent challenge in eliminating costly and counterproductive fragmentation is in the area of securities regulation. Given the massive degree of change in the regulation of capital markets in the United States and worldwide, it simply makes no sense for Canada to maintain 13 independent regulatory agencies in an economy the size of Texas.
• Canada also should ensure that where its goals in regulating are similar, its regulatory standards and practices are compatible with those of its largest trading partner, the United States. Compatibility can be achieved through various means including harmonization, mutual recognition and sharing of test results. More broadly, Canada should work multilaterally to encourage regulatory convergence globally, especially where this leads to the adoption of higher standards and more efficient regulatory processes.