On 3 November 2014, the OECD launched a new report on international regulatory co-operation: International Regulatory Co-operation and International Organisations. This report initiates work on the rule-making activities of international organisations by the OECD together with other IOs. It reflects initial discussions held among 16 international organisations, OECD countries and stakeholders in a meeting organised in Paris on 16 April 2014. It provides insights into the growing role of international organisations as standard-setters based on a contribution by K.W. Abbott and case studies of the OECD and of the International Maritime Organization (IMO).

International regulatory co-operation (IRC) represents an opportunity for governments to foster sustainable and inclusive growth through lower barriers to international flows and better rules for all. In this context, IOs are playing a growing role as standard-setting bodies and in promoting regulatory co-operation.

Evidence shows that IOs contribute regulatory co-operation by:

• offering platforms for continuous dialogue on regulatory issues;

• facilitating the comparability of approaches and practices;

• providing member countries with flexible mechanisms to identify and adapt to new and emerging regulatory areas or issues;

• contributing to the development of a common regulatory language. 

However, structured evidence on the impact of IOs’ rule-making activities remains scant, both concerning economic and social gains and increased administrative efficiency and capacity. Furthermore, evidence on the active use of regulatory management disciplines in international rule making – such as consultation mechanisms and impact evaluation - is limited. More systematic exchange of information and experience would enable IOs to capitalise on lessons learnt and maximise the potential of existing governance arrangements and instruments.

The OECD released International Regulatory Co-operation: Addressing Global Challenges in 2013. This report gathers in a synthetic manner the knowledge and evidence available to date on the various mechanisms available to governments to promote regulatory co-operation, and their benefits and challenges.

With the progressive emergence of an open, dynamic, globalised economy, and the intensification of global challenges pertaining to systemic risks (financial markets), the environment (air or water pollution), human health or safety, governments are increasingly seeking to ensure greater co-ordination on regulatory objectives, processes and enforcement and to eliminate unnecessary regulatory divergences and redundancies.

‌‌This is illustrated by the growing number of OECD Council instruments, which reached 249 in November 2011. Council instruments include both tools that are legally binding on member countries (Decisions) and non-legally binding instruments, such as Recommendations, which nevertheless display great moral force as representing the political will of member countries. These instruments cover a vast array of sectors – environment (for 29%), fiscal affairs, international investment, insurance and private pensions, competition.

Council instruments, 1957-2012

OECD work on international regulatory co-operation

OECD countries have acknowledged the importance of regulatory cooperation by making it Point 12 of the 2012 OECD Recommendation of the Council on Regulatory Policy and Governance:

“In developing regulatory measures, give consideration to all relevant international standards and frameworks for co-operation in the same field and, where appropriate, their likely effects on parties outside the jurisdiction”.

The OECD Regulatory Policy Division is now working on an IRC toolkit to provide guidance to countries on how to implement successfully Principle 12 of the Recommendation.