Regulatory coherence: blending trade and regulatory policy

Regulatory coherence has over the past four years become a term of art for domestic regulatory systems which interface seamlessly with the systems of other countries. And yet a precise or at least agreed definition remains elusive and descriptions often confuse ends and means. This article sets out to provide greater clarity, and in doing so illustrates that regulatory coherence can be thought of as both an ‘end’ (regulation that supports international trade and investment) and a ‘means’ (good regulatory practice). The adoption by countries of regulatory coherence objectives and practices increasingly blends trade and domestic regulatory policy. ‘Behind the border’ barriers – the new frontier for trade policy? For those of us who have been involved in negotiating international agreements in areas as diverse as technical barriers to trade (TBTs), services regulation, intellectual property and competition policy, the idea that ‘behind the border barriers’ to trade is the new frontier for trade policy is unsurprising. What has been discussed and agreed in international forums has for a long time had implications for domestic regulatory policy settings. Notwithstanding this, there are now a large number of reports which highlight the importance of ‘behind the border’ regulatory barriers to trade, relative to ‘traditional’ barriers, and in particular tariffs. The following passage is representative: