An important task for governments around the world is to ensure that products sold and produced do-mestically are safe. What governments want to protect varies - humans and ani-mals, the environment and cultural prac-tices - but the tool usually remains the same: regulations.

Virtually all products sold are subject to various regulations. Examples include what emulsifying agents a chocolate bar may contain, how long building materials should be able to withstand 're, and what minimum quality warranties manufactur-ers must offer. That regulations are essen-tial is most clearly demonstrated by the incidents, often resulting in substantial human and monetary costs, which happen when they are absent.

However, regulations are not only a matter of domestic interest. As trade con-tinues to surge and world markets become ever more integrated, regulation is an is-sue that is steadily ascending the agendas of bi- and multi-lateral trade talks. The reason for concern is that compliance with rules and regulations impose additional costs on producers, domestic and foreign. Companies wanting to sell their products to new markets are the most affected.

A regular affair

A new car model that has met all of the European safety standards will have to undergo additional tests, with almost identical objectives, before it can be sold in China. At .rst glance, this may appear to be a minor problem, but exporters often place technical requirements near the top of their list of trade barriers. In the above example, the additional costs effectively prices cars sold in small quantities out of the market. The result is that consumers, as well as producers, lose out and very limited additional protection is achieved.

An attempt by the European Union and China to minimize the potential harm of regulations, while at the same time strengthening consumer protection, is the Regulatory Dialogue. The Regulatory Dia-logue is one of approximately 20 different sectoral dialogues between the European Union and China. These dialogues aim at intensifying discussion in areas where the EU and China share common objectives, face similar problems and favor similar approaches. The European Commission holds these dialogues as integral to what the parties prefer to label as a strategic partnership, and views them as one of the main reasons why the Sino-European re-lationship has grown so quickly over the last few years. By including regulatory issues among the sectoral dialogues, the parties have made clear just how impor-tant they consider regulations to be.

Most of the dialogues consist of two types of meetings: high-level meetings bringing together senior of.cials from relevant ministries and working level meetings that bring together experts on speci.c areas. The Regulatory Working Group meetings held in Beijing on Oc-tober 19 and 20 are an example of these specialist subgroups. The .ve meetings held covered Technical Barriers to Trade, Standardization, Textile and Toys, Con-formity Assessment and Electrical and Mechanical Products.

In addition to the political experts, in-dustry representatives were given a sig-ni.cant role in the meetings. There are numerous reasons why the parties want to get business involved in these dialogues. Firstly, involving business ahead of imple-menting new regulations makes it easier to estimate the feasibility and cost of the new rules proposed. More importantly, business has .rst hand experience of the practical consequences of regulations.

European companies have voiced con-cerns over a number of Chinese regula-tions, including China's insistence on using their own homol-ogation system, CCC, over signing up to the internationally acknowledged UN 1958 Geneva Agreement. However, Europe-an companies in China are not only affected by Chinese regula-tions. The main reason many foreign companies are in China is to take advantage of the low production costs and produce goods for other markets. In fact, about half of China's $583 billion of exports in 2004 were controlled by foreign companies, and these goods were subject to the regulations of the destination country. Hence the dialogue also provides European companies in China the chance to in.uence European regulations.

The new IP Dialogue

In the recent kick-off working session of the EU-China IP Dia-logues, European industry also played a central part. Having been the target of persistent foreign government and corporate com-plaints, protection of Intellectual Property (IP) has been the target of several reforms undertaken by Chinese authorities. As a conse-quence, China now has a legal framework that, relative to its level of development, offers strong IP protection. China has received a lot of praise for putting this foundation in place, however, critical voices still point out that improvements in enforcement, among other areas, are essential for the changes to have a real effect.

The working level IP meetings held in Beijing on October 18 are a prime example of how the sectoral dialogues approach spe-ci.c issues. With the foundations of a legal framework in place, European and Chinese of.cials and industry experts focused on individual policy issues. The morning session covered horizontal issues, which are encountered across sectors, with a focus on enforcement and the relation between IP and competition.

The extent to which these meetings address speci.c issues becomes clear when looking at the agenda of the enforcement section; topics covered included transfer of cases, counterfeiting in retail markets and the recent Supreme Court judicial interpre-tation on counterfeiting. In addition to discussing horizontal is-sues, about half of the IP working level meetings are set aside for discussions on industry speci.c IP issues. Possibly out of con-venience, since the meetings were the .rst of this dialogue, the focus was on the Pharmaceutical industry - where the interests and concerns of the Chinese and the Europeans to a large extent coincide. For example, both want to see enhanced market safety and ef.ciency, wider and quicker access to new medicine and increased drug research and development in China.

Serge Janssens de Varebeke, President of the European Chamber, who together with member companies represented European industry, describes the dialogues as "an important step forward and a model for future cooperation”. As the focus of dialogues continues to shift from general to speci.c issues, there will be a growing need to consult outside expertise. These recent meetings are a good illustration of how specialists out-side the political sphere can and should be involved in the EU-China partnership.