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APEC Project Database

Project Title

Integrating Cost–Benefit Analysis (CBA) into Standards Based Regulatory Design: Strengthening Good Regulatory Practices (GRP) to Support Trade Facilitation in APEC Economies

Project Year

2026

Project Number

SCSC_101_2026T

Project Session

Session 1

Project Type

Standard

Project Status

Project in Implementation

Project No.

SCSC_101_2026T

Project Title

*
Integrating Cost–Benefit Analysis (CBA) into Standards Based Regulatory Design: Strengthening Good Regulatory Practices (GRP) to Support Trade Facilitation in APEC Economies

Project Status

Project in Implementation

Fund Account

*
TILF Special Account

Sub-fund

None

Project Year

2026

Project Session

*
Session 1

APEC Funding

100,000

Co-funding Amount

25,000

Total Project Value

125,000

Sponsoring Forum

*
Sub-Committee on Standards and Conformance (SCSC)

Topics

Non-Tariff Measures; Standards and Conformance; Trade Facilitation

Committee

Committee on Trade and Investment (CTI)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Indonesia

Co-Sponsoring Economies

Philippines; Thailand; Viet Nam

Expected Start Date

01/11/2026

Expected Completion Date

31/12/2027

Project Proponent Name 1

Aya Sofa Novia

Job Title 1

Standard Analyst

Organization 1

Indonesia National Standardization Agency

Telephone 1

+6281222418468

Email 1

Project Proponent Name 2

Not Applicable

Job Title 2

Not Applicable

Organization 2

Not Applicable

Telephone 2

Not Applicable

Email 2

Not Applicable

Declaration

Aya Sofa Novia

Project Summary

Across APEC economies, the application of Regulatory Impact Assessment (RIA) and CBA in standards and conformity assessment-based regulatory design varies significantly, and not all economies conduct formal RIA. Differences in regulatory thresholds, institutional requirements, technical capacity, data availability, and stakeholder engagement influence how evidence informs regulatory decisions. Evidence shows that stronger GRP, including evidence-based analysis, transparency, and consultation, is associated with reduced transaction and compliance costs and improved trade facilitation outcomes. Strengthening analytical approaches is therefore essential not only to improve domestic policy quality but also to meet transparency and justification obligations under the Technical Barier to Trade - World Trade Organization (TBT-WTO) Agreement and various Free Trade Agreements (FTAs). This project enhances GRP inclusively by combining awareness-raising with practical application. Through comparative learning, practical entry-level toolkits, and lessons learned, including cases of policy misdesign due to insufficient analysis, it supports both economies with established RIA systems and those without formal frameworks, providing actionable guidance for proportionate, evidence-based regulatory design.

Relevance

Region
Standards and conformity assessment-based regulations play a central role in supporting trade facilitation, protecting public interests, and reducing technical barriers to trade across APEC economies. However, the effectiveness of such regulations increasingly depends on the quality of Regulatory Impact Analysis (RIA), particularly the application of Cost–Benefit Analysis (CBA) to ensure proportionality and evidence-based regulatory design. International assessments indicate that the adoption and quality of RIA and CBA practices remain uneven across economies, reflecting differences in institutional capacity, technical understanding, and regulatory maturity.
Across the APEC region, many economies face common challenges in integrating CBA into standards-based regulatory design, including limited availability, validity, and sufficiency of scientific and analytical data required to support quantitative analysis. Studies note that variations in data quality and analytical capacity may influence how effectively CBA is used to inform regulatory decisions. In addition, stakeholder engagement, particularly with regulators, industry, and standardization and conformity assessment bodies, is often insufficient or conducted at a late stage of the RIA process, limiting its contribution to effective regulatory design.
These challenges affect both developed and developing APEC economies, with more pronounced impacts in economies with limited regulatory resources. Where CBA is applied inconsistently or does not effectively inform regulatory design, regulatory measures may lead to disproportionate compliance costs, regulatory inefficiencies, and unintended trade frictions. Evidence shows that stronger GRP, including evidence-based analysis, transparency, and consultation, is associated with reduced transaction and compliance costs and improved trade facilitation outcomes. Addressing these issues offers a strategic opportunity for APEC to enhance regulatory coherence by strengthening capacity on CBA in standards-based regulation, contributing to sustained trade facilitation benefits across the region.

Eligibility and Fund Priorities
This project meets the eligibility criteria and priorities of the Trade and Investment Liberalization and Facilitation (TILF) Account by directly supporting trade facilitation through improved regulatory quality and coherence. By strengthening the integration of CBA into standards and conformity assessment-based regulatory design, the project promotes transparent, evidence-based, and proportionate regulations that help reduce unnecessary compliance costs and unintended trade barriers. The project focuses on capacity building, regulatory cooperation, and peer learning among APEC economies, with particular benefits for developing economies with limited regulatory capacity. Through practical guidance and policy dialogue, the project delivers tangible, region-wide outcomes that support APEC’s trade and investment liberalization and facilitation objectives.

Capacity Building
This project meets the eligibility criteria and priorities of the Trade and Investment Liberalization and Facilitation (TILF) Account by directly supporting trade facilitation through improved regulatory quality and coherence. It strengthens the integration of CBA into standards and conformity assessment-based regulatory design by equipping policymakers with analytical tools to assess the costs and benefits of adopting specific standards, selecting appropriate conformity assessment procedures, and determining proportional compliance requirements. By improving evidence-based decision-making in the development of technical regulations, the project promotes transparency, reduces unnecessary compliance costs, and helps avoid unintended trade barriers. The project focuses on capacity building, regulatory cooperation, and peer learning among APEC economies, with particular benefits for developing economies with limited regulatory capacity. Through practical guidance and policy dialogue, the project delivers tangible regional outcomes that support APEC’s trade and investment liberalization and facilitation objectives.

Objectives

This project aims to strengthen GRP in APEC economies by promoting the effective and systematic integration of CBA into standards and conformity assessment-based regulatory design. It seeks to enhance regulators' capacity to apply evidence-based, transparent, and proportionate approaches in developing and implementing technical regulations. The project of using CBA in regulatory decision-making aims to reduce unnecessary compliance costs, minimize unintended trade barriers, and improve regulatory efficiency. In the longer term, the project will support trade facilitation, strengthen regulatory coherence and predictability, and contribute to a more trusted and effective regulatory environment aligned with international standards across the APEC region.

Alignment

APEC
This project is aligned with the APEC Putrajaya Vision 2040, particularly its commitment to a free, open, fair, non-discriminatory, transparent, and predictable trade and investment environment. By strengthening Good Regulatory Practices through the integration of CBA into standards-based regulatory design, the project supports evidence-based policymaking, regulatory transparency, and proportionality, key elements emphasized under the Vision’s drivers on Trade and Investment and Innovation and Digitalization.
The project also contributes to the Aotearoa Plan of Action (APA), especially objectives related to structural reform, regulatory quality, and connectivity. Enhancing regulators capacity to apply CBA within Regulatory Impact Analysis supports more coherent and predictable regulatory frameworks, reduces unnecessary compliance costs, and mitigates unintended trade barriers. Through capacity building, peer learning, and policy dialogue, the project advances regional cooperation and strengthens institutional capabilities, thereby supporting sustainable economic growth, trade facilitation, and deeper economic integration across APEC economies.

Forum
This project is directly aligned with the objectives and ongoing work of the APEC Sub-Committee on Standards and Conformance (SCSC), particularly its efforts to reduce technical barriers to trade, enhance market access through standards and conformance, and promote Good Regulatory Practices (GRP) in the preparation, adoption, and application of standards, technical regulations, and conformity assessment procedures. The project strengthens these objectives by promoting the practical integration of Cost–Benefit Analysis (CBA) within Regulatory Impact Analysis (RIA) for standards-based regulatory design, enabling regulators to assess regulatory options, compliance costs, benefits, and potential trade impacts more systematically. It also complements SCSC initiatives on GRP, regulatory cooperation, and good governance in standardization and conformity assessment by facilitating the exchange of best practices, identifying capacity gaps, and developing practical recommendations through the Background Paper and Workshop. Through capacity building, peer learning, and policy dialogue, the project supports more transparent, proportionate, and evidence-based regulatory approaches and contributes to SCSC’s broader work on trade facilitation and regulatory coherence across APEC economies.

Beneficiaries and Outputs

Outputs
Output 1 - Background Paper

The “Background Paper” deliverable of this project will encompass research activities, including desk study and preliminary survey. The research work will examine how Cost–Benefit Analysis (CBA) is currently understood and applied within Regulatory Impact Analysis (RIA) and standards and conformity assessment-based regulatory design across APEC economies. It will identify common challenges, capacity gaps, and practical opportunities to strengthen Good Regulatory Practices (GRP), particularly in ensuring that technical regulations are evidence-based, proportionate, transparent, and supportive of trade facilitation.
The research will begin with a desk study reviewing relevant literature, policy documents, international guidance, regulatory frameworks, and existing practices related to GRP, RIA, CBA, standards-based technical regulation, and conformity assessment procedures. The review will cover how economies assess the potential costs, benefits, trade impacts, compliance implications, and implementation feasibility of regulatory measures that refer to standards or require specific conformity assessment mechanisms. Key references may include relevant APEC work on GRP, standards, and conformance; WTO TBT principles; and other related organizations (i.e., OECD, ASEAN, etc.) guidance on regulatory impact assessment and cost–benefit analysis; and selected domestic regulatory practices from APEC economies.
The study will incorporate qualitative approaches. A structured questionnaire will be distributed to relevant stakeholders across APEC economies to collect information on the current status of CBA application in regulatory design, including institutional arrangements, legal or policy requirements for RIA, CBA methodology, data availability, stakeholder consultation practices, and challenges in assessing regulatory options related to standards and conformity assessment. The survey will also seek information on whether and how CBA is used to compare alternative regulatory approaches, such as voluntary standards, mandatory technical regulations, different conformity assessment procedures, phased implementation, or risk-based compliance mechanisms. Stakeholder mapping will be undertaken to identify relevant regulators, standards bodies, conformity assessment authorities, trade-related agencies, industry representatives, and experts that are involved in or affected by standards-based regulation.
The research will include a gap analysis and comparative review to identify differences in capacity, methodology, and institutional practice among APEC economies. Particular attention will be given to practical constraints faced by developing economies, including limited technical data, insufficient analytical resources, uneven stakeholder engagement, and challenges in translating CBA results into regulatory decisions. The analysis will also identify good practices and practical entry points that can help economies apply CBA proportionately, even where formal RIA systems are still developing or where full quantitative assessment is not yet feasible.
The findings are expected to provide actionable recommendations for APEC economies on integrating CBA into standards-based regulatory design practically and proportionately. The Background Paper will serve as a reference to support capacity building, peer learning, and policy dialogue during the workshop. It will also provide the basis for developing practical guidance on how regulators may assess costs, benefits, compliance burdens, trade effects, and implementation risks when designing technical regulations that use standards and conformity assessment procedures. It should be noted that the research findings will not be published as an APEC Publication. The report will have a minimum of 7 pages in length, excluding annexes, and contain the following sections:
1.Executive Summary
2.Table of Contents
3.Introduction
4.Overview
5.Research Work
- Desk study
- Survey Questionnaire
6.Best Practices
7.Conclusion and Recommendations
8.References

Output 2 - Workshop

Workshop on Integrating Cost–Benefit Analysis (CBA) into Standards-Based Regulatory Design: Strengthening Good Regulatory Practices (GRP) to Support Trade Facilitation in APEC Economies will be held in 2027 for 3 days in person in Bali, Indonesia, and involve approximately 60 attendance (participants, speakers and moderators) from multi-stakeholders, including government regulators, trade-related agencies, domestic standards bodies, conformity assessment bodies, industry associations, academia, international organizations, and/or related organizations.

Experts, speakers, and moderators will be invited from international organizations, representatives from APEC economies, regulatory agencies, standards and conformity assessment institutions, industry associations, and experts with experience in GRP, RIA, CBA, technical regulation, conformity assessment, and trade facilitation.

Tentative Agenda: 09: 00-17: 00

Day 1
Opening workshop
Panel 1
1. Overview of GRP, RIA, and CBA in standards-based regulatory design
2. Standards, technical regulations, and conformity assessment as regulatory instruments
Panel 2
1. International and regional practices in applying CBA for regulatory decision-making
2. Economy sharing session on the application of RIA and CBA in standards-based regulation

Day 2:
Covering substantial explanation and practical:
1. Stakeholder consultation, data collection, and evidence use in CBA
2. Policy dialogue on regulatory coherence, transparency, and trade facilitation
3. Interactive session among APEC economies to identify common challenges, capacity gaps, and practical needs in applying CBA
4. Practical approaches to integrating CBA into standards and conformity assessment-based regulation

Day 3
1. Synthesis of key findings and lessons from the Background Paper and discussions during Days 1 and 2.
2. Interactive discussion to identify common challenges and practical approaches for integrating CBA into standards and conformity assessment-based regulatory design.
3. Formulation and consolidation of practical recommendations for APEC economies, considering different regulatory systems and levels of capacity.
4. Workshop wrap-up, key takeaways, and closing remarks.

The Project Overseer will circulate a post-workshop evaluation survey and compile feedback from participants, speakers, and moderators right after the Workshop, especially input related to knowledge improvement, usefulness of the workshop materials, practical recommendations, economy-level challenges, and possible areas for future capacity-building activities. The results of the workshop will be summarized and reflected in the Project Summary Report.

Output 3 - Project Summary Report (APEC Publication)

An electronic version of the Project Summary Report will be approximately 12 pages of substance (excluding annexes). Recommendations for future work will be prepared as part of the Project Summary Report, guided by the discussions/results of the Workshop. This Project Summary Report will be an APEC publication. The structure of the Project Summary Report is a table of contents, executive summary, project activities, key discussions from the Workshop, best practices shared through Bcakground paper and Workshop, conclusion, recommendations, and Background Paper as one of the Project Summary Report's annexes.

Outcomes
1) Improved understanding of Cost–Benefit Analysis (CBA), Regulatory Impact Analysis (RIA), and Good Regulatory Practices (GRP) in standards-based regulatory design. Participants are expected to have enhanced knowledge on how CBA can be used to support evidence-based, transparent, and proportionate regulatory decisions, particularly in the development of technical regulations that refer to standards and conformity assessment procedures. It is measured by post-workshop evaluations assessing participants’ understanding before and after the workshop.

2) Strengthened capacity to identify and assess regulatory costs, benefits, and trade impacts in standards and conformity assessment-based regulation. Participants, especially policymakers, regulators, standards bodies, and conformity assessment-related officials, will be better equipped to identify regulatory problems, compare policy options, assess compliance costs, consider stakeholder inputs, and avoid unnecessary or disproportionate technical barriers to trade. It is measured by participant feedback, level of engagement in discussions, and practical inputs shared during the workshop and interactive economy sessions.

3) Encouraged regional cooperation to promote regulatory coherence, transparency, and trade facilitation across APEC economies. The project promotes peer learning and the development of practical recommendations to support the integration of CBA into standards-based regulatory design, taking into account different levels of regulatory maturity and institutional capacity among APEC economies. It is measured by the number and quality of practical recommendations produced and reflected in the Project Summary Report and workshop outcomes.

Beneficiaries
The beneficiaries of this project are policymakers and technical officials from APEC economies responsible for regulatory policy, Regulatory Impact Analysis (RIA), standards, conformity assessment, and trade-related regulation. This includes officials involved in developing, implementing, or overseeing standards-based technical regulations and conformity assessment procedures. Representatives from domestic standardization bodies, regulatory and trade-related agencies, industry, conformity assessment bodies, and relevant experts will be engaged through the Background Paper research, survey, and Workshop to provide practical perspectives on regulatory costs, benefits, compliance implications, and trade impacts. The project outputs, including the Background Paper, Workshop findings, and practical recommendations, are expected to support beneficiaries in applying CBA to develop more proportionate, transparent, evidence-based, and trade-facilitative regulatory approaches within their respective institutions.

Dissemination

The number, form, and content of any publications: The results of the project will be captured in the Background Paper and 1 document of the Project Summary Report on the APEC Meeting Document Database. The Project Summary Report is an APEC publication. Channels of dissemination: Only the APEC website will be used to share project results. The target audience would include government regulators of APEC economies, domestic standards bodies, trade-related agencies, conformity assessment bodies, accreditation bodies, industry associations, and relevant stakeholders who have roles in regulatory policy, standards, technical regulation, conformity assessment procedures, Regulatory Impact Analysis (RIA), Cost–Benefit Analysis (CBA), and trade facilitation. Any intention to sell outputs arising from this project: There is no intention to sell the outputs arising from this project. Member economies will be encouraged to disseminate the results of the workshop with their respective agencies, relevant stakeholders, and business communities through their websites.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

The project will engage relevant stakeholders within APEC, including SCSC member economies, regulators, standards and conformity assessment bodies, trade-related agencies, industry, academia, and experts. Relevant guidance and good practices from organizations such as the WTO, OECD, and ASEAN will also be considered, and their representatives or experts may be invited to contribute where relevant.
The project builds on previous and ongoing work on GRP, RIA, standards and conformance, and trade facilitation. It avoids duplication by focusing specifically on the practical use of CBA in standards and conformity assessment-based regulatory design, including assessment of costs, benefits, compliance implications, and trade impacts, and by developing practical recommendations for APEC economies.

Sustainability

The project will begin with a research and background study involving input from Indonesia and other APEC economies to identify current practices, challenges, and capacity gaps in applying Cost–Benefit Analysis (CBA) within Regulatory Impact Analysis (RIA) and standards-based regulatory design. A workshop will be held in Bali in 2027, followed by a post-workshop evaluation to assess knowledge gained and collect feedback. The Project Summary Report will capture key insights, good practices, lessons learned, and recommendations to strengthen the use of CBA in standards and conformity assessment-based regulation.

The project is expected to support long-term improvements by enhancing institutional capacity, encouraging cross-economy collaboration, and promoting evidence-based, transparent, and proportionate regulatory practices. The practical approaches and recommendations produced may be used as a reference for future policy discussions, regulatory improvement, capacity-building activities, and related work under APEC SCSC and other APEC fora, particularly in supporting regulatory coherence and trade facilitation beyond the project timeline.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

Yes
Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
hdFldAdmin
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Content Type: Standard Proposal