02 February 2017

Trump uses early executive order to slash regulation for US business

The new US President Donald Trump has promised that 'the American dream is back' for small and medium enterprises (SME).

By Kathryn Higgins

Oleg Dudko

One of President Trump’s earliest executive orders has been dedicated to his ‘pro-business’ platform, introducing measures designed to ease the regulatory burden on SMEs and others in the business community. Though President Trump’s pitch to the media for the executive order focused on its implications for SMEs, they are not directly mentioned within the order which appears to apply equally to all businesses. Tom McCracken told the BBC that much remains unknown about how much the new order will benefit SMEs vis-à-vis their larger counterparts: ‘This really is a case where the devil is in the detail,’ he said.

‘Two-out, one-in’ rule

The central feature of the new executive order is what has been described as the ‘two-out, one-in’ rule. Designed to roll back red tape, the rule will ask US Government departments to nominate two regulations to be scrapped for every one new one they create. The process will be overseen by the Office of Management and Budget (OMB), which is currently operating under the leadership of Republican Mick Mulvaney. The only agencies exempt from the rule will be those connected with the military or national security, and others as determined by the OMB.

Sources: BBC; Regulatory Affairs Professionals Society

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