Mutual recognition arrangements
Mutual recognition arrangements: agreements between two or more countries to recognize each other's standards, qualifications, licensing requirements or testing procedures and results. They can cover goods, services, education and professional qualifications. Mutual recognition can contribute to the expansion of trade through removing some technical obstacles. Achieving mutual recognition may require the parties to meet agreed minimum standards, and it can lead to laborious negotiations. GATS members who recognize each other's standards and qualifications do not have to extend recognition to others on a most-favoured-nation basis. If a third country wishes to demonstrate that it, too, can meet the requirements for recognition of qualifications, it must be given an opportunity to do so. A 1979 ruling by the European Court of Justice in the Cassis de Dijon case established the principle of European Community mutual recognition of similar product standards, rather than identical standards. This made mutual recognition within the Community simpler , and it also removed standards from the category of very difficult issues. See also Guidelines for Mutual Recognition Agreements or Arrangements in the Accountancy Sector, harmonization of standards and qualifications, managed mutual recognition,
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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