Mutual recognition

Mutual recognition is a principle often applied in trade and regulatory contexts, where two or more countries agree to accept each other’s standards and regulations as equivalent. This means that if a product or service is approved or certified in one country, it can be recognized and accepted in another without needing additional approvals. This approach simplifies trade, reduces costs, and encourages cooperation between countries, facilitating smoother market access and fostering international trade relations. Essentially, it streamlines processes by trusting that other countries’ regulatory systems are reliable and compatible.