Product Standards in the EU

Paper Summary:

This paper focuses on the significance of the mutual recognition principle for the integration of the European Union. The first part introduces the concepts of standardization, harmonization and mutual recognition. Special attention is paid to the practical implementation of the principle - what are its contributions to the free movement of goods in the EU internal market and therefore EU economy. The second part analyzes costs and benefits of mutual recognition from the regulatory perspective and shows the reallocations of regulatory powers within the EU two-level system of regulations under the mutual recognition regime. Finally, the paper discusses mutual recognition in the EU external trade and finds that a harmonization tendency persists as well in the EU trade with third countries, in respect to mutual recognition agreements.

Outline:
Introduction
Basic Concepts
Understanding the Internal Market
Barriers to Trade
Old and New Approach
Old Approach - Harmonization
Standards
CE Marking
New Approach - Mutual Recognition plus Harmonization
Mutual Recognition
How Entrepreneurs can defend themselves
Output
Mutual Recognition - Regulatory View
Development of MR regime
Controversy of the MR principle
Output
Mutual Recognition Agreements
Conclusion
Bibliography

On the basis of the conducted analysis of the principle of mutual recognition of product standards, the conclusion will concentrate on the impact of the mutual recognition principle for the EU integration and present the EU's new approach to better regulation.

From the Paper:

"Internal market (or the single market) was formed through an agreement between a number of European countries to put trade barriers down. Internal market is considered to be one of the most significant symbols of the European integration. Removal of customs barriers among the EU member states and mutual recognition of goods and service standards were important steps to create a properly functioning internal market. Trade tariffs and customs barriers are eliminated in the internal market. Trading became easier for the companies as they have to deal with less export bureaucracy. Internal market is beneficial for the business across Europe as firms are able to expand their markets after the establishment of the internal market."

Sample of Sources Used:

• Andison, D. (1996) Product Standards and Their Impact on International Trade, International Trade Policy Conference, Australia.
• Gatsios, Konstantine, and Peter Holmes (1997) Regulatory Competition and International Harmonization, in: Global Economic Institutions Working Paper Series, No. 36, London.
• Hufbauer, Gary C. (1996) Product Standards for Internationally Integrated Goods Market
• James, Wil (2006) The Single Market, CIVITAS Institute for the Study of Civil Society, available at: http://www.civitas.org.uk/eufacts/download/EC.1.Single%20Market.pdf. Last access: 2008-08-09.
• Kerber, Wolfgang, and Roger Van den Bergh (2008) Mutual Recognition Revisited: Misunderstandings, Inconsistencies, and a Suggested Reinterpretation, in: Kyklos, Vol. 61, Iss. 3, pp. 447 - 465, Blackwell Publishing Ltd, Oxford.

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