The EU-China Mutual Recognition Agreement of Authorised Economic Operators (AEOS) – A Paradigm of Customs Cooperation?

Abstract

This article analyses the recent EU-China Joint Customs Cooperation Committee’s Decision calling for the mutual recognition of authorised economic operators (AEOs). The success of mutual recognition agreements depends much on a common understanding of the objectives of an AEO scheme; thus, this article traces the development of the AEO concept as a risk management and trade facilitation tool. It is argued that, for mutual recognition agreements in world customs law, an entirely risk-based approach without some rule-based prescription is susceptible to uncertainty. A risk-based approach to regulation should not however ignore the international/transnational political challenges. The article will further explore some of the practical challenges for mutual recognition between China and EU.

Keywords: Trade, customs law, EU, China

JEL Classification: K20