Embedding Mutual Recognition at the WTO

Abstract

This paper argues that mutual recognition at the WTO, as a type of liberalism, must be embedded in a process of governance that has two components. First, mutual recognition can only take place to the extent of satisfactory essential harmonization: to the extent that states can legitimately agree on an appropriate level of regulatory protection. This political process is necessary in order to establish an agreed minimum level of regulation. Second, mutual recognition cannot be permitted to leave poor countries at a disadvantage in international trade. Therefore, essential harmonization must be established in a way that protects poor countries. This will require technical assistance, transfer of resources, and accommodation of difference.

Keywords: WTO, trade, harmonization, regionalism, mutual recognition

JEL Classification: F10, F15, K23, K33