Final answer:
A Mutual Recognition Agreement is an international agreement where countries acknowledge each other's regulations and certifications, allowing products to be sold across borders without additional approvals if they meet shared standards. The United States-Canada Regulatory Cooperation Council Joint Action Plan is an example of such an agreement, aiming to reduce trade barriers between the US and Canada.
Step-by-step explanation:
What is the Mutual Recognition Agreement?
The Mutual Recognition Agreement (MRA) refers to an international pact between countries or regions to recognize each other’s regulations and conformance assessments. This means that a product or service that is legally allowed to be sold in one country can be sold in another country without having to undergo additional testing or certification, provided that the product meets the set standards and regulations of both parties involved.
What Does It Specify?
The Mutual Recognition Agreement specifies the conditions under which one country accepts the product standards and conformance assessments of another country. It is usually aimed at reducing trade barriers and simplifying the regulatory landscape for exporters and importers, thereby facilitating easier access to markets. Recognition is granted on the basis that the regulatory standards and testing procedures of the countries involved offer an equivalent level of health and safety or other applicable requirements. One specific example of an MRA is the United States-Canada Regulatory Cooperation Council (RCC) Joint Action Plan, which was established with the intent of streamlining regulations and promoting economic growth between the two neighboring countries.