The UK’s evolving “reset” with the EU is increasingly focused on closer regulatory cooperation and dynamic alignment, with agreements already being pursued in areas such as agricultural sanitary and phytosanitary standards, emissions schemes and energy trading.
A new report examines what could be the next step in this process: a mutual recognition agreement (MRA) between the UK and the EU. Such an agreement could reduce the need for duplicate testing and certification when goods move between the two markets, potentially lowering costs and administrative burdens for businesses.
The report notes that around 28% of UK exports by value require testing before they can be placed on the EU market, covering products including automobiles, medical devices, and machinery. It examines different forms of MRA, ranging from agreements that would allow UK conformity-assessment bodies to certify products for the EU market, to more comprehensive arrangements based on regulatory alignment.
The analysis also considers the potential impact on products that rely on self-certification, as well as the possibility of sector-specific agreements. It explores which sectors could benefit most from mutual recognition and assesses whether different forms of MRA could contribute to the UK Government’s objective of generating economic growth across the country.
The report therefore provides a useful assessment of the potential next frontier in UK-EU trade relations, examining how deeper regulatory cooperation could affect market access, business costs and trade between the UK and the EU.
For the report, please see here.