Mutual Recognition
The purpose of mutual recognition is to promote economic integration and increased trade between participants. It is one of a number of regulatory techniques available to governments to reduce regulatory impediments to the movement of goods and provision of services across jurisdictions.
While mutual recognition can apply to many things, the Mutual Recognition Agreement (MRA) and the Trans-Tasman Mutual Recognition Arrangement (TTMRA) apply to regulations affecting the sale of goods and registration of occupations.
More information is available below on the:
- Users’ Guide to the Mutual Recognition Agreement and Trans-Tasman Mutual Recognition Arrangement
- Mutual Recognition Temporary Exemption Guidelines
- Evaluation of the Mutual Recognition Schemes
- Arrangements for mutual recognition of occupational licences
Users’ Guide to the Mutual Recognition Agreement and Trans-Tasman Mutual Recognition Arrangement
Australian and New Zealand Ministers at their meeting in Cairns on 20 September 2006 released an updated Users’ Guide to the Mutual Recognition Agreement and Trans-Tasman Mutual Recognition Arrangement.
The updated Users’ Guide was a key recommendation of the first five-yearly combined review of the Australian Mutual Recognition Agreement (MRA) and the Trans Tasman Mutual Recognition Arrangement (TTMRA) concluded by governments in 2005. The review recognised the central role that the TTMRA plays in supporting a more integrated single economic market.
Under the TTMRA, goods that may be legally sold in Australia may be legally sold in New Zealand and vice versa regardless of differences in standards and other sales related regulatory requirements; and a person registered to practise an occupation in one country is entitled to practise an equivalent occupation in the other country without the need to undergo further testing or examination. A similar scheme, the MRA, operates between the Australian States and Territories.
The Users’ Guide is designed to assist exporters, people in registered occupations, policy makers and regulators in both countries to understand better the arrangements and to ensure that the benefits of the mutual recognition are fully realised.
The Users’ Guide also contains information on the MRA between the Australian States and Territories. This will help people to understand the difference between the MRA and the TTMRA and give them a clearer understanding of what their rights and responsibilities are under each scheme.
- Users Guide to the Mutual Recognition Agreement and Trans-Tasman Mutual Recognition Arrangement - September 2006 DOC 489KB | PDF 433KB
Mutual Recognition Temporary Exemption Guidelines
The MRA and the TTMRA contain various types of exemptions for goods and laws for which mutual recognition is not appropriate but which would otherwise be affected by the MRA and the TTMRA.
A Temporary Exemption to either the MRA, TTMRA or both can be invoked for a period of up to 12 months only in circumstances where a jurisdiction considers that there would otherwise be a threat to public health, safety or the environment. For instance, in 2004 New South Wales invoked a Temporary Exemption from both the MRA and TTMRA for its summer petrol volatility regulations because petrol volatility impacts on the air quality in Sydney.
Temporary Exemptions are invoked by the gazettal of a regulation by the designated person (for example, the Governor-General, State Governor or relevant Minister) of a participating party. Temporary Exemption regulations can be made under the MR Act or the TTMR Act of the relevant jurisdiction or the specific legislation that implements the standards or regulatory requirements for which exemption is being sought. However, to enable the ongoing coordination of Temporary Exemptions, Heads of Government prefer that Temporary Exemption regulations be made under the relevant jurisdiction’s MR or TTMR legislation.
The Guidelines below set out the process for invoking a Temporary Exemption. More information on Temporary Exemptions is also available in the Users’ Guide to the Mutual Recognition Agreement and Trans-Tasman Mutual Recognition Arrangement.
Evaluation of the Mutual Recognition Schemes
The Council of Australian Governments (COAG) and the New Zealand Government agreed at the December 2002 COAG meeting that the Productivity Commission (PC) should undertake a review of the MRA and TTMRA. The review was completed in October 2003.
See: Evaluation of the Mutual Recognition Schemes
In all, the PC made 74 findings intended to improve or extend the operation of the MRA and TTMRA. While the PC found that the MRA and TTMRA have been effective, there is room for improvement in some areas.
Following consideration of a Committee on Regulatory Review Interim Report in May 2004, the then Prime Minister, along with the Premiers, Chief Ministers and the New Zealand Prime Minister, noted 29 of the PC's findings and requested further work be undertaken in relation to the remaining 45 findings through a final report formulated by a new Cross-Jurisdictional Review (CJR) Forum.
The PC is currently undertaking a second five year review of the MRA and TTMRA. The findings will be presented to Australian Heads of Government and the New Zealand Prime Minister in January 2009.
Arrangements for mutual recognition of occupational licences
In February 2007, new arrangements were put in place to make it easier for licensed tradespeople, and authorities that issue licences, to know what licence a worker is entitled to when applying for a licence in another state or territory. These arrangements cover licences issued to:
- electricians
- electrical fitters, lineworkers, and cable jointers
- tradespeople with restricted electrical licences
- plumbers and gas-fitters
- carpenters and joiners, bricklayers, and builders
- refrigeration and air-conditioning mechanics
- auto-gas installers
- motor vehicle repairers
- electrical contractors
A new website allows the user to look up a licence entitlement in another jurisdiction, based on the currently-held licence. The website also has information on who to contact to apply for a licence. The licence recognition website is at www.licencerecognition.gov.au.