Trust and mutual recognition in the Services Directive

Regulating Services Through Trade Agreements - A Comparative Analysis of Regulatory Disciplines Included in EU and US Free Trade Agreements

“…23 This approach also presents certain limitations, notably the fact that the prohibition is subject to multiple exceptions and derogations, which allow States to maintain trade restrictive measures. 24 Beyond nondiscrimination and market access requirements, mutual recognition and regulatory harmonization are alternative tools that have also been envisaged to remove barriers created by domestic regulation. 25 However, to the extent that services rules are a reflection of factors such as national preferences and the level of economic development, the regulatory approximation or convergence that is entailed by mutual recognition or harmonization arrangements are, in many cases, not only unrealistic targets but also undesirable.…”