Mutual Recognition Schemes are Working

In a report released today, the Productivity Commission has found that the Australian Mutual Recognition Agreement (MRA) and the Trans Tasman Mutual Recognition Arrangement (TTMRA) have been effective overall in achieving their objectives of assisting the integration of the Australian and New Zealand economies and promoting competitiveness.

These two schemes provide a practical way to overcome regulatory differences inappropriately restricting goods and labour mobility. They are important government initiatives that involve significant inter-governmental cooperation across ten governments at the national, state and territory levels.

Commissioner Tony Hinton said: “The Commission’s evaluation of the schemes identified a range of potential improvements, as well as some other actions by the involved governments, that would enhance their effectiveness.”

The Commission suggested that widening the scope of mutual recognition obligations to apply to regulations relating to the use of goods could be considered by a review group of officials.

Work should continue on reaching agreement on regulatory differences to enable elimination of the TTMRA’s six special exemptions. This would be facilitated by implementing better focussed cooperation programs that have been set up for these six areas.

The effectiveness of both schemes would be enhanced by a coordinated awareness campaign on the benefits and obligations of mutual recognition. This could usefully be directed at regulators, local governments and relevant industry and occupational associations.

The Report will be used by the ten governments that requested the evaluation in considering possible changes to the two schemes.