European-wide standards are replacing divergent national product standards. the advantage is that a manufacturer will have to meet only one European-wide standard and not have to make costly changes to meet 27 different national standards.
Mutual recognition of national standard applies to non-safety aspects of unregulated products (those not covered by EU-wide directives; examples are paper and furniture). Matual recognition applies both to intra-European trade and trade between the EU and other countries.