Harmonizing Halal Standards Across Border: A Policy Review of Challenges and Frameworks in Mutual Recognition

Objective: This study aims to accelerate the Global Halal Mutual Recognition Agreement (MRA) by addressing the long-standing impasse caused by fragmented national standards, geopolitical tensions, and a lack of regulatory trust between state-driven and market-driven halal authorities worldwide. Research Design & Methods: Using qualitative content analysis and a policy modeling approach, this study synthesizes global halal regulations through 2026. It cross-examines institutional governance barriers, theological-technical disputes, and trade facilitation theories to construct an integrative, tiered policy framework. Findings: This study reveals that the global MRA impasse is primarily driven by institutional rent-seeking practices and rigid demands for uniformity, rather than insurmountable theological dogma. To resolve this impasse, we propose a “Two-Tier Policy Framework” that explicitly separates fundamental Sharia consensus (Tier 1) from decentralized digital verification (Tier 2). Implications & Recommendations: Regulators are encouraged to shift from procedural uniformity to operational equity. The implementation of a decentralized cyber governance architecture through blockchain and smart contracts can eliminate information asymmetry, reduce border delays, and cut transaction costs in the global halal supply chain by 15% to 30%. Contribution & Value Added: This research significantly expands Trade Facilitation Theory within Islamic economics. It offers a paradigm-shifting roadmap that harmonizes sacred religious compliance with modern digital efficiency, transforming international halal trade from a space of geopolitical friction into an inclusive, trusted global ecosystem.