The European Automobile Manufacturers’ Association said that billions of dollars could be saved each year if US and EU would adopt the same auto safety regulations.
Automakers have been calling for a long time for such a merger, a move that would definitely cut some of their costs. Citing a new study made by the not-for-profit organization Center for Automotive Research, the European Automobile Manufacturers’ Association said the discrepancy of auto safety regulations between the United States and the European Union markets drived up annual costs by as much as 2.3 billion dollars on a bilateral basis, rising to as much as 4.2 billion dollars on a global basis.
“Meeting two different sets of standards, that for all practical purposes achieve the same high level of auto safety performance and outcomes, therefore poses an annual cost far exceeding the 1.6 billion dollars in combined annual tariffs related to US-EU motor vehicle trade,” ACEA said in a statement. Another analysis made last year on the matter by the Peterson Institute for International Economics showed that US-EU automotive regulatory convergence would lead to a 20-billion-dollar annual economic benefit.
Therefore, the Association said the subject must be a priory in the ongoing negations for the Transatlantic Trade and Investment Partnership. However, the trade agreement between the European Union and the United States is likely to be soon concluded. The talks were planned to be finalized by the end of 2014, but according to some analysts the discussion will likely keep going until the end of the decade.