Automakers Support US-EU Free-Trade Deal image

Automakers support the free-trade deal between the EU and the US, as they want auto safety regulations to be the same on both sides.

In 2012 the vehicle and auto parts trade between the US and the US was $57 billion, accounting for 9% of the total of $646 billion in US-EU trade. The Association of Global Automakers, which represents important luxury companies and automakers, said that the US and the EU should have the same regulations on fuel system integrity, child restraint systems, occupant and side-impact crash protection, vehicle emissions and tire-pressure monitors and bumpers.

The Association of Global Automakers president and CEO Michael Stanton said that the trade deal “can promote economic growth, increase jobs and enhance the global competitiveness of U.S. and European producers — both in general and within the automotive sector in particular — through regulatory convergence, mutual recognition, the elimination of tariffs and other facilitation measures.”

Automakers seek an agreement which will certify a vehicle for sales in either the US or the EU but not on both continents, and also want the two parties to notify each other when they plan to make significant changes, so that both sides can jointly evaluate them. JLR wants the current 2.5% tariff for the cars imported to the US to be eliminated rather than phased out, and also harmonized safety regulations.

According to the American Automotive Policy Council, the group which represents the Detroit Big Three, over the past 15 years the U.N. group has managed to harmonize only 7 regulations, “a little to show for these efforts,” said AAPC president Matt Blunt.

Source: Detroit News