US, EU traders call for “comprehensive” automotive deal

Brussels – As the eighth round of Transatlantic Trade and Investment Partnership (TTIP) negotiations gets underway in Brussels this week, automotive traders on both sides of the Atlantic are calling for a “comprehensive” deal over tariffs.

A news release by the European Automobile Manufacturers’ Association (ACEA), said that ACEA as well as the American Automotive Policy Council (AAPC) and the Alliance of Automobile Manufacturers (Auto Alliance) are voicing a common position on behalf of the transatlantic automobile industry.

The three industry bodies issued a statement saying: “Together, we are calling for a comprehensive automotive deal which should include the elimination of both tariffs and non-tariff barriers through regulatory convergence.”

This, they said, will increase trade volumes, lower production costs, create more and better jobs, and improve industrial competitiveness.

The release pointed out that the new tariff regimes could be achieved without lowering the high safety and environmental standards we have in both the US and the EU.

The automotive market represents around 10 percent of total EU?US trade.

“Manufacturers currently face unnecessary redesign and redevelopment costs to produce cars for export to the US in order to meet safety standards which differ to those in the EU,” explained ACEA secretary general Erik Jonnaert.

“This does not add additional safety protection. Where EU and US standards are, in their outcomes, effectively equivalent, we should be able to agree on mutual recognition,” he added.

One outstanding issue for those trying to free up the trade in automotive products between the EU and the US relates to tire standards and an on-going debate over the Global Technical Regulations (GTR).

The World Forum on Automotive Regulations of the United Nations adopted the new rules for passenger car tire on 14 Nov. However,  in a surprise move, the US abstained from the vote in Brussels.