U.S., Europe and Canada Considering Recognizing Each Other’s Auto Standards
A clause in the new U.S.-EU trade framework could disrupt the global auto market. According to Article 8 of the agreement presented on August 21, the U.S. and the EU will look at the possibility of mutually recognizing each other's vehicle safety and emissions standards.
Although the provision remains non-binding, the objective is clear: to facilitate vehicle access from one market to the other without requiring major modifications.
If this project becomes a reality, it could reduce approval costs for manufacturers and speed up the time it takes to being vehicles to market.
Fewer constraints for manufacturers
Currently, a vehicle designed in the U.S. often has to undergo costly modifications to be sold in Europe, and vice versa. Mitch Zajac, an international trade lawyer, explains that the proposal could eliminate the requirement to adapt certain equipment, such as deformable hoods or external airbags, which are required in Europe.
According to Sam Abuelsamid, an analyst at Telemetry, models like the Ford F-150 could thus be sold as-is in Europe, just as the Volkswagen Golf could be sold without modifications in the U.S.
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