Global agreements on vehicle safety by individual countries could save billions of dollars for businesses and help motorists as well, say ACEA.
Divergent auto safety regulations in the United States and the European Union drive up costs by as much as $2.3 billion annually on a bilateral basis, according to a new Center for Automotive Research (CAR) study, entitled ‘Potential Cost Savings and Additional Benefits of Convergence of Safety Regulations between the United States and the European Union’.
According to the report, this amount also represents the savings that could be realized if the Transatlantic Trade and Investment Partnership (TTIP) includes full US-EU auto safety regulatory convergence.
$2.3 billion in potential savings is the appropriate figure to inform the TTIP talks, but on a global basis, the extra saving rises to as much as $4.2 billion annually.
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 in combined annual tariffs related to US-EU motor vehicle trade. The study, published during the 14th round of TTIP talks taking place in Brussels this week, clearly underlines why it is important that US and EU negotiators include such a measure in the on-going TTIP negotiations.
Consumers would also benefit from regulatory convergence due to increased savings and better product choice, as automakers could increase vehicle offerings, according to the new research.