On Friday, Member States gave the Commission the mandate to negotiate a comprehensive trade agreement between the EU and the US – the Transatlantic Trade and Investment Partnership (TTIP). The European Automobile Manufacturers’ Association (ACEA) welcomes this move and has been working actively with its US counterpart, the American Automotive Policy Council (AAPC), to provide input to the authorities on both sides of the Atlantic.
EU-US auto-related trade currently accounts for some 10% of total trade between the two regions. Together, the EU and US account for 32% of global auto production and 35% of global auto sales. Under the TTIP, they would therefore represent the largest share of auto production and sales ever covered by a single trade agreement. “The TTIP would strengthen the EU and US as worldwide auto standards setters,” stated ACEA Secretary General, Ivan Hodac.
According to the Commission’s impact assessment reports, current auto non-tariff barriers (NTBs) are equivalent to an ad valoremtariff of about 26%. The elimination of tariffs and just a quarter of existing NTBs would increase EU vehicle and parts exports to the US by 149% for the period 2017-2027. The estimated increase in EU-US auto trade achieved with the elimination of tariffs and NTBs would account for more than a third of the total estimated increase in bilateral trade flows associated with a successful TTIP negotiation.
“If both sides are to realise the full economic potential of the TTIP, achieving a comprehensive auto package must be a priority. Such a package should include the elimination of tariffs and NTBs, as well as meaningful regulatory convergence,” stated Mr Hodac. “This will require strong and sustained political support at the highest levels.”