European Union Commissioner Faces Call to Negotiate Regulatory Standards in Trade Dispute with the US
In the ongoing trade dispute with the US, Mercedes-Benz CEO Ola Källenius has urged the European Commission to engage in discussions on regulatory standards, in addition to tariffs. Källenius emphasized the need for “more realpolitik and flexibility” in the negotiations.
The CEO suggested reviving the idea of mutual recognition of standards, similar to the failed TTIP agreement, to simplify the complexity in the automotive production process and facilitate reciprocal auto exports. Currently, vehicles often require multiple developments due to regulatory differences between the EU and the US, despite similarities.
Källenius also proposed allowing the duty-free import of one car from the US or Europe for every car exported, an idea that has already been presented to both sides and could become part of the US-EU trade negotiations. The CEO believes that a trade agreement on automobiles between the two economic blocs could serve as a precedent for a broader trade deal, with the automotive industry offering itself as a blueprint for such an agreement.