German automotive association, VDA, is stressing the vital nature of improving the non-tariff regime between the US and Europe before President Barack Obama leaves office.
Speaking to just-auto today (13 January) on the sidelines of this year’s North American International Auto Show (NAIAS) in Detroit, VDA president, Matthias Wissmann, highlighted the benefits of securing a deal before Obama’s term comes to an end in two years.
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“To get down on non-tariff barriers would be very fruitful for the acceleration of the market on both sides,” he said. “In the non-tariff area, our idea is to get through this channel of 5,000 different restrictions.
“We don’t wait a decade – we should come to a breakthrough in two years before [President] Obama’s administration ends.
“Not only the President is important, but the Congress is important. They are on both sides free-traders but to keep that together is difficult – it is not a home run.”
Wissmann’s comments echo those made recently to just-auto by European automotive supplier body, CLEPA CEO, Jean-Marc Gales, concerning the Transatlantic Trade and Investment Partnership (TTIP) talks currently taking place between the European Union and the US – a deal which if inked could create the world’s largest free trade zone.
“It would benefit automotive,” said Gales. “Not only because we would equalise tariffs, but the real opportunity in the FTA [Free Trade Agreement] between Europe and the US would be common standards.
“It will probably take ten years, but just imagine how many billions we could save every year.”
Wissmann added: “Five years ago with the first step in that direction with TTIP, we got two companies as representatives of their industries on board.
“Since that time, we can say the American automotive industry and the German automotive industry support that idea.”
