File this under “we’ll believe it when we see it,” but a new trade deal between the United States and the European Union may take some of the grey out of grey-market imports. As reported by BMWBlog, the White House released details of the new trade agreement, which says that America and the EU intend to recognize each other’s vehicle standards, streamlining the auto industry and getting you one step closer to your dream BMW M3 Touring or supermini hot hatch.
The U.S. and EU have been working on a trade agreement for months following President Trump’s decision to impose tariffs on all imported goods earlier this year. The White House released a joint statement between the two governments, and Article 8 pertains directly to the car market.
With respect to automobiles, the United States and the European Union intend to accept and provide mutual recognition to each other’s standards. Cooperation on standards plays a crucial role in enhancing the transatlantic marketplace.
–Joint statement from the United States and the European Union
It’s not clear from Article 8 alone whether the decision to recognize each other’s vehicle standards applies to vehicles currently on sale or to cars that will come in the future, nor does it mention whether “forbidden fruit” like the Volkswagen Up! GTI will be legal to import before they cross the 25-year federal exemption on EPA and safety standards. If new cars are included in the agreement, it’s doubly unclear if one will be able to order them through a U.S. dealer or if you’ll have to purchase them in Europe and ship them home – we doubt the auto retail lobby would sit idly during the latter move, however.
Article 8 does include some clear-cut aspirations however, including that European and American standards development organizations will enjoy enhanced technical cooperation to develop key standards for the two car markets. That could make it easier to get sophisticated features like Level 3 driver assistance and adaptive pixel lighting on cars in the U.S., as well as reduce the costs that manufacturers incur to certify their vehicles for different jurisdictions. One easy area of collaboration could be vehicle safety, with Euro NCAP and NHTSA agreeing on certain testing procedures that would apply to both regions.
In addition to the somewhat murky vehicle standards clause, the trade agreement between the EU and the U.S. includes revisions to the latter’s tariffs on imported goods. Starting September 1, imported European goods like aircraft parts, generic pharmaceuticals, and certain natural resources will conform to the World Trade Organization’s Most Favored Nation (MFN) tariff rate. Certain cars and automobile parts will also apply to the MFN rate, while others will soldier on with the 15 percent tariff established last month.
The wording in Article 8 of the agreement seems deliberately vague, allowing both governments to negotiate specific terms in the future. However, considering the trade deal has Europe committing to purchase valuable military and defense resources from the U.S., it seems likely that our country will ease restrictions on imports from the Continent. Whether that means we’ll be able to order brand new BMW M3 CS Tourings (or merely import their E60 M5 Touring ancestors) remains to be seen.
Source: The White House via BMWBlog
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