Companies see Trans-Atlantic Trade pact as a rule bypass

Some companies see trade talks between US and Europe as an opportunity to eliminate unfavorable rules which is a rare second chance to achieve on a global scale what theyve been unable to win from individual governments. That has safety and consumer advocates warning that hard-fought protections could be diluted or eliminated.

“We don’t want a trade agreement to become an opportunity for a race to the bottom, to take the weakest law on each side of the pond and make that the only law forever,” Ed Mierzwinski, consumer program director for the U.S. Public Interest Research Group in Washington, said, cited by Bloomberg.

Such example is Audi AG, which has tried to make US regulators allow its innovation automobile headlights system which automatically dim on upcoming drivers, to be sold in US. The technology cant be used because of a 45-year old for headlights which doesnt allow the new technology.

However, this is a chance for Audi as the rule may change today if negotiations result in a agreement between the U.S. and the European Union. In addition to reducing $10.5 billion in annual tariffs, the pact could accept regulations on either side of the Atlantic to facilitate trade.

The proposed pact, called Trans-Atlantic Trade and Investment Partnership, would create the world’s largest free-trade zone, with 29 nations representing about a third of world commerce and a cumulative gross domestic product of $33 trillion. The pact will aim to establish common standards by governing every aspect of trade.

American farmers want to expand to a greater extend in EU markets, selling more of their production, including genetically modified foods that European consumer groups fiercely oppose.

“There are going to be sensitivities on both sides,” President Barack Obama said June 17 during the official start of the talks in Northern Ireland. “I’m hopeful we can achieve the kind of high-standard, comprehensive agreement that the global trading system is looking to us to develop.” he added, cited by Bloomberg.