Enabling Automotive Trade:
While there is still work to be done in this area, enabling trade today requires addressing a host of less explicit, often unintentional barriers to trade by involving a range of players, many of whom might not see themselves as linked to trade issues. Mutual recognition of automotive standards between the US and EU, for example, would require not only trade ministers, but also transport, safety and environmental regulators from both sides of the Atlantic to come to the bargaining table.
Not unrelated to the partial success of tariff reduction, the automotive industry itself has transformed into a more global value chain. The ease of importing goods is a crucial contributor to success in exports, and efficient border crossings can mean the difference between winning or missing out on major investments.
The industry’s global nature is beginning to translate into a more unified industry voice for streamlining supply chains and reducing trade frictions. While local workforce demands for protection are still heard, the consensus is growing to at least debate the issues openly, unencumbered by tangential barriers and restrictions.