Leaders from Germany's automotive sector held a rally Wednesday in Berlin to lend support to a transatlantic trade agreement heavily facing opposition.
Automotive News reports the agreement between the European Union and the United States, which is supported by the likes of Daimler AG's Dieter Zetsche, Volkswagen AG's Martin Winterkorn, and even Germany's chancellor Angela Merkel, would be the largest such agreement put into play when signed. The deal would deliver a gain of €119 billion ($135 billion USD) for the EU and $131 billion for the U.S. by 2027, which equals an average of €545 ($620) and $910 for a family of four in their respective locations. Eighty percent of the gains would be the result of eliminating duplication costs linked to maintenance of two different bureaucracies and regulations.
However, German union IG Metall and various consumer groups take issue with key parts of the agreement, if not the entire agreement itself. For the union, the investor-to-state dispute settlement mechanism — which grants corporations the right to sue the government if revenue is lost due to government policy — is unacceptable, as are the threats of softening environmental and consumer protections, and hollowed workers' rights. Other groups fear U.S. companies could force European legislators to draft policies in the former's favor, and "harmonize safety or product standards downward."
As for why the German automakers are rallying, the aforementioned harmonization would allow all automakers to focus on one set of safety and emission standards, thus allowing for the possibility of buying a new car from a different market without waiting 25 years first. That said, the agreement could collapse without majority support from all 28 members of the European Parliament.
The post German Automakers Rally In Support of US-EU Trade Agreement appeared first on The Truth About Cars.
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