European Harmonization of Technical Standards- Implications for the U. S. Automobile Sector

The twelve countries which make up the European Community (EC) are undergoing enormous changes in their effort to complete the harmonization process by the self-imposed deadline of 1992. A significant number of these changes are in areas of technical standards. In an attempt to harmonize automobile performance standards, the EC may erect, intentionally or not, non-tariff trade barriers to American automobile imports. Thus, it is of utmost concern to the automobile industry as well as the U.S. government that harmonized EC technical standards not exclude or resist American automobiles from sale in the European Community. This paper explores the implications of EC-92 for the U.S. automobile industry and analyzes current activities within the U.S. Government related to potential technical trade barriers of the European Community.