General | February 13, 2024

Orgalim Delegation Advocates Stronger EU-US Trade Relations in Washington DC

From 12 to 16 February 2024, an Orgalim delegation, led by Director General Malte Lohan, will be in Washington DC to meet with senior representatives from the industry, the administration, and the U.S. Congress. The objective: to champion a more robust and mutually beneficial EU-US trade relationship, centred on a Mutual Recognition Agreement (MRA) on Conformity Assessment. 

Joining the delegation will be Peter Bay Kirkegaard, the Chair of Orgalim’s Trade Policy Working Group, as well as Daniel Wennick, Policy Director, and Lorenzo Livraghi, Senior Adviser for Trade and Industrial Policy. 

Driving Trade Efficiencies: the Mutual Recognition Agreement 

At the heart of the meetings lies the ambition to introduce an MRA on conformity assessment for machinery and electrical equipment, among other relevant product categories. This would significantly reduce barriers to trade, streamline processes, and cut costs for industrial sectors that are critical to the net-zero transition and future economic resilience on both sides of the Atlantic. Malte Lohan stated, "Strengthening EU-US trade relations through a MRA on Conformity Assessment is not just about enhancing efficiency and cutting costs; it's about securing our shared high-tech manufacturing base." 

Strengthening EU-US trade relations through a MRA on Conformity Assessment is not just about enhancing efficiency and cutting costs; it's about securing our shared high-tech manufacturing base.

- Malte Lohan

Trade between the EU and the US in machinery and electrical equipment represents a cornerstone of the transatlantic trade relationship, with an annual value exceeding €176 billion, nearly three times that of trade in vehicles. However, current processes pose challenges for exporting companies, which must often rely on Conformity Assessment Bodies (CABs) in the importing country for certification, leading to increased costs and prolonged waiting times. 

Allowing exporting companies to utilise Conformity Assessment Bodies in their home market for certification stands to enhance efficiencies and cost-effectiveness. The benefits extend beyond mere cost reductions. A study by the EU think tank ECIPE forecasts substantial economic gains: EU exports to the US in high-tech sectors could soar by up to €38.5 billion, while US exports to the EU could increase by €30 billion. 

Furthermore, this agreement could play a crucial role in addressing the significant trade deficit that both the EU and the US face with China. By diverting trade flows away from China, Chinese exports to both markets would see declines ranging from €6.5 billion to €17.5 billion. 

In essence, an MRA on conformity assessment holds the promise of not only reinforcing the transatlantic partnership but also driving significant economic growth and resilience in high tech manufacturing on both sides of the Atlantic.

For further details, visit Orgalim's proposal for a MRA.