Despite massive trade flows, many standards and regulations differ across the Atlantic. Laws and regulations are inherently discriminatory; they are responses to domestic needs and preferences. However, when differences across borders hinder trade by making it very expensive for foreign firms to compete, or when regulations simply ban a product or service, they are called non-tariff barriers, and consumers pay the price, either through higher costs or lack of access to a product. For example, the 2022 infant formula shortage in the US was worsened by non-tariff barriers that restricted the sale of equally safe European formula. On the other side of the pond, Europeans lack access to American poultry, not because it is unsafe or unwanted, but because of a culturally based import ban. This chapter provides examples of how a typical American is affected every day by European rules related to social media and data privacy, food additives, cosmetics, or antitrust laws, often without even realizing it. Sometimes, common sense prevails even when regulations and standards differ. European and American regulators and lawmakers can recognize each other’s standards for products and services, where examples include airplanes, maritime equipment, and pharmaceuticals.

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Regulations: Why Can’t We Just Accept What You Offer?

  • L. Johan Eliasson

摘要

Despite massive trade flows, many standards and regulations differ across the Atlantic. Laws and regulations are inherently discriminatory; they are responses to domestic needs and preferences. However, when differences across borders hinder trade by making it very expensive for foreign firms to compete, or when regulations simply ban a product or service, they are called non-tariff barriers, and consumers pay the price, either through higher costs or lack of access to a product. For example, the 2022 infant formula shortage in the US was worsened by non-tariff barriers that restricted the sale of equally safe European formula. On the other side of the pond, Europeans lack access to American poultry, not because it is unsafe or unwanted, but because of a culturally based import ban. This chapter provides examples of how a typical American is affected every day by European rules related to social media and data privacy, food additives, cosmetics, or antitrust laws, often without even realizing it. Sometimes, common sense prevails even when regulations and standards differ. European and American regulators and lawmakers can recognize each other’s standards for products and services, where examples include airplanes, maritime equipment, and pharmaceuticals.