[00:01.46]Lesson 8
[00:03.30]Trading standards
[00:11.14]What makes trading between rich countries difficult?
[00:16.93]Chickens slaughtered in the United States, claim officials in Brussels,
[00:21.46]are not fit to grace European tables.
[00:25.04]No, say the Americans: our fowl are fine, we simply clean them in a different way.
[00:32.57]These days, it is differences in national regulations, far more than tariffs,
[00:38.23]that put sand in the wheels of trade between rich countries.
[00:43.02]It is not just farmers who are complaining.
[00:46.45]An electric razor that meets the European Union's safety standards must be approved by American testers before it can be sold in the United States,
[00:57.15]and an American-made dialysis machine needs the EU's okay before it hits the market in Europe.
[01:05.82]As it happens, a razor that is safe in Europe is unlikely to electrocute Americans.
[01:12.10]So, ask businesses on both sides of the Atlantic,
[01:16.32]why have two lots of tests where one would do?
[01:20.71]Politicians agree, in principle, so America and the EU have been trying to reach a deal which would eliminate the need to double-test many products.
[01:32.40]They hope to finish in time for a trade summit between America and the EU on May 28th.
[01:39.37]Although negotiators are optimistic,
[01:42.14]the details are complex enough that they may be hard-pressed to get a deal at all.
[01:47.80]Why? One difficulty is to construct the agreements.
[01:52.62]The Americans would happily reach one accord on standards for medical devices and then hammer out different pacts covering,
[02:00.38]say, electronic goods and drug manufacturing.
[02:04.18]The EU--following fine continental traditions -- wants agreement on general principles,
[02:10.81]which could be applied to many types of products and perhaps extended to other countries.