The United States and the European Union said they had signed an agreement on Friday aimed at boosting trade in marine safety equipment, such as life rafts and echo-sounding equipment, across the Atlantic.
Under the agreement, products which meet US regulatory standards will be allowed for the sale in the EU without any additional testing. The same would apply to EU marine safety equipment sold in the United States.
The deal, which enters into force later this year, will initially cover about $150 million to $200 million in trade. However, it could be expanded to cover over $1 billion in two-way marine safety equipment commerce.
"This agreement saves US manufacturers of marine equipment the time and expense of redundant product testing for the EU market, and also promotes our efforts to improve the quality of international marine safety regulations," US Trade Representative Robert Zoellick said in a statement.
EU Trade Commissioner Pascal Lamy said the agreement was an example of efforts to lower trans-Atlantic trade barriers through increased regulatory co-operation.