To augment trade at lower cost, the United States and the European Union have agreed for US-EU single market concept. The agreement is designed to enhance transatlantic trade and investment by harmonizing regulatory standards. Both developed sides showed green signal for an Open Skies deal, designed to reduce fares and boost traffic on transatlantic flights. In a summit, the two sides also agreed to set up an "economic council" to push ahead with regulatory convergence in nearly 40 areas, including intellectual property, financial services, business takeovers and the motor industry. This step welcomed by the carmaker as U.S and European carmaker are losing its shine to emerging Asian automaker because incompatible regulations in the world’s two richest regions add 10% to the cost of developing and producing new cars. E.U were looking anxiously for the summit as German Chancellor Angela Merkel, quoted last month that if the US and EU could set business norms today, they would "secure the markets of tomorrow".