BERLIN—Germany’s car watchdog has cleared Mercedes-Benz’s semi-autonomous driving system, paving the way for the Daimler AG subsidiary to begin offering its Drive Pilot system internationally. The highly automated system allows the driver to focus on other activities while a car equipped with the technology is in heavy traffic or on congested highways, Mercedes-Benz said in a statement on Thursday. Germany’s KBA authority approved the system based on technical requirements laid out in United Nations regulations. “The KBA is setting national, European and international standards in road safety on the road to autonomous driving,” said the authority’s president, Richard Damm, in a statement. Beyond the U.N. regulation on technical requirements, countries also have to pass legislation clarifying where and how such systems can be used, as well as issues of liability. “With this milestone, we are once again proving our pioneering work in automated driving and also initiating a radical paradigm …