The 16" barrel is US legal. Otherwise there is no measurable difference in performance between the two.
This is also just not true, there are very definitive and measurable results between the two. Nor is it that true that we don't know how to measure barrels.
Small arms barrels have a number of different nodes of vibration. These vibrations cause the muzzle to move. If you shorten a barrel 1 mm at a time and graph the accuracy, results vary in a pattern of larger and smaller groups. The smaller group sizes along that graph are the accuracy nodes.
When you combine the accuracy nodes, with customer requirements, functional requirements such as dwell time and terminal requirements such as stability and velocity, you get what we found to be the ideal carbine length - 15.7 inches.
This is not an inexpensive test to conduct, as you might imagine. This required firing thousands of rounds in a number of samples to be statistically relevant. Further, the C8 has a choke hammer forged into it to improve accuracy and barrel wear. That means this was not a hack saw test, but that each set of test barrels needed to be hammer forged specifically for a pre-determined length.
15.7 inches (as measured from the breech face to the muzzle) is one of the accuracy nodes. 16" is not an accuracy node (though it may be for some steel and some profile), it is an arbitrary legal requirement in the US just as the Canadian 18" length restriction has nothing to do with accuracy or function. With the flash hider, the barrel is just slightly over 17". I suspect the M203A1 sleeve also enhances accuracy just as barrel tuning weights have an effect on group size.
These rifles are not permitted to be sold to the US, nor is it legal to export them because of US export and import laws and our licence agreement with the US state depts. The lengths have nothing to do with US laws. The barrel length was determined exclusively based on performance for a military customer requirement.
Cheers,
Matt