EU-US Free Trade Deal Begins, Completion Expected In 2015
The United States and the European Union will begin talks on a free-trade agreement, which may take as long as two years to complete. The deal is expected to be worth some $613 billion annually, and could have some interesting implications for the auto sector.
The first and most obvious possibility is the end of import duties for passenger cars and light trucks; 2.5 percent for cars and 25 percent for trucks. Such a deal would amount to an end for the “chicken tax” for European made light trucks.
This may have an impact on the manufacturing profile for the world’s automakers as well. Mexico is currently in vogue due to low labor costs and the ability to export Mexican made cars to the United States and Europe. But with a US-EU free trade deal, there may be an extra incentive to bring some production to Europe, particularly if there’s unused capacity burning a hole in their pocket.
Also worth keeping an eye on is vehicle safety standard harmonization. The FMVSS standards vary from the UN/ECE standards used by pretty much everyone else, and this deal may bring about some kind of agreement on harmonization between the two. The FMVSS is frequently cited as a non-tariff barrier to trade by many observers. Not many would be sad to see it go.
@Big Al from Oz, Did 15 European countries in 2010. Saw Grand total of EIGHT US Pickups,most were HD Rams scattered around various cities. and one broken F150 in Greece. @HighDesertCat is right, virtually no US Pickups. Could not see ANY US cars.
@Big Al from Oz What stood out for me, was there more Pickups in Southern Europe(especially Greece). As I said they are pretty rare in Europe as Vans and Cab Chassis versions of Vans do a lot of the "work" aspects of Pickups. I did see a RAM parked near a Canal in Amsterdam surrounded by what appeared to be a million bicycles,Another RAM not far from Central London and most unusual a RAM going over a bridge in Milan.
@Robert Ryan I was thinking the PSA link to Mitsubishi could be the reason for the number of Tritons I saw in the south of France.
@Robert Ryan Here is the link to the Chev SS article. Quite interesting, especially the number of V8 Commodores that are sold and the number of EVs. http://smh.drive.com.au/motor-news/holden-unveils-export-model-20130215-2eh8t.html