While You Were Sleeping: January 27th, 2015

Derek Kreindler
by Derek Kreindler

Japan will continue to be a closed market…depending on who you believe. A new quota on U.S. imported cars was struck down as part of trade negotiations with Japan. In exchange, Japan will buy more American rice.

Derek Kreindler
Derek Kreindler

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  • Big Al from Oz Big Al from Oz on Jan 27, 2015

    I do know some of the countries, including Australia in the link regarding the Trans Pacific trade agreement have already made FTA's with the Japanese. There is more to the story regarding the US's stance in relation to the FTA. The US has traditionally had the upper hand in most trade negotiations. This is not the case with the Japanese. In our free trade deal with the Japanese I do know the rates of tariffs isn't equal between the two countries. The Japanese do have higher tariffs than we place on Japanese imports, all imports, agri, motor vehicles, consumer goods, etc. But, in our case unlike the US we will not lose out. The reasoning behind this is we don't have tariffs like the Chicken Tax or handouts for farmers like the US and the Japanese have. Australia is in a more liberal economic position to deal. So, any reduction in tariffs (which were halved by the Japanese to Australia in our FTA) will only benefit us at the expense of Japanese exports. So, what countries must realise, if they want FTAs they first must create an economic environment at home first that has a large reduction in subsidized/protected/rebated/handouts etc. The US, Japanese, EU, Korea, etc do have many measures in place that protect a swathe industries. More so than Australia. This is what is needed by countries that want FTAs or FTAs will not be viable as countries attempt to maintain the protection to appease large industrialists, unions, etc. All of the protection offered to industry hurts industries ability to expand and have global trade. So, if the US is not happy with the Japanese why doesn't the US build, Ford, Chev, etc plants in Japan. This is how the Japanese succeeded in the US. Because US vehicles have a poor reputation in Japan and will not sell, this does not include the relative small size of the Japanese market to the US.

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    • Krhodes1 Krhodes1 on Jan 28, 2015

      @DenverMike Not really possible for you to hurt my feelings, I don't even know you. I'm just curious as to what point you think you were trying to make with that comment. Call it idle curiosity and looking for more insight into your personality, since you seem to like to use what I am assuming was meant as some sort of put down. I certainly wouldn't take it as an insult, leasing is just another financial tool available, it certainly is no reflection of the lease holders character or lack thereof in my opinion. But obviously you meant something by it, or you would not have wasted the calories typing that comment. There is no EU import ban via tariff. It's only money, if you want something badly enough you can just pay the money and have it. Except in the United States, where no rational amount of money will get you a non-conforming car. Which is very much a non-tariff barrier. Sorry I didn't realize the EU had a much higher tariff on trucks than cars - I really truly could not possibly care less about them, I just used the Raptor as an example because I know they are near and dear to you blessed little heart.

  • Mikey Mikey on Jan 27, 2015

    I think BAFO, and that Ryan dude, have some sort of schedule/shift arrangement worked out. It must be BAFO's turn to do some USA bashing.

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    • Mikey Mikey on Jan 28, 2015

      @RobertRyan Oh yeah...I'm sitting here {in Canada} trying to dream up a witty response. @lie to me...Your right. I don't have the time.

  • DrGastro997 DrGastro997 on Jan 27, 2015

    This reminds me of the "Toyota Cavalier" deal made between GM and Toyota. It was an addition to the ongoing campaign in Japan to sell more American cars like Saturn, Dodge, etc. It was a big failure. Remember the rattling Coca Cola bottle found in the door assembly of a Cadillac driven by a major Japanese CEO? The amount of quality and safety modifications (100+ average mods per car) needed made no monetary sense whatsoever. Even the earlier Cadillacs needed heavy modifications like the feel and logic of its buttons and switches to the door hinges. Safety requirements are almost to the point of extreme when compared to our standards. There are safety and operating inspections every 2-3 years. Repairs are mandatory. Times have changed however. Living in Japan, I now see American badges everywhere because quality has improved. If it's a good product, the Japanese will buy, even if it means paying additional tariffs and premiums. I bet they're looking for alternatives to German makes.

    • RobertRyan RobertRyan on Jan 27, 2015

      "If it is a good product" that is the problem, they are losing market share in the US to Japanese sedans. Camry and Accord best sellers in the US/Canada respectively

  • Blueflame6 Blueflame6 on Jan 28, 2015

    1) That's a lovely Corvette in the photo. 2) It may well be clean, but it is not a Camaro despite the URL and filename.

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