Pacific Trade Deal Could Force Japan to Sell US Cars
A possible partnership deal between North American countries and Pacific countries may include provisions to penalize Asian governments for not opening up their markets enough for U.S. automakers, Bloomberg reported.
According to the report, negotiators are close to concluding talks regarding automobiles, which has been a contentious point during the talks. The CBC reported that talks in Atlanta were at a critical stage over pharmaceutical drugs, and any eventual deal may be delayed by an upcoming G20 meeting in Turkey.
Talks regarding automobiles have been focused on sourcing local content for each car. North American Free Trade Association rules mandate that cars made within the zone have 62.5 percent of its content sourced within the zone. Asian manufacturers have pressed for lower standards for sourced content in a bid for reduced manufacturing costs.
Terms of the possible deal, which were not made public, could include an eventual phase out of the long-standing tariff on some vehicles produced in Japan. According to the report, the tariff could eventually be eliminated after 20 years.
In exchange, American negotiators have asked for a side deal with Japan to open that market to American-made cars. Japan doesn’t prohibit cars made in America, but domestic automakers have said that critical distribution limits and other factors have essentially made Japan off limits to them.
Union leaders have blasted U.S. negotiators for putting American jobs “at risk” with any potential deal.
Officials in Japan have said Americans should just make better cars.
(Photo courtesy Wikimedia Commons)
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"Terms of the possible deal, which were not made public, could include an eventual phase out of the long-standing tariff on some vehicles produced in Japan. According to the report, the tariff could eventually be eliminated after 20 years." We don't speak of chicken/truck tax "In exchange, American negotiators have asked for a side deal with Japan to open that market to American-made cars. Japan doesn’t prohibit cars made in America, but domestic automakers have said that critical distribution limits and other factors have essentially made Japan off limits to them." Some forcings are about to happen
"Officials in Japan have said Americans should just make better cars." If they really said that, this is part of the reason I buy japanese, haha. ZING!
Excuse me, I have trouble understanding the intention of US Government. US Government wants to force Japan and Asian countries to open up their market to American-made vehicles and loosen up their automotive emission and safety regulations so the American-made vehicles can be sold without extensive engineering modifications. Yet, US Government doesn't want to be forced to open up its highly protectionist market to the wider selection of body types, engines, gearboxes, equipments, and such due to its hebetudinous regulations that are unrealistic in the real world applications. Understandably, the manufacturers must make decisions based on return of investment. Not to mention the schizophrenic product liability laws that manufacturers must set certain amount of money aside. The latter one is the biggest reason Big Three fought against opening up the US market to the ECE vehicles: they don't want to be liable for ECE version of Chevrolet Caprice ending up in Ohio. I don't need to bring up the 25% chicken tax again...
I think I'd prefer a Toyota Cavalier to the Honda Crosswind. Ha.