#FreeTradeAgreement

The Detroit Three are among those expressing concern over the Trans-Pacific Partnership free-trade agreement, specifically what it would do to the industry.

The land of Canadian Tire, Tim Hortons and Michelle Creber has yet another thing going for it: Their auto workers have a cost advantage over their two-tiered brothers and sisters down south according to a study from Toronto, Ontario-based Scotiabank.

Free trade agreements are great, as long as the trade is really free, and as long as people stick to the agreements. In Korea, foreign automakers and distributors say Korean lawmakers and government agencies try to keep them out. There is talk of “import bashing,” says Reuters.

“Korea is a highly protected market. Despite recent agreements to open up its market, the government is not helping … it’s actually doing its best to keep the barriers in place,” Reuters heard from “a senior global automaker executive.”

“Kyo no asa nikkei wo yomimashitaka?” – did you read this morning’s Nikkei?

Today, this is the most uttered sentence in the Japanese auto industry. Under the headline “fast action needed to revamp carmakers”, Japan’s leading business daily rips its own carmakers several new orifices. The editorial doesn’t mince words:

“Japanese automakers lack the momentum of their South Korean and German rivals and may find themselves losing out big on the global stage unless they rethink their strategies.”

As far as the Nikkei is concerned, Japanese carmakers messed up big-time. Let’s start where it counts, at the bottom line:

Japanese carmakers are becoming increasingly worried about the Korean competition.

Everything looks good for South Korea:

• The Korean currency, the Won, is low
• Quality is improving
• Korea hammers out trade deal after trade deal, making Korean exports even cheaper

Japan on the other hand: