With the details of the Trans-Pacific Partnership unveiled, we're now seeing the potential impact the free-trade deal would have on the auto industry.
The 28-member European Union and the United States are currently negotiating a free trade agreement that, if successfully concluded, would rewrite the rules of international exchange for 46 percent of global trade. The magnitude of the potential deal means just about everyone is trying to influence parts of the deal, from the Sierra Club and almost 200 other organizations fighting the investor-state dispute clause to automakers aiming to get negotiators to harmonize US and EU safety regulations.
The Detroit News reports automakers are coming out in support of proposed free trade legislation between the US and the European Union. The Association of Global Automakers, representing major Asian manufacturers, says the Transatlantic Trade and Investment Partnership will promote economic growth, increase jobs and make US and EU companies more competitive on the global market. The legislation will also open the door for EU and US regulators to agree on one standard for emissions, crash protect
France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia – analysts expect 14-percent growth for the two in 2012.
Officials from the US and European Union have been prompted to file a complaint against China with the World Trade Organization (WTO), alleging that the up-and-coming Asian country has been manipulating taxes and tariffs on imported auto parts in an attempt to provide protection for domestic Chinese auto manufacturers.
With American buyers just beginning to wrap their heads around inexpensive Chinese cars coming to market, a new free trade agreement between Malaysia and the U.S. promises to add a few unfamiliar names to the likes of 'Geely' and 'Brilliance.' The pending FTA (expected to be approved next year) could double two-way trade between the U.S. and Malaysia by 2010, paving the way for auto companies like Perodua and Proton to find access to U.S. roads.