Autoblog

US, Japan trade talks could see scrapping of car and truck tariffs

Jonathon Ramsey — Tue, 16 Apr 2013 07:58:00 EST

Trade issues between the United States and Japan, especially in the automotive sector, have struck a repetitive note for decades: our market is open to them, their market is effectively closed to us. Even though Japan doesn't apply tariffs to cars we export there - whereas we tax Japanese passenger cars 2.5 percent and Japanese light trucks 25 percent - other barriers like Japan's 2,000-unit cap in the Preferential Handling Program and regulatory hurdles have limited the amount of effective trade US companies can conduct there. In 2011 for instance, the US exported $1.5 billion in auto products to Japan but imported $41 billion in auto products from Japan. And it's said that Japan sells 120 cars in the US for every car a US manufacturer sells there.

That's why potential US approval of Japan's request to enter the Trans-Pacific Partnership (TPP) is sending automotive criers out in the streets. The TPP is a series of long-running talks to open up trade between the US and 10 other nations (Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam). Last month, Japan asked to join the talks, and the TPP membership would need to assent to the request within 90 days of the next TPP meeting, scheduled for Peru in July.

It looks like the US will agree to let Japan in and that has some politicians and labor groups concerned, the fear being that Japan will get an even easier time of it here without truly eliminating hurdles over there. Talks between Japan and the US are said to be at "an advanced stage," with the US trying to get some early agreements in advance in sectors like auto, insurance and agriculture before the July meeting.

The AFL-CIO is wary, just one of the labor groups worried about losing ground just when it's said that American manufacturing is coming back. Ford, not a newcomer to being vocal about trade issues with Japan, is against Japan's inclusion to the TPP talks, as is the American Automotive Policy Council. And certain members of Congress are hesitant to let Japan sit at the table, based on past and current unresolved issues. Nevertheless, it doesn't look like the Obama Administration and a large pro-business lobby will turn away from the possibility of adding the world's third largest economy to the proceedings, the US government having already unofficially welcomed Japan to the TPP talks.

US, Japan trade talks could see scrapping of car and truck tariffs originally appeared on Autoblog on Tue, 16 Apr 2013 07:58:00 EST. Please see our terms for use of feeds.

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Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

Jonathon Ramsey — Sat, 29 Dec 2012 11:00:00 EST

Filed under: Europe, Government/Legal, Hyundai, Kia, South Korea

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.

A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.

The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.

The US signed a free-trade agreement with South Korea last year after years of back-and-forth negotiations. The import tariff on US cars was halved to four percent, and by 2016 there won't be any tariff at all. The hope is that the deal will quickly mean the US will be able to export and sell more than a miniscule fraction of cars to the Asian nation's buyers; the US Internal Trade Commission predicts a 54-percent climb in exports to the country is possible. A side beneficiary of the deal is the Japanese makers: With no free-trade deal between their home country and South Korea, manufacturers like Toyota and Honda are now looking forward to sending more of their American-made product to the peninsula.

Goes Both Ways: Free-trade pact sees South Korean brands losing share at home originally appeared on Autoblog on Sat, 29 Dec 2012 11:00:00 EST. Please see our terms for use of feeds.

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New trade agreement may mean more domestics sold in South Korea

Jeff Sabatini — Fri, 14 Oct 2011 08:58:00 EST

Filed under: Government/Legal, South Korea

In 2010, domestic automakers shipped about 7,500 vehicles to Korea, representing less than one percent of its auto market. To add insult to injury, well over half a million Korean cars were sold here. But that could all change, according to Ford CEO Alan Mulally, who told The Detroit News that a new trade agreement "will open new opportunities for Ford to reach even more Korean customers."

The U.S. - South Korea Trade Agreement was approved by Congress on October 12, while President Obama welcomed President Lee Myung-bak of the Republic of Korea to the White House yesterday.

The United Auto Workers also praised the move, which reduces both Korean and U.S. tariffs. South Korea will immediately cut its tax on U.S. cars from eight percent to four percent, and fully eliminate the tariff in the fifth year of the agreement. The U.S. will continue to tax Korean cars at 2.5 percent until the fifth year, when the tariff will be eliminated. Korea will also eliminate its 10-percent tariff on trucks immediately, while the 25-percent U.S. tariff on trucks will be phased out during the eighth to tenth years of the agreement.

Perhaps more importantly, the agreement also includes a provision to address differing safety and environmental standards. Domestic automakers will now be able to sell vehicles in Korea without certifying them to Korean regulations, under certain limitations. U.S. companies that sell fewer than 25,000 vehicles in Korea will be required to only meet U.S. safety regulations. And as long as American cars are within 19 percent of South Korean standards for fuel economy and emissions they will be considered legal for sale.

New trade agreement may mean more domestics sold in South Korea originally appeared on Autoblog on Fri, 14 Oct 2011 08:58:00 EST. Please see our terms for use of feeds.

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Report: Korean ambassador stumps for more U.S. car sales in home market

Zach Bowman — Fri, 20 Aug 2010 10:00:00 EST

Filed under: Car Buying, Government/Legal, South Korea

Han Duk-soo, the South Korean ambassador to the United States, recently urged the Detroit Chamber of Commerce to embrace increasing automotive imports from his country. Talk about a tough sell. However, the move would be part of a deal that would open South Korea to cars built in America - a market that has been notoriously protected by tariffs and other barriers. Duk-soo said that eliminating America's 2.5 percent tariff on cars built in South Korea would allow his country to do away with its eight percent automotive import tax at the same time.

Without a doubt, Ford, General Motors and Chrysler wouldn't mind diving deeper into a new consumer pool, but according to Representative Sander Levin (D), the U.S.-South Korean Free Trade Agreement needs significant revision before it can provide "meaningful market access" between the two countries. Lawmakers and manufacturers currently say that the agreement isn't adequate enough protection for U.S. exports to keep them from running into additional regulations that may hinder their sale in South Korea.

Meanwhile, Duk-soo says that perception is a misunderstanding, and that while his country's auto market was protected in the past, it's now open to imports. The ambassador even pointed to increasing U.S. auto sales in Korea even despite the hurdles. According to The Detroit News, April U.S. auto sales in the country were four times what they were in 2009, driven largely by the popular Ford Taurus.

[Source: The Detroit News]

Report: Korean ambassador stumps for more U.S. car sales in home market originally appeared on Autoblog on Fri, 20 Aug 2010 10:00:00 EST. Please see our terms for use of feeds.

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Video: 17-year-old swaps old phone for Porsche Boxster on Craigslist

Chris Shunk — Wed, 21 Jul 2010 14:28:00 EST

Filed under: Convertible, Videos, Porsche

Click above to watch the video after the jump

If you don't currently own a Porsche Boxster, you probably wouldn't mind having one in the garage. Seventeen-year-old Steven Ortiz turned wishes and hopes into hard work and determination to finally land a shiny silver 2000 Boxster, but he didn't tap into a trust fund or bust open a few piggy banks to meet his goal. All he used was an old cell phone, Craigslist and a lot of time.

Ortiz bartered that phone for an iPod, then traded the iPod for a dirt bike and from the dirt bike came a series of cars, an SUV and finally one mighty attractive drop-top with an engine in the boot. The man just got his license and he's already rocking a Porsche... what a country.

The local ABC affiliate in Glendora, California interviewed Ortiz, and from the limited shots of the car, the man's Boxster looks far better than even the smartest of smart phones. Hit the jump to watch the video for yourself, and if you're thinking of asking Ortiz to swap some old junk for an Italian exotic, his friends already beat you to it. It's apparently harder to do than it sounds.

[Source: ABC News]

Continue reading Video: 17-year-old swaps old phone for Porsche Boxster on Craigslist

Video: 17-year-old swaps old phone for Porsche Boxster on Craigslist originally appeared on Autoblog on Wed, 21 Jul 2010 14:28:00 EST. Please see our terms for use of feeds.

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REPORT: U.S. psyched as China decides to cut auto part tariffs

Jonathon Ramsey — Mon, 31 Aug 2009 15:31:00 EST

Filed under: China, Europe, Government/Legal, Canada

Chinese-market 2010 Buick Regal - Click above for high-res image gallery

China joined the World Trade Organization in 2001, at which point it was given five years to adjust to the rules of open trade before any complaints were lodged against it. On schedule, in 2006, the complaints began, lodged by the U.S., Europe, and Canada.

In one example of open trade prohibitive practices, Automotive News reports that if a car built in China uses a percentage of imported auto parts above a specific threshold, China taxes each imported part an additional 25%. In such a price-competitive atmosphere, such a policy all but proscribes the use of imported parts, a move that has lead to complaints from all three continents.

The original complaint was decided at the end of last year in a ruling against China. Beijing appealed, to no avail. In response, China has rescinded the tax, which is an initial step to truly opening the market up for foreign parts- and automakers.

The U.S. trade in auto parts to China is not even 1/13th what it is to Mexico, a statistic that a host of companies would clearly like to change.

Gallery: 2009 Chinese-spec Buick Regal

[Source: Automotive News, sub req'd]

REPORT: U.S. psyched as China decides to cut auto part tariffs originally appeared on Autoblog on Mon, 31 Aug 2009 15:31:00 EST. Please see our terms for use of feeds.

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Canadian man will trade snakes for car, any takers?

Jonathon Ramsey — Fri, 04 May 2007 15:08:00 EST

Filed under: Etc.

You want to be a photographer and herpetologist but haven't found the right camera and nest of vipers at the right price. You also happen to have a car worth about $3,500 Canadian that you want to get rid of. Well there's a man in London, Ontario who's got a deal for you. In return for that car he will give you a Canon Digital Rebel XT camera with accessories . . . and snakes -- with accessories. You can get a full list of hardware, serpentware (including "1.2 Jungle Corns"), and add-ons by following the 'Read' link below. This just bolsters our theories that Canadians actually are just as strange as Americans, and you can find absolutely anything on the Internet. When you see offers like this, it is always best to remember Lord Tennyson: Ours is not to question why. . . .

[Source: Jalopnik]

Canadian man will trade snakes for car, any takers? originally appeared on Autoblog on Fri, 04 May 2007 15:08:00 EST. Please see our terms for use of feeds.

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Score one for the free market: US dumps most of its steel tariffs

Damon Lavrinc — Fri, 15 Dec 2006 11:32:00 EST

Filed under: Government/Legal

Yesterday the U.S. International Trade Commission lifted tariffs on imported steel from Australia, Canada, France and Japan, and there was much rejoicing in the boardrooms of many automakers that build cars and trucks in the U.S. The tariffs were originally put in place on cheap steel imported into the U.S. from a total of six countries that threatened to collapse the U.S. steel industry back in 1993. Some 13 years later, the U.S. steel industry is healthy, and the tariffs that once were helpful, are now creating artificially high steel prices in the U.S.

Six automakers including General Motors, Ford, DaimlerChrysler, Honda, Nissan and Toyota lobbied hard for this outcome and were extremely pleased yesterday, despite not getting tariffs lifted against steel imported from Germany and Korea, tariffs on both of which will remain in place until reviewed again in 2011.

The rising cost of raw materials, steel in particular, has been a constant thorn in the side of our own domestic auto industry, the members of which are busy trying to orchestrate complex turnarounds at the moment. Hopefully market prices for steel will begin to drop as competition to sell this all-important ingredient in modern day cars heats up again.

[Source: Just-Auto]

Score one for the free market: US dumps most of its steel tariffs originally appeared on Autoblog on Fri, 15 Dec 2006 11:32:00 EST. Please see our terms for use of feeds.

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