Japan-US Free-Trade Agreement Upsets Detroit's "Big Three"

The US and Japanese governments have reached an agreement to phase out trade tariffs affecting car and truck imports, Japanese Prime Minister Shinzo Abe announced on Friday, April 12.
US-Japanese free-trade agreement 1 photo
Photo: Original image created by autoevolution
The agreement will slowly phase out 2.5 percent tariff on Japanese cars as well as 25 percent on Japanese trucks exported to the US. This could cause US automakers to lose 225,000 units of production and 95,500 jobs nation wide, according to a study made by the Center for Automotive Research (CAR) last year.

The decision taken by the Obama administration obviously angered Detroit's main manufacturers, GM, ford and Chrysler, who claim that the government has put the local industry "at a competitive disadvantage".

"After all the sacrifices made by taxpayers, autoworkers, dealers, suppliers, and other stakeholders that resulted in a necessary restructuring of the American auto industry, it is stunning that the US government would endorse a trade policy that puts the industry at a competitive disadvantage and comes at the cost of American autojobs," said Matt Blunt, president of the American Automotive Policy Council, which represents GM, Ford and Chrysler.

Detroit's "Big Three" sell one car in Japan for every 120 vehicles sold in the US by Japanese automakers.

Story via AutoGuide
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About the author: Ciprian Florea
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Ask Ciprian about cars and he'll reveal an obsession with classics and an annoyance with modern design cues. Read his articles and you'll understand why his ideal SUV is the 1969 Chevrolet K5 Blazer.
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