U.S. Automakers Leery as Pacific Trade Deal Emerges - Bloomberg
automakers typically back trade agreements that open markets for their products, yet they aren’t cheering for a pact among 12 Pacific nations that’s entering its final negotiations. In particular, they say, it would let Japan perpetuate an imbalance in which it exports 130 vehicles to the U. S. for every one American vehicle exported to Japan. “Given the magnitude of auto trade between the U. S. and Japan -- which is primarily one way from Japan to the U. S. -- you really can’t have a successful TPP unless you have a successful outcome on automobiles,” Matt Blunt, head of the American... Concern over closed markets and currency have been some of the thornier issues in the trade pact. automakers and their suppliers, which have exported more than $637 billion in vehicles and parts over the past five years, support free-trade agreements but want this one to include protections against countries that weaken their currency. Currency Issue The automotive policy council will only support the trade deal if it resolves the currency issue, Blunt said in an e-mail. Source: www.bloomberg.com
