WASHINGTON, D.C. – A new Study from the highly respected Center for Automotive Research (CAR) found that including Japan in the Trans-Pacific Partnership (TPP) free trade agreement combined with allowing Japan to continue to manipulate its currency could put 90,000 American auto jobs at risk. Governor Matt Blunt, president of the American Automotive Policy Council (AAPC), which represents Chrysler, Ford and General Motors, said the new study bolsters his association’s position that the TPP free trade agreement negotiations should proceed without the inclusion of Japan.
The Center for Automotive Research, an independent automotive think tank, released the study, “The Effects that a U.S. Free Trade Agreement with Japan would have on the U.S. Automotive Industry.” Among the findings were that including Japan in the Trans-Pacific Partnership (TPP) free trade agreement would put tens of thousands of U.S. jobs at risk. The study also confirmed that Japan has erected non-tariff barriers that maintain a closed auto market.
“The Trans-Pacific Partnership will be the largest free trade agreement in U.S. history and has potential to open new markets to the U.S. automakers, creating new jobs and opportunities across the country,” Governor Blunt said. “While we remain very supportive of this agreement, this study reinforces AAPC’s position that including Japan in the TPP will be a detriment to the U.S. economy because they have the most closed auto market in the world and are not prepared to eliminate non-tariff barriers to U.S. auto, including the use of currency manipulation to gain an unfair competitive advantage.”
“CAR’s study confirms that Japan has made a concerted effort over time to manipulate its currency in order to unfairly advantage its domestic auto industry and its exports in the global market. Until Japan commits to reforming its trade practices, and backs up commitments with action, the TPP negotiations should continue with the current and invited membership so the United States and its partners can benefit from a comprehensive, twenty-first century trade pact.”
Find more information on the Center for Automotive Research here.
The American Automotive Policy Council, Inc. is a Washington, D.C.-based non-profit trade association that represents the common public policy interests of its member companies: Chrysler Group LLC, Ford Motor Company and General Motors Company.
