EU-Japan, Industry calls for elimination of NTBs
Brussels, 26 March 2013 – The European Union and Japan yesterday officially launched negotiations for a free trade agreement (FTA).
European automobile manufacturers respect the decision taken last year by the Council of the European Union to give the Commission a mandate to open trade negotiations with Japan. Indeed the 15 members of the European Automobile Manufacturers’ Association (ACEA) are global players, with factories in all regions of the world. As such, they support multilateral efforts to liberalise trade in automobiles.
“We are strongly in favour of FTAs that are balanced and that provide real opportunities for export,” stated Ivan Hodac, ACEA’s Secretary General. “However we still have some reservations about an FTA with Japan. We question its potential to create sufficient opportunities for European exporters to counterbalance the greater access to the EU which Japanese manufacturers will gain as a result of tariff reductions.”
Japan currently retains unique national requirements which add to the cost of imports, without bringing benefits to the consumer. ACEA stresses the need for Japan to accelerate the harmonisation of its vehicle standards with UN Regulations. “Our industry requests that an EU type-approved vehicle can be sold in Japan without the need for further certification or costly modification. This is not the case today,” explained Mr Hodac. “European cars are amongst the safest and cleanest in the world, so there is no reason why a car that is suitable for EU consumers should not be suitable for Japanese consumers.”
ACEA also calls for Japan to revise the fiscal and other privileges enjoyed by kei-cars (super-mini cars which are a creation of the Japanese regulatory system), so that European sub-compact cars can compete on an equal footing. “ACEA urges for the real and effective elimination of non-tariff barriers in the car sector. We welcome the fact that in twelve months the European Commission will assess whether Japan’s progress in this regard is fully satisfactory,” stated Hodac. If this is not the case, the Commission has indicated that it will ‘pull the plug’ on the negotiations.
ACEA has suggested to the Commission to set challenging, but realistic, targets for the first year of the negotiations. It will work constructively with the Commission and other relevant stakeholders to ensure that Japan fulfils its commitments to eliminate non-tariff barriers in the automotive sector.
- The European Automobile Manufacturers’ Association (ACEA) represents the 16 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, Jaguar Land Rover, Mercedes-Benz, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
- Visit www.acea.auto for more information about ACEA, and follow us on www.twitter.com/ACEA_auto or www.linkedin.com/company/ACEA/.
- Contact: Cara McLaughlin, Communications Director, email@example.com, +32 485 88 66 47.
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About the EU automobile industry
- 13 million Europeans work in the auto industry (directly and indirectly), accounting for 7% of all EU jobs.
- 11.5% of EU manufacturing jobs – some 3.4 million – are in the automotive sector.
- Motor vehicles are responsible for €374.6 billion of tax revenue for governments across key European markets.
- The automobile industry generates a trade surplus of €79.5 billion for the EU.
- The turnover generated by the auto industry represents more than 8% of the EU’s GDP.
- Investing €58.8 billion in R&D annually, the automotive sector is Europe’s largest private contributor to innovation, accounting for 32% of total EU spending.