Brussels, 21/03/2012 (Agence Europe) - Ahead of trade negotiations, which it considers potentially dangerous, with Japan and a no less perilous agreement with India, and after the closely monitored agreement with South Korea came into effect on 1 July 2011, the European automobile industry has called on the European Commission and member states to change tack in how they conduct trade negotiations.
Though fully agreeing that the long-term economic prospects of the automobile industry require the further liberalisation of markets and the reduction of barriers to trade and investment, the European automobile industry wants the EU to foster an internal economic framework that is more competitive than the one that currently exists and to push for the world to become more of a level playing field, with equal access and opportunities for all of the players involved. “Unfortunately we are, at present, far from such competitive conditions and even further from such equilibrium. In fact, we find ourselves in the bizarre situation in which Europe is pushing for one free trade agreement after another - and not always with mutual benefits - while internally, we're suffering from inflexibilities and other restraints on our competitiveness”, said European Automobile Manufacturers' Association (ACEA) President and Fiat Chief Executive Sergio Marchionne, at a conference in Bruges on Tuesday 20 March where he was taking part along with Trade Commissioner Karel De Gucht. Given the high wages the automobile industry creates, its impact in fostering R&D, its contribution to maintaining a trade surplus and, therefore, its role in sustaining economic growth, Marchionne argues that it must be seen as a “strategic sector” in the approach to EU trade policy and free-trade negotiations. “It makes zero sense for Europe to use the auto industry as a bargaining chip to give away in return for doubtful benefits for other sectors”, he stated, pointing out that the EU's potential free-trade partners “regard the EU as a big fish to catch”. “Entry is easy, and the market is made up of 500 million affluent people. In contrast, for example, India's government takes an interventionist approach to protect its domestic market, and there is no indication that this strategy will change any time soon. A guarantee of equal conditions for all is the one fundamental principle that must apply”, he added. He called for tariff dismantling on both sides, until tariffs are brought to zero and asymmetric dismantling of tariffs only “in specific and limited cases”. He said that non-tariff barriers, put in place through partner countries' unfair rules, also have to be eliminated. “The way the EU has dealt with South Korea is an example of how it should not be done, casting shadows over the negotiations with Japan and India where the stakes are even higher”, Marchionne stated. (EH/transl.rt)