Ahead of the summit between the EU and Japan that is taking place in Brussels on Thursday 6 July, and that could result in an agreement in principle sealing the free trade negotiations between the two economies, the European Automobile Manufacturers’ Association (ACEA) called on negotiators on Tuesday 4 July to ensure a balanced outcome for the European automobile sector.
"Concretely, this means that Japan should resolve the remaining non-tariff measures facing EU vehicle exports. This should at least partially offset the negative impact of increased Japanese imports on the competitiveness of the EU auto industry, caused by the elimination of EU tariffs”, ACEA stated.
EU import duties on Japanese cars currently stand at 10% for passenger vehicles and at 10-22% for commercial vehicles. ACEA wants any schedule for the elimination of these tariffs to reflect the status of automobiles as sensitive products and to be a minimum of seven years.
ACEA deplores the fact that six years after the EU-South Korea free trade agreement entered into force, certain of Seoul's non-tariff measures still remain unresolved, resulting in significant costs for EU manufacturers.
"It is therefore of vital importance that the EU negotiates a more robust automotive annex in the EU-Japan free trade agreement, which encourages regulatory collaboration, but also allows for issues to be addressed in case of non-compliance,” ACEA states.
The association also calls for the EU-Japan free trade agreement to provide for rules of origin arrangements that are consistent with other EU free trade agreements. It warns that any relaxation in rules of origin could have a significant impact on the competitiveness of the European automobile industry, and thus on the overall balance of the agreement.
Current EU import duties on cars do not prevent Japan being the highest exporter of cars to the EU in terms of value (worth €9 billion), and the second highest in terms of volume (representing over 20% of all vehicle imports in the EU). (Original version in French by Emmanuel Hagry)