In a press release issued on Tuesday, 24 March, the European Automobile Manufacturers’ Association (ACEA) expressed that it was pleased with the conclusion of negotiations on the free trade agreement between Australia and the European Union (see other news).
According to the ACEA, “The tariff reductions on vehicles will put EU exports on an equal footing with other major auto exporting countries, [which] already enjoy duty free access to the local market. Automotive parts will also be fully liberalised”. It welcomed improved access to the Australian passenger car and truck market, which has more than 900,000 registrations a year.
The ACEA was particularly pleased with the provision that indicates Australia will reform its tax on luxury cars. The association pointed out, “While the tax applied to the sales of all vehicles above a certain price threshold, the vast majority of cars in the ‘luxury’ category were European. The policy was effectively discriminatory towards EU vehicle exports.” It also welcomed the provisions on access to critical raw materials, looking on them with a favourable eye.
It called for European co-legislators to swiftly approve the agreement. (Original version in French by Anne Damiani)