The head of the AFL-CIO in the United States is criticizing the current presidential administration for its pursuit of a trade zone in the Pacific that could open up Asian markets to America and vice versa, the Detroit News is reporting.
AFL-CIO President Richard Trumka wrote the administration a letter saying that a free-trade agreement with countries such as Japan jeopardizes American jobs because those countries may be able to source cheaper parts from outside the negotiated area, according to the report.
"I hope it is not the case that the Canadian and Mexican negotiators are actually holding a harder line than our own government on this issue. But due to the unaccountable lack of transparency from USTR, absolutely critical decisions are being made without our input or voice. Thousands of good American jobs and an iconic American industry are at risk, and we don't even know what our government's negotiating position is."
According to the Detroit News, a free-trade agreement with Asia would be high on Obama's priorities before his administration ends.
Trumka said there would be no guarantee for American automakers to gain a foothold in Japan if the Trans Pacific Partnership were created.
Instead, he said, the deal would make it easier for American automakers to source cheaper parts from China and Thailand, or other developing nations, which would come at the expense of American auto workers. Under current free trade rules in North America, 62.5 percent of a car or light truck must originate within the trade zone to be tariff free. Mexico, which is currently building nearly 4 million cars a year, would like to increase that to 65 percent. Japan is proposing a 45-percent threshold for vehicles and 30 percent for parts.
The agreement could also end the 25-percent import tax on light pickups, commonly called the "Chicken Tax."
Automakers have said they'd prefer to renew the Chicken Tax or slowly roll the tax back after years — or even decades.
According to the story, Japan doesn't place any import tax on American-built cars, and has said they've spent billions building production facilities in America — which American automakers haven't yet done in Japan.
The post Union Leader Blasts Obama on Pacific Trade Talks appeared first on The Truth About Cars.
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