A possible partnership deal between North American countries and Pacific countries may include provisions to penalize Asian governments for not opening up their markets enough for U.S. automakers, Bloomberg reported.
According to the report, negotiators are close to concluding talks regarding automobiles, which has been a contentious point during the talks. The CBC reported that talks in Atlanta were at a critical stage over pharmaceutical drugs, and any eventual deal may be delayed by an upcoming G20 meeting in Turkey.
Talks regarding automobiles have been focused on sourcing local content for each car. North American Free Trade Association rules mandate that cars made within the zone have 62.5 percent of its content sourced within the zone. Asian manufacturers have pressed for lower standards for sourced content in a bid for reduced manufacturing costs.
Terms of the possible deal, which were not made public, could include an eventual phase out of the long-standing tariff on some vehicles produced in Japan. According to the report, the tariff could eventually be eliminated after 20 years.
In exchange, American negotiators have asked for a side deal with Japan to open that market to American-made cars. Japan doesn't prohibit cars made in America, but domestic automakers have said that critical distribution limits and other factors have essentially made Japan off limits to them.
Union leaders have blasted U.S. negotiators for putting American jobs "at risk" with any potential deal.
Officials in Japan have said Americans should just make better cars.
(Photo courtesy Wikimedia Commons)
The post Pacific Trade Deal Could Force Japan to Sell US Cars appeared first on The Truth About Cars.
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