As a cross continental trade deal between the European Union and Japan appears to be ever more close to being signed, but the old continent’s carmakers now disapprove on the terms of the deal.
According to Europe’s automakers, the unbalanced free trade agreement with Japan would provide Japan’s carmakers with the opportunity to sell their cars in the region, while the same would not happen in Japan.
“With the tenuous state of the European economy, we should all be troubled with an agreement that as written would ease the way for Japan to leverage its excess manufacturing capacity to significantly increase exports to Europe without providing the same opportunity for European exports,” said Ford of Europe, for example. “Such a scenario could mean significant job losses in the worst possible time.”
According to the carmakers, the deal would put additional strain on the chronic overcapacity automakers face in Europe, with the region only now showing early signs of recovery from the deep economic crisis that lead to an almost six years period of slump sales.
EU member states are expected to make a decision on the trade deal by May 23, with the Union still demanding Japan’s preferential tax treatment for internally built small-engine cars be dropped.
Via Automotive News Europe