The Center for Automotive Research released a study according to which allowing Japan free-trade exports in the US would cost the country over 26, 000 jobs.
The study was in a small part underwritten by Ford Motor, who expressed its desire to take out Japan from the Trans-Pacific Partnership, criticizing the country. Two months ago the group of 9 nations invited Mexico and Canada to join the Trans-Pacific Partnership free-trade talks, but left Japan uninvited. The Trans-Pacific Partnership also includes Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam.
The American automakers refuse allowing Japan joining the partnership arguing that the Asian country hasn’t opened its market enough for the US auto exports and that a free-trade agreement would mean building cars in Japan and exporting them to the US would be cheaper than manufacturing them in the States.
Japan pays a 2.5% tax on cars and a 25% tax on light trucks exported to the States. It is estimated that exports from Japan to the US would be up with 105,000 units or $2.2 billion, an increase of 6.2% if this tax is eliminated. This also means that the US auto production will decrease with 65,100 units, which translates in the loss of 2,600 jobs.