US Under Secretary of Commerce for International Trade Stefan M. Selig released this week the Trans-Pacific Partnership (TPP) Opportunities for the US Automotive Sector Report, which details how the elimination of various tariffs and other TPP commitments to level the playing field will benefit American automotive and related companies competing in TPP markets.
"US businesses and workers in the automotive sector will be positively impacted by the elimination of many barriers once TPP is enacted," Selig said. "TPP is a high-standard agreement that levels the playing field for our products, making Made-in-America goods more attractive to the fast-growing Asia Pacific region."
The US automotive sector employed 928,000 workers in 2014. During the same time period, exports totaled $2.4 billion to the TPP markets where we do not currently have trade agreements. The report details the current barriers the sector faces in TPP countries, and demonstrates how the industry stands to benefit once the trade agreement enters into force.
Currently there are five TPP countries with which the United States does not have preferential market access – Brunei, Japan, Malaysia, New Zealand, and Vietnam. Once TPP becomes law:
• Japan will remove non-tariff barriers that impede automotive exports.
• Malaysia will eliminate import taxes on 75.8 percent of US automotive exports within four years.
• Vietnam will eliminate import taxes on 70.4 percent of US automotive exports within four years.
• The United States will implement a long phase out of its tariffs for cars and trucks.
• Japan will remove non-tariff barriers that impede automotive exports.
• Malaysia will eliminate import taxes on 75.8 percent of US automotive exports within four years.
• Vietnam will eliminate import taxes on 70.4 percent of US automotive exports within four years.
• The United States will implement a long phase out of its tariffs for cars and trucks.