FCAI wary of Trans-Pacific Partnership

The Federal Chamber of Automotive Industries has issued a press release expressing qualified approval for Australia's initiative to join a free trade bloc among other Pacific nations, at some point during the next 12 months.

Although the press release did outline the benefits to Australia of a free market for automotive importers and exporters, it also raised the prospect of offshore companies exporting large quantities of manufactured products to Australia, without any reciprocal gain for local businesses.

The FCAI is anxious that there may remain trade (and non-trade) barriers in place in countries participating in the free trade bloc. Those barriers would hinder Australian exporters conducting business in those respective markets. It's tough enough as is selling locally-built products in foreign markets, the FCAI argues, when the Australian dollar is so strong. Local exporters don't need any further obstacles placed in the way.

The following is what the Chamber had to say about barriers that restrict access to other markets for Australian-based companies:

"Previous FTAs negotiated by Australia have not resulted in equivalent market access for automotive products. Non-tariff barriers in particular have been used to restrict or prevent the import of motor vehicles from Australia.

"Examples of non-tariffs barriers that countries use to protect their auto industries include the maintenance of a discriminatory tax structure, the frequent introduction of new technical barriers, non-WTO-compliant customs valuation methodologies, currency manipulation and direct/indirect actions that reinforce anti-import bias against imported cars such as subsidised interest rates on the purchase of domestically produced vehicles."

Picture shows Holden-built Chevrolet Caprice PPV, which is exported to the USA within the terms of a free trade agreement.

Read the latest news and reviews on your mobile, iPhone or PDA at carsales' mobile site...