May 08 2013

The administration of Obama has decided and said that Japan is allowed to join 11 Nation Free-Trade Talks. After this, U.S automakers should decide their next step quickly.

Now what will be the next step of “Automakers”?

• Will automakers will protest and convince the public and Congress to oppose agreements like this?
• Will they be working behind the scenes for cutting the best agreement possibilities?

 All the U.S automakers and the United Auto Workers Union have lobbied to keep the third largest economy of the world out of the talks. They are feeling fear for the drop of U.S tariffs on imports of Japan would give a significant leg up to Japanese rivals and could lead them to lose thousands of U.S jobs belonging from autos.

Inclusion of Japan in Free-Trade Talk can make it easier for the automakers to keep some of their production at home. Although Toyota, Nissan and Honda executives said that they already have spent billions of dollars for building plants in the U.S yet a Free-Trade would not cost U.S jobs.

Congress will be approving any trade deal, and Japan will need the approval for joining the talk by the other 10 nations. Trade between Japan and U.S has been mostly one sided, with the accounting of autos for the two thirds of the United States trade deficit with Japan. 120 Japanese cars sold in U.S as Detroit’s Big Three sell only one car in Japan.