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EU-Japan Free Trade Agreement
It is troubling that the European Commission – in the midst of a serious economic crisis – would propose launching negotiations with Japan over a free trade agreement before the Japanese remove important non-tariff barriers against the European auto industry, especially given that the EU automotive sector has a significant trade deficit with Japan which a free trade agreement is not expected to reverse.
Ford fully believes in free and fair trade, but it needs to be truly fair. This requires the removal of established tariff and non-tariff barriers, the prevention of new non-tariff barriers, an absence of currency manipulation, and reciprocal import-export liberalisation by trading nations.
At a time when vehicle sales in Europe are their lowest point in nearly two decades, a one-sided trade agreement that brings a wave of imports into the market without a corresponding outflow of exports could further damage the European economy and imperil the close to 12 million jobs supported by the automotive sector in Europe.
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July 18, 2012