Motortrades Insight Magazine Online

Europe on verge of creating 400,000 jobs in free trade agreement with Japan to allow EU-built cars to ‘compete on an equal footing’ in the Far East

Ref:A0241
Published: 26 March 2013


Europe’s automotive industry is calling for Japan to bring a halt to the drawn-out process of selling EU-built cars in the Far Eastern country, with the European Union (EU) launching a free trade agreement yesterday.

Currently, European manufacturers struggle to sell their cars in Japan due to the country’s strict national requirements and desire for Japanese citizens to drive only home-built vehicles.

Nissan Leaf Award - Boss Receives Awards for Nissan Leaf
Some of the world’s leading manufacturers and brands are based in Japan, yet production volumes of homebuilt cars have reduced significantly over the last few years, with more Japanese men and women being lured by the stylish European alternatives.

Toyota leads the Japanese field, with Honda, Nissan, Suzuki and Mazda all producing a similar number of cars. This is followed by Daihatsu, Mitsubishi and Suburu. 

"We are strongly in favour of free trade agreements that are balanced and that provide real opportunities for export," explained Ivan Hodac, European Automobile Manufacturers’ Association’s (ACEA) Secretary General. "However we still have some reservations about an FTA with Japan. We question its potential to create sufficient opportunities for European exporters to counterbalance the greater access to the EU which Japanese manufacturers will gain as a result of tariff reductions."

Nissan Engine Being Made in Factory
Japan currently retains unique national requirements which add to the cost of imports, without bringing benefits to the consumer. ACEA stresses the need for Japan to accelerate the harmonisation of its vehicle standards with UN Regulations.

"Our industry requests that an EU type-approved vehicle can be sold in Japan without the need for further certification or costly modification. This is not the case today," he added. "European cars are amongst the safest and cleanest in the world, so there is no reason why a car that is suitable for EU consumers should not be suitable for Japanese consumers."

ACEA is also calling for Japan to revise the fiscal and other privileges enjoyed by ‘kei-cars’ (super-mini cars which are a creation of the Japanese regulatory system), so that European sub-compact cars can compete on an equal footing.

Nissan Production Line
"ACEA urges for the real and effective elimination of non-tariff barriers in the car sector. We welcome the fact that in twelve months the European Commission will assess whether Japan’s progress in this regard is fully satisfactory," stated Hodac. If this is not the case, the Commission has indicated that it will ''pull the plug'' on the negotiations.

It has suggested to the Commission to set challenging, but realistic, targets for the first year of the negotiations. It will work constructively with the Commission and other relevant stakeholders to ensure that Japan fulfils its commitments to eliminate non-tariff barriers in the automotive sector. The Council of the European Union last year gave the Commission a mandate to open trade negotiations with Japan. 

Japanese Girl Car Model

Subscribe to MotorTrades insight
MotorTrades Insight are now official news providers for NewsNow.
ACF Square 1

Top Stories // This Week

Show Stories For:

james-hunts-hesketh-308-could-make-537000-at-upcoming-rm-auctions-monaco-saleJames Hunt's Hesketh 308 could make £537,000 at upcoming RM Auctions Monaco sale.  Hesketh Racing was formed in 1972 by the British Peer, Lord Alexander Hesketh, who was a keen motorsport enthusiast with a desire to compete in the sport at the highest level. After two seasons... kia-receives-environmental-badge-for-use-of-bio-based-plastic-in-new-soul-electric-vehicleKia receives environmental badge for use of bio-based plastic in new Soul electric vehicle.  Kia has revealed that the company’s new Soul EV (electric vehicle), which will have its world premiere at the 2014 Chicago Auto Show starting later this week, has achieved UL Environment validation ... crash-tests-show-indias-cars-are-unsafe-and-in-the-dark-ages-compared-to-europeCrash tests show India's cars are unsafe and in the dark ages compared to Europe.  Britons are lucky to be driving some of the safest cars in the world. In other parts of the world, safety standards are not so high. Every day, 380 lives are lost on the roads of India. It's a blood... european-autonomous-driving-research-project-adaptive-beginsEuropean autonomous driving research project 'AdaptIVe' begins.  The European research project AdaptIVe (Automated Driving Applications & Technologies for Intelligent Vehicles) has begun at the MobileLifeCampus in Wolfsburg, Germany. It is a consortium o... new-vehicle-collision-repair-qualifications-brought-in-to-recognise-skills-of-mechanics-and-bodyshop-workersNew Vehicle Collision Repair Qualifications brought in to recognise skills of mechanics and bodyshop workers.  Two new IMI Awards qualifications have recently been introduced, targeted at the body repair sector. The level 2 and level 3 Multi-skilled Vehicle Collision Repair Qualifications cover paint, p... new-70mpg-c-class-c-220-bluetec-will-cost-around-30000-mercedes-revealNew 70mpg C-Class C 220 BlueTEC will cost around £30,000, Mercedes reveal.  The new C-Class C 220 BlueTEC will cost from £30,865 for a 7-speed automatic. It has 170hp, accelerates from zero to 62mph in 7.7 seconds and has a claimed combined fuel economy of 70.6mpg.&nbs... f1-pictorial-comparison-mclaren-mp4-28-vs-mclaren-mp4-29-the-bizarre-intricacies-of-dolphin-noses-crazy-curves-and-jagged-linesF1 Pictorial Comparison: McLaren MP4-28 vs McLaren MP4-29 - the bizarre intricacies of dolphin noses, crazy curves .  After McLaren confirmed the departure of Paddy Lowe to Mercedes F1, Tim Goss was appointed Director of Engineering for the Woking-based Formula One team. In the past, he was Chief Engineer for ... first-drive-review-volvo-v60-d4-r-design-nav-geartronicFIRST DRIVE REVIEW: Volvo V60 D4 R-Design Nav Geartronic.  This is arguably the sexiest looking Volvo estate ever created. And the colour, Rebel Blue, says what Volvo and Swedish design is all about. We test drove the Volvo V60 D4 R-Design Nav last wee... personal-photograph-taken-by-michael-schumacher-to-be-auctioned-for-great-ormond-street-hospitalPersonal photograph taken by Michael Schumacher to be auctioned for Great Ormond Street Hospital.  A personal photograph taken by Michael Schumacher is to be auctioned in London this Friday to raise funds for the Great Ormond Street Hospital Children’s Charity.The image of a boat on a lake taken ... new-vauxhall-astra-gets-cleaner-16-litre-engine-with-a-combined-fuel-economy-of-763mpgNew Vauxhall Astra gets cleaner 1.6-litre engine with a combined fuel economy of 76.3mpg.  The top-selling Astra is now available with a super-smooth new generation 1.6 CDTi engine, Vauxhall’s cleanest ever mid-size diesel.Previously only available on the Zafira Tourer and the Meriva, the... new-cars-are-27-per-cent-more-fuel-efficient-than-in-2008-as-car-sales-rise-in-januaryNew cars are 27 per cent more fuel efficient than in 2008, as car sales rise in January.  New car registrations were up in January, with the UK automotive industry expecting to see 'moderate, sustainable growth in 2014', according to SMMT Chief Executive Mike Hawes.Buyers are increasingl... 

Cookies on Motortrades Insight

Like many popular websites, Motortrades Insight uses some third party widgets that may set and may have already set cookies, for example the Twitter feed on our homepage.
For more information see our cookie policy. By clicking close and continue you agree to our use of cookies.