Free Trade is Good for Everyone

Similar documents
Free Trade is Good for Everyone

Outlines of the Trans-Pacific Partnership Agreement

OPEN MARKETS FOR INTERNATIONAL TRADE AND INVESTMENT

The World is Flat and Beckoning

WORLD TRADE ORGANIZATION

Consolidated Earnings Report for the Second Quarter of Fiscal 2011 [Japanese GAAP]

North American Auto Industry In High Gear TPP Raises Concerns, But Trade Flows Highlight NAFTA s Competitiveness

The Trans-Pacific Partnership and Asia-Pacific Integration: Brief overview. Peter A. Petri, Michael G. Plummer and Fan Zhai February 2015

Analysis One Code Desc. Transaction Amount. Fiscal Period

A TPP Agreement: An Opportunity for North Carolina. Trade & Investment with TPP Countries Is Good for North Carolina

International Business Strategy

Learning Objectives. Chapter 17. Trading Currencies in Foreign Exchange Markets. Trading Currencies in Foreign Exchange Markets (cont.

A TPP Agreement: An Opportunity for Hawaii. Trade & Investment with TPP Countries Is Good for Hawaii. Jobs Exports Investment 64%

TPP#NEGOTIATION## OPPORTUNITIES#AND#CHALLENGES#FOR# VIETNAM#TEXTILE#&#APPAREL#INDUSTRY#

of Fiscal 2006 (Consolidated)

Understanding the Flow of Counterfeit and Gray Market Goods though the U.S. Automotive and Commercial Vehicle Parts Marketplace

STATE OF THE U.S. AUTOMOTIVE INDUSTRY: Investment, Innovation, Jobs and America s Economic Competitiveness Investment, Innovation, Jobs and America s

ANNUAL REPORT ON DISCRIMINATION IN FOREIGN GOVERNMENT PROCUREMENT April 30, 2001

The first round of TPP negotiations was held in Melbourne in March 2010.

The Evolution of Automotive Policy in Japan

World Oil Markets: Implications for Consumers, Producers, and the World Economy. James D. Hamilton Dept. of Economics, UCSD

Fifty years of Australia s trade

Financial Results for the Nine-Month Period Ended March 31, 2013

U.S.-JAPAN AUTOMOTIVE TRADE: PROPOSAL TO LEVEL THE PLAYING FIELD

Law360, New York (April 14, 2010) -- Canada s Ministry of Finance announced on March 4,

INDIAN AUTO INDUSTRY. . the way forward. Presentation by- Sunil Kakkar General Manager (SupplyChain) Maruti Suzuki India Ltd

Financial Highlights for the Fiscal Year Ended March 31, 2016 May 13, 2016

Where it all began. Where it all began (again) GIRO Convention. The Insurance Industry steps forward under the flag of Deng Xiao Ping

CREDIT UNION TRENDS REPORT

Southeast Asia Development: A Japanese Perspective

Introduction of P/C Insurance Market in China

Grande conférence Les Affaires China: Toward a new economic model. Presented by: Jean Masson

Third Quarter 2014 Earnings Conference Call. 13 August 2014

Final Report High Level Working Group on Jobs and Growth

Telecommunications EXECUTIVE SUMMARY

For personal use only. September icar Asia Limited. Thailand. Indonesia. Malaysia

Selected Financial Summary (U.S. GAAP) Toyota Motor Corporation Fiscal years ended March 31

Possible Implications of Russia's Sanctions on Turkish Economy

US China Renewable Energy Cooperation: Status, Challenges and Opportunities

CREDIT UNION TRENDS REPORT

Taking stock of China s external debt: low indebtedness, but rapid growth is a concern

Fiscal year 2012 financial results

3 rd Brazil - China Capital Markets Forum

THE INDIAN AUTOMOTIVE MARKET

Why Some Fuel-Efficient Vehicles Are Not Sold Domestically

NATIONAL ASSOCIATION OF AUTOMOBILE MANUFACTURERS OF SOUTH AFRICA

Cleantech in China The road to increasing electric vehicle adoption

Analyst Meeting Materials

2012 Japan Broiler Market Situation Update and 2013 Outlook

Changes to China s Renminbi Exchange Rate. Wednesday, August 12, 2015

Mazda Motor Corporation FISCAL YEAR MARCH 2016 FULL YEAR FINANCIAL RESULTS (Speech Outline)

SOA Annual Symposium Shanghai. November 5-6, Shanghai, China. Session 5b: Motor Insurance Market in China. Scott Yin

HONDA CANADA FINANCE INC. NSX. Investor Update January 19, 2016

Managing capacity Nissan cuts production

Section 2 Offshore outsourcing trends in the US and Japan and their impact on employment

Recent Trends in Canadian Automotive Industries

A Trade Agenda that Gets Results

Low Carbon and Environmental Goods and Services: an industry analysis. Update for 2008/09

III. Companies in America Must Venture Abroad To Sell to New Customers

Monthly Report on the Corporate Services Price Index ( Preliminary Figures for February 2011 ) Index

EXECUTIVE OFFICE OF THE PRESIDENT. A Look Back at GM, Chrysler and the American Auto Industry

Why Has Japan Been Hit So Hard by the Global Recession?

AT&T Global Network Client for Windows Product Support Matrix January 29, 2015

An Overview of Offshore RMB Market. Nov 2013

Exchange Rates: Application of Supply and Demand

Testimony by Josh Nassar, Legislative Director, United Auto Workers

Causes and Consequences of the Decline in the Price of Oil since June 2014

PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)

Share of Dealership Profits. Auto Lending Abuses: The Pitfalls of Financing Cars. Car Lending Abuses. The Trust Tax.

TOYOTA AND ITS COMPONENT SUPPLIERS CASE STUDY

Cooperating with Customers On Warranty & Reverse Logistics: Taking the Pain Out of Warranty Returns

MS&AD Insurance Group Holdings 2 nd Information Meeting of FY 2015 (Held on November 25, 2015) Q&A Session Summery

Relationship Selling. Make the Numbers Work for You. By Paul Sansone Jr Dealer Principal Sansone Jr s 66 Automall Neptune, New Jersey

The Future Growth of Stocks and Investments in Thailand

Extended Warranties for New and Used Cars in the Asia-Pacific Region

Promoting Cross Border Data Flows Priorities for the Business Community

Digital Trade in the U.S. and Global Economies

ECONOMIC GROWTH* Chapter. Key Concepts

PROVINCIAL OUTLOOK UPDATE February 6, 2015

MEXICO AS AN AUTOMOTIVE MANUFACTURING PLATFORM FOR EXPORTING Emilio Cadena PRESIDENT & CEO

Economic and Market Report. EU Automotive Industry Quarter

POST-ACCESSION BENEFITS OF THE WTO MEMBERSHIP OF TAJIKISTAN

Trends in U.S. Vehicle Exports. U.S. Department of Commerce

How Industry Might Use Free Trade and Investment Agreements to Oppose Smokefree 2025

For personal use only. August 29, icar Asia Limited. Thailand. Indonesia. Malaysia

U.S. Credit Card. Trends, Liquidation and Portfolio Pricing

CREDIT UNION TRENDS REPORT

Japan-Mexico Renewed Partnership in the Asia-Pacific

Recent Developments and Outlook for the Mexican Economy Credit Suisse, 2016 Macro Conference April 19, 2016

FORD MOTOR COMPANY SUBMITS BUSINESS PLAN TO CONGRESS; PROFIT TARGET, ELECTRIC CAR STRATEGY AMONG NEW DETAILS Based on current business planning

13.8% Inflation-adjusted GDP (billions) Cumulative growth 2009 to Q Exhibit 1 Steady U.S. Economic Growth After a Severe Recession $17,000

Makita Corporation. Consolidated Financial Results for the nine months ended December 31, 2007 (U.S. GAAP Financial Information)

Investing into South Africa s Automotive Industry

Chapter 7. Comparative Advantage and the Gains from International Trade

NATIONAL CREDIT UNION SHARE INSURANCE FUND

Main trends in industry in 2014 and thoughts on future developments. (April 2015)

EXPORTER S SOUK EVENT FOUR SEASONS 4/23/2015 1

Consolidated Settlement of Accounts for the First 3 Quarters Ended December 31, 2011 [Japanese Standards]

April Gross Receipts Show Impact of Low Oil and Gas Prices

In recent years, fiscal policy in China has been prudent. Fiscal deficits

Transcription:

Free Trade is Good for Everyone More Jobs Making the Trans-Pacific Partnership a Win-Win-Win for All Member Countries Increased Investment Mar. 2013 Trade Growth

Introduction 1. JAMA welcomes the announcement by the Government of Japan to participate in negotiations toward a Trans-Pacific Partnership(TPP) Agreement. See pages 1, 2, and 3. 2. Unsubstantiated claims have been made that Japan s market is closed to imports. On the contrary, Japan s auto market is completely open to other countries products. No restrictive customs or other regulations apply to imported vehicles. See pages 4, 5, and 6. 3. Japan s auto industry is and will continue working with the global auto industry on issues of mutual concern. See page 7.

1. The TPP Will Bring Economic Benefits to the World By enabling free trade and the liberalization of investment in the Pacific region, the TPP will contribute to the further development of the world economy. (The TPP will promote liberalization while negotiations in the Doha Round are suspended.) GDPs* of the 11 Countries Participating in the TPP Negotiations / GDP* of Japan (*2011 Nominal GDP) TPP-enabled free trade will bring major benefits to consumers through more diversified market choices. The participation of Japan, the world s third largest economy, is key to the role of the TPP. 1 A successful conclusion to the TPP negotiations will be economically beneficial to all parties, and its significance will go beyond the capacity to liberalize trade. The Trans-Pacific Partnership Its Economic and Strategic Implications by Joshua Meltzer Brookings Institution, Sept. 30, 2011 Japan s inclusion in the TPP would be a game changer. The Trans-Pacific Partnership and the Rise of China by Bernard K. Gordon - Foreign Affairs, Nov. 7, 2011

2. Japan s Participation in the TPP Will Bring Benefits to the U.S. Japanese Automakers Activities in the U.S. Japanese automakers have been engaged in local production in the U.S. since the 1980s, and today are an integral part of the U.S. auto industry. Nearly 70% of the vehicles they sell in the U.S. are built in North America. Japanese automakers contribute to quality job creation and enhanced productivity in the U.S. and to the increased competitiveness of the U.S. auto industry. The TPP would promote increased exports from the U.S. to TPP member countries, thereby boosting employment and the economy in the U.S. Of the public comments solicited by the USTR, nearly 90% welcomed Japan s participation in the TPP. 2 2.42 million vehicles produced in the U.S. 35 billion U.S. dollars invested cumulatively in U.S. plants 388,000 U.S. workers employed by Japanese automakers and their dealers 43.2 billion U.S. dollars in purchases of U.S.-made auto parts 260,000 vehicles exported from U.S. plants ( These exports constituted 16.5% of total U.S. vehicle exports.) Public Responses to Japan s Possible TPP Participation (Solicited by USTR, Dec 7, 2011-Jan 13, 2012; Total responses: 115) In favor of Japan s participation in TPP 86% (99 replies) All data is for 2011. Opposed 7% (8 replies) No opinion: 7% (8 replies) Source: Ministry of Foreign Affairs of Japan (Feb. 2012)

3. Japan s Participation in the TPP Would Promote the Creation of More Liberalized Trade and Investment Rules JAMA believes that Japan s participation in the TPP will contribute constructively to the development of rules that promote free trade, open investment and the protection of intellectual property rights, among other benefits. JAMA and its member companies endorse and will promote Japan s participation in the TPP, based on their long, proactive experience in the promotion of free trade, open investment and the protection of intellectual property rights, among other activities. 3

4. Imported Vehicles in Japan s Home Market: Consumer Demand Profile Smaller models of up to 2,000 cc in engine capacity are the mainstay of Japan s passenger car market. European automakers have introduced models in a targeted response to the demands of Japanese consumers. Breakdown of Japan s Domestic Market for Passenger Cars, by Vehicle Class (cc) and Number of Models (in 2012) Under 2,000 cc U.S. automaker models European automaker models 5 87 89.9% 8.0% 2,001cc 3,000cc U.S. automaker models 5 Over 3,000 cc U.S. automaker models European automaker models 10 103 2.1% European automaker models 54 4

5. Imported Vehicles in Japan s Home Market: Foreign Vehicle Dealership Penetration The number of dealerships selling European vehicles has increased. In contrast, there has been a decrease in the number of dealerships selling U.S. vehicles. Number of U.S. and European Auto Dealerships in Japan s Home Market Up 72% Down 74% 1996 2011 U.S. dealerships 1996 2011 European dealerships 5

6. Imported Vehicles in Japan s Home Market: Market Share The share of European vehicles in Japan s home market has steadily increased over the past 15 years. In contrast, the share of U.S. vehicles has decreased over the same period. (units) Share (in Units and %) of U.S. and European Vehicles in Japan s Home Market 6

7. Ongoing Cooperation in the Global Auto Industry Japan s auto industry is and will continue working with the global auto industry on issues of mutual concern. For example, in the course of the continuing JAMA-MEMA/OESA* dialogues, the three parties have successfully addressed issues related to product quality, delivery time, and innovation, among others, which has led to increased competitiveness. Through these and other bilateral activities, the cooperative relations between Japanese automakers and U.S. auto parts suppliers have strengthened significantly. *MEMA: Motor & Equipment Manufacturers Association (U.S.); OESA: Original Equipment Suppliers Association (U.S.) In billions of U.S. dollars 60 50 40 30 20 Japanese Automakers Purchases of U.S.-Made Auto Parts, 1995-2011 48.4 48.8 50.0 45.2 41.5 39.3 37.4 38.3 35.8 35.7 31.9 28.3 25.0 22.7 21.0 43.1 43.2 10 7 0 1995 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Note: The global economic recession adversely impacted auto production and related parts purchases in 2008 and 2009.

Making the Trans-Pacific Partnership a Win-Win-Win for All Member Countries 8 Mar. 2013