U.S. carmakers cautious on Pacific trade pact benefits

WASHINGTON, Dec 4 (Reuters) - U.S. auto makers are unlikely
to win a much bigger share of the Japanese vehicle market under
special provisions of a new Pacific trade deal, an industry
advisory committee report found, although the pact will open new
markets in Malaysia and Vietnam.
The report was one of 27 trade advisory committee documents
on the Trans-Pacific Partnership (TPP) released on Friday, which
covered sectors ranging from agriculture to customs and which
the Obama administration said showed overwhelming support.
The United States, Japan and 10 other trading partners
reached a deal in October to boost exports and set common
standards for 12 Pacific Rim nations.
Officials predict a tough fight next year to get the deal
through the U.S. Congress, and the views of stakeholders will be
important in influencing lawmakers' votes.
The report covering the automotive sector said members were
pleased with long phase-out periods for tariffs on Japanese-made
vehicles but would have preferred longer than 10 years to remove
25 percent tariffs on commercial vehicles from countries
including Vietnam and Malaysia.
Although a bilateral agreement with Japan to cut non-tariff
barriers marginally improved U.S. automakers' access to the
Japanese domestic market, "these commitments will not lead to a
substantially larger U.S. presence in the Japanese motor vehicle
market," it said.
Local content rules for motor vehicles struck the right
balance but the report noted "real concerns" raised by some that
the rules were not strong enough, especially for parts.
United Auto Workers on Thursday opposed the deal and said it
was unacceptable that more than half of the value of a car or
truck could be built by non-TPP countries and still receive
preferential treatment.
UAW has a representative on the committee, along with
General Motors (N:GM) GM.N and industry groups including the American
Automotive Policy Council and the Motor and Equipment
Manufacturers Association.