(Adds details from reports, quotes)
By Krista Hughes
WASHINGTON, Dec 4 (Reuters) - U.S. auto makers are unlikely
to win a much bigger share of the Japanese vehicle market
despite a bid to break down trade barriers under a new Pacific
trade pact, a key advisory committee found, highlighting the
difficulties ahead in winning votes for the deal through
Congress.
Car makers joined the tobacco industry, pharmaceutical
companies and financial services in expressing reservations
about parts of the Trans-Pacific Partnership (TPP) agreed among
12 Pacific Rim trading partners in October.
Still, the U.S. Trade Representative said 27 trade advisory
committee reports released on Friday, covering sectors ranging
from grains to IT, showed the deal had "overwhelming" support
from a wide coalition of interests.
The Obama administration's top advisory committee said a
majority of members were happy with the deal, pointing to the
farming sector as a big winner.
Stakeholder support will help convince lawmakers to vote for
the deal, which faces opposition from unions worried about the
impact on U.S. jobs.
The most critical report came from the Labor Advisory
Committee, which said it should not be submitted to Congress.
The report covering autos said members were pleased with
25-30 year phase-out periods for tariffs on Japanese vehicles
but would have preferred longer than 10 years to remove 25
percent tariffs on other commercial vehicles.
U.S. access to Japan would marginally improve after Japan
loosened regulations Detroit carmakers complain have shut them
out, but "these commitments will not lead to a substantially
larger U.S. presence in the Japanese motor vehicle market," said
the committee, which includes General Motors (N:GM) GM.N and the
American Automotive Policy Council.
The report also noted "real concerns" about weak rules on
local content, especially for parts.
Auto parts can qualify for duty-free treatment with 35 to 45
made-in-TPP content, a lower level than the North American Free
Trade Agreement.
The steel committee said the lower thresholds were a
"serious concern" and threatened local steelmakers, given the
auto industry consumes about a quarter of U.S.-made steel.
Service and finance industries backed the TPP "on balance,"
despite inadequate protections against rules forcing companies
to store personal data on local servers.
"The outcome on this issue in TPP puts U.S. financial
services companies at a competitive disadvantage relative to
their local competitors in markets that impose such
requirements," the report said.
The environmental committee said the TPP was better than
previous agreements but did not do enough to restrict greenhouse
gas emissions.