Auto Trade Agreements
Auto trade agreements set the terms and conditions as to how automobiles and automobile parts will be traded between nations. While the agreements typically include various provisions regarding the logistics of auto trade, most importantly they set out what tariffs or taxes can be applied to automobiles or related products. Historically, auto trade agreements have often been enacted bilaterally between two nations; however, increasingly negotiations regarding automobiles are being incorporated into much broader free trade agreements.
Other People Are Reading
-
Auto Pact
-
The Automotive Products Trade Agreement, or Auto Pact as it is more commonly known, was enacted by the Canadian and U.S. governments in 1965. It removed all the tariffs that were applied to automobiles and auto parts being traded between the two countries. The agreement effectively came to an end in 1989, when Canada and the U.S. signed a more expansive free trade agreement.
U.S. Japan Automotive Agreement
-
The U.S. and Japan reached an automotive agreement in 1995 that was designed to reduce trade barriers and tariffs that existed in automobile trading between the two economic powers. Despite the agreement, U.S. trade deficits with Japan increased steadily throughout the 1990s, and the deal was not renewed in 2000.
-
Free Trade Agreements
-
Certain free trade agreements the U.S. has negotiated with nations allow for tariffs designed to promote the American automotive industry. For example, the free trade agreement between the U.S. and Jordan permits tariffs to be put on American manufactured cars and pickups.
Japan India CEPA
-
The Comprehensive Economic Partnership Agreement enacted by Japan and India in 2010 eliminated tariffs that existed on Japanese automotive parts being sold to Indian based companies, like Maruti Suzuki.
-
References
Resources
- Photo Credit cars parking in parking area image by L. Shat from Fotolia.com
