European Auto Industry Association Protesting EU-Japan Free Trade

The European Auto Industry Association (ACEA) is protesting against a proposed free trade deal between the the EU and Japan. It claims that Japanese automakers would have an unfair advantage in such a deal. 

"We are supportive of trade agreements that are equal, that offer the opportunity to export," said ACEA General Secretary Ivan Hodac.

The European automakers major concern is that Japan has safety and environmental standards that do not match with the EU. It is relatively expensive to certify vehicles to sell in the Japanese market, compared to Japanese automakers selling cars in Europe. The ACEA is asking for Japan to adopt standards closer to the EU so that vehicles would not need as many modifications. 

The ACEA is also asking for tax breaks for European micro cars sold in Japan. The Japanese Kei class of cars, which cannot exceed 660cc of displacment, receive tax breaks and represent about a third of the Japanese market. If European cars are going to be easier to sell in Japan, the ACEA wants to be part of this segment. 

"We are of the opinion that a free-trade agreement with Japan would allow a one-sided advantage for Japan and allow the Japanese auto industry to export their overcapacity to Europe," said FordFordUnited States of America, 1903 > present92 models
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Germany Chairman Bernhard Mattes.

Foreign cars represent only 5.8% of the Japanese auto market, but Japan buys a significant amount of European goods. It imported €69 billion ($90 billion) of goods in 2011 and exported  €52.5 billion ($68.79 billion) of goods to Europe in 2012. 

Official negotiations for the free trade deal is scheduled to begin in April and are expected to last through the end of the year. 

Source: Automotive News Europe