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Free Trade Cars Why U S Europe Free Trade Agreement is a good idea.
Without embarking on a Ben Stein as a doctoral thesis on the economy, we find it important to note that President Obama announced in March of the commercial partnership project and transatlantic investment TTIP is extremely important for the auto industry and car enthusiasts the objectives of the Company include abolishing tariffs on imported cars, and finally aligning the United States and motor vehicle safety standards and the European environment If adopted, the agreement could lead to the increased production here by European and American brands dealers storing a wider range of products, it can even bring brands that were exiled from these shores for decades.
The standard rate for the import of cars in the United States is 2 5 percent of their value to pickup trucks and cargo vans, the fare is a whopping 25 percent European countries t load of rights import, but the European Union accuses a flat rate of 10 percent on imported cars in simple terms, customs duties are taxes They're paid to governments by companies that import and export products and are included in the price we pay almost all countries in the cost prices of the world to some extent with the proposed TTIP up, the customs duties on cars and about a billion other products traded through Atlantic would almost disappear forever.
A 2 5 percent price reduction on 40000 luxury sedan is 1000 not exactly savings market developments, but it could, according to the planners for German carmakers reduce prices enough that it becomes economically feasible develop the engine, transmission and configurations toppings we see in the uS dropping the segment is the real heavy potentially, it could revive the compact pickup cadaverous tariff on trucks, though, 25 percent and open the door trucks imported as the VW Amarok and Doug World Ford Ranger Scott, marketing manager for the division of Ford trucks, succinctly puts the current tax, the import of a compact pickup is doomed to failure.
Suffice it to say, automakers are eager to see the TTIP The Council adopted the American auto policy that represents Chrysler, Ford and GM, issued a statement supporting the negotiations, calling for an ambitious agreement to eliminate duties customs Unlike the 1994 NAFTA free trade Agreement, which led to a rush of company relocations to Mexico, the European agreement US could very well establish the US as a major exporter.
Compared to the euro, the dollar remains relatively low, which makes our cheap European companies labor already benefit from this sport utility vehicle construction in Alabama and South Carolina to avoid tax 25 percent trucks and ship them abroad but BMW people, Mercedes-Benz and Volkswagen are eyeing yet more factories here if it means they can build cars in the US and redirected towards the Europe without incurring an import duty of 10 per cent speaking at the CEO of the New York Times BMW Norbert Reithofer said he was a great defender of a free trade agreement between Europe and the U S.
A Volkswagen executive told us that when Silao, Mexico, recently won over the US as the site of a new engine plant, it wasn t because of cheap labor, it is free trade agreement Mexico with the E U.
A free trade agreement will not, itself, the magic Ginsu slices cost cars or increase the franchise offering in the words of Robert Zoellick, former head of the World Bank, regulatory issues are much higher than the rates in the automotive world, which means security and American crash tests environmental rules our cars as directed NHTSA Europe following vehicles of the evaluation of new European Car program NCAP our need to respect the rules of emissions from the EPA, stricter stand ARDS California cars to the European market should be Euro 5 Each series of tests various protocols, methods and priorities design a unique car to meet two different sets of standards is a huge, expensive challenge for automakers various hues-flashing unibody additional welds, it adds time e Does the money for the development of the vehicle.
Efforts to unify the regulation of US and European new cars were ongoing for decades almost no progress has been made over the past 20 years, despite or perhaps due to all UN office dedicated about Summing up for the German news magazine Der Spiegel Zoellick said many of the regulatory authorities are sensitive to their prerogatives They think we do it the right way, and why should we change, but with economists, commercial, and automakers analysts, through their respective lobbies, while pushing hand in hand to harmonize regulations, bureaucracy could ultimately yield.
Although automakers typically try to build vehicles that can meet the crash test requirements on both continents, they meander often require specific engineering market as the standard bearer of the One Ford philosophy, the new Fusion Mondeo should be almost the same in any part of the world, right So how Similarly, mechanically, are American, European and Chinese mergers and Mondeos Ninety-nine percent Eighty eighteen fact, Ford says common global parts of the merger is 80 percent, which is higher than the industry norm Many gaps are parts that customers never see, such as different thicknesses and high forms of steel resistance used in the structure of the crash of the Merger.
The emission standards are one of the few areas where Continental and US regulations have seen some convergence in recent years, Europe has been more tolerant of diesel engines and nitrogen oxides However, in the next generation regulation, tighten up all markets, creating the perfect opportunity to fully align the standards.
In 1962, the European Economic Community drastically duties on imported chickens The US effectively lost access to the European poultry market and, at the end of 1963, President Lyndon Johnson retaliated with tariffs on farm brandy and refined starches and an import duty of 25 percent of light trucks Although SUVs were exempted in 1989, the chicken tax is still with us.
Importing Vehicles are classified as imports based solely on where they're built Mercedes does not pay import tariffs for classes M-products in Alabama, but GM was stuck with a bill for Regals Buick sold by 2011, which came from an Opel plant in Germany.
FreeTrade Cars Why U, cars.