WASHINGTON - 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.
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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 <GM.N> and industry groups including the American Automotive Policy Council and the Motor and Equipment Manufacturers Association.
