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International Trade

Total U.S. exports for 2014 are $1.62 trillion. Automotive products represent 8.70% of that total, or more than $140 billion in 2014. Automakers and suppliers are America’s largest exporters, beating the next best performing manufacturing sector by more than $180 billion over the past 5 years. In 2014 alone, FCA US, Ford and General Motors exported nearly 1 million American-made vehicles to more than 100 different foreign markets.

Top Five U.S. Exporters (2014, in billions)

As America’s largest exporters, FCA US, Ford and General Motors have supported every U.S. free trade agreement ratified. These agreements have reduced tariffs and eliminated numerous non-tariff trade barriers in key markets. The Trans-Pacific Partnership (TPP) could generate similar benefits for U.S. exporters, but only if key issues are addressed:

  • Eliminate all auto non-tariff barriers in all TPP-member countries.
  • Include strong, enforceable currency manipulation disciplines (This is vital, due to Japan’s participation in the TPP).

Currency Manipulation by Japan undermines global competition in three ways:

  1. Makes it harder to export American vehicles to Japan;
  2. Provides Japanese automakers with an unfair competitive advantage in the United States; and,
  3. Makes it harder for American companies to compete with Japanese automobiles in other markets, like South America, China, Europe and the Middle East.

AAPC developed a proposal supported by leading non-partisan trade experts that is based on International Monetary Fund commitments already agreed to by all TPP member countries. It asks three simple questions to determine if a TPP member manipulates its currency:

  1. Did the TPP member have a current account surplus over the six-month period in question?
  2. Did it add to its foreign exchange reserves over that same six-month period?
  3. Are its foreign exchange reserves more than sufficient (i.e., greater than three months normal imports)?

If a TPP member is found to have breached its currency commitments under the agreement, the other TPP members shall be entitled to suspend the tariff benefits of the agreement with respect to the violating TPP member.

In an industry where automakers earn about $1,500 on a typical vehicle, Japan’s undervalued currency represents thousands of dollars per vehicle.

Weak Yen Subsidy Per Car in U.S.

Based on the October 1, 2012 rate of 78 yen/$, when Abenomics started.
3-4% profit margin on sedan. Source: McKinsey & Company, 2003 Preface to the Auto Sector Cases


Feb 03 2014
Written by Matt Blunt | Posted on St. Louis Today

In the column “Carmakers’ currency stance imperils trade talks" (Jan. 26), David Nicklaus incorrectly implies that American automakers are pursuing currency provisions in order to delay the agreement or kill the negotiations altogether. In fact, U.S. automakers have supported every ratified free trade agreement and consistently lauded the economic potential of the Trans-Pacific Partnership.

Jan 28 2014
Written by Ford Media | Posted on Ford News
  • Ford Focus global registrations grew more than 16 percent year-over-year, widening its lead over its next competitor by more than 75,000, based on Ford’s analysis of the just-released and latest Polk global vehicle data for January to September 2013
  • Propelled by Ford’s growth in China, Focus registrations surpassed 303,000 units there to also make it the best-selling passenger car nameplate in China
  • Focus is driving Ford’s global growth and is joined by Fiesta to give Ford two of the top five best-selling nameplates in the world

The Ford Focus continues to b

Filed Under: Export, International Trade
Jan 15 2014
GM Media Page

General Motors Co. (NYSE: GM) forecasts modest global industry growth in 2014 driven by the United States, China and Europe. Based on this outlook and the introduction of key vehicles globally, the company expects its total earnings before interest and tax (EBIT) adjusted to be modestly improved with improved underlying operating performance more than offsetting increased restructuring expense. Additionally, the company said it expects EBIT-adjusted margins will be similar to last year.

Jan 14 2014
Written by Mark Clothier and Keith Naughton | Posted on Bloomberg News

Chrysler Group LLC (F)’s Jeep division, aided by the fast start of the new Cherokee, probably will surpass 1 million sales worldwide this year or next, the brand’s top executive said.

Jeep global sales reached a record 731,565 last year and shipments have more than tripled since 2009, said Mike Manley, the brand’s president. Getting the maker of sport-utility vehicles to the automaker’s 1 million target by 2015 would be faster than Manley originally had expected.

Filed Under: Export, International Trade
Jan 10 2014

Washington, D.C. - AAPC President Matt Blunt today issued the following statement on the introduction of the Trade Promotion Authority (TPA) bill: