The United States and the European Union consider a free-trade agreement. Finally.
cheaper cars, dirt-cheaper trucks
The standard tariff for importing cars to the U.S. is 2.5 percent of their value. For pickup trucks and commercial vans, the tariff is a whopping 25 percent. Individual European countries don t charge import duties, but the European Union charges a flat rate of 10 percent on imported automobiles. In simple terms, tariffs are taxes. They re paid to governments by the businesses that import and export products and are factored into the prices we pay. Virtually every country in the world charges tariffs to some degree. With the proposed TTIP in place, the tariffs on cars and about a billion other products exchanged across the Atlantic would almost definitely disappear.
Suffice it to say, automakers are eager to see the TTIP enacted. The American Automotive Policy Council. which represents Chrysler, Ford, and GM, issued a statement supporting the negotiations, calling for an ambitious agreement to eliminate tariffs. Unlike NAFTA. the 1994 free-trade agreement that resulted in a rush of factory relocations to Mexico, the European-U.S. deal could very well establish the United States as a major exporter.
A senior Volkswagen executive tells us that when Silao, Mexico, recently won out over the U.S. as the site of a new engine factory, it wasn t because of the cheaper labor. It s [Mexico s] free-trade agreement with the E.U.