Times are changing, and will continue to change on the fly as we continue to grow into a more connected and global economy. One of the greatest issues as of recent is the debate over expanded free trade and the banishing of tariffs between regions.
According to a new economic report by General Motors and the Oxford Economics’ Study, the reduction of tariffs and increased free trade within the ASEAN (Association of Southeast Asian Nations) could create over 500,000 new jobs within the automotive industry. The numbers and statistics equate to a 0.5-percent increase in economic output.
The study also showed a decrease in tariffs across the region, but an increase in non-tariff measures has plagued the region. Between 2009 and 2013, 190 new non-tariff measures were put into place.
“ASEAN countries should be commended for their significant progress bringing down tariffs,” said GM International Vice President of Government Relations and Public Policy Matt Hobbs.
“However, NTMs remain a significant impediment to achieving the fundamental aims of the ASEAN Economic Community (AEC) to establish the free movement of goods across borders.”
The study portrayed that with full liberalization, non-tariff measures fully removed and output tax reduced by 20 percent, 500,000 additional jobs would be generated and GDP would be 0.5-percent higher in 2025 than currently forecast by Oxford Economics.
“Almost 4 million vehicles were produced in ASEAN in 2014. This is on par with South America, India and South Korea,” said Hobbs.
“But it does not act as one market, denying the region’s industry the ability to achieve the scale needed to be globally competitive.”
He added: “If it acted as one region, ASEAN would have the size, scale and expertise to become a globally competitive automotive manufacturing base that could export to major markets around the world.”
Comments
Sean,
Are all of these jobs abroad?
500,000 jobs possible !? With our free trade agreement you can figure on most if not all will be overseas ,
( Asia -Pacific ) .
The last paragraph of the letter says it all .
Free Trade has caused massive job loss in America matched by explosive jobs creation and economic development in foreign countries which have consistently imposed tariffs to protect their own economies while our own government does nothing to protect the US from a flood of foreign made goods. Free Trade means the US has Traded hundreds of thousands of jobs – for Free – to other countries in exchange for marginally lower retail prices and CEO windfalls.
The term “Global” is novocaine infused code to describe the ascendance of Factory Asia which now makes more than half of the world’s goods. Without a strong revisionist US government stance and a truly level playing field, Free Trade will continue to decimate the US economy despite the rosy picture painted here.
Tell us how many American made goods are being exported to China today? To Japan? To Korea? How many foreign manufacturers on US soil are forced into joint venture partnerships with American companies in order to produce and sell their products here? Only a matter of time before Chinese companies like Jiangling flood our market with Land Winds or their equivalents. None of this globalist propaganda should give battered Americans any reason to get excited about Asian Free Trade.
GM PDT is absolutely right. The last paragraph says it all.
IdiotBoy, you need to read about the Keiretsu in Japan- which South Korea also has something extremely similar. It’s a system where the MAJOR businesses all own some interest in each other. There is nothing really like it in any other country. It’s hard to even describe what it is.
In Japan & South Korea they will not even buy most imports even if it is a superior product.
Yeah the word “global” is a farce.
I don’t give a damn about jobs in foreign countries, what about jobs right here at home. Gm needs to create more jobs in Detroit, and get that city back on it’s feet.
Free trade sucks balls, look what it has done to us in Australia. It’s completely killed our auto industry and GM-Holden along with it. The bean counters in Detroit don’t care though, they’re rubbing their hands together at the prospect of more cheap Asian labour. Great way to treat your Allies in the land down under GM and Ford, soon we won’t make anything anymore.