In recent weeks, trade talks – and talks about trade talks – have highlighted the importance of the automotive industry in transatlantic trade negotiations.
As covered by Automotive World, free trade was a key issue in President Obama’s State of the Union address, and in Davos, Switzerland, trade talks were high on the agenda at the annual World Economic Forum.
Automotive World has been following the Transatlantic Trade and Investment Partnership (TTIP) talks from the outset, and we’ve published the views of some of the world’s leading vehicle manufacturers and suppliers, and the organisations which represent them.
While industry leaders may be in favour of TTIP, the unions that represent those who work for them are pushing hard to ensure that big business doesn’t forge ahead without considering its workers
There is growing industry-level support for TTIP. For businesses, it’s a case of removing tariffs and non-tariff barriers, and levelling the regulatory playing field to free up time, money and resources that they can better invest in R&D and new technology.
In Automotive World’s recently-published ‘Guide to the automotive world in 2015’, Paul Schockmel, Chief Executive of the European Association of Automotive Suppliers (CLEPA), said the organisation, “supports a successful conclusion of the TTIP negotiations. A transatlantic market would account for 40% of the global automotive market. The cost savings due to the harmonisation or even acknowledgment of standards would be enormous – studies have mentioned savings of hundreds of millions”.
But while industry leaders may be in favour of TTIP, the unions that represent those who work for them are pushing hard to ensure that big business doesn’t forge ahead without considering its workers. There has for some time been growing grass-roots concern that TTIP might lead to a race to the bottom in terms of environmental standards; this week, German unions voiced their concern that the race to the bottom might also include working standards.
On 27 January, German labour union IG Metall sent an open letter to the heads of the automotive industry, in which it insisted that free trade must not come at the expense of workers’ rights. The letter was signed by the labour representatives of Germany’s vehicle manufacturers: Uwe Hück (Porsche), Peter Mosch (Audi), Bernd Osterloh (Volkswagen), Michael Brecht (Daimler), Martin Hennig (Ford), Wolfgang Schäfer-Klug (Opel) and Manfred Schoch (BMW).
The automotive industry is but one of many industries which would be affected – positively or negatively – by TTIP. Given the size of the automotive industry’s contribution to transatlantic trade, its place at the negotiating table is well-deserved
In response, Matthias Wissmann, President of the German automotive industry trade association, VDA, and the heads of various German OEMs and suppliers, made a renewed push to promote TTIP. Wissmann’s ‘Ja zu TTIP‘ campaign includes Arndt Kirchhoff (Kirchhoff Holding), Bernhard Mattes (Ford), Rupert Stadler (Audi), Dieter Zetsche (Daimler), Norbert Reithofer (BMW), Matthias Müller (Porsche) und Volkmar Denner (Bosch).
As well as the benefits of TTIP, proponents are highlighting the risks of not signing up to a free trade agreement with the US, which is concurrently negotiating a separate free trade agreement, the Trans-Pacific Partnership (TPP), with Canada, Mexico, Australia, New Zealand, Chile, Peru, Vietnam, Malaysia, Brunei, Singapore and Japan.
The automotive industry is but one of many industries which would be affected – positively or negatively – by TTIP. Stakeholders in the food, energy, healthcare and environmental protection sectors – to name but a few – are also heavily involved in promoting or preventing TTIP or other free trade agreements. Given the size of the automotive industry’s contribution to transatlantic trade, its place at the negotiating table is well-deserved.
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Martin Kahl is Editor, Automotive World
The AutomotiveWorld.com Comment column is open to automotive industry decision makers and influencers. If you would like to contribute a Comment article, please contact editorial@automotiveworld.com
