U.S. and Australia Reach Free Trade Agreement.

Discussion in 'OT Driven' started by TriShield, Feb 10, 2004.

  1. TriShield

    TriShield Super Moderator® Super Moderator

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    Holden Says Australia-US FTA To Boost Automotive Trade
    Sun Feb 8, 7:20 PM ET

    CANBERRA -(Dow Jones)- Vehicle manufacturer Holden Ltd. said Monday the free trade agreement between Australia and the U.S. will strengthen already robust automotive trade between the two nations.

    Holden, the local arm of U.S. auto heavyweight General Motors Corp. (NYSE:GM) , said the pact will boost opportunities to import and export vehicles and components.

    In the fiscal year ended June 30, 2003, the U.S. was the second-largest export destination for Australian automotive products, valued around A$900 million, behind Saudi Arabia.

    The U.S. was the second-largest automotive product importer to Australia in 2002-03, totaling A$2.5 billion, behind Japan.

    Holden Chairman and Managing Director Denny Mooney said the free trade pact is a sensible outcome for both sides.

    "From the Australian perspective, we believe it will provide the best possible opportunities for Australian car makers and component manufacturers seeking to export to the United States," said Mooney.

    "It is also a positive outcome from an import perspective because Holden is the industry's largest importer of engine components and transmissions from the United States," he said in a statement.

    Last year, Holden exported more than 36,000 vehicles, the company's second highest year on record behind 1973.

    This included the start of 18,000 Pontiac GTO coupe exports, based on the Holden Monaro model, to the U.S.

    Mooney noted Holden's longer-term goal is to achieve annual export sales of 70,000 worldwide, with new programs being investigated to China and South Korea.

    Australia's A$17 billion auto industry is dominated by four local units of overseas manufacturers, being General Motors, Mitsubishi Motors Corp., Ford Motor Co. (NYSE:F), and Toyota Motor Corp. (NYSE:TM).

    [​IMG]

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    AUTOMOTIVE

    Australia and the United States have agreed to eliminate customs duties on almost all automotive products from the day the agreement enters into force.
    including the 25 per cent US customs duty on Utes ("pick-up trucks").
    Australian duties on passenger motor vehicles will be phased out, to zero in 2010.

    Summary

    The United States has agreed to remove, from day one, all tariffs on automotive products. For most automotive products, US tariffs are already quite low. Included amongst these, however, is the elimination of the 25 percent tariff on pick-up trucks that has prevented Australian manufacturers exporting utes to the United States.

    Australian tariffs on finished passenger motor vehicles will be phased out gradually between entry into force of the agreement and 2010, in response to concerns expressed by local manufacturers about the impact of removing tariffs immediately.

    Australia's tariffs on all other automotive goods, in particular car parts and commercial vehicles, will be eliminated from day one of the Agreement.

    Gains for Australia

    The United States is the largest market in the world for autos and auto parts. The AUSFTA will enhance the integration of Australian manufacturers into the US market. Removing the high US tariff on light commercial vehicles, in particular, provides a real opportunity and challenge for Australian ute manufacturers. Auto parts exports of $310 million in 2002 will also be boosted by the immediate removal of tariffs.

    Though US tariffs on automotive parts are relatively low, their removal will provide Australian manufacturers with an edge against competitors from other US import markets in an industry where margins are slim.
     
  2. TriShield

    TriShield Super Moderator® Super Moderator

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    This means GM is free to sell Holdens here as well as Ford selling Falcons, Utes, etc.

    Tariff free. :cool:
     
  3. dmora

    dmora Guest

    All i care about is if it will get me to Australia easier :hs:
     
  4. AndyB

    AndyB I love you baby Kaitlyn and Dad

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  5. vikingen

    vikingen OT Supporter

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    Most aussies feel we got somewhat shafted on this deal... with you guys getting more outta this deal than we do. Don't ask me the specifics coz I don't understand it all, but that what people are saying down here
     
  6. Ramses

    Ramses Be polite. Be professional. But, have a plan to ki

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    About damn time.:cool:
     
  7. Sideways

    Sideways Do I look like I give a damn?

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    So ummm does this mean I can get them to throw in a Wombat or a Koala with the car :eek3:
     
  8. The Dave

    The Dave Biodegradeable Member

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    Our punishment for not joining in with the war on iraq.
     
  9. TriShield

    TriShield Super Moderator® Super Moderator

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    From what I read, the Aussie sticking point is about sugar exports.
     
  10. jinushaun

    jinushaun New Member

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    Good for Aussie economy. And the US gets cool 'domestics'.
     
  11. jinushaun

    jinushaun New Member

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    That would be so pimp! :cool: :bowdown:
     
  12. TriShield

    TriShield Super Moderator® Super Moderator

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    Australia could potentially get SVT Mustangs, Tahoes and C6 Corvettes as well.

    GM production capacity there sucks, so if the models do well they'll be built here. It also means GM doesn't have to build additional plants there to boost capacity since it can make components where they are now and ship them tariff free.
     
  13. vikingen

    vikingen OT Supporter

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    I know its not saying all that much, but already our dollar has surpassed that of canada's :wiggle:

    perfect timing for my trip to canada next week :bigthumb:

    oh yeah..i'm sending the beer this coming weekend. On that note, I think they should add to the new trade agreement that we'll stop sending you fosters, if you stop sending up budweiser :x:
     
  14. jinushaun

    jinushaun New Member

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    Aus doesn't get Chevy branded autos?
     
  15. JW2

    JW2 New Member

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    I'll take a Falcon please :)
     
  16. jinushaun

    jinushaun New Member

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    Yeah, that pisses me off. Pretty soon AUD = USD. :wtc:

    But the Foster's commercials rock. :hs:
     
  17. vikingen

    vikingen OT Supporter

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    very few, as we get very few. We get suburbans, but half are labelled with a holden badge, the other have the chevy badge. You see the occasional big ass yank pick up. whatever models they are called, they have chev badges.
     
  18. Merli

    Merli gplus.to/merli OT Supporter

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    Free Trade agreement covers a LOT more than just cars dude :)
     
  19. TriShield

    TriShield Super Moderator® Super Moderator

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    No, they've always been badged as Holdens. You have semi-home revised Holdens like the Monaro and Ute, then rebadged Opels, and rebadged Isuzus.

    GM is looking to replace the Holden Jackaroo (Isuzu Trooper) with the Chevrolet Tahoe (Holden Tahoe) for example.
     
  20. TriShield

    TriShield Super Moderator® Super Moderator

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    I know that, the automobile part is the only thing I care about.
     
  21. DMClark

    DMClark Active Member

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    Hey Ford!!! Where's the Falcon!!?!?!!
     
  22. kré

    kré ae86 driver.

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    true story

    most people just seem to think it's just another step towards australia becoming another state of america
     
  23. dmora

    dmora Guest

    :rofl:
     
  24. TriShield

    TriShield Super Moderator® Super Moderator

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    :rofl: :rofl: :rofl:
     
  25. jinushaun

    jinushaun New Member

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    What else is there? Vegemite? :fawk:
     

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