Friday, December 02, 2022

TIPAT and the automotive industry

The Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (TIPAT) covers a number of specific topics in its chapters, annexes and appendices as well as bilateral supplementary papers on the automotive industry.

in this regard, world trade organization (WTO) analyzed this sector and as part of this produced a graph showing the final phase of liberalization of new automotive goods, covered in headings 8702 to 8705. Harmonized System (SA).

Of all the TIPAT member countries, only imports Mexico of new vehicles for the transport of people, from the transport of goods and special use (headings 8702, 8704 and 8705 of the SA, respectively) Japan Fee will remain eligible at the end of the application period.

Liberalization of import of new automotive goodsTipat And The Automotive Industry

TIPAT came into force on December 30, 2018: Australia, CanadaJapan, Mexico, New Zealand You Singaporeon 14 January 2019 Vietnam and on September 19, 2021 Peru, The remaining three signatories (Brunei Darussalam, Chile You Malaysia) has not yet ratified TIPAT, so it is not yet enforceable between them and the other eight parties.

The final reduction of tariffs in the automotive industry will occur in 2027 (2028 in the case of Vietnam).

Thereafter, a preferential tariff of 1.25 to 3.75% or 7.5% will be applied depending on the merchandise.


Mexico is also the only party to impose a separate tariff elimination schedule—or “separate tariff”—for imports from Japan.

Australia, Mexico and Vietnam have separate liberalization programs for used goods, which will be subject to tariffs at the end of the implementation period.

In the case of Vietnam, TRQs also apply.

Trade between Canada and Japan in motor vehicles classified under HS Title 87.03 and, whenever specified, “Original Motor Vehicles” under Chapter 3 Rules of Origin, is subject to the following provisions:

  • it contains a segment nmf In a Bilateral Supplementary Paper (March 2018) on the Standards on “Technical Rules, Standards or Conformity Assessment Procedures for the Safety and Emissions of Motor Vehicles adopted by or enforced by Japan” in relation to third countries.
  • In addition, Japan and Canada may implement transitional safeguards for covered goods (Article 3) under less stringent conditions than normal transitional safeguards.
  • A special and speedy dispute resolution mechanism has been established in Article 4.
  • A bilateral committee on motor vehicles has also been established, consisting of representatives from Canada and Japan. Its functions include monitoring compliance with the obligations of the parties with respect to motor vehicles, conducting consultations on issues affecting bilateral trade and investment, and facilitating further cooperation on emerging related issues, for example, motor vehicles. With the manufacture, import, sale and operation of vehicles. Using alternative fuels, and with matters relating to other markets. The committee will meet on mutually agreed dates. As of February 2021, the committee had not yet met.
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