U.S. Weighs Inviting German Auto CEOs to White House to Press for More U.S.-Based Production
November 21 2018 - 2:14PM
Dow Jones News
By Bojan Pancevski and William Boston
BERLIN -- The Trump administration is considering inviting the
CEOs of Germany's three largest car makers to the White House amid
growing impatience in Washington at the slow pace of talks with the
European Union on forging a trans-Atlantic trade deal, according to
people familiar with the discussions.
The chief executives of Volkswagen AG, BMW AG and Daimler AG
could meet with Chief White House economic adviser Lawrence Kudlow,
Commerce Secretary Wilbur Ross, and Trade Representative Robert
Lighthizer within days, according to a U.S. official.
The executives would also expect a brief audience with President
Trump, this person said. Industry officials in Germany confirmed a
meeting was being discussed. Bloomberg first reported about the
invitation.
The official said the meeting's main focus would be how German
car makers could boost their production in the U.S. by transferring
more of their car-component production there and reducing their
U.S. plants' reliance on imported parts.
The German auto makers argue that they have increased the number
of cars built in the U.S. fourfold since 2009 to 804,200 vehicles
last year, around 7.4% of total U.S. light vehicle production.
President Trump hopes the threat of new tariffs will push
Germany's car makers to lobby Berlin, which would in turn use
Germany's clout as the EU's largest economy to expedite talks on
the trans-Atlantic trade deal with U.S., the official said.
"The President does not want to increase tariffs but he is not
getting any action from Brussels and he could be forced to use that
leverage," the official said.
A separate U.S. official said no White House meeting with the
German car makers had been scheduled and that the plans remained
tentative.
Mr. Ross conveyed the administration's impatience to the CEOs at
a dinner in Brussels on October 16, according to one
participant.
Both EU and Berlin officials say that the U.S.'s focus on
Germany doesn't reflect the EU's complex decision-making and
ignores the fact that the European Commission, the EU's executive
body, has sole authority to negotiate trade deals on behalf of
member states.
European officials have blamed the slow pace of talks on U.S.
insistence to discuss the opening agricultural markets, which
France has refused to include in any negotiation. Any trade
arrangement would need to be endorsed by all 28 EU member
states.
It is unclear whether a new trade agreement with the U.S. would
cover cars -- or scrap an existing 25% tariff on light trucks
imported into the U.S., which essentially shields more than half of
the U.S. vehicle market from outside competition.
Vivian Salama contributed to this article.
Write to Bojan Pancevski at bojan.pancevski@wsj.com and William
Boston at william.boston@wsj.com
(END) Dow Jones Newswires
November 21, 2018 13:59 ET (18:59 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.