Study: U.S. Would Lose Jobs if Japan Joins Trade Pact

America would lose 26,500 jobs if Japan were allowed to participate in the Trans-Pacific Partnership free trade agreement, according to a study by the Ann Arbor, Mich.-based Center for Automotive Research.

Japan seeks to join the TPP negotiations, which include the U.S., Australia, Chile, Malaysia, Singapore, Vietnam and other Pacific Rim countries. The participants have agreed to let Canada and Mexico enter the talks.

The Obama administration and American carmakers oppose Japan's participation in the TPP. They contend that a free trade pact would entrench the non-tariff barriers that make it difficult for foreign vehicles to compete in Japan while making Japan-made autos cheaper in the U.S.

A free trade pact that eliminated America's current 2.5% tariff on passenger vehicles imported from Japan would increase such imports by 105,000 units, or 6%, CAR estimates. The center says the corresponding decline in U.S. production by domestic automakers would result in the loss of 2,600 automaking jobs, 9,000 supplier jobs and 14,900 jobs in the broader economy.

The study says U.S. employment losses could rise to 91,500 jobs including 42,200 positions at carmakers and suppliers If the yen were to weaken significantly, thus making Japanese imports even less expensive in the U.S.