Lack of free trade with Japan: German and French rail industry associations demand fair competition

In a statement published today the German Railway Industry Association (VDB) and the French partner association FIF (Fédération des Industries Ferroviaires) demand a fair and open competition between European and Asian railway engineering manufacturers. A foreclosure of single Asian markets by non-tariff market entry barriers is not acceptable. Both associations criticise especially Japan because the Japanese railway market is practically inaccessible to European railway engineering manufacturers whilst Japanese manufacturers, on the other hand, win orders in the railway transport in Europe, as was recently the case in Great Britain. The German and French railway industry associations regard these different market entry chances as "unbearable".

Berlin, 15.03.2012 – The Association of the European Rail Industry, UNIFE, has made the European Commission aware of the lack of openness of the Japanese rail market for a long time as the associations report in their statement. Although the Commission has urged the Japanese authorities to open their market in order to establish fair trade relations it has not been successful so far. 

The VDB and FIF point out that under the existing WTO agreements, Japanese firms do not have any legal right to participate in public procurement procedures by European companies operating in the field of railway and urban transport. Therefore European – hence also German and French – companies may exclude Japanese bidders from contract award processes under Article 58 of the current Directive 2004/17/EC. Both associations strongly recommend using these provisions to encourage Japanese authorities and railway companies to open their rail market and create a level playing field for European suppliers. The goal is to abolish the unequal competitive conditions as soon as possible as they might jeopardize jobs for the railway engineering manufacturers. That is the only way forward to a fair international competition that would be welcome in order to achieve the best solutions for the railway operators in Germany, France and Japan.

Published on 15 March 2012.

Download the original press release here.