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The TPP was signed today for better or worse. Some Americans may lose their truck manufacturing jobs, but it may make small trucks cheaper for consumers.

I am talking about the Chicken Tax, implemented by LBJ as some cold-as-ice revenge on France and Germany back in the ‘60s. France and Germany had the nerve to put a tariff on American chickens going into their countries, so LBJ and the UAW’s Walter Reuther hit them with a 25% import duty on potato starch, dextrin, brandy, and small pickups.
But that was half a century ago. In the meantime, the Chicken Tax has done much more to mess with the American auto market than anything else. Automotive News, interviewing former head of Hyundai in the U.S. John Krafcik, explains how the tax helped dumb down this country’s biggest car segment.

To sell a pickup truck in America while avoiding the Chicken Tax, a truck has to be built in the America, too. And for a foreign carmaker, that means building a new factory to build the truck. That’s not cheap. Krafcik puts the cost in the billions. With such a big investment, the foreign carmaker has to be sure it can recoup that initial cost, and that means they play things safe and avoid risk. So they invariably choose to build full-size trucks, as full-size trucks are the most common, profitable trucks in the U.S. They are the safest bet.

Krafcik elaborated, stating, “I think what is lost the most is low-volume experimentation and innovation in pickups. As soon as you get to that level of investment, the risks become so great that the solutions become fairly mainstream.”
Now Korea hasn't signed on yet, but it could in the future -- it wants to. All the sudden Asian trucks could make a big play to move into America, while Eurpoean trucks are still restricted. How fun. Let's play in the truck game, and the Europeans aren't invited.

The Trans Pacific Partnership Is A First Step To Cheap, Small Pickups In The U.S.
 

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If Hyundai already has a small truck production plant in a TPP country the cost of the Santa Cruz should be lower because there will be no need for a new plant or equipment to build part of it on American soil. Should also open up the American market to other small truck models.
 

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That's a good point and something that might just play into us seeing that segment pop up maybe faster than it could have if it wasn't for TPP, same for other new and upcoming segments.
 

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You bet, along with how it impacts just about everything. Things like that take years to put together, all while it's out of the public's eye, i'm sure there has been websites covering what more we can expect of TPP
 
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