One drawback to Australia's car industry if Australia and Europe agree upon a Free Trade Agreement (FTA) could be increased competition from European car manufacturers. If tariffs and trade barriers are reduced or eliminated through the FTA, European car manufacturers may be able to sell their cars in Australia at a lower cost than domestically-produced cars. This could lead to a decline in sales and market share for Australian car manufacturers, potentially resulting in job losses and a decrease in investment in the domestic car industry.
