AAIA Supports U.S. Trade Stance

BETHESDA, Md--The Automotive Aftermarket Industry Association is applauding the pro-aftermarket recommendations made in a recent report of the U.S. Trade Deficit Review Commission. The recommendations call for the removal of trade barriers imposed by Japan and other nations, and greater monitoring and enforcement of trade agreements.

With roughly $13 billion of the 2000 total trade deficit in auto parts trade with Japan, it’s hoped that the report will bolster the U.S. negotiating position with Japan for a new five-year auto parts market access agreement to replace the 1995 accord set to expire at the end of this year. The trade talks will take place in Seattle, Nov. 29-30.

“The U.S. would not have such a high auto parts trade deficit with Japan if a wall of regulatory protectionism was not preventing world class American-made aftermarket products from reaching Japanese consumers,” said Alfred L. Gaspar, AAIA president and chief executive officer.

The total U.S. trade deficit has grown from $29.5 billion in 1991 to $450 billion this year. Persistent U.S. trade deficits with Japan in a number of sectors including the automotive parts sector were outlined in the report.

Special note was paid to the negative impact that Japan’s protected, highly regulated marketplace has on American exports and investment.

The 1995 agreement between the U.S. and Japan called for significantly expanding sales opportunities and market access for American suppliers and to significantly expand purchases of U.S. made parts by Japanese firms. While some progress has been made, the current record trade deficit level indicates the agreement has not achieved its objective and a new accord is needed to continue the work, according to AAIA officials.

“AAIA is seeking the same openness in Japanese markets as Japanese suppliers enjoy in the vast U.S. aftermarket,” said Lee Kadrich, the AAIA’s vice president of government affairs and trade issues.

(The Automotive Aftermarket Industry Association is a Bethesda, Md.-based association whose member companies manufacture, distribute and sell motor vehicle parts, accessories, tools, equipment, materials and supplies. The organization is comprised of manufacturers, distributors, jobbers, wholesalers, retailers, manufacturer's representatives and other companies doing business in the automotive aftermarket. The AAIA formerly served the aftermarket as APAA and ASIA.)

For more information, contact www.aftermarket.org.