AAIA Pushes for New U.S.-Japan Trade Agreement

BETHESDA, MD - June 29, 2001 - The Automotive Aftermarket Industry Association (AAIA) this week continued its fight to break down Japan's trade barriers to U.S. auto parts. AAIA encouraged Senators Carl Levin (D-MI) and Arlen Specter (R-PA) and other leaders of the Congressional Auto Parts Task Force and Congressional Auto Caucus to urge President Bush to underscore the importance of negotiating a new U.S.-Japan Automotive Trade Agreement with Japanese Prime Minister Koizumi when they meet at the June 30 Summit.

A letter signed this week by all nine co-chairs of the Congressional Auto Parts Task Force and Congressional Auto Caucus, citing strong Japanese resistance to a new agreement, stated, "…it is our strong belief that if you use the opportunity of this first meeting with Prime Minister Koizumi to express your Administration's commitment to opening Japan's auto parts market, you will help overcome that earlier resistance."

In addition to Senators Levin and Specter, the Task Force and Caucus leadership is comprised of influential members of Congress from four Northeast-Midwest states where the automotive products industry is heavily concentrated. They include Sen. George Voinovich (R-OH), Rep. Nancy L. Johnson (R-CT), Rep. Marcy Kaptur (D-OH), Rep. Dale Kildee (D-MI), Rep. Sander M. Levin (D-MI), Rep. Ralph Regula (R-OH) and Rep. Fred Upton (R-MI).

The recently expired U.S. Automotive Trade Agreement was reached in 1995 with the goal of increasing market access to Japan for U.S. autos and auto parts. "The goal has not been achieved. Meanwhile, the U.S. trade deficit with Japan in autos and auto parts has gotten worse," the letter stated.

The U.S. auto parts trade deficit with Japan rose between 1998 and 2001, after declining in the early years of the Agreement. The $10.9 billion bilateral parts trade deficit in 1999 rose by 13.2 percent to $12.3 billion in 2000. "We see this as a high priority agenda for the trade agenda in the 107th Congress and hope that it will be an equally high priority for your administration," the letter said.