MEMA Applauds Congress For Expanded Authority To President

RESEARCH TRIANGLE PARK, N.C., Dec. 7 -- The U.S. House of Representatives on Thursday narrowly approved a bill to give the White House expanded authority to negotiate new trade pacts, handing a major victory to President Bush -- and to the automotive supplier industry, according to the Motor & Equipment Manufacturers Association (MEMA), which represents North American manufacturers of motor vehicle components and systems.

Christopher Bates, president and CEO of MEMA, says the passing of Trade Promotion Authority (TPA) will help secure foreign market access for U.S. products and keep U.S. manufacturing industries strong. Senate action on TPA is expected early next week.

``MEMA applauds the Congress on this vote and is proud of the role we played on behalf of our members in making it happen,'' Bates said. ``We look forward to swift action in the Senate, signing by the president and then getting down to serious work on the new round of World Trade Organization negotiations, the Free Trade of Americas agreement and finalizing the U.S.- Chile FTA.''

The vote moves Congress one step closer to ending a seven-year impasse on how to handle labor and environmental concerns associated with trade. A sharp disagreement between Republicans and Democrats on those issues has blocked renewal of TPA -- also known as ``fast track'' -- since it expired in 1994. TPA allows the president to negotiate trade deals that Congress can approve or reject but cannot change. The White House says that authority is essential if the United States is to be a serious participant in a new round of global trade talks to start next month.

The House voted 215-214 (with five members not voting) to pass the measure which now goes to the Senate. It is expected that the Senate will deal with this issue next week.

``TPA is critical for the nation's future economic growth and for the negotiation of proposed trade agreements including the Free Trade Area of the Americas,'' Bates said, adding that there are more than 130 trade agreements around the world and the United States is only party to three. U.S. tariffs average around 2 percent, but U.S. products face tariffs of 20-30 percent and even more throughout the world.

Bates noted that MEMA and its members were instrumental in influencing Congress on the importance of TPA to U.S. automotive parts manufacturers. Over the past couple of weeks alone, numerous personal visits to legislators by MEMA staff and numerous letters from members attempted to educate the Congressional members on the importance of TPA.

Founded in 1904, MEMA exclusively represents and serves manufacturers of motor vehicle components, tools and equipment, automotive chemicals and related products used in the production, repair and maintenance of all classes of motor vehicles. Make MEMA your first call for global intelligence on the motor vehicle supplier industry, leading-edge market research, international business support, government representation, industry networking and commercial services. Experience MEMA, www.mema.org .

MEMA is headquartered in Research Triangle Park, N.C., and has offices throughout the world including in the United States, Mexico, Japan, Brazil and Belgium. The Original Equipment Suppliers Association (OESA), MEMA's affiliate association that exclusively serves automotive original equipment suppliers, is located in Troy, Mich.