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Import Dealer Group Comments On U.S.-Korea Auto Agreement

21 October 1998

Import Dealer Group Comments On U.S.-Korea Auto Agreement

    WASHINGTON, Oct. 21 -- "The agreement between the U.S. and
Korean governments on the Section 301 trade investigation of Korea's auto
market is good news for America's 900 Kia and Hyundai dealers, their employees
and customers," said Walter E. Huizenga, president of the American
International Automobile Dealers Association (AIADA).  AIADA is the national
trade association for American dealers of international nameplate cars,
including those imported from South Korea.
    The agreement, which was announced late in the day on October 20, averts
the imposition of trade sanctions and paves the way for improved auto trade
relations between the two countries.
    AIADA vigorously lobbied for a successful conclusion to the trade talks
since the investigation was launched in October of last year.  The association
warned President Clinton and U.S. trade negotiators that if an agreement could
not be reached and the Administration imposed trade sanctions on Korean autos,
there would be a significant impact on our dealer members, their customers and
the American economy.
    "America's 900 businesses selling South Korean automobiles employ more
than 53,000 people and provide American consumers with a range of affordable
vehicle options to meet their transportation needs," said Huizenga.
    Kia and Hyundai dealers attending AIADA's annual Automotive Congress in
Washington last May warned their Members of Congress of the devastating impact
sanctions could have on their businesses, their employees and their local
economies.
    In early September, Huizenga and AIADA Vice President of Government
Relations Scott Lane traveled to South Korea at the invitation of the Korean
Automobile Manufacturers Association to encourage dialogue between the Asian
country and U.S. officials so that a successful agreement could be reached.
Meetings were held with Korean government trade officials, Korean industry
representatives and officials from the U.S. Embassy in South Korea.
    "In South Korea and in Washington, we encouraged both countries that
resolution of this issue was vital, and we urged officials to keep talking
until an agreement could be reached," said Huizenga. "Now that an agreement
has been reached, business as usual can continue at America?s
Hyundai and Kia dealerships."