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U.S. Auto Parts Industry Supports Administration's 'Get Tough' Trade Negotiations with Japan

10 October 1997

U.S. Auto Parts Industry Supports Administration's 'Get Tough' Trade Negotiations with Japan

    BETHESDA, Md. Oct. 10 -- Automotive Parts and Accessories
Association (APAA) President Alfred L. Gaspar today congratulated U.S.
negotiators for standing firm this week in demanding Japanese brake market
deregulation and other measures to open Japan's $30 billion aftermarket.
Several high-ranking U.S. and Japanese government representatives held an
annual consultation in San Francisco to review the implementation and results
of the 1995 auto parts and auto trade agreement.
    "Our industry has demonstrated around the globe that whenever barriers
come down, and competitive U.S. firms can get to consumers with great quality
and price, we win sales," said Gaspar.  "APAA worked closely with U.S. trade
officials to set objectives and secure an agreement unlike past parts trade
deals that were long on rhetoric, but short on results.  We intended the 1995
agreement to be a results-oriented pact, one by which we could measure
implementation and quantify the expected marketplace results."
    Gaspar praised negotiation leaders, Commerce Assistant Secretary Marge
Searing and U.S. Assistant Trade Representative Wendy Cutler, stating: "Their
proposals are a blueprint for concrete market opening steps that could spur
sales progress for American firms fully ready for open market competition."
    APAA has consistently commended U.S. leaders for supporting the American
aftermarket's petition to remove brakes from the "critical parts" list.
Certified garages, that can both make and inspect the critical parts repairs,
have a lock on Japan's $500 million brake market.  These shops, and the
Japanese automakers' suppliers who source 80 percent of their parts, together
gouge exorbitant profits from Japanese consumers.
    Removal of items from the critical parts list allows independent service
providers to make those repairs, and opens a new potential market for
competitively priced, high quality American suppliers.  Cutler said that since
shocks and struts came off the critical parts list in 1995, U.S. exports to
Japan have tripled.
    "Backed by APAA, the American negotiators kept the pressure on this week,
by asking for brake deregulation and other concrete actions by a 'date
certain,'" noted Gaspar.  He added that, "Assistant USTR Cutler made the most
compelling argument by stating that Japan's recent plan to allow the tiny
Japanese do it yourself market to perform all critical parts repairs without
inspection 'supports our contention that there is no need for the critical
part list.'"

SOURCE  Automotive Parts and Accessories Association