The Automotive Aftermarket Industry Association (AAIA) says that it is welcoming "a thorough and objective World Trade Organization (WTO) review of the export subsidies China allegedly provides to its auto parts manufacturers."
The AAIA, responding to the Sept. 17, 2012, announcement by United States Trade Representative (USTR) Ron Kirk that the U.S. has requested dispute settlement consultations with the government of China at the WTO concerning China’s automotive and auto parts “export base” subsidy program, supports the U.S. government’s efforts to confront foreign trade distorting measures. It also encourages the USTR to recognize the increasingly globally integrated nature of the automotive aftermarket and the potential for unintended consequences to a significant sector of the U.S. economy.
“AAIA is committed to fairness in the international trading system and supports efforts to ensure that WTO members abide by their commitments,” says Kathleen Schmatz, AAIA CEO and president.
“We encourage the USTR to work towards a solution through the bilateral consultation phase of the WTO dispute settlement process in order to avoid a prolonged arbitration and appeal process and potential Chinese retaliation aimed at the U.S. automotive aftermarket.”
