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Auto Dealers Disappointed That U.S. And Korea Unable to Work Out Auto Trade Differences

1 October 1997

Auto Dealers Disappointed That U.S. And Korea Unable to Work Out Auto Trade Differences

    WASHINGTON, Oct. 1 -- Today, in accordance with U.S. trade
law, the United States Trade Representative (USTR) unveiled its annual Super
301 list of priority countries who engage in trade practices, which, if
eliminated, would result in a significant increase in U.S. exports.  At the
same time, the USTR announced that it will initiate within the next few weeks
a Section 301 investigation concerning Korea's auto trade practices.  The
American International Automobile Dealers Association (AIADA) had discouraged
the USTR from taking unilateral action against Korea in the auto sector
because of the potential harmful impact it could have on the American
businesses that sell and service Korean-nameplate automobiles, their American
employees and American consumers.
    "It is unfortunate that the U.S. and Korea could not resolve this dispute
on a mutually agreeable basis," AIADA President Walter Huizenga said.  "Even
though Korean imports account for less than 1 percent of the U.S. market,
Korean cars offer U.S. consumers with a valuable choice in the entry level
segment, and we hope that today's action does not stigmatize these very cars
in the U.S. marketplace," Huizenga added.  "It is ironic that those consumers
who are least able to afford price increases, which are the all-too-common
result of these government actions, will be those most directly impacted."
AIADA represents the more than 1O,000 American-owned small businesses that
sell and service international nameplate automobiles and their nearly
350,000 employees.

SOURCE  American International Automobile Dealers Association