This week’s passage of the Trade Promotion Authority (TPA) will enhance US automotive parts and systems manufacturers’ opportunities to do business in foreign markets, according to the Motor & Equipment Manufacturers Association (MEMA).

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MEMA expressed its appreciation to the Bush administration for its strong leadership in gaining House and Senate passage of TPA.


“We are grateful to President Bush for marshaling the political resources to obtain Trade Promotion Authority. Our industry, as well as many others in the US manufacturing sector, have been looking forward to this day for a long time,” said MEMA president and CEO Christopher Bates.


“The EU, Japan, Mexico and Brazil are all tremendously important in global automotive trade. All of these have been moving ahead aggressively with bilateral agreements that have tremendous implications for production and investment in our industry. TPA will get America off the sidelines and into the heart of the game.”


Trade promotion authority allows the administration to negotiate trade agreements that Congress can approve or reject, but not amend. This provides a necessary assurance to US trading partners that any deal reached among nations during negotiations will not later be selectively altered by Congress. Prior to the president signing the Trade Act of 2002, the White House has not had trade promotion authority, (also known as “fast track”) since 1994.

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Trade promotion authority is expected to focus and energise talks on forming a Free Trade Area of the Americas (FTAA). An FTAA will benefit automotive parts and suppliers by lowering high foreign tariffs, eliminating costly customs procedures enforced by some Latin American countries and generally removing government barriers and business practices which tend to impede US suppliers’ ability to serve their customers in foreign markets.


Many traditional advocates for the auto industry in the House and Senate opposed granting President Bush trade promotion authority, citing a variety of economic, political and Constitutional concerns.