Automotive affairs and consumer goods - Trade Development

The Automotive Affairs and Consumer Goods sector of Trade Development has dual reponsibilities. One of these responsibilities is carried out by the Office of Automotive Industry Affairs, which directly supports the Secretary of Commerce in his role as the Administration's spokesman on all issues affecting the U.S. automobile industry. This office coordinates the Administration's positions and activities on all major economic, safety and environmental, legislative and regulatory issues affecting the auto industry. We are currently leading efforts to oppose domestic content legislation which would require fixed levels of U.S. value-added in all cars sold in the United States. We are also working closely with other federal agencies, and Congress, to develop positions on issues that are vital to the auto industry, such as taxation and counterfeiting.

The auto industry, including its parts manufacturers and retailers, has experienced a dramatic recovery from its 1979-82 slump. Yet, rebuilding is still necessary in the face of stiff foregin competition. To assist in that rebuilding, our staff continually assesses the status and competitiveness of the industry, and identifies opportunities for its manufacturers. To further aid the industry, we are examining the U.S. and Japanese manufacturing processes and comparative costs, consumer views on auto quality, and the adequacy of assistance programs available to the unemployed auto worker. In addition, our staff provides analyses and strategies to help U.S. firms increase their sales abroad, directs trade promotion programs, and assist in enforcing U.S. trade laws and removing barriers to trade.

The second responsibility of this sector of TD is the consumer goods industries. Suppose you have a question on jewelry, or canned tuna, or even baseball bats, who do you turn to? Well, chances are the staff of the Office of Consumer Goods can help. This Office Provides high-quality analyses, coordinates policies, and promotes export activities in support of expanded international trade in over 127 specialized industries. Collectively, these industries employed 4.5 million workers and shipped $526 million of goods in 1983. Many face tough competition from imports, particularly from Japan and the advanced developing countries such as Taiwan, Hong Kong, and the Republic of Korea.

Our staff is currently preparing profiles of 23 consumer goods industries to determine the relative competitive position of these industries in both domestic and foreign markets. We are identifying weaknesses which federal policies can affect and will recommend policies designed to facilitate freer trade. We are also conducting two major competitive assessments on the furniture and footwear industries, and two more are planned for sporting goods and alcoholic beverages. Several studies related to import competition are underway. In three "escape clause" cases, the footwear, stainless steel flatware, and tuna industries have each asked the U.S. government to impose import restrictions.

Consumer Goods' staff recently prepared the position paper for the Commerce Department on the controversial Wine Equity Act, which, if enacted, would increase tariffs on European wine imports. Another issue before Congress is the use of special purpose foreign trade subzones by manufacturers to avoid high duties o imported parts. Our staff recently completed a study on the potential effects of such a zone on the bicycle industry. Our staff has examined the possibility of a free trade arrangement between the United States and Canada for funrniture and alcoholic beverages and is currently examining seven other industry sectors. The Consumer Goods staff was also involved in an analysis of a U.S.-Israeli free trade agreement.

Our responsibilities are wide-ranging. We are dedicated, however, to the goal of promoting the well-being and competitiveness of each and every one of these diverse industries.

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