February 18, 2009

Ambassador Ron Kirk
United States Trade Representative
600 17th St. NW
Washington D.C., 20508

Dear Ambassador Kirk:

The American Automotive Policy Council (AAPC), on behalf of our member companies—Chrysler Group LLC, Ford Motor Company and General Motors Company, is writing to express our deep concern with the strong possibility that the World Trade Organization (WTO) dispute between the United States and Brazil on cotton subsidies will result in U.S. automotive exports to Brazil being penalized.

Following the WTO dispute settlement panel decision against U.S. cotton subsidies that authorized Brazil to impose retaliatory measures against imports from the United States, Brazil published a list of products that will face higher tariffs that includes U.S-built motor vehicles.  According to that list, automotive exports worth $144 million in 2008 would be targeted for retaliation.

With sales of 3.1 million cars and trucks and growth of 11% in 2009, Brazil is one of the world’s largest and fastest growing automotive markets.  Brazil is also among the top-10 U.S. export markets of automotive products (vehicles and parts), and is well known for its expertise in small engines and flex fuel vehicles.  The WTO sanctioned retaliation would harm our companies’ ability to maximize the opportunities this market represents and would make it harder for the American automotive sector, among the largest U.S. exporters, to fully contribute to growing the U.S. economy and helping meet the President’s goal of doubling U.S. exports over the next five years.

We urge you, in close coordination with others in the Administration, to work with the Brazilian officials to avert the imminent imposition of WTO-sanctioned retaliation and the harm it will inflict on U.S. automotive exports to Brazil.

Sincerely
 
Stephen J. Collins
President

American Automotive Policy Council