Unlikely as it may seem, there are two Jack Reillys active in the auto industry. You carried a letter Jan. 7 from the other Jack Reilly, chairman of American Isuzu Motors. Just as there are two Jack Reillys, so are there two viewpoints on trade.
As a representative of the auto parts industry, I am asking the Japanese automakers for fair and free trade. As I said when I accompanied President Bush to Japan, all the auto parts industry wants is equal opportunity to compete for Japanese business.
The trade deficit with Japan now stands at $40 billion. Auto parts accounts for a quarter of that amount. The deficit can`t be continued for long without inestimable damage to the U.S. economy in general, and the parts industry in particular.
There are two solutions. The first is for Japanese automakers to buy more U.S.-made auto parts. This is the largest com-ponent-manufacturing industry in the world. We are cost- and quality-competitive with any other producers, anywhere. All we ask is a fair chance to demonstrate our point.
The second way is to remove barriers that would permit Japanese consumers to buy our replacement parts in Japan. They now pay an average of 300 percent more than we do because of a lack of international competition.
In both cases, we are content to let the market determine that the winners will be those who produce the best quality parts at the most competitive prices, regardless of country of origin.
The other Mr. Reilly calls this position protectionism. I share the viewpoint of President Bush. We call it free but fair trade.
