AIADA ZEROES IN ON TRADE AND TAX IN 1999 During his closing speech at the AIADA 29th Annual Meeting and Luncheon in San Francisco held Feb. 8, AIADA's 1998 Chairman David F. Mungenast, Sr. reflected on the sanctions battle which led to the 1995 Auto Trade Agreement with Japan. He urged the audience of dealers and industry executives not to forget that historical moment in automotive history because "it could happen again in Japan." AIADA's 1999 Chairman Joseph D. O'Brien, Jr. echoed Mungenast's concerns: "Right now, we have trade problems with Japan in areas such as flat glass, insurance, steel and financial services, and who's products will be retaliated against? Ours. And it won't make any difference who owns Chrysler or Volvo or Nissan because sanctions on cars work." Their comments proved timely as the U.S. and Japan will hold follow-up talks on the 1995 bilateral auto and auto parts agreement on Feb. 25. The two countries will explore the renewal of "voluntary plans of action" and further Japanese deregulation of vehicle inspection and registration. The U.S. delegation, now in Tokyo, has informed the Japanese that Washington wants Japan to renew the voluntary plans of action as a means of taming its widening trade deficit with Japan and because of the presidential election next year, the sources said. In addition to the Clinton administration, Congress has focused much of its early attention on international trade. Both the House and Senate have initiated a series of hearings focusing on trade. Earlier this week, the Senate Finance Committee held a hearing focusing on U.S. enforcement of trade agreements. In the House, the Ways and Means Trade Subcommittee will hold a hearing February 25 focusing on surging steel imports from Japan, Russia, and Korea. The House trade subcommittee also will hold another trade hearing next week on fighting foreign protectionism. The legislative outlook for trade legislation remains unclear at this point. However, Congress may address a steel import bill, fast-track trade negotiating authority, a miscellaneous tariff bill or other trade legislation at any time.

FEBRUARY 1999 All the latest news and information for and about the international automobile industry in America. ON PAGE TWO: 1999 Officers Installed in San Francisco Death to the Estate Tax Register Today for the 1999 Automotive Congress, May 17-18 in Washington, DC AIADA Named Top Trade Group AIADA 99 Canal Center Plaza Suite 500 Alexandria, VA 22314 703-519-7800 703-519-7810 FAX GOAIADA@aiada.org

• Chairman: Joseph D. O'Brien, Jr. of the O'Brien Automotive Team based in Central Illinois and Southwest Florida. O'Brien's 13 franchises include Chrysler-Plymouth, Dodge, Hyundai, Isuzu, Kia, Mazda, Mitsubishi, Nissan, Subaru, Suzuki, Toyota and Volkswagen at nine locations.

• Chairman-Elect: Barbara Vidmar, Vidmar Motor Company based in Pueblo, Colo. Vidmar's franchises include Chrysler, Honda, Jeep, Mazda, Oldsmobile, Plymouth and Volkswagen.

• Vice Chairman: Richard Kull, Burns-Kull Automotive Group in N.J. and Florida. Kull's franchises include Acura, Buick, Cadillac, Chevrolet, GMC, Honda, Oldsmobile, Pontiac, Subaru and Toyota.

• Secretary/Treasurer: Don Reilly of Fairfax Hyundai in Fairfax, Va.

The Dunn-Tanner bill proposes phasing out the death tax over a ten year period, similar to the phaseout of the auto luxury tax. AIADA has been working to garner cosponsors for the legislation, which has bipartisan congressional support.

• Richard Beattie. President and chief executive officer of Mazda North American Operations.

• Charles E. Cook, Jr. One of the nation's leading authorities on U.S. elections, Cook is known for his non-partisan tracking of congressional and presidential races.

• William Kristol. Editor and publisher of The Weekly Standard and a regular on This Week with Sam Donaldson and Cokie Roberts.

• Michael Jackson. President, Mercedes-Benz of North America.

• Robert Reilly. Senior vice president, general manager, light vehicles, Isuzu Motors.

• Norman Ornstein. Resident scholar at the American Enterprise Institute for Public Policy.

Brown praised the association for its clear and unwavering mission -- promoting free trade -- and it's "energetic and fiercely committed" dealer directors.