AFIT-PAC believes that bringing competition to the marketplace benefits all Americans by lowering prices and increasing quality for consumers. Free trade grows the American economy and provides average Americans jobs in both the import and export sectors.

Free Trade Agreements (FTAs) open markets and reduce barriers to entry in other countries for American products. Expanding free trade is critical to the continued growth of the American economy. The recent US-Korea Free Trade Agreement includes provisions dealing with motor vehicles that would aid in reducing trade barriers in both markets.

AFIT-PAC supports the passage of bilateral and multilateral Free Trade Agreements that provide an open marketplace for all international nameplate automobile manufacturers.

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AFIT-PAC is a single-issue political action committee that supports free trade. Free Trade has allowed the U.S. automotive marketplace to provide U.S. consumers with a tremendous selection of world-class motor vehicles at competitive prices. AFIT-PAC opposes any protectionist trade actions by the government that would not allow consumers to reap the benefits of an open marketplace.

Historically, protectionism has demonstrated itself in the form of tariffs and quotas. The most egregious recent protectionist trade action in the automotive sector was the Executive action in 1995 that proposed a punitive 100 percent tariff on 13 Japanese highline automobiles.   Although the trade dispute was averted hours before the trade sanctions were scheduled to go into effect, the effect of placing a 100 percent import tax on the price of these targeted vehicles would have had an immediate and devastating impact on the dealers and manufacturers of these vehicles.

Another example of this is the recent executive action by the Obama Administration to impose a 35 % tariff on imported Chinese tires. In turn, China proposed retaliatory tariffs against U.S. automotive exports. These market-closing actions do not serve American business or the American consumer well.

This past Congress we saw government actions that discriminated against international nameplate motor vehicles. This manifested itself most notably with the "Buy American" provisions contained in the economic stimulus package.

AFIT-PAC strongly opposes the use of tariffs and quotas or any government actions that have the impact of increasing prices or limiting choice for the American consumer.

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Trade and the products that our dealers offer can often be affected by other policy considerations including taxes and regulations. AFIT-PAC supports the approach that all federal legislation and regulations should be equally applied to all motor vehicle manufacturers and the products they sell here in the United States. Discriminatory actions that have the effect of picking winners and losers in the marketplace are not the role of the government, but of the American consumer.

During consideration of legislation and/or the promulgation of regulations involving issues such as energy, environment, and economic policy, the international nameplate automobile industry has witnessed how proposals can discriminate against the manufacturers and automobile dealers that sell and service international nameplate cars and trucks.

For example, although the automobile federal luxury tax has sunset, while it was in effect it had a disproportionate impact on imported high-line automobiles. Recognizing the discriminatory nature of this law, Congress repealed the auto luxury tax a few years later. However, during this recent economic downturn, state governments such as Connecticut are now considering this option as a way to increase government revenue. Whether a luxury tax is proposed at the state or federal level, the imposition of luxury taxes to increase government revenue continues to be unfair and discriminatory.

Although these threats don't fall under the traditional patterns of attacking free trade, their effect would be the same, to upset the balance of the level-playing field. AFIT-PAC opposes any legislation or regulation that discriminates against any part of the U.S. automobile industry.

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Beyond trade, international nameplate auto dealers are affected by a broad range of issues that have a big impact on their business. These are a few of them:

• Corporate Average Fuel Economy Standards (CAFE) - In past years, Congress has proposed to increase CAFE standards that do not apply uniformly for all manufacturers. These proposals include the Uniform Percentage Increase (UPI) approach that would discriminate against those auto manufacturers that have made the greatest commitment to integrating fuel efficiency technologies into the fleet of vehicles.
  
  AFIT-PAC supports one national CAFE standard that applies the same to all manufacturers.


• Card Check - We have seen repeated efforts to pass legislation that would make it easier to unionize both the international automakers making vehicles in the United States and our auto dealerships. "Card Check" legislation would allow union leaders to approach your dealership employees anywhere about unionizing your business, eliminate the secret ballot to unionize, and mandate arbitrated settlements with unions. Now, the UAW has vowed to unionize an international auto manufacturer this year, with UAW President Bob King stating that failure to allow unionization would result in being branded "human rights violators."
  
  AFIT-PAC opposes "Card Check" legislation that would grant unfair advantages to Unions.


• Federal Death Tax - Due to the fact that many dealerships are family owned small businesses, the federal "death tax" can have a serious impact on the ability of dealerships to be passed from one generation to the next. After a year of no "death tax", it has been reinstated for the next two years at a rate of 35% with a $5 million exemption.
  
  AFIT PAC believes the federal death tax should be repealed.

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