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0719DOC Section 1 UNITED STATES OF AMERICA DEPARTMENT OF COMMERCE + + + + + SECTION 232 NATIONAL SECURITY INVESTIGATION OF IMPORTS OF AUTOMOBILES AND AUTOMOTIVE PARTS HEARING PANEL + + + + + THURSDAY JULY 19, 2018 + + + + + The Section 232 Hearing convened in the U.S. Department of Commerce Auditorium, 1401 Constitution Avenue, NW, Washington, D.C., at 8:30 a.m., Sahra Park-Su, Moderator, presiding. U.S. GOVERNMENT PRESENT WILBUR ROSS, Secretary of Commerce NAZAK NIKAKHTAR, Assistant Secretary of Commerce SAHRA PARK-SU, Moderator, Department of Commerce JULIE ABRAHAM, Director, Office of International Transportation and Trade, Department of Transportation NICOLE BAMBAS, Senior Advisor, Office of International Transportation and Trade, Department of Transportation ANDRES CASTRILLON, Automotive Team Leader, International Trade Administration, Department of Commerce ROBERT READ, Director of Industrial Assessments for the Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy, Department of Defense MICHAEL VACCARO, Director, Office of Strategic Industries and Economic Security, Bureau of Industry and Security, Department of Commerce Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 2 ALSO PRESENT KAZUTOSHI AIKAWA, The Government of Japan ERIK AUTOR, National Association of Foreign Trade Zones CLINTON BLAIR, Organization for International Investment MATT BLUNT, American Automotive Policy Council JOSEPH T. BOYLE, LG Electronics and LG Electronics Vehicle Components USA JOHN BOZZELLA, Association of Global Automakers MICHAEL R. DAVIDSON, JTEKT North America Corporation LINDA DEMPSEY, National Association of Manufacturers HOLGER ENGELMANN, Webasto Roof Systems GERONIMO GUTIERREZ FERNANDEZ, The Government of Mexico BRIAN GARST, Center for Freedom and Prosperity SABARIAH GHAZALI, The Government of Malaysia RICHARD GLIDDEN, Tianhai Electric North America, Inc. JOHN HALL, Hyundai Motor Manufacturing Alabama BILL HANVEY, Auto Care Association WILLIAM M. HEDRICK, The Law Office of William M. Hedrick CHRIS HEINEMAN, MAHLE Industries KIRSTEN HILLMAN, The Government of Canada MARK HYMAN, Hyman, LTD, and Cosdel International Transportation on behalf of Martin Button DANIEL INGBER, Specialty Equipment Market Association JENNIFER KELLY, UAW YONG-GEUN KIM, Korean Automobile Manufacturers Association MUSTAFA KOCA, The Government of Turkey CODY L. LUSK, American International Automobile Dealers Association MNINWA MAHLANGU, The Government of South Africa MANUEL MANRIQUEZ, Japan Automotive Manufacturers Association Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 3 ALSO PRESENT BERNHARD MATTES, German Association of the Automotive Industry MARSHALL V. MILLER, Miller & Company, PC CHRISTOPHER NORTHUP, Automotive Body Parts Association DAVID O'SULLIVAN, The European Union SCOTT PARVEN, Keidanren CLARK PLUCINSKI, The Certified Automotive Parts Association BRYAN RILEY, National Taxpayer Union Free Trade Initiative RICHARD SMALLWOOD, Sumitomo Rubber North America, Inc. KANG SUNG-CHEON, The Government of the Republic of South Korea JENNIFER THOMAS, Alliance of Automobile Manufacturers S. JENNY VAN, The Taipei Economic and Cultural Representative Office PAUL C. VITRANO, Polaris Industries, Inc. GUIQING WANG, The China Chamber of Commerce for Import and Export of Machinery and Electronic Products XUEJIA WANG, The China Chamber of International Commerce PETER WELCH, National Automobile Dealers Association JIM WILSON, The Government of Ontario, Canada ANN WILSON, Motor & Equipment Manufacturers Association Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 4 CONTENTS Opening Comments . 8 Panel 1 Alliance of Automobile Manufacturers Jennifer Thomas. .17 American Automotive Policy Council (AAPC) Governor Matt Blunt. .23 National Automobile Dealers Association (NADA) Peter Welch. .28 National Association of Manufacturers (NAM) Linda Dempsey. .33 Panel 2 Motor & Equipment Manufacturers Association (MEMA) Ann Wilson . .56 Specialty Equipment Market Association (SEMA) Daniel Ingber. .61 Auto Care Association Bill Hanvey. .67 The Certified Automotive Parts Association (CAPA) Clark Plucinski. .71 United Auto Workers Jennifer Kelly . .76 Automotive Body Parts Association Christopher Northup. .80 Panel 3 Webasto Roof Systems Dr. Holger Engelmann . 107 Miller & Company, PC Marshall V. Miller . 112 Hyman, LTD Mark Hyman . 116 Cosdel International Transportation Mark Hyman . 121 Polaris Industries, Inc Paul C. Vitrano. 126 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 5 CONTENTS (CONT.) Panel 4 National Association of Foreign Trade Zones (NAFTZ) Erik Autor . 139 Center for Freedom and Prosperity Brian Garst. 144 National Taxpayer Union Free Trade Initiative Bryan Riley. 149 Panel 5 Association of Global Automakers John Bozzella. 155 LG Electronics and LG Electronics Vehicle Components USA Joseph T. Boyle. 160 Hyundai Motor Manufacturing Alabama John Hall. 166 Korean Automobile Manufacturers Association (KAMA) Yong-Geun Kim. 171 Panel 6 The European Union The Honorable David O'Sullivan . 185 The Government of Mexico The Honorable Gerónimo Gutiérrez Fernández. 191 The Government of Canada Kirsten Hillman. 196 The Government of Ontario, Canada The Honorable Jim Wilson . 201 The Government of Turkey Mustafa Koca . 206 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 6 CONTENTS (CONT.) Panel 7 The Government of Japan The Honorable Kazutoshi Aikawa . 215 The Government of the Republic of Korea Kang Sung-cheon. 221 The Government of Malaysia Sabariah Ghazali . 225 The Government of South Africa The Honorable Mninwa Mahlangu. 230 The Taipei Economic and Cultural Representative Office (TECRO) S. Jenny Van . 237 Panel 8 Sumitomo Rubber North America, Inc. Richard Smallwood. 243 Tianhai Electric North America, Inc Richard Glidden. 248 JTEKT North America Corporation Michael R. Davidson. 252 MAHLE Industries Chris Heineman . 257 Panel 9 German Association of the Automotive Industry Bernhard Mattes. 272 Japan Automotive Manufacturers Association Manuel Manriquez . 277 American International Automobile Dealers Association Cody L. Lusk . 283 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 7 CONTENTS (CONT.) Panel 10 The China Chamber of International Commerce Xuejia Wang. 288 The China Chamber of Commerce for Import and Export of Machinery and Electronic Products Guiqing Wang . 293 Keidanren Scott Parven . 296 Organization for International Investment Clinton Blair. 200 The Law Office of William M. Hedrick William M. Hedrick . 305 Adjourn. 312 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 8 1 P-R-O-C-E-E-D-I-N-G-S 2 8:32 a.m. 3 MS. NIKAKHTAR: Good morning, 4 everybody. Welcome to the public hearing of the 5 Department of Commerce's Section 232 6 investigation on automobile and automotive parts. 7 My name is Nazak Nikakhtar, and I am 8 the Assistant Secretary for the Department of 9 Commerce's Industry and Analysis Office. 10 Joining us today are experts from 11 across the U.S. Government. I would like to 12 recognize and thank the following individuals for 13 providing their expertise for our hearing today. 14 They are all seated upfront. 15 Michael Vaccaro, Director of the 16 Office of Strategic Industries and Economic 17 Security at the Department of Commerce's Bureau 18 of Industry and Security. 19 Andres Castrillon, Automotive Team 20 Leader at the Department's International Trade 21 Administration. 22 Julie Abraham, Director of the Office Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 9 1 of International Transportation and Trade at the 2 U.S. Department of Transportation. 3 Nicole Bambas, Senior Advisor in the 4 Office of International Transportation and Trade 5 at the U.S. Department of Transportation. 6 And Robert Reed, Director of 7 Industrial Assessments for the Deputy Assistant 8 Secretary of Defense for Manufacturing and 9 Industrial-Based Policy at the Department of 10 Defense. 11 It is now my honor and great pleasure 12 to introduce the Secretary of Commerce, Secretary 13 Wilbur Ross. Secretary Ross was sworn in as the 14 39th Secretary of Commerce in February 2017. He 15 is the principal voice of U.S. businesses and the 16 Trump Administration, and is steadfastly devoted 17 to assuring that U.S. industries remain globally 18 competitive and ensuring that U.S. entrepreneurs 19 and businesses have the tools they need to create 20 good jobs and economic opportunity for every 21 American, both today and tomorrow. 22 I will tell you from my own personal Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 10 1 experience that Secretary Ross cares deeply about 2 growth opportunities for both large and small 3 American businesses. I have been in the room 4 with him when he is in a meeting or has taken 5 calls from these companies personally. I have 6 watched as Secretary Ross so diligently worked to 7 implement expeditious and practical solutions to 8 their concerns. It is truly remarkable how 9 dedicated Secretary Ross is to serving our 10 country and the interests of American companies 11 and workers. 12 Further, Secretary Ross is the former 13 Chairman of the Chief Strategy Officer of WL Ross 14 & Company, and has more than 55 years of 15 investment banking and private equity experience. 16 He has been the Chairman or lead Director of more 17 than 100 companies operating in more than 20 18 different countries. 19 Named
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