Action needed to combat fake auto parts says Gargash

In an interview, coinciding with the 8th Automotive Aftermarket Middle East (AAME) exhibition - Dubai's annual international trade show for automobile parts, accessories, tyres batteries and garage equipment - Dr Gargash said failure to tackle the problem is undermining efforts to attract foreign investment.

Urging both distributors and manufacturers to lobby on the issue, Dr Gargash said the autoparts industry should mirror the successful fight against counterfeit computer software.

'Not enough major manufacturers have put their weight behind the campaign to rid the UAE of fake auto parts,' he said.

'Visiting chairmen and CEOs should raise this issue in their talks with senior officials. We must take the fight to the highest level of government.

'There has to be a genuine realisation that it is not in the interests of the UAE business community, or the country's international image, to be lax about this problem,' added Dr Gargash.

'It affects the investment climate and impacts adversely on efforts to build a reputation for quality. It is OK being tough on counterfeit videos and computer programmes but safety related auto parts should be a much more serious concern.'

According to a recent report from the United States' Foreign Trade Department, Middle East vehicle spares sales exceed US $8 billion annually. Industry sources estimate fake parts account for about 20% of the market, or US $1.6 billion, equal to the value of Dubai's automotive aftermarket re-export trade.

Criticising administrative and legal systems as 'time consuming and cumbersome', Dr Gargash said the prosecution of counterfeiters should be fast tracked.

'There needs to be a special team capable of tackling the menace at the points of entry and sale supported by commercial courts dealing with cases quickly and penalising the guilty.

'Consumers do not expect to walk into a supermarket and find fake milk or fake corn flakes on the shelves. Why then should they be exposed to counterfeit parts that endanger their lives?' asked Dr Gargash.

International Expo-Consults (IEC), organisers of AAME 2003, have outlawed counterfeit parts from the show.

'If any company is found to be displaying fake parts strong action will be taken, including shutting down the stand and excluding the exhibitor,' said Mohammed Falaknaz, Vice President, IEC. 'We have a duty to support, in the strongest possible way, industry efforts to eradicate this unscrupulous trade.'

AAME 2003, that being held at the Dubai International Exhibition Centre, concludes tomorrow night (May 8). It is 30% larger than the 2002 event and features over 150 vehicle spare parts, component and accessory companies, from North and South America, Europe, the Middle and Far East and Australasia.

Among the prominent countries keen to increase penetration of the Middle East market at the show with government or industry association backed pavilions are India, Pakistan, China, Australia and Taiwan. Turkey, taking space for the first time, is backed by the country's influential Exports Promotion Bureau or ULUDA.

The trade only exhibition is open from 10 am to 1 pm and from 5 pm until 9 pm daily. Anyone under the age of 18 will not be admitted.