Washington, DC - Today, Congressman John Dingell (D-MI-15) introduced a resolution calling on the government of the Republic of Korea to end unfair trade practices related to the automotive industry, as well as demanding the United States-Korea Free Trade agreement be amended to ensure fair access to the Korean automobile market by U.S. manufacturers.  Copies of both resolutions, as introduced, are attached.

“Before we move forward with the U.S.-Korea Free Trade Agreement, I feel it necessary to remind my colleagues in Congress that the draft agreement allows Korean discriminatory treatment of imported U.S. automobiles to perpetuate,” said Dingell.  “Moreover, as certain Korean vehicles ranked among the 10 best-selling models sold under the U.S. Consumer Assistance to Recycle and Save program, while U.S. automakers continue to have grave difficulties accessing the Korean market, Congress should insist that the free trade agreement between our two countries remedy this patently unbalanced state of affairs.  As my resolution states, the U.S.-Korean Free Trade Agreement should be revised to include the March 2007 Congressional Auto Caucus proposal, which, in my view, would contribute greatly to achieving this.”

The 2007 Congressional Auto Caucus proposal reflects a pragmatic, trade-expanding, WTO-consistent approach that provides concrete, achievable incentives for Korea to open its automotive market.  There are two key components to this proposal.  The first addresses the phase-out of the 2.5 percent U.S. passenger vehicle tariff and creates a positive incentive for Korea to open its market to U.S. autos.  The second addresses Korea’s current non-tariff barriers and creates a mechanism, which is available to all industries, for the United States to take action against future non-tariff barriers.

Dingell also introduced a resolution congratulating the new government of Japan for its about-face on currency policy.  Previously, Japan had practiced direct and indirect methods of currency manipulation, thereby driving down the value of the yen and making Japanese imports in the U.S. cheaper than comparable domestically produced goods.

According to Dingell, “I have long been a critic of Japan’s unfair currency practices.  I am encouraged by the recent announcement of Japan’s finance minister that it will no longer intervene in currency markets.  This is to be commended and a continuation of this new policy is to be strongly encouraged.”