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U.S. Senator Debbie Stabenow - Press Release

FOR IMMEDIATE RELEASE
September 18, 2009

Contact: Press Office
Phone: 202-224-4822

Stabenow Sends Letter to President Obama Regarding Discrimination of U.S. Autos by Japan, South Korea
 
WASHINGTON —U.S. Senator Debbie Stabenow (D-MI) today sent a letter to President Obama urging him to call for Prime Minister Yukio Hatoyama of Japan and President Lee Myung-Bak of South Korea to follow their WTO obligations at the upcoming G-20. Both countries have continued to discriminate against American automakers at great cost to businesses and workers across the country.

Full text of the letter is below:

September 18, 2009

President Barack Obama
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20502

Dear President Obama,

When we put together the CARS Program (more commonly known as “Cash for Clunkers”), we followed international law and made it apply to all cars sold in the United States – not just American cars, which is what I and most of my constituents would have greatly preferred.

Instead, we followed the law, and the CARS Program was written to abide by our international agreements. That is why it is so outrageous that Japan and Korea would have the audacity to implement similar programs that discriminate against American automakers.

In Japan, a tangle of complicated paperwork keeps American cars from being eligible. Cars purchased in their program must get “Type Approval” to qualify, but importers commonly use a different method of certification, known as the Preferred Handling Procedure. Cars with this PHP certification are not eligible for Japan’s program, thus excluding almost all American-made cars.

In Korea, any car that is 10 years or older can be turned in for a tax incentive toward the purchase of a new car. This sounds great – except that in Korea, imports face numerous non-tariff trade barriers effectively capping all foreign imports at 5 percent, meaning that American cars are essentially disqualified from the purchase program.

When you meet with Prime Minister Yukio Hatoyama of Japan and President Lee Myung-Bak of South Korea at the upcoming G-20, I strongly urge you to remind them of their obligations under the WTO. Over the years, you and I have worked together to hold countries accountable who ignore their trade agreements. We cannot allow other countries to violate trade rules and harm American Businesses and American workers, who are the backbone of our middle class.

I look forward to working with you to truly create a level playing field on trade.

Sincerely,

Senator Debbie Stabenow