[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1132 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1132

 To provide for fair trade in motor vehicle parts, action under trade 
remedy laws for certain unfair trade practices, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 17 (legislative day, June 15), 1993

  Mr. Riegle introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide for fair trade in motor vehicle parts, action under trade 
remedy laws for certain unfair trade practices, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; DEFINITIONS.

    (a) Short Title.--This Act may be cited as the ``Fair Trade in 
Motor Vehicle Parts Act of 1993''.
    (b) Definitions.--For purposes of this Act--
            (1) Motor vehicle and motor vehicle parts.--
                    (A) The term ``motor vehicle'' means any article of 
                a kind described in heading 8703 or 8704 of the 
                Harmonized Tariff Schedule of the United States.
                    (B) The term ``motor vehicle parts'' means articles 
                of a kind described in the following provisions of the 
                Harmonized Tariff Schedule of the United States if 
                suitable for use in the manufacture or repair of motor 
                vehicles:
                            (i) Subheadings 8407.31.00 through 
                        8407.34.20 (relating to spark-ignition 
                        reciprocating or rotary internal combustion 
                        piston engines).
                            (ii) Subheading 8408.20 (relating to the 
                        compression-ignition internal combustion 
                        engines).
                            (iii) Subheading 8409 (relating to parts 
                        suitable for use solely or principally with 
                        engines described in clauses (i) and (ii)).
                            (iv) Subheading 8483 (relating to 
                        transmission shafts and related parts).
                            (v) Subheadings 8706.00.10 and 8706.00.15 
                        (relating to chassis fitted with engines).
                            (vi) Heading 8707 (relating to motor 
                        vehicle bodies).
                            (vii) Heading 8708 (relating to bumpers, 
                        brakes and servo brakes, gear boxes, drive 
                        axles, nondriving axles, road wheels, 
                        suspension shock absorbers, radiators, mufflers 
                        and exhaust pipes, clutches, steering wheels, 
                        steering columns, steering boxes, and other 
                        parts and accessories of motor vehicles).
                The Secretary shall by regulation include as motor 
                vehicle parts such other articles (described by 
                classification under such Harmonized Tariff Schedule) 
                that the Secretary considers appropriate to carry out 
                this Act.
            (2) United states motor vehicle parts manufacturer.--The 
        term ``United States motor vehicle parts manufacturer'' means a 
        manufacturer of motor vehicle parts that--
                    (A) has one or more motor vehicle parts 
                manufacturing facilities located within the United 
                States, and
                    (B)(i) is not owned or controlled by a natural 
                person who is a citizen of a deficit foreign country; 
                and
                    (ii) is not owned or controlled by a corporation or 
                other legal entity, wherever located, which is owned or 
                controlled by--
                            (I) natural persons who are citizens of a 
                        deficit foreign country, or
                            (II) another corporation or other legal 
                        entity that is owned or controlled by natural 
                        persons who are citizens of a deficit foreign 
                        country.
            (3) United states motor vehicle parts.--The term ``United 
        States motor vehicle parts'' means motor vehicle parts produced 
        by United States motor vehicle parts manufacturers in the 
        United States.
            (4) Deficit foreign country.--The term ``deficit foreign 
        country'' means any country with which the United States 
        merchandise trade balance with respect to motor vehicle parts 
        was in deficit in an amount of $5,000,000,000 or more for each 
        of the 3 most recent calendar years for which data are 
        available.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (6) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.

                     TITLE I--TRADE REMEDY ACTIONS

SEC. 101. ``301'' ACTION WITH RESPECT TO BARRIERS TO MARKET ACCESS OF 
              UNITED STATES-MADE MOTOR VEHICLE PARTS.

    (a) In General.--On the 45th day after the date of the enactment of 
this Act, any act, policy, or practice of a deficit foreign country 
that adversely affects the access to such country's market of motor 
vehicle parts produced by United States motor vehicle parts 
manufacturers (including, but not limited to, any act, policy, or 
practice utilized in such country's motor vehicle distribution system) 
shall, for purposes of title III of the Trade Act of 1974, be 
considered as an act, policy, or practice of a foreign country that is 
unjustifiable and burdens or restricts United States commerce. The 
Trade Representative shall immediately proceed to determine, in 
accordance with section 304(a)(1)(B) of such Act, what action to take 
under section 301(a) of such Act to obtain the elimination of such act, 
policy, or practice.
    (b) Negotiation Agenda.--If the Trade Representative decides to 
take action referred to in section 301(c)(1)(C) of the Trade Act of 
1974 with respect to an act, policy, or practice referred to in 
subsection (a), the agenda for negotiations shall include--
            (1) guarantees for sales in the deficit foreign country's 
        market of motor vehicle parts produced in the United States by 
        United States motor vehicle parts manufacturers in an aggregate 
        amount equal to the percentage of such market that would be 
        held by motor vehicle parts produced by United States motor 
        vehicle parts manufacturers if the unfair act, policy, or 
        practice did not exist;
            (2) the elimination or modification of the aspects of the 
        deficit foreign country's motor vehicle distribution system 
        (and any other act, policy, or practice) that act as a barrier 
        to the access to the foreign country's market of motor vehicle 
        parts produced in the United States by United States motor 
        vehicle parts manufacturers; and
            (3) the establishment of procedures for the exchange of 
        information between the appropriate agencies of the United 
        States and the deficit foreign country's government that will 
        permit an accurate assessment of bilateral trade in motor 
        vehicle parts, particularly with respect to the purchase of 
        motor vehicle parts produced in the United States by United 
        States motor vehicle parts manufacturers for use by foreign 
        sources in the foreign country's market.
    (c) Additional Estimates and Consequential Effect.--
            (1) Estimate.--If the Trade Representative decides to take 
        action under section 301(c)(1)(C) of the Trade Act of 1974, the 
        Trade Representative shall promptly estimate, on the basis of 
        the best information available--
                    (A) the percentage share of the deficit foreign 
                country's market for motor vehicle parts that is 
                currently accounted for by motor vehicle parts produced 
                in the United States by United States motor vehicle 
                parts manufacturers;
                    (B) the percentage share of the deficit foreign 
                country's market for motor vehicle parts which would be 
                accounted for by United States motor vehicle parts if 
                an act, policy, or practice referred to in subsection 
                (a) did not exist; and
                    (C) the dollar value of the difference between the 
                percentage shares estimated under subparagraphs (A) and 
                (B).
            (2) Subsequent action.--If the negotiations referred to in 
        subsection (b) are unsuccessful, any action subsequently taken 
        under section 301 of the Trade Act of 1974 in response to the 
        deficit foreign country's acts, policies, or practices shall be 
        substantially equivalent to the dollar value estimated under 
        paragraph (1)(C).

SEC. 102. ANTIDUMPING INVESTIGATION REGARDING MOTOR VEHICLE PARTS OF 
              DEFICIT FOREIGN COUNTRIES.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary shall commence an investigation under section 732(a) of 
the Tariff Act of 1930 to determine if imports of motor vehicle parts 
into the United States that are products of any deficit foreign 
country, or sales (or the likelihood of sales) of such parts for 
importation into the United States, constitute grounds for the 
imposition of antidumping duties under section 731 of such Act.

  TITLE II--EXTENSION AND MODIFICATION OF FAIR TRADE IN AUTO PARTS ACT

SEC. 201. EXTENSION AND MODIFICATION OF FAIR TRADE IN AUTO PARTS ACT.

    (a) In General.--Section 2125 of the Fair Trade in Auto Parts Act 
of 1988 (15 U.S.C. 4704) is amended by striking ``December 31, 1993'' 
and inserting ``December 31, 1998''.
    (b) Functions of Secretary of Commerce.--Section 2123(b) of the 
Fair Trade in Auto Parts Act of 1988 (15 U.S.C. 4702(b)) is amended by 
striking ``and'' at the end of paragraph (6), by striking the period at 
the end of paragraph (7) and inserting ``; and'', and by adding at the 
end the following new paragraph:
            ``(8) coordinate--
                    ``(A) United States policy regarding auto parts and 
                the market for auto parts; and
                    ``(B) the sharing of data and market information 
                among the relevant departments and agencies of the 
                United States Government, including the Department of 
                the Treasury, the Department of Justice, the Department 
                of Commerce, and the Office of the United States Trade 
                Representative.''.
    (c) Definitions.--Section 2122 of the Fair Trade in Auto Parts Act 
of 1988 (15 U.S.C. 4701 note) is amended--
            (1) by striking ``For purposes of'' and inserting ``(a) 
        Japanese Markets.--For purposes of'';
            (2) by adding at the end the following new subsection:
    ``(b) Other Definitions.--For purposes of this part:
            ``(1) The term `auto parts and accessories' has the meaning 
        given the term `motor vehicle parts' in section 1(b)(1)(B) of 
        the Fair Trade in Motor Vehicle Parts Act of 1993.
            ``(2) The term `United States auto parts manufacturer' 
        means a manufacturer of auto parts that--
                    ``(A) has one or more auto parts manufacturing 
                facilities located within the United States, and
                    ``(B)(i) is not owned or controlled by a natural 
                person who is a citizen of Japan; and
                    ``(ii) is not owned or controlled by a corporation 
                or other legal entity, wherever located, which is owned 
                or controlled by--
                            ``(I) natural persons who are citizens of 
                        Japan, or
                            ``(II) another corporation or other legal 
                        entity that is owned or controlled by natural 
                        persons who are citizens of Japan.
            ``(3) The terms `United States-made auto parts and 
        accessories' and `United States-made auto parts' have the 
        meaning given the term `United States motor vehicle parts' in 
        section 1(b)(3) of the Fair Trade in Motor Vehicle Parts Act of 
        1993.''; and
            (3) by striking ``definition'' in the heading and inserting 
        ``definitions''.

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