[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3830 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3830

To prevent unfair practices and ensure an open market in the automobile 
                   industry, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 3, 2006

Ms. Stabenow (for herself and Mr. Levin) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To prevent unfair practices and ensure an open market in the automobile 
                   industry, 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.

    This Act may be cited as the ``South Korean Fair Trade Act''.

SEC. 2. PURPOSE.

    The purposes of this Act are to level the playing field for 
domestic manufacturers and workers engaged in the production and 
interstate sale and export of motor vehicles until the conditions 
outlined in this Act are implemented by the Government of South Korea 
and the South Korean automobile industry.

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) The Government of South Korea imposes an 8 percent 
        tariff on United States motor vehicle imports, 3 times the 
        United States tariff imposed on South Korean motor vehicles.
            (2) Since 1995, the United States has engaged in a 
        negotiating process with the Government of South Korea to 
        obtain fair access for United States motor vehicle producers 
        and manufacturers to the Korean market. The negotiations have 
        included a 1997 investigation under section 301 of the Trade 
        Act of 1974, and the designation of South Korea as a ``priority 
        foreign country'' under section 310 of that Act because of 
        South Korea's barriers to foreign motor vehicle imports.
            (3) South Korea has failed to recognize the major goals of 
        the 1998 Memorandum of Understanding, which include--
                    (A) increasing foreign-made motor vehicle market 
                access; and
                    (B) taking no further measures to obstruct foreign-
                made motor vehicles from market access.
            (4) South Korea discriminates against United States 
        produced motor vehicles by adding an additional tax on vehicles 
        with large engines, even though the 1998 Memorandum of 
        Understanding provided for a 30 percent reduction on this 
        special consumption tax.
            (5) South Korea maintains a strong ``Buy Korea'' bias in 
        its markets, and uses public relations campaigns to convince 
        the public not to buy foreign produced motor vehicles.
            (6) Out of 1,014,000 motor vehicles sold in South Korea in 
        2005, only 31,000 (2.72 percent) were imported from other 
        countries. The South Korean motor vehicle market is by and 
        large closed to foreign manufacturers, whose combined share is 
        less than 3 percent. South Korea has the lowest import 
        penetration percentage of any developed country in the world.

SEC. 4. FREEZE OF EXISTING DUTIES ON KOREAN MOTOR CARS AND MOTOR 
              VEHICLES.

    Notwithstanding any other provision of law, the duty in effect on 
July 31, 2006, on motor cars and motor vehicles imported directly or 
indirectly from South Korea under heading 8703 or 8704 of the 
Harmonized Tariff Schedule of the United States shall remain in effect 
until the date that is 15 days after the date on which the Secretary of 
Commerce certifies to Congress that at least 20 percent of the total 
number of units of motor cars and motor vehicles sold in South Korea 
each year are made in a country other than South Korea.
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