[Congressional Record (Bound Edition), Volume 147 (2001), Part 7]
[Senate]
[Pages 9464-9465]
[From the U.S. Government Publishing Office, www.gpo.gov]



  SENATE CONCURRENT RESOLUTION 43--EXPRESSING THE SENSE OF THE SENATE 
 REGARDING THE REPUBLIC OF KOREA'S ONGOING PRACTICE OF LIMITING UNITED 
          STATES MOTOR VEHICLES ACCESS TO ITS DOMESTIC MARKET

  Mr. LEVIN (for himself and Mr. Voinovich) submitted the following 
concurrent resolution; which was referred to the Committee on Finance:

                            S. Con. Res. 43

       Whereas the Government of the Republic of Korea over many 
     years has provided aid to the Korean automotive industry 
     enabling that industry to develop into the fourth largest 
     automotive industry in the world, after the United States, 
     Japan, and the European Union;
       Whereas the domestic automotive market of the Republic of 
     Korea was completely closed to all international automotive 
     manufacturers until 1990, and not completely open to all 
     automotive manufacturers until 1999;
       Whereas in response to complaints by the United States that 
     the Government of the Republic of Korea was practicing unfair 
     trade in the automotive sector, and that there was continuing 
     anti-import bias and increasing disparity in market access 
     for foreign motor vehicles, the Government of Korea signed 
     two Memorandums of Understanding (MOU) with the United States 
     in 1995 and 1998 in an effort to help increase foreign motor 
     vehicle access to the Korean automotive market;
       Whereas in the 1998 MOU, the Government of the Republic of 
     Korea pledged specifically to simplify its tax regime in a 
     manner that enhanced market access for foreign motor 
     vehicles, improve the perception of foreign motor vehicles in 
     Korea, simplify and streamline Korea's type-approval system 
     procedures for foreign motor vehicles and other standards 
     issues, and establish a mortgage system for motor vehicles;
       Whereas 3 years after signing the 1998 MOU, the Government 
     of the Republic of Korea has not substantially increased 
     market access for foreign motor vehicles and its motor 
     vehicle market still does not operate according to market 
     principles, as evidenced by the fact that the share of the 
     market held by foreign motor vehicles was lower in 2000 than 
     it was in 1998, and remains the lowest of any industrialized 
     nation;
       Whereas 3 years after signing the 1998 MOU, the Government 
     of the Republic of Korea has not made sufficient advances in 
     simplifying its tax regime for motor vehicles or improving 
     the perception of foreign motor vehicles in Korea;
       Whereas 3 years after signing the 1998 MOU, the Government 
     of the Republic of Korea has not taken the necessary steps to 
     implement the MOU fully and effectively, as evidenced by the 
     extraordinarily low foreign motor vehicle presence in Korea;
       Whereas Korea is a major exporter of motor vehicles and 
     automotive parts to the United States, reaching over a total 
     value of $5,910,000,000 last year, compared to a total value 
     of $480,000,000 in United States motor vehicles and 
     automotive parts exported to Korea last year, resulting in a 
     total automotive trade deficit of $5,300,000,000;
       Whereas the extremely low level of United States vehicle 
     sales in the Republic of Korea means that there is great 
     difficulty in selling United States made automotive 
     components, systems, and parts in Korea;
       Whereas 1,057,620 motor vehicles were sold in the Republic 
     of Korea in 2000, only 4,414 (or 0.42 percent) were imported 
     and only 1,268 of those vehicles (or 0.12 percent) were made 
     in the United States;
       Whereas one Korean auto maker maintains monopolistic 
     control of over 75 percent of Korea's domestic market; and
       Whereas some Korean organizations and institutions continue 
     to support anticompetitive activities that perpetuate 
     entrenched commercial interests at the expense of free trade, 
     Korean consumers, and the overall Korean economy: Now, 
     therefore, be it
       Resolved by the Senate (the House of Representatives 
     concurring), That Congress--
       (1) believes strongly that an economically stable Republic 
     of Korea is in the best overall foreign policy and economic 
     interests of the United States;
       (2) notes that past practices, such as protection from 
     international competition, preferential access to credit, low 
     interest loans, and the policy of providing assistance to 
     chaebols in general, and the automotive sector specifically, 
     contributed to the 1997-1998 Asian financial crisis, 
     threatened the economic stability of the Republic of Korea 
     and undermined the relationship between the United States and 
     the Republic of Korea;
       (3) believes that economic policies and practices 
     effectively limiting United States manufacturers' access to 
     the Korean automotive sector are inconsistent with the 
     general trend toward a market-oriented approach, and that the 
     relationship between the United States and the Republic of 
     Korea has been, and will continue to be, significantly harmed 
     by unfair treatment of imports of United States motor 
     vehicles;
       (4) calls on the Republic of Korea to immediately end the 
     practices that have led to the disparity in market access, as 
     well as to take proactive steps to repair the damage done by 
     past policies and practices;
       (5) calls on the Republic of Korea to meet the letter and 
     spirit of the commitments contained in the 1998 Memorandum of 
     Understanding it signed with the United States; and
       (6) calls on the United States Trade Representative, the 
     Secretary of Commerce, and the Secretary of State to monitor 
     and report to Congress on the steps that have been taken to 
     end the disparity in market access for imported motor 
     vehicles in the Republic of Korea.
  Mr. LEVIN. Mr. President, today, as co-chairman of the Senate Auto 
Caucus, I am submitting with my colleague and Auto Caucus co-chairman, 
Senator Voinovich, a Concurrent Resolution urging Korea to remove its 
automotive trade barriers to U.S. automotive exports.
  Our resolutions urges the Republic of Korea to immediately end 
practices that have restricted market access for U.S. made automobiles 
and auto parts and meet the letter and spirit of the commitments it 
made in the 1998 Memorandum of Understanding in Automotive Trade. An 
identical Resolution is being submitted in the House by the co-chairmen 
of the House Auto Caucus. I call on both chambers to act swiftly to 
pass this important measure and send a strong signal to the Government 
of Korea that it's time to remove these trade barriers.
  The Senate and House Auto Caucuses have worked hard to bring 
attention to the rapidly increasing automotive trade deficit between 
the United States and South Korea. We have urged our Government to make 
it a priority to remove barriers to competitive U.S. automotive exports 
to Korea. It is a matter of simple fairness and American jobs.
  When it comes to automotive trade between the United States and 
Korea, the numbers speak for themselves. Korea has the most closed 
market for imported motor vehicles in the developed world with foreign 
vehicles making up less than one half of one percent of its total 
vehicle market. At the same time, Korea is dependent on open markets to 
absorb its automotive exports and has become one of the world's major 
auto exporting countries. The relationship is so blatantly unfair that 
Korea cannot deny their market is closed. Last year, Korea imported 
only 1,000 vehicles from the United States and exported nearly 500,000 
to the United States.
  This grossly unfair automotive trade relationship is due to the 
continuation in Korea of discriminatory practices such as labeling 
foreign vehicles as ``luxury goods''; ignoring harassment by the media 
and others of foreign vehicles owners; and an automotive tax system 
which discriminates against imported vehicles, making them 
prohibitively expensive.
  It's not fair and our message to Korea is that we don't accept it.
  That is why we submit this Concurrent Resolution on the even of the 
next round of trade negotiations between the United States and Korea 
which start in mid-June. The message we wish to send is clear and 
simple: we expect to see some significant market

[[Page 9465]]

opening concessions by the Government of Korea in this round of 
negotiations and we expect to see the result in the form of actual and 
significantly increased sales of U.S. vehicles and parts in Korea.
  After five years of bilateral negotiations and two major trade 
agreements, imported automobiles are still locked out of Korea. This 
situation is unacceptable to the United States Congress and to the 
American people and it has to change. We expect and hope that the 
Korean Government will quadruple the effort that is required of them in 
order to ensure an open Korean market to U.S. automotive products. The 
nearly 2.5 million men and women working in the largest manufacturing 
and highest exporting industry in our country deserve nothing less.

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