II

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; DEFINITIONS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Fair Trade in Motor Vehicle Parts Act of 1993’’.

6 (b) DEFINITIONS.—For purposes of this Act—

7 (1) MOTOR VEHICLE AND MOTOR VEHICLE

8 PARTS.—

9 (A) The term ‘‘motor vehicle’’ means any

10 article of a kind described in heading 8703 or
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1 8704 of the Harmonized Tariff Schedule of the

2 United States.

3 (B) The term ‘‘motor vehicle parts’’ means

4 articles of a kind described in the following pro5 visions of the Harmonized Tariff Schedule of

6 the United States if suitable for use in the

7 manufacture or repair of motor vehicles:

8 (i) Subheadings 8407.31.00 through

9 8407.34.20 (relating to spark-ignition re10 ciprocating or rotary internal combustion

11 piston engines).

12 (ii) Subheading 8408.20 (relating to

13 the compression-ignition internal combus14 tion engines).

15 (iii) Subheading 8409 (relating to

16 parts suitable for use solely or principally

17 with engines described in clauses (i) and

18 (ii)).

19 (iv) Subheading 8483 (relating to

20 transmission shafts and related parts).

21 (v) Subheadings 8706.00.10 and

22 8706.00.15 (relating to chassis fitted with

23 engines).

24 (vi) Heading 8707 (relating to motor

25 vehicle bodies).
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1 (vii) Heading 8708 (relating to bump2 ers, brakes and servo brakes, gear boxes,

3 drive axles, nondriving axles, road wheels,

4 suspension shock absorbers, radiators,

5 mufflers and exhaust pipes, clutches, steer6 ing wheels, steering columns, steering

7 boxes, and other parts and accessories of

8 motor vehicles).

9 The Secretary shall by regulation include as

10 motor vehicle parts such other articles (de11 scribed by classification under such Harmonized

12 Tariff Schedule) that the Secretary considers

13 appropriate to carry out this Act.

14 (2) UNITED STATES MOTOR VEHICLE PARTS

15 MANUFACTURER.—The term ‘‘United States motor

16 vehicle parts manufacturer’’ means a manufacturer

17 of motor vehicle parts that—

18 (A) has one or more motor vehicle parts

19 manufacturing facilities located within the

20 United States, and

21 (B)(i) is not owned or controlled by a nat22 ural person who is a citizen of a deficit foreign

23 country; and
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1 (ii) is not owned or controlled by a cor2 poration or other legal entity, wherever located,

3 which is owned or controlled by—

4 (I) natural persons who are citizens of

5 a deficit foreign country, or

6 (II) another corporation or other legal

7 entity that is owned or controlled by natu8 ral persons who are citizens of a deficit

9 foreign country.

10 (3) UNITED STATES MOTOR VEHICLE PARTS.—

11 The term ‘‘United States motor vehicle parts’’

12 means motor vehicle parts produced by United

13 States motor vehicle parts manufacturers in the

14 United States.

15 (4) DEFICIT FOREIGN COUNTRY.—The term

16 ‘‘deficit foreign country’’ means any country with

17 which the United States merchandise trade balance

18 with respect to motor vehicle parts was in deficit in

19 an amount of $5,000,000,000 or more for each of

20 the 3 most recent calendar years for which data are

21 available.

22 (5) SECRETARY.—The term ‘‘Secretary’’ means

23 the Secretary of Commerce.
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1 (6) TRADE REPRESENTATIVE.—The term

2 ‘‘Trade Representative’’ means the United States

3 Trade Representative.

4 TITLE I—TRADE REMEDY

5 ACTIONS

6 SEC. 101. ‘‘301’’ ACTION WITH RESPECT TO BARRIERS TO

7 MARKET ACCESS OF UNITED STATES-MADE

8 MOTOR VEHICLE PARTS.

9 (a) IN GENERAL.—On the 45th day after the date

10 of the enactment of this Act, any act, policy, or practice

11 of a deficit foreign country that adversely affects the ac12 cess to such country’s market of motor vehicle parts pro13 duced by United States motor vehicle parts manufacturers

14 (including, but not limited to, any act, policy, or practice

15 utilized in such country’s motor vehicle distribution sys16 tem) shall, for purposes of title III of the Trade Act of

17 1974, be considered as an act, policy, or practice of a for18 eign country that is unjustifiable and burdens or restricts

19 United States commerce. The Trade Representative shall

20 immediately proceed to determine, in accordance with sec21 tion 304(a)(1)(B) of such Act, what action to take under

22 section 301(a) of such Act to obtain the elimination of

23 such act, policy, or practice.

24 (b) NEGOTIATION AGENDA.—If the Trade Represent25 ative decides to take action referred to in section
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1 301(c)(1)(C) of the Trade Act of 1974 with respect to an

2 act, policy, or practice referred to in subsection (a), the

3 agenda for negotiations shall include—

4 (1) guarantees for sales in the deficit foreign

5 country’s market of motor vehicle parts produced in

6 the United States by United States motor vehicle

7 parts manufacturers in an aggregate amount equal

8 to the percentage of such market that would be held

9 by motor vehicle parts produced by United States

10 motor vehicle parts manufacturers if the unfair act,

11 policy, or practice did not exist;

12 (2) the elimination or modification of the as13 pects of the deficit foreign country’s motor vehicle

14 distribution system (and any other act, policy, or

15 practice) that act as a barrier to the access to the

16 foreign country’s market of motor vehicle parts pro17 duced in the United States by United States motor

18 vehicle parts manufacturers; and

19 (3) the establishment of procedures for the ex20 change of information between the appropriate agen21 cies of the United States and the deficit foreign

22 country’s government that will permit an accurate

23 assessment of bilateral trade in motor vehicle parts,

24 particularly with respect to the purchase of motor

25 vehicle parts produced in the United States by Unit-
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1 ed States motor vehicle parts manufacturers for use

2 by foreign sources in the foreign country’s market.

3 (c) ADDITIONAL ESTIMATES AND CONSEQUENTIAL

4 EFFECT.—

5 (1) ESTIMATE.—If the Trade Representative

6 decides to take action under section 301(c)(1)(C) of

7 the Trade Act of 1974, the Trade Representative

8 shall promptly estimate, on the basis of the best in9 formation available—

10 (A) the percentage share of the deficit for11 eign country’s market for motor vehicle parts

12 that is currently accounted for by motor vehicle

13 parts produced in the United States by United

14 States motor vehicle parts manufacturers;

15 (B) the percentage share of the deficit for16 eign country’s market for motor vehicle parts

17 which would be accounted for by United States

18 motor vehicle parts if an act, policy, or practice

19 referred to in subsection (a) did not exist; and

20 (C) the dollar value of the difference be21 tween the percentage shares estimated under

22 subparagraphs (A) and (B).

23 (2) SUBSEQUENT ACTION.—If the negotiations

24 referred to in subsection (b) are unsuccessful, any

25 action subsequently taken under section 301 of the
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1 Trade Act of 1974 in response to the deficit foreign

2 country’s acts, policies, or practices shall be substan3 tially equivalent to the dollar value estimated under

4 paragraph (1)(C).

5 SEC. 102. ANTIDUMPING INVESTIGATION REGARDING

6 MOTOR VEHICLE PARTS OF DEFICIT FOR7 EIGN COUNTRIES.

8 Not later than 60 days after the date of the enact9 ment of this Act, the Secretary shall commence an inves10 tigation under section 732(a) of the Tariff Act of 1930

11 to determine if imports of motor vehicle parts into the

12 United States that are products of any deficit foreign

13 country, or sales (or the likelihood of sales) of such parts

14 for importation into the United States, constitute grounds

15 for the imposition of antidumping duties under section

16 731 of such Act.

17 TITLE II—EXTENSION AND MODI18 FICATION OF FAIR TRADE IN

19 AUTO PARTS ACT

20 SEC. 201. EXTENSION AND MODIFICATION OF FAIR TRADE

21 IN AUTO PARTS ACT.

22 (a) IN GENERAL.—Section 2125 of the Fair Trade

23 in Auto Parts Act of 1988 (15 U.S.C. 4704) is amended

24 by striking ‘‘December 31, 1993’’ and inserting ‘‘Decem25 ber 31, 1998’’.
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1 (b) FUNCTIONS OF SECRETARY OF COMMERCE.—

2 Section 2123(b) of the Fair Trade in Auto Parts Act of

3 1988 (15 U.S.C. 4702(b)) is amended by striking ‘‘and’’

4 at the end of paragraph (6), by striking the period at the

5 end of paragraph (7) and inserting ‘‘; and’’, and by adding

6 at the end the following new paragraph:

7 ‘‘(8) coordinate—

8 ‘‘(A) United States policy regarding auto

9 parts and the market for auto parts; and

10 ‘‘(B) the sharing of data and market infor11 mation among the relevant departments and

12 agencies of the United States Government, in13 cluding the Department of the Treasury, the

14 Department of Justice, the Department of

15 Commerce, and the Office of the United States

16 Trade Representative.’’.

17 (c) DEFINITIONS.—Section 2122 of the Fair Trade

18 in Auto Parts Act of 1988 (15 U.S.C. 4701 note) is

19 amended—

20 (1) by striking ‘‘For purposes of’’ and inserting

21 ‘‘(a) JAPANESE MARKETS.—For purposes of’’;

22 (2) by adding at the end the following new sub23 section:

24 ‘‘(b) OTHER DEFINITIONS.—For purposes of this

25 part:
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1 ‘‘(1) The term ‘auto parts and accessories’ has

2 the meaning given the term ‘motor vehicle parts’ in

3 section 1(b)(1)(B) of the Fair Trade in Motor Vehi4 cle Parts Act of 1993.

5 ‘‘(2) The term ‘United States auto parts manu6 facturer’ means a manufacturer of auto parts that—

7 ‘‘(A) has one or more auto parts manufac8 turing facilities located within the United

9 States, and

10 ‘‘(B)(i) is not owned or controlled by a

11 natural person who is a citizen of Japan; and

12 ‘‘(ii) is not owned or controlled by a cor13 poration or other legal entity, wherever located,

14 which is owned or controlled by—

15 ‘‘(I) natural persons who are citizens

16 of Japan, or

17 ‘‘(II) another corporation or other

18 legal entity that is owned or controlled by

19 natural persons who are citizens of Japan.

20 ‘‘(3) The terms ‘United States-made auto parts

21 and accessories’ and ‘United States-made auto parts’

22 have the meaning given the term ‘United States

23 motor vehicle parts’ in section 1(b)(3) of the Fair

24 Trade in Motor Vehicle Parts Act of 1993.’’; and
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1 (3) by striking ‘‘DEFINITION’’ in the heading

2 and inserting ‘‘DEFINITIONS’’.

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