IV 

111TH CONGRESS 

2D SESSION H. RES. 997 

Expressing the sense of the House of Representatives regarding unfair and 

discriminatory practices of the Government of Japan in its failure to 

apply its current and planned extension of the Government’s Eco-friendly 

Vehicle Purchase and scrappage program to imported vehicles made 

by U.S. automakers. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 5, 2010 

Ms. SUTTON submitted the following resolution 

JANUARY 12, 2010 

Referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

RESOLUTION 

Expressing the sense of the House of Representatives regarding unfair and discriminatory practices of the Government of Japan in its failure to apply its current and 

planned extension of the Government’s Eco-friendly Vehicle Purchase and scrappage program to imported vehicles 

made by U.S. automakers. 

Whereas the President of the United States approved on 

June 24, 2009, the United States ‘‘Consumer Assistance 

to Recycle and Save’’ (CARS) Act to jumpstart auto 

sales and increase motor fuel savings nationwide by proVerDate Nov 24 2008 06:33 Jan 13, 2010 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6300 E:\BILLS\HR997.IH HR997

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HRES 997 IH 

viding incentives to registered owners of high polluting 

automobiles and replace such automobiles with new fuel 

efficient and less polluting automobiles, otherwise referred to as the ‘‘Cash for Clunkers Program’’; 

Whereas the U.S. CARS program was launched by the U.S. 

Department of Transportation on July 27, 2009, with an 

initial appropriation of $1 billion and extended on August 

6, 2009, with an additional sum of $2 billion; 

Whereas when it ended on August 25, 2009, a total of 

677,842 new vehicles were incentivized and purchased 

through the program, all of which improved the U.S. 

economy and provided jobs in the automobile industry; 

Whereas, according to the U.S. Department of Transportation data, the share of transactions by manufacturers 

of the total number of new vehicles incentivized included: 

120,507 Toyotas, 90,135 Fords, 87,585 Hondas, 86,354 

Chevrolets, 58,700 Nissans, 48,780 Hyundais, 24,119 

Dodges, 16,144 Mazdas, 12,418 Volkswagens, 9,033 

Chryslers, and 3,663 Lexuses, for a total of over 319,000 

Japanese brand automobiles, which clearly demonstrates 

that the U.S. ‘‘Cash for Clunkers’’ program was open to 

all automobile manufacturers doing business in the U.S.; 

Whereas the Japanese Government in April 2009, as part of 

its ‘‘economic crisis measures’’, adopted as its version of 

the U.S. CARS program an ‘‘Eco-friendly Vehicle’’ program, which the Japanese Auto Dealer Association on 

April 10, 2009, described as a subsidy to achieve effective 

environmental and economic measures by promoting purchase of new vehicles with high levels of environmental 

performance, leading to stimulation of the Japanese auto 

industry; 


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HRES 997 IH 

Whereas the Japanese Government is planning to extend the 

current Japanese automobile scrappage and subsidy program as early as January 2010; 

Whereas, unlike the U.S. CARS program of 2009, the current Japanese Eco-friendly Vehicle Purchase Program is 

not open and available to all imports of U.S. automobile 

manufacturers because the Japanese program is only 

available to automobile models that use a full Government procedure called ‘‘Type Approval’’ of each model 

that generates an official fuel economy rating; 

Whereas as U.S. automobile importers use a more cost efficient Preferred Handling Procedure (PHP), which is accepted by the Japanese Government for imported vehicles 

sold in Japan; 

Whereas even though many U.S. imported automobiles have 

comparable or better fuel efficiency than Japanese vehicles, they do not qualify for the Eco-friendly Vehicle Purchase Program; 

Whereas the House of Representatives strongly believes that 

the current Japanese Government’s Eco-friendly Vehicle 

program is unfair and discriminatory in its implementation and its failure to apply to low volume automobile imports of U.S. automobile manufacturers by excluding fuel 

efficient U.S.-made automobiles that meet the same fuel 

economy requirements of the United States that automobiles of Japanese manufacturers met in 2009 under 

the U.S. Cash for Clunkers program in qualifying for 

U.S. incentives for their automobiles; and 

Whereas such exclusion amounts to the Japanese Government engaging in unfair and discriminatory practices 


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contrary to international treaty requirements of the 

World Trade Organization: Now therefore, be it 

1 Resolved, That it is the sense of the House of Rep2 resentatives that— 

3 (1) the President shall direct the United States 

4 Trade Representative with support, assistance, and 

5 cooperation of the Secretary of State, Secretary of 

6 Transportation, and as appropriate, other Federal 

7 agencies to immediately initiate discussions with the 

8 Government of Japan to identify and remedy viola9 tions of Japan’s trade obligations under applicable 

10 World Trade Organization requirements for its dis11 criminatory policies and practices in regards to not 

12 applying incentives for United States automotive im13 ports under Japan’s Eco-friendly Vehicle Purchase 

14 Program, and if no adequate relief is promptly 

15 forthcoming to file appropriate measures and com16 plaints to initiate dispute resolution actions under 

17 authority of the World Trade Organization; 

18 (2) any such action should include a detailed 

19 analysis of the financial costs and other impacts on 

20 the economy of the United States which were in21 curred by the implementation of the U.S. CARS in22 centives program in regards to Japanese manufac23 tured automobiles that received subsidies; and 


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1 (3) the Secretary of State with the cooperation 

2 and assistance of the Secretary of Transportation, 

3 the United States Trade Representative, and other 

4 relevant Federal officials should take immediately 

5 diplomatic and other measures to ensure that any 

6 extension by the Japanese Government of the Eco7 friendly Vehicle Program is fair and not discrimina8 tory in regard to U.S. manufactured automobile im9 ports to Japan. 

10 SEC. 2. The Clerk of the House of Representatives 

11 shall transmit a copy of this resolution to the President. 

Æ 


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