1a16 
[DOCID: f:sc43is.txt]






107th CONGRESS
  1st Session
S. CON. RES. 43

Expressing the sense of the Congress regarding the Republic of Korea's 
ongoing practice of limiting United States motor vehicles access to its 
                            domestic market.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2001

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

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
Expressing the sense of the Congress regarding the Republic of Korea's 
ongoing practice of limiting United States motor vehicles access to its 
                            domestic market.

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.
                                 <all>

0