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Lawmaker urges US turn up heat on Japan auto program

Published 01/06/2010, 02:13 PM
Updated 01/06/2010, 02:15 PM
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WASHINGTON, Jan 6 (Reuters) - A U.S. lawmaker urged President Barack Obama's administration on Wednesday to bring a World Trade Organization case against Japan if it does not open up its cash-for-clunkers renewal program to American cars.

"We cannot sit idly by while we play by the rules and allow the Japanese cash-for-clunkers program to continue to discriminate against our American manufacturers and workers," Rep. Betty Sutton, an Ohio Democrat, said in a statement.

"That's why I introduced a resolution yesterday that calls for the U.S. Trade Representative to immediately initiate discussions with the government of Japan to identify and remedy violations of Japan's trade obligations," Sutton said.

If those talks fail, the United States should then move to file a formal complaint at the WTO, she said.

U.S. automakers Ford Motor Co, General Motors Corp and Chrysler complained to U.S. Trade Representative Ron Kirk in December that Japan's fleet renewal program effectively bars U.S. firms from participating.

In contrast, the U.S. cash-for-clunkers program was open to all auto manufacturers doing business in the United States, said Sutton, a driving force behind the legislation to encourage consumers to buy more fuel-efficient vehicles.

Japanese brand autos accounted for almost half of the 677,842 vehicles sold under the $3 billion U.S. program, which ran from late July to late August.

U.S. trade officials have said they believe changes are needed in Japan's scrappage program to give U.S. vehicles greater opportunity to participate. (Reporting by Doug Palmer; Editing by Anthony Boadle)

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