Peters Leads Group Of Members Stepping Up Pressure On Japan To Open Its Clunkers Program

Press Release

Congressman Gary Peters, whose district is home to Chrysler World Headquarters, General Motors plants and more auto suppliers than any district in the country, has now assembled a bipartisan group of Members of Congress in urging Japan to make good on the promise it made in January to allow U.S. automobiles to participate in its version of a "Cash for Clunkers" program. Forty-Six Members of Congress have signed a letter authored by Congressman Peters sent to Japanese Ambassador Ichiro Fujisaki today calling on the country to make a simple change to its program that would fairly allow U.S. cars to participate.

"The Japanese continue to break their promise. They said they would allow American cars to participate in their cash for clunkers program but have rigged the rules so that few can," said Congressman Peters. "My colleagues and I are urging Japan to modify its program to make good on its commitment to allow American cars to compete. Members with widely varying views on trade, even those who are extremely supportive of free trade policies, have joined to stand up against Japan's broken promise. All we want is a level playing field."

Last month, Japan announced that imported cars using its PHP import certification process (like virtually all U.S. models do) could qualify for its program. However, Japan has designed the program to severely limit the number of U.S. models that will actually qualify for the program to just a few. Congressman Peters originally spoke out on this issue earlier this month when Japan first announced the rules of its clunkers program.

The text of the letter to Ambassador Fujisaki follows. For a PDF copy of the official letter, including all 46 signatures, please click here.

February 23, 2010

Ambassador Ichiro Fujisaki
Embassy of Japan in the United States
2520 Massachusetts Avenue, NW
Washington, D.C. 20008

Dear Ambassador Fujisaki:

Many of us wrote to you on January 15 of this year to raise concerns over discriminatory trade practices in Japan's Eco-friendly Vehicle Purchase Program, or scrappage program. When we wrote you last, government policies designed to implement Japan's vehicle scrappage program had classified all U.S.-based automaker vehicles exported to Japan as ineligible.

We were pleased when Japan's Ministry of Economy, Trade and Industry announced on January 19 that the scrappage program would include opportunities for vehicles imported using the PHP import certification process to qualify, thereby allowing vehicles produced by U.S.-based automakers to participate. This announcement suggested that Japan's program would be more inclusive, as the U.S. program that Congress enacted in 2009 was. The open, inclusive, and transparent U.S. program developed and approved by Congress specifically allowed all global automakers to have vehicles eligible for vehicle purchases incentives, including Japanese automakers.

Despite the January 19 announcement that Japan's program would be open to U.S.-based automakers, Japan recently released a severely limited list of U.S. auto models that qualify for its program. We are disappointed that Japan has unfortunately decided to use EPA "city" mileage ratings instead of EPA "combined city/highway" mileage ratings as the basis for determining eligibility. This significantly limits the eligibility of U.S. auto models for the Eco-friendly Vehicle Purchase Program, and is not in keeping with the earlier announcement that this program would be inclusive and non-discriminatory.

We urge you to reconsider the decision to use EPA "city" mileage ratings, as the "combined city/highway" mileage ratings provide a more accurate rating of vehicles' overall fuel efficiency. We hope that you will reverse this decision, and implement the Eco-friendly Vehicle Purchase Program in a transparent manner that is as inclusive of U.S. autos as possible. Our nation's open-market, free-trade policies and practices must have reciprocal application with our key global trading partners.

We look forward to continuing to work with you on this important trade issue.

Sincerely,

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