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Diplomacy in Action

87. Announcement, Ambassador Kantor, regarding agreement to increase market access for passenger vehicles into South Korea (September 28, 1995)




Executive Office of the President
Washington, D.C.

Thursday, September 28, 1995

Contact: Anne Luzzatto
Dianne Wildman
Kirsten Powers
(202) 395-3230

Super 301 Report Transmitted to Congress by USTR President Extends Super 301 by Executive Order USTR Kantor Announces Agreement with Korea on Autos

Super 301 Transmitted to Congress

As required by the Super 301 provisions in U.S. trade law, Ambassador Kantor has transmitted a report to the Senate Finance and House Ways and Means committees on his review of U.S. trade expansion priorities.

Ambassador Kantor said about the review, "We have sought to ensure that we have identified the most significant trade barriers affecting U.S. goods and services exports and that we are taking effective actions to address them. We will address these barriers using every means at our disposal, including international dispute settlement proceedings, bilateral, regional and multilateral negotiations, and our trade laws. We are especially committed to using our trade laws to enforce U.S. rights under trade agreements."

USTR Kantor will periodically review the status of our efforts to eliminate the practices cited in the report and will adjust our strategies appropriately based on the progress being made. In light of the results of recent negotiations, Ambassador Kantor decided not to identify any priority country practices this year.

Extension of Super 301

Ambassador Kantor also announced that the President signed yesterday an executive order extending the Super 301 provisions in U.S. trade law for another two years. The President reinstated Super 301 by Executive Order 12901 of March 3, 1994. That order requires the Trade Representative in 1994 and 1995 to review U.S. trade expansion priorities and to cite significant foreign trade barriers which should be identified as priority foreign country practices. In announcing the extension, Ambassador Kantor said, "Super 301 has been an effective tool in identifying foreign unfair practices and encouraging their removal. We are extending Super 301 at this time in order to send a clear signal to our trading partners that we intend to vigorously enforce our trade agreement rights and to pursue foreign unfair practices."

Agreement on Autos Reached with Korea

Also today, USTR Mickey Kantor announced that Korea and the United States have reached an agreement to increase market access for U.S. and foreign passenger vehicles into Korea. The agreement is a significant step forward in creating a more competitive environment for U.S. autos, particularly the mid-sized vehicles U.S. companies produce.

Although Korea's auto practices have not been designated as a Priority Foreign Country under Super 301, Korea will remain in the Super 301 Report under Category III, and we will continue to monitor closely progress in implementing the agreement and the results of ongoing consultations.

In the agreement, Korea agreed to liberalize standards and certification practices, reduce taxes that discriminate against imported vehicles, permit foreign advertisers equal access to television advertising time, allow foreign majority ownership of auto retail financing entities and improve consumer perception of imports in that country. Korea also has made a commitment not to introduce any new measures that adversely affect market access. (see separate press release dated September 28, 1995)

Since the Clinton Administration began, we have concluded over 150 trade agreements, including the North American Free Trade Agreement, the Uruguay Round and historic trade agreements with Europe, Japan and China. Many of these successes occurred because of our willingness to enforce our trade laws if other nations were not living up to their agreements, or were acting uncompetitively. We have set the stage for trade expansion in Asia through the Asia Pacific Economic Cooperation forum with the Bogor Declaration; and announced creation of a Free Trade Area of the Americas by 2005 at the historic Summit of the Americas. And we have led the world in addressing issues which affect trade but were previously considered out of bounds in trade agreements, including corruption, labor and the environment.

By leading, we have ensured -- and will continue to ensure -- that these agreements were shaped on our terms.

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