Democrats Propose Curb On Japanese Car Imports; Bill Demands Tokyo Eliminate Trade Surplus
House Majority Leader Richard A. Gephardt (D-Mo.) and Michigan Democrats yesterday proposed legislation that would slash Japanese car imports by nearly one-third unless Japan eliminates its $42 billion trade surplus with the United States over the next five years.</br></br>They said they will push for enactment of the bill next year unless the trade mission that President Bush will lead to Japan and other Asian countries early next year returns with a firm commitment from Japan to reduce the trade imbalance by voluntary action.</br></br>"If the president's actions in Asia next year are insufficient, and I fear they will be, progress on trade will finally come from the remedies we have written," Gephardt told a news conference on Capitol Hill.</br></br>Just hours later, the Commerce Department stepped up the political heat on the Japanese with a preliminary ruling that Japanese automakers were dumping their popular minivans in the United States by selling them at less than fair value. The ruling starts a three-step process that could lead to the United States imposing heavy duties on the minivans. A final ruling will be made by May 11.</br></br>The Democratic initiative also comes just two days after General Motors Corp. said it will eliminate 21 plants and 74,000 jobs over the next four years, helping push the trade controversy with Japan to the forefront of issues that Democrats can be expected to stress in the upcoming political campaigns.